DLF pays Rs 1,675cr for DCM Silk Mills land

In the country’s most expensive land deal, DLF has paid a whopping Rs 1,675 crore for acquiring 38 acres of land in west Delhi from DCM Shriram Consolidated (DSCL) and the Lohia Group. The deal surpassed arch rival Unitech's Rs 1,582 crore purchase of 300 acres in Noida last year.

DLF shelled out Rs 44 crore per acre for the land parcel, located around 5 km away from New Delhi's central business district of Connaught Place. The property - better known as Swatantra Bharat Mills and DCM Silk Mills - was owned by SBM Land Redevelopment Project. DSCL and the Lohia's held an equal 50% right each to the land.

While DSCL said that it has received its share of Rs 837.50 crore on signing the agreement with DLF today, the Lohias did not offer any official comment. A family source said S P Lohia of Indonesia-based P T Indo Rama was the owner of the land.

DLF, the country's largest real estate developer, is looking to realise around Rs 12,000 crore from its future development at this site. A senior executive from DLF chose to describe the sale as "not a land deal, but a project deal on perpetual lease basis". The company said it funded the deal through internal accruals.

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Dolce & Gabbana to open shops in India

Italian designer Dolce & Gabbana, known for its big cat prints and gold glitz, plans to open two shops in New Delhi--its first directly-operated outlets in India.

The deal with real estate developer DLF Group is for two shops in the Emporio mall with opening planned at the end of this year, Dolce & Gabbana said in a statement.

There will be a Dolce & Gabbana shop and one for its more informal line, D&G Dolce & Gabbana.

"We see this project as the first step of a long-term investment plan," Cristiana Ruella, the group's managing director, said in the statement.

"There is no doubt that India is a promising market with great potential," she added.

Dolce & Gabbana has a total of 90 directly-operated stores worldwide.

Italian catwalk competitor Versace opened a shop in Mumbai last year and got a publicity boost in the country earlier this month when British actress Elizabeth Hurley wore a dress by the designer for her wedding in India to businessman Arun Nayar.

Italian designers Gucci and Giorgio Armani are also moving into the country, where non-Italian brands Hugo Boss, Burberry, Cartier, Chanel, Louis Vuitton and Tommy Hilfiger already have outlets.

India opened up single-brand retail ventures in February 2006 by allowing 51 per cent foreign direct investment in them.

Dolce & Gabbana said in the statement it expected operating profit (earnings before interest and tax) to be 229.1 million euros in the year ending March 31, 2007 on revenues up 30 percent to 1.05 billion euros.

The designers' latest advertising campaign triggered criticism in Europe from Spain's government and human rights group Amnesty International by featuring a picture of a man holding down a woman by her wrists while other men looked casually on.

Sebi okays short selling by institutions

The Securities & Exchange Board of India (Sebi) today tightened the norms for initial public offerings (IPOs) by real estate companies, while allowing short selling of equities by institutional investors, including FIIs.
It also made grading mandatory for all IPOs and waived the requirement of minimum public holding post-IPO for public sector companies and institutions.

The stock market regulator said real estate companies looking to tap the market must show the current value of their landholding, which should only include land actually owned by them.

A large number of real estate companies have lined up IPOs. Many have computed the value of their land on basis of what they expect the price to be when the projects are completed.

When approached for comments on Securities & Exchange Board of India’s directive, a senior executive with Delhi-based DLF said, “This will work to our advantage. The cost of land has been escalating and we will now be able to do the valuation at today’s prices.”

DLF has been awaiting Sebi’s permission to float an IPO that is estimated to garner Rs 13,600 crore, more than any issue so far.

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DLF, Nakheel in $10 bn townships venture

To develop 40,000 acres in Gurgaon, Maharashtra.

DLF Ltd is forging a 50:50 joint venture with Nakheel, a large property developer of the UAE, for two integrated townships in India at a whopping investment of $10 billion.

Set up under the auspices of the Dubai government, Nakheel functions as a private commercial enterprise and is currently developing 17 major projects worth more than $30 billion, and also has projects like The Palms, Dubai Waterfront and The World to its credit. This will be its maiden foray into India.

Interestingly, Nakheel’s main competitor in residential development in Dubai is Emaar Properties. Emaar operates in India as a 50:50 joint venture partner in Emaar-MGF. This joint venture competes with DLF at Gurgaon, the latter’s main market in India.

Even as DLF awaits the green signal from the Securities & Exchange Board of India for its Rs 13,600 crore initial public offering, it has announced a slew of joint ventures in the last one year. Read more at Business Standard