Godrej Properties has announced its decision to sell 49% in Godrej Premium Builders, company subsidiary to Sun-Apollo India Real Estate Fund.

Godrej Properties said in a filing with the Bombay Stock Exchange (BSE) that the Godrej Group unit entered into a sale agreement with Sun-Apollo. The Sun-Apollo India Real Estate Fund has agreed to invest Rs 45 crore.

A sum of 18.3 crore has been paid to Godrej Properties for the stake while Rs 26.7 crore has been invested in the subsidiary.

Indian realty major, DLF Ltd has acquired the whole 26% share of its partner Hilton International in joint venture DLF Hotels & Hospitality for Rs 120 crore.

After the stake purchase, DLF Hotels & Hospitality would operate as a wholly owned subsidiary of DLF. The Indian firm purchased the stake to take the complete control over the business including its assets, which include hotel sites.

DHL said in a filing with the Bombay Stock Exchane that, "it has acquired additional 26% equity shares of 'DLF Hotels' from Aro Participation Ltd and Splendid Property Company Ltd, affiliates of Hilton International Co."

Adi Godrej, Chairman of the Godrej group has said that the group expects a strong demand for residential projects in the coming time and is not planning a reduction in prices.

While speaking on the sidelines of a World Economic Forum event in Mumbai, he said that the working capital for the residential projects by the company is lower and there is good demand and thus the company is not planning any cut in prices. He indicated that prices may be increased instead.

Several market analysts have said that the shares of the LIC Housing Finance is expected to fall in the coming weeks as the public sector unit has posted a lower than expected profit in the second quarter mainly due to weaker net interest income and provisions burden.

Morgan Stanley said that the shares of the LIC Housing Finance will fall more than the benchmark index of the stock exchange in India in the coming 15 days. The corporation has recorded a 58% drop in net profit in the second quarter while its income grew 37.4% to Rs. 1511.47 crore.

Raheja Developers has announced that it has entered into a joint venture (JV) with Dubai-based Arabtec Construction for its project in the NCR region.

"We must match international standards in construction. So, we have partnered with Arabtec to take construction in India to another level," said Naveen Raheja, chairman, Raheja Developers.

Combo of education and finance has always remained a super-hit formula for both the parties. And, increasingly corporate world is realizing the potential of learning and therefore has been uniting with educational institutions. Latest entry in this field is of Godrej Properties, which has tied its hands with Global Indian International School (GIIS), which is a Singapore based educational institution.

The Central Bureau of Investigation (CBI) has tightened its belt and, has started its run to bring out all the truths about Emaar Hill County Town Ship Pvt. Limited (EHTPL) project.

To get some firm knowledge about this property scam, the department has also recently issued notices to 89 plot owners, who according to the reports, purchased plots in this project from Emaar Properties. The purchaser’s list also involve Mr. Nara Chandrababu Naidu's daughter-in-law Mrs. Brahmani along with Mrs. Kotagiri Sunitha, wife of KVP Ramachandra Rao, former advisor of the state government.

It has been reported that the second-largest lender in the country, ICICI Bank has finally earthed a fixed-rate retail home loan product, which would allow customers to pick a fixed rate of interest for one or two years following which it will charge the running base rate.

“We are not offering discounted rates in the fixed term like others, so we can’t call this a teaser loan”, said a top official of the bank.

According to reports, DLF Ltd recently revealed that in connection with a complaint filed by Belaire Owner's Association, they have received an order from Competition Commission of India (CCI) and after giving a thorough reading of the order, they have decide to examine all the other legal options which would be suggested by the Company's legal experts.

However the Officials further asserted that the appeal against the competition appellate order would not be limited only to the court, because they strongly believed that they had solid clues, which surely helped them to win the case.

DLF’s Q1FY12 revenue at Rs24.5bn grew 20.5% YoY and was above our estimate of Rs23bn. PAT at Rs3.58bn was 7% below our estimate. However, margins at 45.4% was 320 bps ahead of our estimates. Higher interest cost (Rs4.95bn in Q1FY12 vs Rs4.5bn in Q4FY11) and lower than estimated other income lowered PAT. Operational cash flow, though improved sequentially to Rs8.4bn, may fall further if DLF fails to execute non core asset sale. Key strategy of the company would be to (i)Accelerate cash flows through plotted sales (sold ~2.2 msf in Q1FY12 of which 1.1msf is plot sales; total sale of 1.9 msf in Q4FY11).

