Real Estate Developer Rakindo to invest Rs 300-400 crore in Various Coimbatore Projects

Rakindo Developers Pvt Ltd, the real estate master planner and developer, has plans to invest about Rs 300-400 crore in this fiscal (2011-2012) across various real estate developments, at its Kovai Hills project in Coimbatore. The investment entails the development of a golf course, a golf academy, a sports complex, a club-house and few residential spaces at the 850 acre property. The funds will be generated mainly through internal accruals and customer advances.

Here it deserves a mention that Kovai Hills is a golf-centric integrated township near Perur, Coimbatore, set to be built on an 850 acre property that is host to hill ranges, an 18-hole championship golf course, world class villas and unparalleled luxury amenities, swamped by an abundance of nature.

Speaking to Realty Plus, Shiva Lakshmanan, assistant vice president (business development), Rakindo Developers, informed, “For the next one year, we plan to invest around Rs 300-400 crore across various developments at the Kovai Hills project. This includes some residential space, a golf course, a golf academy, a sports complex and a club-house.” The sports complex is expected to include 3-4 outdoor and indoor sports like tennis, badminton, cricket, table-tennis, squash, etc.

“Other than the regular sports activities, we will also be having coaches at the academy who will train and help all those who are interested in various sports activities. Hence all aspects of being physical will be entertained at the academy,” Shiva further added.

Their ongoing development at Kovai Hills includes an affordable housing project called Orchids, which will be handed over within the next one year. Two other residential spaces where work has already started are titled Slopes and Highlands. These too will be developed in the next one year and are expected to be completed by 2013.

The group is also in the process of advanced talks with hospitality players for their Kumarakom Wetlands and Chennai Marina projects. These projects are currently in the pre-development stages and will be launched in the next fiscal.

ASK Real Estate Puts Rs 50Cr Into Chennai SPV

BY TEAM VCC

This is the fifth investment from the fund, promoted by the ASK group which is into wealth management.

ASK Real Estate Special Opportunities Portfolio 1, a realty-focused private equity fund, has invested Rs 50 crore in a company floated by Chennai’s Real Value Group. Real Value Group’s SPV is developing a residential project of 6.75 lakh sq. ft., spread across 4.32 acres at Kottivakaam in Chennai.

This is the fifth investment from the fund, promoted by the ASK group which is into wealth management, and raised in 2009. The infusion will be used for a residential project at Kottivakaam in Chennai, which will see erection of 6.75 lakh sq. ft. of space on a plot measuring 4.32 acre, a release issued by the ASK group stated. The project is within walking distance from Taramani Railway Station and in close vicinity of IT landmarks like TIDEL Park, Cognizant, Asendas IT Park, RMZ Millenia Business Park and SP Infocity. The venture can, therefore, cater to buyers in leading IT companies located in these IT parks, the release said.

Launched in 2009, ASK Real Estate Special Opportunities Portfolio is a fund of ASK Property Investment Advisors, a venture of the ASK group set up to manage and advise real estate dedicated funds. It invests in cities like Mumbai, Delhi-NCR, Bangalore, Chennai, Pune, Hyderabad and Kolkata. This is the fifth investment from the fund and has committed 80 per cent across Pune, Delhi-NCR, Chennai and Bangalore. The fund has previously invested Rs 255 crore and Rs 270 crore in real estate projects of Amit Enterprises Housing Ltd and Darode Jog Realties respectively.

Indian realty sector has been on a recovery path after seeing the asset price bubble burst in 2008 with credit squeeze and high interest rates. Although the revival was led by rising demand for residential housing projects, commercial realty has seen an uptick for the last six months. Recently, Red Fort Capital backed two residential projects in the Delhi-NCR region. Funding action is picking up in the real estate space: Noida-based realty firm Amrapali Group is raising Rs.80 crore from ICICI Prudential Asset Management Company, for a 22 acre residential project in Noida while Netherlands-based financial institution FMO is investing $55 million (Rs 250 crore) in Pune-based realty project of Kumar Urban Development Ltd (KUL), through CCDs.

