DLF TO INVEST RS.1000 CRORES IN MULTIPLEX BUSINESS

Real estate giant DLF is likely to invest about Rs 1,250 crore on expanding its multiplex business, DT Cinema, by adding about 500 screens in the next four to five years. Currently, DLF is at a pre-operative stage with about seven screens. In another four to five years time, the target is to have 500 screens across India. By September this year, two DT Cinema complexes in Delhi and one in Chandigarh would be operational and 35 screens are expected to be functional in the next seven months. Once these initial projects start, the mid-term aim is to have about 150 screens operational within two years. Apart from north Indian cities, DT Cinema plans to set up multiplexes in Hyderabad , Chennai, Kochi, Bangalore, Mumbai, Pune, Ahmedabad, Goa andKolkata. The size of each multiplex could be between 35,000 sq ft to 90,000 sq ft. DLF believes that the multiplex business offered a big opportunity as there is a shortage of nearly 40,000 screens in India.

DLF, NITESH, HDFC VIE FOR BEACON HOUSE

DLF, Nitesh Estates and HDFC Realty are amongst the bidders reportedly in the fray to acquire NRI tycoon C Sivasankaran’s Beacon House, located off the upmarket Cenotaph Road in the heart of Chennai. The 3-acre property, a former residence of UB Chairman Vijay Mallya when he controlled Best & Crompton (B&C), may fetch as high as Rs 225250 crore, sources said.

Mr Sivasankaran has mandated CB Richard Ellis to sell the property through an auction, with five bidders indicating early interest. While multiple sources confirmed interests from DLF, Nitesh Estates and HDFC Realty, unconfirmed reports indicated that local developer Arihant and Bangalore-based Sobha Developers are also in the fray.

Mr Sivasankaran had acquired the property in early 2006 for Rs 100-110 crore, sources said.The bidders, like DLF and Nitesh, may be eyeing the property for premium residential units, which, going by the current FSI of 1.5, could see 4 lakh sq ft of fresh development. The area has houses of leading industrialists, including Murugappa Group family members, and Japanese Consulate. Recently, DMK leader and son of chief minister MK Karunanidhi, MK Stalin, has moved there.

It is believed that a leading local developer True Value Homes may sit down with HDFC Realty for joint development, if the latter shows up with the winning bid. Earlier, True Value Homes had attempted to join with Mr Sivasankaran for developing premium residential apartments on the land.

Several local real estate sources said, in view soft market conditions, the maximum price it can fetch is Rs 3.25 crore per ground (56 grounds in 3 acre). Recalling the objections raised in the past over building multi-story buildings in the posh area, the realty sources added that it is not easy to take up development unless the bidder is familiar with the local conditions.

However, the national players, which may view Chennai as a more sable market in terms of real estate prices, may put in an aggressive bid that could take the auction price t Rs 225/250 in the highest band. A few months back, Bangalore-based Nitesh Estates made a winning Rs 640-crore bid for a nine-acre plot on Chamiers Road, which is in close to Beacon House.

Nitesh is in the midst of developing a one million sq ft mixed use development including luxury hotel, retail, commercial space and serviced apartments.

Beacon House came to the fold of UB chairman Vijay Mallya after he acquired B&C. Later, when the company was acquired by Indonesia’s Polysindo, it decided to sell the property making use o the scrapping of urban land ceiling act. Since Mr Sivasankaran had picked up stake in B&C, it helped him to clinch the deal.

ETA STAR TO INVEST RS.1,500 CRORES IN MUMBAI

Chennai-based real estate developer ETA Star Property Developers, a part of $4 billion ETA Ascon group based in the UAE, will build a Rs 1,500 crore mall in Mumbai's Juhu area. The construction work will begin in January 2008. ETA has formed a 50:50 joint venture with Supra Estates, to develop the 10 acre plot (450,000 sq ft) into a shopping mall and service apartments. The companies have paid Rs 800-900 crore for the said plot of land. The mall will be given on a seven-year lease upon completion of the project in 2010. ETA has brought Rs 200-250 crore as equity contribution for the project in terms of foreign direct investment (FDI) and will raise the balance through banks and other financial institution. ETA has also forged a joint venture with Wavy Construction for a project based in the hill station of Khandala, Maharashtra. The project involves building luxury villas, health spas, hotels and furnished apartments. Even as the structure of the joint venture is yet to be finalised, both companies will inject Rs 400 crore for the project spread across 28 acres. A US consultancy firm, Tony Asahi, has been appointed to provide a detailed study of the area, which would help draft the final outlook of the project. ETA is currently executing a Rs 13,500 crore integrated township project at Sriperumbudur near Chennai. The project, spread over a land area of 1,200 acres, will be finished in seven years. ETA Star has created a separate special purpose vehicle for the project in which it would hold 59.9 per cent, a foreign partner 40 per cent with Tamil Nadu Industrial Development Corporation holding the rest. ETA Star is talking to a few companies in the US and Europe for the project. The company is involved in real estate ventures mainly in the southern region of the country with projects spread across Chennai, Bangalore and Hyderabad. The company is executing a residential project in Chennai, where it is developing apartments under the name of Jasmine Court. The project follows two other projects 'Binny Crescent' and 'The Gardens', both residential projects in Bangalore.

COGNIZANT TO INVEST $100 MN MORE IN INDIA

CHENNAI: Cognizant Technology Solutions said it will invest an additional $100 million in India, taking its total investment in the country to $300 million over the next two years.

The IT and BPO major said the additional investment will be used to expand its new Chennai campus — located in a special economic zone — which will double in size with an area of over 2 million sqft.

Cognizant is increasing the size of the first phase of planned construction of its SEZ facility in Coimbatore to over 7,25,000 sqft. It also plans to acquire additional property in Hyderabad and Chennai.

Chief financial and operating officer Gordon Coburn said: “We expect this investment to enhance our flexibility to meet the escalating demand for our services from both new and existing customers around the world.”

In November 2006, Cognizant announced it has planned to spend more than $200 million on land, building and other facilities for upcoming techno-complexes. The move, it said, would increase its existing campus area in India by more than 3 million sqft with a capacity to accommodate over 30,000 new employees.

Of the 46,000 professionals globally, over 35,000 are in India, spread across its eight locations in Chennai, Pune, Kolkata, Bangalore, Hyderabad, Mumbai, Coimbatore and Kochi.