LOWER PAREL | DLF Towers | 90 fl x 3 | Cancelled

[MeMumbaikar]

Originally Posted by mdhar.v12

It's better that they sell of this land parcel.....so that other developers like Lodha,Obeari can construct huge towers on this land parcel....as they already have permissions....

depends on construction climate.

builders are facing liquidity issues.


Plus DLF has more than enough assets to sell to make this debt burden lower.


Its just that the interest rates are biting hard. Added to the fact that volume from which they can pay back the debt is collapsing at such a high premium luxury level.




Best that can happen is somebody with enough cash buys the plot. Sits on it till there are better times in Mumbai in terms of sentiment and climate.


My hope is that somebody corporate wants to make a big statement. Come on Tata, build a big signature tower

[bhargavsura]

Originally Posted by sammyk

Your math is wrong. More like $4.3B.

Oh yes. Actually I added two extra zeros. This figure sounds reasonable.

[mdhar.v12]

DLF looks to sell NTC Mill land in central Mumbai for Rs 4,000 crore

NEW DELHI: DLF, India's largest real estate developer, has decided to sell its prized asset, the 17.5 acres NTC Mill land in central Mumbai, which bankers estimate would fetch between Rs 3,000 crore and Rs 4,000 crore that will make it one of the biggest land deals in the country.

The company that bought the land for Rs 702.2 crore in 2005, has started the process of appointing investment bankers for the proposed transaction that is likely to complete in the current fiscal, said two persons familiar with the development.
More than four foreign investment bankers including UBS, Morgan Stanley and Deutsche Bank have already given presentations to the company. The appointment process is likely to complete by month end. Rajiv Talwar, group executive director, refused to comment. "We do not comment on market speculation."

The proposed fund raising exercise through sale of assets is in-line with annual target to raise Rs 7,000 crore through this route, a company executive told ET on the condition of not to be named. The fund will be used to reduce its debt, which is slightly over Rs 21,000 crore.

"The consultants are giving a guidance between Rs 2,500 crore and Rs 3,000 crore for the land, while the company is aiming to fetch a much higher price of Rs 4,000 crore," the person said.

Though, DLF has stated that it would sell only non-core assets and lands, where it has no immediate development plan, the Mumbai land is considered to be of great importance for the country's largest builder, as it would have helped it to venture into the Mumbai market.

The company has a bigger project in Mumbai near Mahalaxmi Race Course, which it would develop in consortium with Shapoorji Pallonji and Ackruti, the official said.

http://articles.economictimes.indiat...-mill-land-m3m

[sixsigma1978]

what bigger project are they talking about?

[deekshith]

Joyous housing, 125 floors

[sixsigma1978]

This one in IU's post?
http://www.skyscrapercity.com/showpo...postcount=6270

[deekshith]

[deekshith]

Another related article

DLF to exit Mumbai by selling Rs 2,500 cr plot

Huge debt and rising interest costs have forced DLF, India's largest property developer, to sell 17.5 acres of land in Lower Parel in Mumbai, which investment ban*kers say could fetch over Rs 2,500 crore.

Two officials close to the development told Financial Chronicle that DLF had appointed a leading property consultant in Mumbai to sell the land and was in talks with leading developers.

One official said the land had been excavated and was ready for construction.

When contacted, Rajeev Talwar, group executive director of DLF, denied any plan to sell the land. “This is market speculation and we are not looking at selling the land. It is one of our biggest projects.”

DLF had plans to build a 90-storey super luxury residential tower project on the land, which it had bought from defunct National Textile Corporation in 2005-06 for Rs 702 crore. The plan was to build around 2,000 apartments to be sold at Rs 8-10 crore each.

Initially, DLF’s plan was to build a big mall, which was then changed in favour of a commercial-cum-residential complex. Last year, the plan was again changed to build a pure residential complex. The towers would have added five million sq ft to Mumbai's high-end residential market.

With the sale, DLF would completely exit from Mumbai’s real estate market. It exited from a joint project with Akruti City by selling its share to Shiva group almost two years ago.

DLF has been liquidating land parcels to lower debt. An analyst at Kotak Securities said DLF had gross debt of about Rs 23,900 crore. “The interest cost varies from 13 per cent to 15 per cent and DLF is trying hard to bring down interest costs by offloading assets.”

Jai Mawani, ED and PWC’s head of infrastructure and real estate, said interest costs were hitting hard on companies that were highly leveraged. “For these companies, it is logical to sell assets that are not immediately developable and reduce debt to bring down interest costs.” He, however, refused to comment on DLF. While releasing the company’s April-June results, Talwar had said that the company was planning to reduce debt by around Rs 2,500-3,000 crore in 2011-12 by offloading non-core assets.

http://www.mydigitalfc.com/news/dlf-...00-cr-plot-986

[sixsigma1978]

Clear as Mud!! The two bolded entries are opposite to each other in meaning!!
Perhaps Mr Rajeev Talwar didn't get the question right and is assuming some other project?

[India101]

Why did we have to go and create a thread in the world forum?

We already decided we wouldn't start a thread there until a project a few floors above the ground. This one didn't even an official render or website and it has a thread. Let's just hope all goes well for this project so we can spare the embarrassment.

[deekshith]

From DNA

DLF Ltd, India’s largest real estate developer, plans to cut Rs6,000-7,000 crore from its total debt of close to Rs24,000 crore in the next two years through improved cash flows and non-core asset sales, but analysts are doubtful that the target will be achieved.

