PRABHADEVI | DB Crown | 337 m | 75 fl x 3 | U/C

[TutConr]

DB Realty Q3 net profit down 89% at Rs 11.7 cr

DB Realty reported a consolidated net profit of Rs 11.7 crore in the third quarter of FY12, a fall of 89.2% as compared to Rs 108.7 crore in a year ago quarter.
Consolidated revenue declined 61.6% to Rs 104.8 crore from Rs 273.2 crore year-on-year.
Consolidated EBITDA margins dropped drastically at 15.36% in the October-December quarter of FY12 versus 49.4% in the corresponding quarter of last fiscal.

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This definitely will have a negative impact on this project.

Source : http://www.moneycontrol.com/news/res...cr_666168.html

[nishanth.kh9]

Guess all DB projects including India tower will be scrapped or delayed for ever

[Savz]

No i don't agree....i feel they Wud all wake up from d dead some day. And then stand as monstrous giants.

[sixsigma1978]

Originally Posted by TutConr

DB Realty Q3 net profit down 89% at Rs 11.7 cr


This definitely will have a negative impact on this project.

If anything - it should have a positive impact - they're not out of funds - their profits have dropped - which means greater impetus to bring U/C projects to completion.

[jinka sreekanth]

+1

[adhishvelu]

Originally Posted by sixsigma1978

If anything - it should have a positive impact - they're not out of funds - their profits have dropped - which means greater impetus to bring U/C projects to completion.

How can you say that they are not out of funds?

if you don't have money to build the projects how will you do so even if you want to? I wonder who will finance their projects? Perhaps they have some other source of funds. maybe they can sell some of the land they own to finance these unfinished projects.

[sixsigma1978]

Profits Down != No reserve capital

[adhishvelu]

Plus their cashflow must be pretty bad considering how many projects they have UC and how few they have actually completed.

[Indiadreams]

The financials of Real Estate and EPC business need not grow on a continuous basis, like manuafacturing and other service sectors. It is driven by completion of projects. The increase or decrease in profits doesn't imply anything on itself. It has to be analysed why it is so. And more importantly the accounting method (project completion /percentage completion) chosen by the real estate company has lot of implications on its financials.

In short, there is no direct connection between profits, availability of funds and progress of ongoing projects. Deeper analysis is needed for understanding their finacial position.

[MeMumbaikar]

^
correct


however we cannot escape the fact that there is been a major slowdown in real estate and construction across the board.


In DB's case it might be due to many projects being blocked off from being completed.


Still a profit is a profit. They are not in the red. Plus as far as i am aware they are still sitting on IPO money.

[dunefreezer]

Now they got the environmental clearances. Can anybody tell me how many times would they have to get the clearances. It is so complicated we need to make a timeline with respect to when these clearances come into place and what they are.
Source

State green nod to luxury housing project
Mumbai, March 13, 2012

After being rejected for a green clearance twice, Orchid Crown, a luxury housing project in Prabhadevi, has finally got the go-ahead by the state environment panel. The project is being developed by Real Gem Tech Pvt Ltd, a subsidiary of DB Realty has finally got a go ahead by the state environment panel.

The state environment impact assessment authority (SEIAA), which has the final say in green clearances to all construction projects over 20,000 sq meters in the state, cleared the project in its last meeting in February.

The luxury housing project envisages three residential towers, two 60-storey and one 51-storey building, with three, four and five BHK flats for sale.


The project had been in queue for a green go ahead since 2010 and had been slammed repeatedly by the state expert appraisal committee (SEAC) — a body of experts — which had rejected this project for clearance twice on grounds of very high construction area that worked out to nearly 15.8 times the plot size. The SEIAA said the green approval had now been given as the project developers had complied with most points raised by the expert panel.

“The project proponent has reduced total construction area by about 45,000 sq meters, or 13 % of the original construction area, the number of basements has been reduced from three to two, number of tenements from 534 to 450 and parking spaces from 1360 to 1132,” stated the minutes of the SEIAA meeting.

However, there are still hurdles ahead for the project as the civic body has amended its parking policy, restricting the civic car park to four storeys. Orchid Crown has envisaged a 14-storey parking tower. The civic body had sent it a show cause notice asking why the commencement certificate for the car park should not be revoked.

[Savz]

Originally Posted by dunefreezer

Now they got the environmental clearances. Can anybody tell me how many times would they have to get the clearances. It is so complicated we need to make a timeline with respect to when these clearances come into place and what they are.
Source

Gr8 update dune. Good to see this coming along. Has the no of floors for this tower reduced????

