Cir 38 2014

September 22-28, 2014 1
An MMR, Braj Binani Group Publication Volume 3 l Issue No 38 l September 22-28, 2014 l Price: Rs 100
India’s infra market to reach
$6.6 t by 2025
Naredco awards
NBCC makes five-fold
gains on huge orders
meritorious developers The state-run National Buildings
Construction Corp Ltd (NBCC) has
caught investors’ fancy. The company,
which sold shares at Rs 106 two
years ago, rallied 25 per cent to touch
Rs 683 recently. It was triggered by
the announcement that NBCC has
signed an agreement with the National
Waqf Development Corp. Ltd for
development of Waqf properties all
over India.
The company is also in talks to
redevelop Andhra Bhavan in New Delhi
and there is a further possibility of the
company developing parts of Andhra
Pradesh’s new capital.
Considering the large number
of Waqf properties, analysts expect
significant business opportunities for
NBCC, if the pact holds.
Veteran broker Ramesh Damani,
who had recommended the stock
earlier, said he liked the stock because
it was trading at cheap valuations and
the company has strong earnings
visibility. “NBCC enjoys negative
working capital, cash rich balance
sheet and has a strong order book at
about Rs 17,000 crore, 4.2 times its
FY14 revenues,” said Damani. “The
stock could go up further as visibility
of future earnings is high given the
huge opportunity size in the business,”
he said.
Also driving investors to the stock
are expectations the new government
at the Centre will speed up project
clearances. At the end of the previous
fiscal year, the company’s order book
stood at Rs 15,427 crore, which has
reportedly grown to around Rs 17,000
crore now, according to analysts.
The orders provide ample revenue
visibility—they are four times the
revenues of the last fiscal year. That
can grow manifold if the government
awards more projects. In its annual
report NBCC said, it is pursuing the
government of India to award it the
redevelopment of three colonies in
New Delhi.
If approved, these projects alone
can add Rs 20,000-25,000 crore to the
company’s order book, a top official of
the company said.
Besides, the company is also
looking to develop land and properties
of sick public sector enterprises
(PSEs). “There are PSEs whose revival,
rehabilitation or closure or winding up
proposal stand referred to the Board
for Reconstruction of Public Sector
Enterprises (BRPSE). We are pursuing
with the BRPSE for utilization of these
unlocked assets of PSUs as a source
of revenue generation to be gainfully
employed for rehabilitation/revival
of ailing public sector enterprises,”
Anoop Kumar Mittal, chairman and
managing director, NBCC, said in the
annual report.
Optimism about new orders is one
reason why the stock has more than
doubled in the last five months. Apart
from a strong order pipeline, investors
also like the company for its cash-rich
balance sheet, superior return ratios
and strong working capital position.
Based on ICICI Securities Ltd’s
current fiscal year earnings per share
estimates, NBCC is trading at 25
times the price-to-earnings multiple.
Its peers like Simplex Infrastructure Ltd
are available at less than 20 times the
current fiscal earnings estimates.
Vinod Nair, head of equity research,
Geojit BNP Paribas said, “A real estate
business with huge land bank, large
re-development projects on the anvil,
healthy financials backed by growth in
business and margins make a case for
an excellent investment.”
T h e Na t i o n a l Re a l Es t a t e
developers’ Council (Naredco)
presented awards to achievers at its
12th national convention held at New
Delhi recently as a part of it efforts
to recognise developers for their
outstanding projects.
“It brings together industry on one
common platform to discuss, debate
and set out an agenda for the coming
year,” said Sunil Mantri, President,
Naredco.
The Union Urban Development
Minister Mr M Venkaiah Naidu presented
the awards on the occasion.
In the category of ‘Stalwarts of
Real Estate Industry’ the awards were
presented to K P Singh, Chairman
DLF Ltd; Sushil Ansal , Chairman,
Ansal Group; K J Arora, Chairman,
India’s infrastructure market is
expected to touch $6.6 trillion by 2025,
which will be nearly 12.5 per cent of
the Asia-Pacific, says a report by the
consultancy firm PwC.
The Asia Pacific infrastructure
market is expected to grow by 7-8 per
cent a year over the next decade to over
$53.6 trillion by 2025 and representing
nearly 60 per cent of the world total.
The increase in infrastructure spends
in the country is likely to be driven
by sectors like housing, telecom,
healthcare, education, transportation,
among others, the report said.
“Overall, India’s share of the
Asia-Pacific infrastructure market
is expected to continue to grow,
reaching around 12.5 per cent or $
6.6 trillion by 2025.”
A c c o r d i n g t o t h e r e p o r t ,
transportation and utilities investments
are expected to triple over the coming
decade as income and travel demand
will rise and the country’s population
will increasingly congregate in urban
centres.
“The ongoing development of
technology services sector, as
well as demand from households,
is likely to drive investment in
telecommunications infrastructure.
The population is expected to grow
much faster than other countries in
the region, which will further boost
demand for infrastructure sectors
serving households,” the report
said.
While annual healthcare investment
is forecast to grow around $37 billion
by 2025, education infrastructure
spending will likely to reach $18.9
billion.
“The huge growth in infrastructure
spending will be driven by key factors
such as Asia’s economic growing
prominence, trade competitiveness,
and the current widely recognised
infrastructure deficit across the
emerging markets of this region.
“Asia is now the world’s primary
growth engine, with China, India
and Southeast Asia offering a very
large consumer base and low-cost
workforce, with high levels of natural
resources,” said Manish Agarwal,
PwC India Leader Capital Projects &
Infrastructure.
