Wednesday, April 23, 2008
Sub-prime shadow on Indian real estate sector
The turmoil in the global financial markets has cast its shadow on India’s largest real estate deal. India’s real estate developers, especially the mid-sized ones, have been facing a liquidity crunch since last year. Developers can no longer tap the external commercial borrowing route, while domestic borrowing costs have gone up on account of tight-fisted monetary policy, which is likely to harden further in days to come. In addition, the stock market has taken a beating with real estate stocks falling off their recent highs. Other sources of funding for instance, the London Stock Exchange’s Alternate Investment Market or listing real estate investment trusts abroad are also not feasible in current market conditions.
The tender that BPTP won, beating bigger players like DLF and Omaxe, has an allowed the company to seek an extension to pay the first tranche.Failure to make the payment within the extended deadline would result in the award being scrapped and a fresh tender being announced.What impact will it have on the Indian economy in general and Indian real estate sector in particular???
Delhi-based Business Parks and Town Planners (BPTP) bagged a 95-acre commercial plot at Sector 94 in Noida for incredible Rs 5006 crore from the Noida authority. It is strategically located close to Delhi. It will be around 16 km from Connaught Place and around 10 km from south Delhi via the DND flyover.
BPTP Limited, one of the fastest growing real estate companies in India, is engaged in projects including integrated townships, residential & commercial complexes, retail spaces and IT parks. BPTP Limited today has its presence pan National Capital Region including Faridabad, Gurgaon, Noida, Greater Noida and Mohali. The company is gradually spreading its footprints and now has presence in Hyderabad where it will focus on a mixed use development.
BPTP is a professionally managed and technology driven company, with a belief that innovative ideas with right intent and action results in desired growth.
BPTP currently has multiple residential, commercial and IT Parks & IT/ITES SEZ projects out of which 10 projects are ongoing currently.
That is correct because all the financers are showing their interest to be purchased the particular land level because lot of development like in the Business parks and IT sectors are making to show that part in the whole level.