Lemon Tree, Warburg to invest Rs 1,400 cr on housing projects

NEW DELHI: Hospitality firm Lemon Tree Hotels is foraying into real estate with plans to invest over Rs 1,400 crore to launch housing projects in India in partnership with US-based investment firm Warburg Pincus.

The Capital-based firm has formed a 51:49 joint venture -- Oceanus Real Estate Pvt Ltd -- with Warburg Pincus for the housing projects.

Besides diversification into housing, the hospitality chain has put in place a blueprint to expand in its core business within India and explore neighboring markets like Nepal and Sri Lanka.

"The joint venture with Warburg Pincus will develop at least three to four affordable housing projects in Gurgaon," Lemon Tree Hotels Chairman and Managing Director Patu Keswani told PTI. 

Out of a total planned investment of Rs 1,400 crore by 2015, the JV will invest Rs 700 crore while Warburg Pincus alone will put another Rs 700 crore separately, he said.

Keswani said the residential apartments would be sold under the 'Lemon Tree' brand in the range of Rs 20 lakh to Rs one crore per unit.

"We have already identified a couple of sites in Gurgaon and will begin construction soon and start selling by December this year," he said.

In 2006, Warburg Pincus had invested in Lemon Tree Hotels and currently own 25.8 per cent stake.

In the hospitality segment, the company currently owns and operates 14 mid-scale Lemon Tree hotels in the country with a total capacity of 1,500 rooms.

"By mid 2013, we have a plan to own and operate total 20 hotels with 2,800 rooms and then we have a plan to go public by making an IPO," Keswani said.

The first Lemon Tree hotel was opened in 2004 and since the inception in 2000, Rs 1,600 crore has been invested in the company.

Asked about revenues, while he did not provide figures for the past fiscals, he said this financial year Lemon Tree Hotels expects the turnover to be around Rs 300 crore.

Besides, domestic expansion, Keswani is also exploring Nepal and Sri Lanka to set up Lemon Tree hotels.

"International expansion plans is at a preliminary stage at the moment," he said.

Keswani, who also runs a budget hotel chain under the Red Fox brand with three properties through a separate entity, Spank Hotels Pvt Ltd , said it is also being expanded.

"Red Fox hotels are run by separate company and we have a plan to have a total of six such hotels in the next two and a half years with 1,000 rooms," he said.

Keswani also said he is considering to set up a 250 room hotel in New York in his individual capacity in partnership with "with a friend" but not under Lemon Tree brand. He did not give details about the same. 

Source: Economic Times

Real Estate Site Groffr To Raise Rs 2-3Cr From Angels

The funds will be used to expand the business in five or six cities. Source: VCCircle

Mumbai-based RCSPL, which owns real estate group buying portal GrOffr.com, is set to raise Rs 2-3 crore from angel investors. This is the start-up’s series A round of funding and the first tranche is of Rs 2 crore, sources informed Techcircle.in. It is learnt that some members of the Indian Angel Network (IAN) are likely to invest in the company and the deal is expected to close shortly.

Additionally, the funds will be used to expand the business in five or six cities. Currently, Groffr.com (which stands for ‘Group Offer’) offers deals in Hyderabad, Bangalore and Mumbai.

GrOffr.com was founded in July, 2010, by IIM-Kozhikode passouts Vikhyat Srivastava and Sandeep Reddy, who quit their jobs as analysts with Kotak Mahindra Group to start their own venture. Its focus is on real estate and lifestyle products (automobiles, BlackBerry, diamond jewellery, watches, LED televisions), as well as services such as ticketing and helicopter rides.

The company recently took over the assets of Mobstreet.in and brought on board its founder Spandan Jasmin Tolia.

IAN has 140 members and funded 23 ideas so far. It is on track to complete two more investments in start-ups this month. In February, the network invested in Jigsee Inc., which enables video streaming on mobiles. Slideshare competitor authorGEN Technologies, online return filing site Tax Spanner, InnovizeTech Software (Sapience), Druvaa and Kwench are other recent investments by the network.

Some of the large group buying sites in India include Groupon India, SnapDeal, Mydala, Koovs and Dealsandyou.