L-R - Sunil Mantri, President Naredco & Chairman Mantri Realty; Narendra Singh Tomar, Union
Minister for Mines, Steel, Labour and Employment;Navin Raheja, Chairman Naredco & CMD,
Raheja Develop
Venkaiah Naidu, Ministe r of Urban
Development and Housing & Urban Poverty
Alleviation with Sunil Mantri, Naredco
Arora Group, and M Murali Mohan,
Chairman, Jayabheri Group.
In the ‘Most Favorable
Mass Housing Policies
c a t e g o r y b y S t a t e
Government’ award went
to Slum Rehabilitation
Authority, Government
o f Ma h a r a s h t r a ,
and Government of
Rajasthan which was
received by Sudhansh
Pant, Sec. LSG, Govt.
of Rajasthan, Ashok Jain,
Addl. Chief sec. UDH, Govt.
of Rajasthan & Chairman Raj
Redco
The ‘Significant Contribution in
Slum Rehabilitation Work – Public
category’ award was bagged by Nirmal
Kumar Deshmukh, Slum Rehabilitation
Authority, Govt of Maharashtra and
Balwinder Kumar, Vice Chairman, Delhi
Development Authority.
Omkar Realtors, one of the major
player in SRA projects in Mumbai,
won the award for under ‘Significant
Contribution to Slum Rehabilitation
Work – Private category’ and the
‘Outstanding Contribution to Real
Estate Sector – Public’ award was
bagged by Rajasthan Housing
Board and Rajasthan Avas Vikas &
Infrastructure Ltd
The ‘Outstanding Contribution to
Real Estate Sector – Private category’
went to Hiranandani Developers and
award for ‘The Best State Initiative’
went to Town and Country Planning
Department, Govt of Haryana and
‘Best City Development Authority’ to
Greater Noida.

INFRASTRUCTURE September 22-28, 2014 3
‘Adopt eco-friendly technology
for affordable housing’
Venkaiah Naidu, Minister
of Urban Development,
Housing Urban
Poverty Alleviation
and Parliamentary
Affairs, Government of
India, speaks on the
forthcoming plans of
his ministry at the 12th
National Convention on
Housing for All-2022
organized by Naredco
in New Delhi on
September 12-13
Over Rs 16 trillion ($260 billion)
will be needed as investment every
year if the Central government’s goal
of ‘housing for all by 2022’ is to be
achieved, says a report by the KPMG-National
Real Estate Development
Council.
According to the report, launched
at the conclave, around Rs 9.5 trillion
($150 billion) is now being invested
annually in the real estate sector of
which around 80 per cent or Rs 7.5
trillion is deployed in the housing
sector.
‘The government’s vision of
‘housing for all by 2022’, requires
more than $2 trillion to be spent in the
next eight years to build nine crore
houses.
Naidu said, “The convention of
Naredco is happening at a very
appropriate time. The theme of the
convention ‘Housing for All 2022’ is
one of the priorities of our government.
I am sure by the end of the convention
we will be getting some concrete inputs
on achieving this target by 2022.”
Navin Raheja, Chairman, Naredco
in his welcome address referred to
‘New Hope’ with ‘New Leadership’
in the country. “We are all witnessing
a new sense of enthusiasm and
optimism. Private players in the real
estate sector should do needful to
help people realize this ‘New Hope’.
A concrete manifestation of this New
Hope will be ‘Housing Ownership’ to
all needy people.”
National declaration
Naidu continued, ”An offshoot of
rapid urbanization in India is the huge
shortage of around 19 million houses.
It is projected to reach 30 million
by 2022. 33 per cent of our citizens
are already residing in urban areas.
18 per cent of the urban population
lives in slums. In Mumbai more than
45 per cent of the population lives in
slums. The resource requirement to
tackle such a shortage is obviously
substantial. We must plan to achieve it.
“Within a week after assuming
office, I had held a consultation with
various real estate associations and
we are well aware about the issues
being faced by the sector.
The Government of India would
soon launch a National Housing
Mission to work towards the ambitious
initiative ‘housing for all by 2022’,
said M Venkaiah Naidu, Union Urban
Development minister.
“We have the experience of
JNNURM, Indira Awaas Yojana,
Rajiv Awaas Yojana, apart from Rajiv
Rinn Yojana, which did not take off
despite best efforts. I have studied all
these schemes. The government has
decided to merge all these schemes
and bring one National Housing
Mission,” added Naidu.
The mission is in advanced stages
of finalization, he said, adding that the
ministry was also working towards a
scheme for interest subvention for
the urban poor. He was speaking at
the recent annual conclave of the
National Real Estate Development
Council in New Delhi. The government
believes in public-private partnership
and will involve the private sector in
the mammoth task of constructing
houses.
Wish list for sector
At the conclave, the real estate
body came out with a wish list for the
sector which included infrastructure
status to housing, single window
clearance, online clearance, and
simplifying procedures.
In order to get adequate credit for
the housing sector, Naidu said that he
will pursue with Finance Minister Arun
Jaitley to ensure priority lending for
housing so that the sector gets enough
resources to promote affordable
housing.
Simplifying clearances
Environment Minister Prakash
Javadekar said he had started
simplifying the process of clearances.
“Permissions for projects up to 40
hectares can now be given at the
state and city levels,” he said. Due
diligence is on for the request to raise
environment exemption limit to 50,000
sq m, Javadekar added. According
to estimates, there is a shortage of
19 million houses currently which is
expected to rise to 30 million houses
by 2022.
“On July 2-3, 2014, my ministries
held a national conclave with the
concerned ministers and secretaries
from all the states and UTs. I am
glad to say that we have unanimously
passed a national declaration on
‘Urban Governance and Housing for
All’ in which the Government of India
and state governments resolved to
collectively work towards housing
for all.
“Affordable housing is the need of
the hour which cannot be overlooked.
Housing growth is a parameter of
health of the economy of the country.
