Archive for the 'Real Estate' Category

Brigade Enterprises Ltd IPO over-subscribed nearly 13 times

Published at December 13, 2007 in Business and Real Estate. 0 Comments

Brigade Enterprises Ltd IPO over-subscribed nearly 13 times

The initial public offering of real estate firm Brigade Enterprises Ltd today got over-subscribed by nearly 13 times.

The issue received bids for 21.40 crore shares against 1.66 crore shares on offer.

The price band of the issue has been fixed between Rs 351 and Rs 390. The issue, which opened on December 10, would close today.

The Bangalore-based firm had announced that it would set up shopping mall and a three star hotel at Chennai. The proceeds from the issue would be utilised to fund the setting up of mall.

The hotel would come up near the Tidel park here and the mall would come at Rajiv Gandhi Road, the IT corridor in the city. Source: economictimes



Sakrama gets temporary relief!!

Published at December 11, 2007 in News and Real Estate. 0 Comments

The deadline for filing applications for Sakrama scheme has been extended from December 14, 2007 to March 31, 2008 by the State executive committee.

This is a relief to the people, despite the fact that its a temporary one. In a State executive committee meeting headed by Governor Rameshwar Thakur it was decided to apply Section 82(a) of Karnataka Town and Country Planning Act, to extend the deadline. This decision to extend the last date was announced by Governor’s Adviser S. Krishna Kumar in the presence of Governor Rameshwar Thakur.

The decision was made after a suspension order was given by the High Court to process any applications by urban local bodies. With this, the December 14 deadline to submit applications for regularizations of unauthorized developments will automatically go. The judgment also means that the urban local bodies cannot process the applications received under the scheme. However, it is left to citizens to file the applications or not as the scheme has not been scrapped. The next hearing on PILs posted to February 6.



Interim order on Sakrama today

Published at December 10, 2007 in News and Real Estate. 0 Comments

The Karnataka High Court on Monday said it would pass interim orders on petitions by residents of Bangalore and Mangalore who have filed public interest litigation (PIL) petitions challenging Sakrama — the scheme evolved by the State Government for regularising buildings with violations and illegal change in land use.

The court admitted a petition by the Federation of J.P. Nagar 6th and 7th Phase Residents’ Association and ordered issue of notices to the State, Bruhat Bangalore Mahanagara Palike (BBMP) and other respondents.

A Division Bench comprising Chief Justice Cyriac Joseph and Justice Ashok B. Hinchigeri was hearing petitions by the federation and residents association of Mangalore.

While the residents’ association of Bangalore urged the court to reduce the penalty and extend the deadline for those wanting to opt for the scheme, the residents of Mangalore urged the court to come to the rescue of the law-abiding citizens and quash the scheme.

Senior counsel and former Advocate-General A.N. Jayaram, who appeared on behalf of the Federation of J.P. Nagar 7th and 8th Phase Residents Association, said it represented over 1.6 lakh people. He argued that the deadline for the scheme should be extended as the time for the people to accept it was too short.

Another senior counsel M.R. Naik, who represented residents of Mangalore, said the scheme would only help the rich and those who had violated the law with impunity. He said it would not help the common man.

The Bench said this was one of the very few cases when all the parties — the State, BBMP and even the petitioners want an interim order. Admitting the petition and ordering issue of notices, the Bench posted the case for Tuesday. Source: Hindu

5.5 lakh Bangalore properties eligible for ‘Sakrama’

Published at December 10, 2007 in News and Real Estate. 1 Comment

Nearly 50 per cent of the private residential and commercial properties in Bangalore have not been assessed for property tax and are therefore illegal structures, according to official documents.

The lukewarm response to the Sakrama scheme of the State Government by encroachers and violators is rather surprising.

The owners of unauthorised constructions have donned the robes of victims and hope that their protests and court action will pressure the Government to waive the penalty and betterment charges and issue regularisation certificates to them.

Despite the deadline for the Sakrama scheme drawing to a close on Friday (as mentioned under the Karnataka Town and Country Planning Act), the response has been poor. Sources in the Law Department told The Hindu that it would not be easy for Governor Rameshwar Thakur to extend the deadline as it was written into the legislation. A change could be brought about only through an amendment to the legislation and this was an extremely difficult task at the present juncture since the authorities here had to first approach the Union Ministries of Law and Urban Development. This exercise would take a long time.

A preliminary survey conducted by various wings of the Government prior to the launch of the Sakrama scheme showed that of the 13.84 lakh private properties in the jurisdiction of the Bruhat Bangalore Mahanagara Palike only 6.16 lakh properties had been assessed for property tax. The number of unauthorised structures which could be permitted for regularisation under the Sakrama scheme had been estimated at around six lakh. While the number of unauthorised residential and commercial buildings has been estimated at around 5.5 lakh, the BBMP has received around 4,000 applications. Source: Hindu

Bangalore real estate boom takes big leap

Published at December 5, 2007 in Business and Real Estate. 1 Comment

The information technology capital of the country is set to see annual investments exceeding Rs 12,000 crore during the next few years in real estate. The funds will go into constructing 50,000 dwelling units a year.

This is against the 1.5 lakh flats and apartments which are currently under construction involving an investment of Rs 45,000 crore. According to Mr Balakrishna Hegde, president, Karnataka Ownership Apartment Promoters Association, Bangalore remains the prime attraction for real estate following the impressive strides being witnessed in the country and the city in particular.

He told newsmen on the eve of the Koapa Reality Expo slated for 8 and 9 December here, that out of the $50 odd billion foreign investment that was waiting to come into the real estate sector in the country, as much as 30 per cent would be accounted for by Bangalore alone.

Dismissing reports of a dip in the real estate sector, he said between 1996 and 2007, it had seen a growth of 20 per cent. Judging by the way new companies were being set up in the city, accompanied by the over one lakh jobs that were expected to be generated here, the prospects could not be better.

Already, he said the city had over five lakh people in high income generating jobs in over 1,900 Indian and foreign companies representing a host of sectors including IT, BT, real estate, research and development.
All these people had huge disposable incomes which they were spending on purchasing real estate in addition to consumables and related products.

Similarly, he added, Bangalore with its unique position continued to be an attractive market. For example, flats in central areas of the city which cost anywhere between Rs 4,000 and Rs 5,000 per sq ft in September 1995 were available today for Rs 6,000 sq ft or so. Also, the rates in the city were still not high when compared to Mumbai and Pune.
He said the real estate market in the country in general and Bangalore in particular, was on the rise. It had seen some stabilisation in the last seven to eight months with the market maturing significantly. This coupled with the higher interest shown by the NRIs and reduction in home loan rates, was leading to a positive sentiment.

Overall, the real estate sector in the country was set to create nine million jobs in the next five years of which a substantial percentage would be in Bangalore.

In addition Karnataka’s government agencies, on their part, were set to build several satellite towns. Accordingly, investment in the city would continue to flow into the city.

This explained KOAPA’s efforts to cash in on the opportunity by organising a two-day exclusive reality show in which about 47 well known developers would participate with the idea of attracting buyers from within and outside India. Source: thestatesman