Tata is all set to try its hand in constructing the world’s cheapest house worth 500 Euros, named as ‘Euro 500 Home’. After launching the world’s cheapest car Nano, the company is looking forward to build a house in 20 square meters which will cost only 32,000 rupees.

According to the latest data released by the National Housing Bank (NHB), during the first quarter of 2011, in all over India, the prices for property have been dropped from 20.63% to 17.6%.

During the same period, five more cities have shown a marginal change in property prices. Among these, three have shown an increase in property rates; this has increased to 5% from 2.6%.

Q4FY11 PAT at Rs3.45bn was 36% below our expectations due to adjustment for a onetime cost reset for input price inflation of Rs4.75bn. Revenue at Rs26.8bn was better QoQ and marginally above our expectation of Rs25bn. Margins declined significantly to 25% (47.5% in Q3FY11)on account of rising input cost. In our view, DLF will have to commit to more launches and sales (non-core assets sales) to facilitate the real debt reduction (Net debt increased marginally to 0.85x as against 0.84x in Dec’10).

Mumbai, May 25 : India's real estate developer DLF Ltd has posted 19 percent decrease in its net profit at Rs. 344.54 crore for the quarter ended March 31 as against Rs. 426.38 crore during the like period of the previous fiscal owing to higher steel and cement prices.

Sales, however, rose 34.5 percent at Rs. 2,683.09 crore during the quarter under review as compared to Rs. 1,994.37 crore during the like period of the previous financial year, the company said in a regulatory filing late Tuesday evening.

PEL reported a surprise topline growth of 33% YoY for Q4FY11 but bottomline dipped by 50%YoY, due to lower operating profit at 8.1% vs 12.6% in Q4FY10. During the quarter interest cost jumped by 58% YoY to Rs728mn, which includes interest cost of ~Rs250mn towards its Noida real estate project. Adjusting for sale of property in Jogeshwari, operating margin further dips to 5.6% (Cons) and 4.2% (Stand) and adj conso PAT posted a loss of Rs90mn. In all a bad quarter, we downgrade our recommendation to HOLD.

Real estate boosts revenue during quarter

Technical analyst Rajesh Satpute has maintained 'buy' rating on Indiabulls Real Estate Limited stock to attain a target of Rs 134.

According to analyst, the investors can buy the stock with a stop loss of Rs 120

Mr. Satpute added that the said target can be achieved within 2-3 trading sessions.

The stock of the company, May 02, closed at Rs 125.75 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 218.50 and a low of Rs 104.50 on BSE.

The results of Dubai’s huge review would be released by the end of year according to Dubai’s real estate watchdog. Marwan Bin Ghalaita, CEO of Dubai’s real estate regulatory agency said that projects which are yet to be started are also under review.

The regulator would test contractors based on viability of project and their business credentials. Final approval will only be grated to projects fulfilling the regulatory guidelines, auditing system and standard construction norms.

Ghalaita said, "If developers don't have enough money to start construction or if they don't have experience or enough knowledge in real estate development, then they should not start the project. We are saving them, the industry and the business environment."

The Real Estate Regulatory Agency (RERA), Dubai’s real estate watchdog, said that it is in the process of financially reviewing about 90,000 real estate units. There project would be tested on their viability before they actually delivered in the market.

Marwan Bin Ghalaita, the CEO of the body said, “We are reviewing more than 90,000 units that will come to the market from today to 2016. Some people do not like the word cancelled, they keep saying delayed, delayed, and delayed. Sometimes we have to face the truth and if a project is not good for Dubai then we have to admit and say it is cancelled.”

Moving Averages crossover : The combination of medium and long term moving averages used to track the trend are in a bullish crossover. This is a very positive sign. This suggests that the downsides to this stocks may be minimal from current levels and the medium term trend is likely to remain positive.

Strong conditions of global equities strengthened the market and pushed bellwether stocks in Dubai and Abu Dhabi. Shares of Aldar Properties, the Abu Dhabi developer, surged 4 per cent to stand at Dh1.55 making the firm top performer on the Abu Dhabi Securities Exchange (ADX). Investors made beelines for the shares amid buoyant sentiments prevailing in the market.