‘Housing for All’ coincides with the
Platinum Jubilee of our independence,
that is by 2022, and it is one of the top
most priorities of our government. It is
also a dream project of Prime Minister
Narendra Modi. We have taken this
challenge as an opportunity to make
our cities planned hubs for economic
growth.
“A decent house is a basic
parameter of dignified living. Even
after 67 years of independence we
have a shortfall of approximately 2
crore houses. This is the reason why
our Prime Minister has given a clarion
call for ‘Housing for All’. Skill, scale
and speed are required to meet this
challenge. Under Pradhan Mantri Jan
Dhan Yojana about 3 crore new bank
accounts have been opened in past 15
days, which is a record in itself. This
shows that if we work on a mission
mode, nothing is impossible.
Gigantic task
“The task of achieving our mission
is gigantic and the government alone
can’t fulfill it. Our aim is to collaborate
with multiple stakeholders including
the private sector, urban local bodies,
corporate houses under CSR activities,
civil societies, community and financial
institutions to achieve the goal.
“Recently, a newspaper article
mentioned that anywhere between Rs
1,00,000 to Rs 1,50,000 apartments
costing under Rs 10 lakh are in various
stages of construction across the
country. There is a very good response
from buyers for these houses. We have
to scale up such examples across the
country in a big way.
“The recent budget has made it
amply clear that ‘Housing for All’ is top
priority of the government. The slews
of measures announced are a positive
step towards this.
“Rs 4,000 crore has been allocated
to the National Housing Bank (NHB) to
ensure credit flow to the EWS and LIG
segments under the existing Urban
Housing Fund Refinance Scheme.
Relaxation of Foreign Direct Investment
(FDI) norms for projects with focus on
affordable housing. Shyama Prasad
Mukherji Rurban Mission will improve
civic infrastructure in rural areas as well
as in peri-urban areas.
Cost-effective technology
“The increases in personal income
tax exemption limits would promote
home ownership. The building
construction costs are increasing and
there is a need to adopt appropriate,
cost-effective building materials
and technologies for affordable and
durable houses. Technologies, which
are environment-friendly, ecologically
appropriate and energy-saving,
should be increasingly adopted for
the purpose.
“We are actively working on
launching our mission for which we are
working on many fronts. It has been
observed that poor people, especially
those working in informal sector, face
a lot of hardships in accessing to
housing loans from institutions.
“Whenever they approach any
lending institution, be it government
or non-government, they are asked
for documents pertaining to the
assessment of income proof, identity
proof and address proof. Many a times
the poor people don’t possess these
documents as they have migrated
from rural areas to urban areas in
search of work.
“The Pradhan Mantri Jan Dhan
Yojana will help these urban poor
in accessing credit from the formal
banking system. We also need to
custom design home loan products
for EWS/LIG category to facilitate easy
access for poor people.
10-point agenda
“Only a few financial institutions
have availed Credit Risk Guarantee
Facility (CRGF) in past two years.
Efforts will be made to ensure that
this fund gets utilized to its maximum
extent by as many institutions as
possible.
“We have to think in innovative
ways to cater to the requirement of
affordable housing. A new upfront
subsidy programme for affordable
housing is also under preparation as
it has been observed that the urban
poor face more problems in arranging
initial down payment required to book
his house rather than in repayment
of loan.
“Here I would suggest a 10-point
agenda for the real estate sector:
Create affordable and inclusive
housing including that of rental
housing especially for the EWS/LIG
segments and look at this segment
as an opportunity at the bottom of a
pyramid. I know these are low margins
business, but high volumes will make
them a viable proposition.
Create housing and other built
structures that are not only energy-efficient,
but also sustainable and
aesthetic.
Harness solar energy and reuse
water by installing decentralized
STPs.
Rainwater harvesting should be
ensured in all built spaces and ensure
that the existing natural resources such
as water bodies, boulevards, hillocks,
marshy grassland are protected.
Mo r e t r a n s p a r e n c y a n d
accountability in projects.
Ensure consumer protection and
symmetry of information.
Bring in standardization and
professionalization in the real estate
sector.
Engage in skilling construction
workforce.
Ma k e p r o f i t s , b u t a v o i d
profiteering.
Engage with state and Central
governments in the endeavour to
provide Housing for All by 2022.
Infrastructure status
“To achieve all these objectives,
we all need to work together as ‘Team
India’. We also have to change our
mind set and think out of the box.
There is no single fit-all formula. We
have to innovate and find localized
solutions also. The private sector
also has responsibility of contributing
towards nation building, besides
making profit.
“As regards providing infrastructure
status to the affordable housing
sector, I had a discussion with Finance
Minister Arun Jaitley and other senior
officials of the Finance Ministry. The
subject matter is under discussion
and I am quite hopeful that we will be
hearing on this subject shortly from
the ministry.
“I am also of the opinion that the
affordable housing sector should get
more support under ‘Priority Sector
Lending’. Public-private partnership
will be an important component of
our action plan to achieve the national
goal.”
Venkaiah Naidu, Minister of Urban Development, Housing Urban Poverty Alleviation Parliamentary Affairs, inaugurating the Naredco convention,
along with Environment Minister Prakash Javadekar
BDA housing project Valagerahalli phase-3 has been selected for the jury appreciation award 2014

INFRASTRUCTURE September 22-28, 2014 4
Centre to launch $32.9 b
infra projects
After launching highway projects
worth Rs 1.5 lakh crore that were
stuck on account of various regulatory
hurdles, the government is all set
to roll out Rs 2 lakh crore worth of
infrastructure projects this year, said
Road Transport Highways Minister
Nitin Gadkari.
Gadkari said his ministry was also
looking to build two lakh km of roads
under public-private-partnership
(PPP) mode which includes widening
of existing one lakh km of highways.