Rajeev Talwar, group executive director, DLF, said the target is to offload debt of Rs6,000-7,000 crore in the next two years.
“This reduction would be achieved through a mix of cash flows and sale of non-core assets,” he said.

Stake sales in DLF’s IT park projects in Noida and Pune are under consideration.

“The sale is under consideration, such processes take time,” Talwar said, denying any plans of selling the company’s only land parcel in Mumbai.

“We do not plan to sale that land parcel, the company would develop it,” he said.

DLF has a land bank of close to 370 million square feet, of which, Talwar said, 10% could be non-core.
However, analysts are not optimistic about the company’s debt reduction plan.

“The question is will it happen? The economy is not in a good shape. There needs to be a buyer as well for such a huge sale. Certain special purpose vehicles of the company have ready buyers and might be sold, but to sell all planned assets looks difficult. The size of these SPVs is very small compared to the larger picture that we are discussing,” said an analyst from a foreign brokerage.

[dunefreezer]

So guys what's the status of DLF Towers and Joyous Housing, (I honestly don't know the difference either). I was trying to read the above articles, I just don't get anything about real estate business. Thanks.

[kgnsk]

BMC it seems has cancelled the LOI for the 2500 cars public parking project earlier approved on this DLF site. This would mean that a substantial part of teh additional FSI granted to the project gets reduced...

..Wonder what bad news is in store next for this project, which refuses to take off for one reason or the other..

[jinka sreekanth]

DLF gears up to sell Bombay Mills property

DLF will hire an investment banker and an international property consultant (IPC) by mid-January to sell off its Bombay Mills parcel in the country’s western metropolis. The 18-acre premises at Central Mumbai’s Lower Parel is likely to fetch Rs 2,500-3,500 crore for the country’s largest realtor going by market capitalisation, according to sources close to the development.

One of them said three international property consultants have already pitched in. Jones Lang LaSalle India, Knight Frank India and CB Richard Ellis are expecting the announcement by the middle of January next year, he revealed. “DLF has clearly told them that they want to close the Aman transaction by this end-December and then announce the mandate for the Lower Parel parcel,” the source told Business Standard.
A message this newspaper sent to a DLF official went unanswered.
A senior official, who was part of the pitches for the property, said JLL India has pegged the price between Rs 3,000-3,500 crore, whereas Knight Frank India is looking for somewhere between Rs 2,500-3,000 crore. CBRE had also pitched “aggresively” for the asset.

“Now that the pitches are over, the consultancies are waiting for the announcement of the mandate,” he added. DLF is seeking a compensation upwards of Rs 4,000 crore for the monetisation of this parcel, even as all the consultancies have “clearly indicated that it is not possible to strike a deal at DLF’s expectations”.

The source informed that most of the Mumbai-based developers had gone and met officials at DLF for joint developments, too, but the real-estate major “is clearly not interested”. As real estate market in Mumbai is currently going through one of its worst phases, the deal will be an outright sale. “Though none of the developers have enough balance sheet strength to go ahead and buy a land asset at the asking rate, it will mostly be on the format of 50 per cent cash and the rest as deferred payment,” he added.

Besides the three IPCs who have made their pitches, the proposed deal has spurred interest also from the investment banking side. UBS and Deutsche bank are a couple of examples, a source said.

On his part, Vikas Oberoi, managing director of Mumbai-based Oberoi Realty, had made an offer of close to Rs 2,500 crore. This was way below what DLF is seeking. Sources indicate that it was investor pressure that forced Oberoi to look at the land parcel as it has not launched any marquee project this year. Its five-star hotel and branded residency project at Worli, which was due for launch earlier this year in February, has not yet seen the light of day. Thus investors are keen that Oberoi should use the opportunity to buy the land tract.

DLF’s first footsteps into the Mumbai realty market was with this land parcel called Bombay Mill, which it had bought with an aggressive bid of Rs 702 crore from an auction by National Textile Mill. It was quoted to be the largest realty deal in the country in 2005.

DLF had then announced that it would launch a “promising and futuristic retail-cum-entertainment centre” on that site. In the last 6 years the realty major has changed many a drawing-sheet for the “perfect launch”. In fact, in June last year, it was planning to launch a 90-storeyed luxury residential tower on the site— with an expected revenue of Rs 15,000 crore.

source

[dunefreezer]

So this is the demise of this project?

Hope whoever buys it will do something with this land that will be iconic.

[MeMumbaikar]

Originally Posted by dunefreezer

So this is the demise of this project?

Hope whoever buys it will do something with this land that will be iconic.

i am sure they will

makes no sense with fsi rules in place not to build something special there.

17.5 acres is a lot of land. You can potentially build 1.5-2 million square feet on that land as things stand.



Plus if Dlf do accept the offer (and i hope they do, though i dont think they will) Oberoi will make a profit regardless of market conditions as they are acquiring the land for 12-15k per square foot. So this project would go ahead regardless of a slump.

[archikind]

wait !!! DLF tower project is scrapped??? or on hold??

[India101]

These towers never actually took off so I don't see how they are on hold.

[dunefreezer]

Yeah.....lol....although I swear I thought I saw a site picture with the cranes on a huge piece of rectangular land already excavated. I don't know what site is that as I refuse to believe it is DLF's.

[Ashbaggins]

Actually there is a huge excavated rectangular piece of land at the site which had cranes on it, with loads of construction material there. Looks like it got scrapped in the early stages, but work was definitely very much alive at one point. You can plainly see the site from the Elphinstone Flyover on Tulsi Pipe Road. All the DLF signage and the huge "Green Luxury" banner are gone.