[dunefreezer]

Del

[IU]

The number of floors have actually increased.

The towers sit on top of the MCGM parking lot and for the purpose of obtaining clearances have a separate floor count.

The first ever proposal made to the SEAC in May 2010 envisioned 2 x 54 fl + 56 fl towers on top of a 14 floor parking podium:


- from SEAC's meeting minutes (page 19)


This is the new revised proposal:


-from SEIAA's meeting minutes from Feb 2012 (page 19)

Add up the individual towers' floor count (60,60,51) with the 14 storey parking lot and you'll get an idea of the overall floor count.

[dunefreezer]

Wow. Nice. So in that respect, guess they actually increased the number of floors for 2 towers and decreased for the other. But I think they are going to reduce the 14 floor parking which will shorten the overall height.

So?
Tower A = 363.6 m
Tower B = 369.6 m
Tower C = 325.8 m
(From Ground level)

Which is not final since they will probably change the car parking structure height.

IU, in the same link, it looks like one of Indiabulls projects have also gotten the Green clearances, that includes 2 residential buildings 251.6 m) and 2 commercial buildings (269.6 m). Which project is that?

[KillerZavatar]

is that pinnacle or roof height?

[IU]

KillerZavatar - pinnacle height

dunefreezer - I believe those heights are from ground level. The structure of the towers are independent of the podium and always get built first, so the max height here would be 320.10 meters.

For the first 49.50 meters, there won't be any proper floors in the tower's structure since all the amenities, lobby etc are located on/above the podium. We'll have to wait and see what happens with the podium parking. That's one reason why they got the extra FSI to build so tall.

The other project is Indiabulls' Worli project
http://www.skyscrapercity.com/showthread.php?t=1464323

[dunefreezer]

LOL....BMC is getting its ass kicked by the High Court.

Source

HC strikes down civic body showcauses to 6 developers
Mumbai, Tue Mar 20 2012, 00:36 hrs

In a breather to six realty majors, the Bombay High Court has stuck down the notices issued by the Brihanmumbai Municipal Corporation (BMC) to their projects constructed under the parking FSI policy.

These include luxury residential projects like DB Realty’s Orchid Crown at Prabhadevi, Indiabulls Sky Forest at Jupiter Mills and Sky Suites at Elphinstone Mills, the proposed 117-storey World One Tower by Lodha at Shrinivas Mills, Kohinoor Square at Kohinoor Mills in Dadar and Palais Royale at Shreeram Mills in Worli. These were the first few projects that were approved under the BMC’s policy of allowing developers a maximum FSI of 4 if they construct a public parking lot on their plot and hand it over to the BMC.

The policy, once enforced in August 2009, resulted in a spate of projects where the parking lots were as high as 15 storeys so that the developers could get the extra FSI and construct 50-storey high-rises.

Municipal commissioner Subodh Kumar then issued a circular revising the policy to limit the height of the parking lot to two basement and ground plus four storeys. In the above six cases, the commencement certificates (CCs) had been issued before revising the rules. The BMC issued show-cause notices to all these projects under Section 51 of the Maharashtra Regional and Town Planning (MRTP) Act asking the developers why the BMC should not revoke their CC unless they modified their plans in keeping with the revised rules.

The court held that the policy cannot be revised through a mere circular and that the state government must amend the Development Control Regulations (DCR) in order to bring about any change in the rules. State government officials confirmed that they would be issuing the amended rules soon.

“While at first the BMC circular said the number of basements should be limited to two, the commissioner has recently decided to increase it to three. He added a new category of light commercial vehicles (80 sq m slots) to the existing parking category of cars (50 sq m slots) and buses (120 sq m slots),” said a senior government official, adding that these revisions won’t be valid until the DCR is amended.

The official added that of the six cases, projects where construction was at an advanced stage would get further respite and the builders may not have to pay the premium for the incentive FSI as required under the new rules. The official said under Section 51 of the MRTP Act, “no such order. shall be passed after these operations have substantially progressed”.

This decision is expected to particularly benefit Kohinoor Square and Palais Royale as in both cases, construction has been carried out far beyond the stipulated four floors.

This is what happens when you try to stop construction that is in an advanced stage, BMC should understand this.

[Ashbaggins]

What does it mean for the other 4 constructions? Will they have to change their designs or reduce the height of their buildings?

[dunefreezer]

The HC basically gave a waiver to all the highlighted projects above to continue with their original plan since these projects were already under construction, as it was not fair to stop construction and force them to change the plans.