There is no dearth of money to
fund the projects and the ministry
can garner more funds through
securitisation of toll revenue which
amounted to about Rs 1.8 lakh crore
in 15 years.
A number of steps, he said, have
been initiated to bring in wide reforms
in the highways sector including
launch of 350 electronic toll plazas
by December and building amenities
for drivers and commuters on every
50 km stretch for which bids have
already been floated for consultancy
and design of 270 such facilities.
Gadkari said government was also
focusing on boosting waterways for
transportation of cargo and planned
introducing sea-planes, airport-like
terminals on Ganga besides shipment
of cargo through waterway which was
much cost-friendly.
Also, a new policy for shipbuilding
was on the anvil, besides promotion
of cruise shipping including that of the
Kochi to Andaman Nicobar islands.
Prime Minister Modi decided that
various ministries can now approve
projects up to Rs 1,000 crore without
the Cabinet approval.
The ministries were required to
seek the Cabinet approval for projects
above Rs 200 crore. The fivefold hike
in the discretionary spending power
of ministries is meant to allow faster
clearances of projects, particularly
those related to infrastructure.
The infrastructure sector is a
key focus area for the Modi-led
government. The Centre is keen to
speed up infrastructure development
and investment to boost economic
growth.
France keen to help make
Nagpur smart city
France has evinced interest in
partnering with Nagpur to make it
a smart city. This was indicated by
French Consul General for Western
India Jean Raphael Peytregnet, who
was on his two-day visit to Nagpur
this month.
Prime Minister Modi had announced
plans to create 100 smart cities across
the country and France has offered
its expertise, men, and material in
urban development to build new-age
cities and send a team of architects
to Nagpur.
Accompanied by the French Trade
Commissioner of Consulate General
Matthieu Lefort, Peytregnet said
that the basic objective would be to
‘explore possibilities’ of co-operation
in urban development.
Since each city has a different
requirement, there is nothing specific
in mind, though tailor-made solutions
could be offered, he said. Peytregnet
said that New Delhi would host a
convention of architects, when a
French team would eventually visit
Nagpur.
Apart from exploring options in
Mumbai and the national capital, they
will also be urged to visit other Indian
cities, he said. The Consul General
met Nagpur Mayor Pravin Datke, his
deputy Munna Pokulwar, Municipal
Commissioner Shyam Wardhane and
past mayor Anil Sole to discuss issues
related to the smart city concept.
Current investment by French
companies in India stands at 15 billion
Euros as against Indian investment
in France which is at only 300 million
Euros. The French government is keen
to increase the figure by promoting
Indian business proposals, he said.
Besides developing Nagpur as a
smart city, the diplomats also asserted
that they are exploring possibilities
of investments in the Multi Modal
International Passenger and Cargo
Hub (Mihan) in the city.
14 Sez developers seek more time
to implement projects
Mitsubishi Elevators
to invest `200 cr
GoI to pay contractors
in infra projects
via online
The state finance department has
decided to allow online transaction of
payments and disbursements related
to infrastructure spending of works,
irrigation and forest departments in
select districts on a pilot basis.
This facility will be rolled out in
the entire state later. According
to a memorandum issued by the
finance department, the process
will minimize the time consumed for
payment to contractors. It has been
decided to operationalize this system
first for projects of the irrigation and
works departments in Bhubaneswar
division.
Besides, the forest department
has been directed to receive statutory
dues such as funds deposited
against forest land diversion (NPV)
and funds for development of
forest area (Campa) through online
payment mechanism. However, it is
not mandatory for payers to make
payments of such dues through
internet banking.
Mahipalpur bypass plan
sent for approval
A proposed bypass from Mahipalpur
to NH-8 has been sent to the Ridge
Management Board for approval, with
the preliminary survey and alignment
work having been completed by the
Public Works Department (PWD).
The bypass will reduce congestion
along Mahipalpur, besides providing
relief to motorists headed to Indira
Gandhi International Airport from
South Delhi. Once the board gives its
approval, the proposal will be sent to
the government for administrative and
financial approval.
The bypass, which will provide an
alternative route to the airport while
As many as 14 special economic
zone developers, including GP
Realtors and Navi Mumbai Sez, have
sought more time from the government
for implementing their projects. GP
Realtors has proposed to set up IT/
ITeS zone in Gurgaon. It has invested
Rs 172.22 crore till date, including cost
of land. The developer has sought
extension of the validity period of
formal approval beyond November 13.
Similarly, Navi Mumbai Sez has asked
for further extension of the validity
Mitsubishi Elevators, a subsidiary
of Japanese industrial giant Mitsubishi
Electrical Corporation, is learnt to
be setting up a Greenfield plant to
manufacture elevators and escalators
at Vemagal, 60 km from Bengaluru, at
an investment of Rs 150-200 crore.
Mitsubishi has been allocated 22
acres at Vemagal for its new factory.
Karnataka government is understood
period of formal approval beyond
October 24 for its IT Sez.
The developer has already been
granted four extensions, validity of
which is up to October 22, 2014. The
developer has requested for further
extension so as to implement the
project. Sezs, which were once major
vehicles for investment and export
promotion, started losing sheen after
global meltdown and imposition of
minimum alternate tax (Mat) and
dividend distribution tax (DDT).
to be in the process of completing
land allocation formalities required by
the company.
Mi tsubishi had signaled i t s
intentions to invest in Karnataka in
line with the state government going
full throttle with its efforts to woo more
Japanese companies into the state
ahead of the Global Investors’ Meet
(GIM) scheduled to be held in the
early part of next year. The company is
now focusing on rapid development of
products suited to the needs of Indian
customers. The company had recently
launched its Nexiez-Lite, a new lineup
of its Nexiez series of elevators for
low and mid-rise residential and office
buildings.
The elevators come with emergency
landing devices and safety functions
such as multi-beam door sensor to
enhance user safety, besides Leds for
elevator lighting which the company
says will reduce power consumption
by 75 per cent compared to traditional
incandescent bulbs.
providing a link to Dwarka road, is part
of phase-3 of a plan for alignment of
the Mehrauli-Mahipalpur road. “We will
construct an underpass below NH-8
as part of phase-3,” said an official.
Phase-1 of the project involves
widening the stretch from Andheria
More to Aruna Asaf Ali Marg in Vasant
Kunj. The estimated cost of the project
is Rs 58.21 crore. The stretch now has
four lanes, which will be widened to
accommodate eight. The road is now
16-30 metres wide and will be widened
to 75 metres.
$63 m ADB loan for
N Karnataka
The Asian Development Bank
(ADB) has provided $63.3 million
loan for improving urban services
and strengthening municipal and
project management capacity in
North Karnataka towns.
The Centre signed an
agreement with the ADB for
improving urban services. The
agreement is for the fourth
project under the overall
facility of $270 million for the
North Karnataka urban sector
investment programme.
The fourth and last tranche of
loan under this programme will help
upgrade infrastructure, including
expansion of the potable water
systems to provide round-the-clock
water supply with private sector
participation in 12 towns.
T h e t o w n s s e l e c t e d a r e
Basavakalyan, Bel l a r y, Bidar,
Gadag-Betegeri, Gokak, Haveri,
Hospet, Nipanni, Raichur, Shahabad,
Sindhanur and Yadgir. The programme
also includes complet i o n of
sewerage networks in three towns –
Haveri, Hospet and Raichur – and
improvements to the road network in
Badami and Ilkal.
Tarun Bajaj, Joint Secretary,
Department of Economic Affairs,
Union Ministry of Finance, signed
the agreement on behalf of the
Government of India and M Teresa
Kho, Country Director of ADB’s
India Resident Mission, signed the
agreement on behalf of the ADB.

September 22-28, 2014 5
technology
Bentley Systems, Incorporated,
the leading company dedicated to
providing comprehensive software
solutions for sustaining infrastructure,
has announced immediate availability
of its WaterCad, WaterGems, and
Hammer V8i (Select series 5)
information modeling software
for analysis and design of water
distribution systems.
The software’s BIM advancements
extend information mobility across
water system planning, design, and
operations – improving collaboration
within and between these phases
of the infrastructure lifecycle and
facilitating better decision making
for enhanced project and system
performance.
New real-time-based simulation
capabilities in the Select series 5
releases of WaterCad, WaterGems,
and Hammer V8i improve visibility,
forecasting, and decision-making
support for both modelers and
operators.
System modelers benefit from
the fact that supervisory control and
Bentley’s solutions improve
water system planning, design, operations
data acquisition (Scada) data can
be automatically imported into their
hydraulic models for use as initial
conditions. System operators benefit
from the ability to publish model results
to the utility’s existing Scada system
control screen, helping forecast
operating conditions.
Gregg Herrin, Bentley Systems
Director (product management,
hydraulics and hydrology), explained,
“For over 10 years, engineers have
used the ScadaConnect capabilities
within WaterCad and WaterGems to
leverage valuable field information by
integrating a utility’s Scada system
with our hydraulic models.
“With the Select series 5 releases of
these products, as well as of Hammer,
we have further enhanced information
mobility across engineering and
operations. Thus, model results can
now be published to the utility’s
existing Scada system control screen
using the industry-standard OPC
communication protocol. This ‘asset
performance modeling’ enables
system operators to benefit from
optioneering as they evaluate and
visualize model predictions directly
in the user interface they regularly
employ.”
The Select series 5 releases enable
WaterCad, WaterGems, and Hammer
users to view both real-time and
historical Scada data, and to compare
data between Scada and model results
– including the display of alarms within
the hydraulic model.
Strong visualization tools empower
hydraulic modelers to monitor Scada
signals as they change in response to
real-time events – similar to a human
machine interface (HMI) screen – to
help them see events as they happen
and improve decision making.
Unlike software that aggregates
water usage data from multiple water
customers to a single spatial location,
the WaterCad and WaterGems V8i
(Select series 5) software explicitly
models water demands for individual
water customers in their correct
physical locations. This provides
modelers with better visibility and
control over where demands are
allocated, helping them manage those
demands with finer granularity.
Additionally, the Select series
5 releases include the following
capabilities:
*WaterCad and WaterGems users
can run multi-species water quality
analyses.
*Hammer users can run multiple
scenarios as a batch run, similar to
the batch run functionality in WaterCad
and WaterGems.
*WaterCad, WaterGems, and
Hammer users can:
a)publ ish hydraul ic model s
(including results) as i-models for
use in Bentley Map Mobile, an app
that works on Android, iPad, and iPad
mini tablets.
b)model from within the latest
versions of MicroStation, AutoCad
(including AutoCad 2015), and (except
WaterCad) ArcGIS (including ArcGIS
10.2).

September 22-28, 2014 6
MSRDC seeks Jica funds
for Bandra-Versova sea link
State-run road development
corporation MSRDC is looking at
funding from the Japan International
Cooperation Agency (Jica) for the
ambitious Rs 5,975-crore Bandra-
Versova sea link project.
“The Jica has been funding major
infrastructure projects in the country
at lower interest rates. To give pace to
our ambitious 9.3-km Bandra-Versova
sea link project, we will seek funding
from this Japanese institution,” said
Maharashtra State Road Development
Corporation (MSRDC) Joint Managing
Director SM Ramchandani.
The Bandra-Versova sea link is
proposed to be developed on a public
private partnership model and will be a
tolled project. It will have approaches
at Carter Road and Juhu, besides
the terminal points at Bandra and
Versova.
Ramchandani said if the project
gets Jica funding, the concession
period for toll collection could also
come down to that extent. The
corporation has also sought viability
gap funding (VGF) from the Centre,
which may be up to 20 per cent of the
project cost.
The corporation is currently
evaluating the pre-qualification bids
submitted by two consortia led by IRB
Infrastructure and LT.
Gadkari seeks grant to
upgrade Iran’s port
The Shipping Ministry will float
a cabinet note by September-end
seeking grant for upgradation of Iran’s
Chabahar Port, which will provide
India an alternative route for trade
with Afghanistan and other Central
Asian nations.
According to officials, the Shipping
Ministry will ask the External Affairs
Ministry for an annual grant of $85
million and a recurring one of $20
million till a sustainable amount
of cargo is achieved through port
operations. India has already pledged
$100 million for the project.
“We are moving on Chabahar
Port on a war footing,” said Shipping
Minister Nitin Gadkari. The matter will
be resolved in 15 days, he added.
India and Afghanistan decided to
use Chabahar Port for trade because
of problems associated with ports in
Pakistan.
While nothing stops India and
Afghanistan from using Pakistani
ports for exports, India doesn’t see
it as a dependable route. The port
is proposed to be operated by a
special purpose vehicle floated by
the Jawaharlal Nehru Port Trust and
the Kandla Port Trust under a revenue
sharing agreement with the Port
Maritime Organization of Iran.
On upgradation, Chabahar Port’s
capacity is expected to increase to
12.5 million tons from of 2.5 million
tons now. The proposal was initiated
by former PM Atal Bihari Vajpayee
in 2004. The port project is also
important to India in view of China’s
expanding maritime presence in the
region.
PROJECTS UPDATE
First high speed train on
Delhi-Agra route in Nov 2014
The first high speed train with a
speed of 160 kilometer per hour will run
on Delhi-Agra section in the first week
of November this year as Kapurthala
Rail Coach Factory (RCF) is all set to
roll out first rake of 14 coaches of the
train by the end of October this year.
RCF General Manager Parmod
Kumar said that shells of the first rake
of high speed coaches had been
manufactured and the work was going
on at fast pace to roll out the first rake
by the end of October this year so that
the first high speed train could run on
Delhi-Agra section.
RCF engineers in consultations with
Research Development Standard
Organizations (RDSO) had made
some changes in these coaches
in designing of coupler system for
more smoother ride than Shatabdi
and Rajdhani coaches, installation
of smoke and fire detection system,
and automatic sliding of inner doors
besides TV infotainment system in the
executive chair cars with Led fittings on
the back of chair cars.
He said that the approximate cost
of one high speed coach would be
between Rs 2.25 to 2.50 crore.
A’bad-G’nagar Metro project
put on fast track
Considered a laggard among
Metro rail projects, the Ahmedabad-
Gandhinagar Metro rail project has
recently been put on the superfast
track for completion, thanks to the
preferential treatment being accorded
to it by Prime Minister Narendra Modi
himself.
Modi’s recent visit to Japan has
resulted in a major windfall gain for the
project, a pet project of the PM while
he was the chief minister of Gujarat.
Among the slew of projects that the
Japanese government has agreed to
provide assistance is the Rs10,770-
crore first phase of the Ahmedabad-
Gandhinagar mass transit rail link
project. To help matters further, the fresh
detailed projects report (DPR) has been
cleared by the Centre and is expected
to get the Cabinet approval soon.
The project, being handled by
a special purpose vehicle (SPV),
the Metrolink Express between
Gandhinagar and Ahmedabad
C omp a n y L t d (Me g a ) a n d
WB keen to fund
MMRDA’s two new
Metro projects
States scout for funds
to develop smart cities
Unanimously welcoming the Smart
City initiative of the Centre, states
have demanded technical help to
prepare project reports and higher
financial assistance to execute the
scheme.
Urban Development Minister
Venkaiah Naidu reviewed the
suggestions and views from states
and Union Territories expressed at
the national conclave held recently
and directed officials to examine the
suggestions in detail.
He has also asked concerned
officials to prepare a proposal for
discussion at an inter-ministerial
meeting where ministers of finance
and defence, highways and surface
transport, railways, power, environment
and forests are likely to attend.
Reiterating the importance of smart
leadership in developing smart cities,
Naidu said he would write to all chief
ministers on the need for proper
decision making to enhance revenues
of urban local bodies and improving
urban governance.
States have made 10 broad
suggestions for developing smart
cities, including seeking flexibility in
implementation, capacity building,
higher Central assistance in view of
the resource constraints of urban local
bodies and expeditious clearances
by the Centre, said a senior Urban
Development official.
conceptualized way back in 2003,
has faced many speed breakers over
the years, foremost among them being
the difficulty in raising funds.
In view of this, the Gujarat
government had sought Rs 6,000-
crore loan from the Japan International
Corporation Agency (Jica), to part
finance the project. Of the total
Rs10,770 crore required for phase-1
of the project, the contribution of the
Centre and the state would be Rs
2,000 each.
With the Japanese government
taking a lead in funding Mumbai
me g a p o l i s ’ ma n y s i g n a t u r e
infrastructure projects, the World
Bank has evinced interest in funding
the proposed Charkop-Dahisar and
Wadala-Teen Hath Naka Metro projects.
The Japan International Cooperation
Agency (Jica) has already committed
to fund the Mumbai Metropolitan
Region Development Authority’s
(MMRDA) two ambitious projects --
the just announced Rs 23,136-crore
Colaba-Seepz Metro and the 22 km
Rs 9,630-crore Mumbai Trans Harbour
Link (MTHL), which still remains on
paper.
“The MMRDA is undertaking large
infrastructure projects which require
huge investments. Recently, Jica
has committed to funding two major
projects in the city and it has also
shown interest in funding some more
projects as well. At the same time,
the World Bank has also expressed
interest in funding two other proposed
Metro projects which we will be soon
taking up,” said MMRDA Additional
Metropolitan Commissioner Sanjay
Sethi.
The World Bank had earlier funded
two phases of Mumbai Urban Transport
Projects implemented by the authority.
While phase-1 involved Santacruz-
Chembur and Jogeshwari-Vikhroli
link roads, phase-2 was to strengthen
the suburban railway networks and
improving its operational efficiency.
The Maharashtra government
recently merged the stalled Charkop-
Bandra-Mankhurd Metro line with the
proposed Dahisar-Charkop corridor by
converting the entire line underground
instead of the originally planned
elevated line. The proposed 40.2-km
Dahisar-Bandra-Mankhurd Metro line
is estimated to cost Rs 28,900 crore
with all the 37 stations underground.

September 22-28, 2014 7
Long Term (Eight Quarters) Moving Average Trend
of Launches and Absorption
No of units
18,000
17,000
16,000
15,000
14,000
13,000
12,000
11,000
10,000
9,000
8,000
Launches Absorption
Jun-12
Sep-12
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
real estate
R E S I D E N T I A L A N D O F F I C E O U T L O O K 2 0 1 4
The lure of Bengaluru
The city remains one of
the most favoured office
and residential space
destinations in the
country
(Part 2 continued from last week’s issue)
South Bengaluru has consistently
witnessed a majority of new launches
in both the first halves of 2013 and
2014, although its share decreased
slightly from 47 per cent in H1 2013
to 45 per cent in H1 2014. The area
has generally been a preferred
residential destination for employees
of the IT sector due to the presence
of a large number of IT companies
in IT/ITeS employment hubs such as
Electronics City, Sarjapur Road and
Bannerghatta Road.
Social infrastructure like the
availability of quality hospitals and
popular retail malls are some of the
major reasons for residential demand
in this part of Bengaluru. Additionally,
property prices are relatively cheaper
in the peripheral locations in the
south, compared to the other micro-markets.
During H1 2014, 71 per cent
of the units launched within the
price bracket of Rs 2.5–5.0 million
belonged to south Bengaluru.
CityVille by Valmark on Bannerghatta
Road, Shriram Summit at Electronics
City and Shriram Chirping Woods on
Haralur Road by Shriram Properties,
and Bren Edgewater’s at Sarjapur
Road by Bren Corporation are some
of the new projects launched in south
Bengaluru during H1 2014.
Eastern front
Unlike south Bengaluru, the
eastern and western parts of the city
have been able to increase their share
of new launches in H1 2014. While
east Bengaluru’s share increased by
21 per cent in H1 2014 over the share
in H1 2013, west Bengaluru’s share
increased by an impressive margin
of 33 per cent.
On the eastern front, corporates
have made large investments in office
spaces in locations like Whitefield
and Outer Ring Road East as
infrastructure initiatives fructified
in tandem. This has increased the
attractiveness of east Bengaluru as
a residential destination.
On the other hand, west Bengaluru
has been witnessing a considerable
amount of developer interest owing
to improving infrastructure. Godrej
United by Godrej Properties and
Republic of Whitefield by DivyaSree,
both located at Whitefield, are a few
select projects launched in east
Bengaluru, while Presidential Towers
by Golden Gate Properties and
Aparna Elina by Aparna Constructions
and Estates at Yeshwantpur are some
of the projects launched in west
Bengaluru during H1 2014.
Fall in new launches
North Bengaluru observed a fall of
20 per cent in new launches during
H1 2014 over the share in H1 2013,
as developers were deterred from
launching fresh projects on the back
of lackluster response received by
various projects launched during
H2 2013. The micro-market seems
to be facing price resistance from
home buyers, as a majority of the
locations have already breached the
psychological price point of Rs 4,500
per sq ft in locations currently lacking
social infrastructure.
Mirabilis by Kolte Patil Developers
at Horamavu and Purva Palm Beach
by Puravankara Projects on Hennur
Road are some of the new projects
launched during H1 2014. On the
absorption front, central Bengaluru
has been able to maintain its
momentum during H1 2014, although
it is insignificant in terms of absolute
numbers and share.
Locations like Whitefield and
Electronics City are witnessing
renewed traction since H2 2013,
while residential projects along the
Outer Ring Road (ORR) continue to
do well. This trend is expected to
continue even in 2014.
The share of north and west
Bengaluru has observed the steepest
fall in absorption during H1 2014,
to the tune of 24 per cent and 30
per cent respectively. This can
be attributed to the apprehension
The recent infrastructure projects
in Bengaluru have been largely
responsible in providing access to
newer micro markets and easing
their mobility restrictions, besides
decongesting older micro-markets.
Good momentum in infrastructure
projects has been observed with
initiation of the expansion of the
international airport and the elevated
expressway on Bellary Road, thereby
aiding home prices, as well as
development of the stretch connecting
Hebbal and K R Puram as a largely
signal free-corridor
This will greatly support the
residential developments in these
two major markets. The Metro rail is
the most ambitious of the projects
designed to cover all the corners of
Bengaluru. Once all the phases of the
Metro are completed, there will be a
considerable impact on residential
prices along the nodes.
Meanwhi le, the res ident ial
micro-markets along the recently
commenced Sampige Road– Peenya
Metro rail stretch towards west
Bengaluru are projected to receive
an immense amount of interest
from home buyers in forthcoming
months.
This can be attributed to faster
connectivity to their workplaces,
facilitated by the Metro rail. Vast
decongestion of traffic bottlenecks
towards the city centre is expected to
take place, reducing the travel time by
road as well. Moreover, there exists
good potential for price appreciation
in the residential micro-markets along
this stretch, which would attract
investors from other regions.
Divided in four zones
The residential market of Bengaluru
is divided fairly across the four zones
(north, south, east and west) in terms
of launches and absorption, with
the exception of central Bengaluru.
During H1 2014, central Bengaluru
accounted for less than 1 per cent of
the total new launches, as high prices
and unavailability of land parcels
deterred developers from launching
new projects.
A prominent project recently
launched in central Bengaluru is
Sanyog by Mythreyi Properties at
Wilson Garden. Owing to the lack
of depth required for our analysis,
the focus of our research has been
limited primarily to the other four
micro-markets of the city.
among buyers regarding a majority
of projects being located beyond
the established residential areas,
with a dearth of adequate social
infrastructure, absence of mass
rapid public transportation systems,
distance from the city centre and
poor access roads.
Areas like Devanahalli in north
Bengaluru and Mysore Road in
west Bengaluru have witnessed
dampened sales volumes because
of such challenges. The eastern and
southern Bengaluru markets have
fared relatively better in terms of
absorption, compared to the north
and west.
Healthiest micro-market
However, comparing these micro-markets
in terms of the number of
launches and absorption does not
reflect the true picture of the health
of the market. Hence, we have
developed a model that captures the
relative health of micro-markets by
taking into account demand, supply
and the age of unsold inventory.
Adequate supply, better infrastructure
and the high aspirational quotient
attached to the eastern micro-market
have pushed prices upwards in the
range of 8–15 per cent, coupled with
a fair amount of demand.
Signs of revival
Prices in the other micro-markets
of Bengaluru have increased in a
similar vein, as compared to H2
2013. The significant build-up in
unsold inventory and the availability
of a large number of ready-to-move-in
apartments have resulted in the
constricting price rise in the first half
of 2014. However, we expect this to
change in coming months, as signs
of revival in demand are already
becoming evident in the city, and this
could result in prices continuing to
move upward H2 2014 onwards
Bengaluru is one of the key office
markets in the southern part of
India. Its office market has evolved
primarily due to the growth of the IT/
ITeS sector in the city. While a number
of industries like manufacturing,
The age of unsold inventory is
the number of quarters that have
passed since the inventory entered
the market. A higher age of unsold
inventory indicates that a large
number of old projects continue to
remain unsold.
Currently, east Bengaluru is the
healthiest micro-market, as it has
one of the lowest QTS and the lowest
minimum age of unsold inventory.
Hence, despite east Bengaluru
witnessing a large unsold inventory,
the health of the micro-market
is relatively better because the
increment in unsold inventory was
matched by a similar increase in
absorption.
South Bengaluru’s health is the
poorest, as it continues to carry the
excess unsold inventory of projects
that were launched almost two
years ago. This problem has been
compounded by the increase in new
launches during H1 2014
Prices in the majority of the
locations across Bengaluru have
witnessed a steady, controlled
appreciation in the last 12 months.
automobile and biotechnology have
their stake in its economy, it is the
IT/ITeS sector that has been the
predominant driving force.
Locations like MG Road and
Residency Road form the Central
Business District (CBD) of the city,
while the other important office
markets include Koramangala and
Old Airport Road in the suburbs.
Peripheral locations like Electronics
City in the south and Whitefield to the
east are the two prime IT/ITeS office
markets. Of late, the Outer Ring Road
has gained prominence as a preferred
IT/ITeS office destination in the city.
Known for its vibrant office space
market, Bengaluru has consistently
topped the absorption charts in the
past few years.
The IT/ ITeS industry continues to
thrive and grow, albeit at a slower pace
since the global economic slowdown
and the emergence of newer sectors.
With an inventory of around 109.5
million sq ft of office space currently
operational, Bengaluru remains one
of the most favoured office space
destinations in the country.
It has seen consistent absorption
over the past three years, with vacancy
rates dropping steadily every year.
This healthy demand in the past years
has been responsible for restricting
vacancy to 11–18 per cent.
The low vacancy levels can also
be attributed to the staggered new
completions entering the office
market each year, although they
were significantly outpaced by the
absorption in H1 2014. With an
occupied stock of 97.9 million sq ft
out of the total office space stock,
the vacancy level observed during
H1 2014 was 11 per cent, down from
14 per c ent in H1 2013.
(Continued in next issue)
(Courtesy: Knight Frank Research India)
Quarters to sell analysis Office Space Stock and Vacancy
Jun-12
Sep-12
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
No of quarters
9
8
7
6
5
4
3
Micro-market Level Ticket Size Split of Launched
Units During H1 2014
100%
80%
60%
40%
20%
0%
Central
East
West
North
South
2.5
mn
2.5-5
mn
5-7.5
mn
7.5-10
mn
10-20
mn
20
mn
120
100
80
60
40
20
0
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
H1 2012
H2 2012
H1 2013
H2 2013
H1 2014
H2 2014 E
Mn sq ft
STOCK OCCUPIED STOCK VACANCY (RHS)

September 22-28, 2014 8
I N T E R I O R S
Vector Projects’ Nuvem
executive chair
Vector Projects (I) Pvt Ltd introduces
its latest product in the ergonomic
furniture range -– the Nuvem Chair.
The Nuvem executive chair is
designed with a sub-skating recline,
which allows the user to be relaxed
while adjusting its down and backward
reclining position.
The most unique feature of this new
method of movement is that, while
reclining, the backrest angle changes
but the positon of the lumbar region
remains in the same position. While
reclining, the back fits on the backrest,
making movement together, while the
lumbar region receives full support.
This new ergonomic feature provides
the best recline in terms of health and
body posture.
Another ergonomic feature that this
chair boasts of is the Memory Locking
function which allows the one seated
to adjust the control button to set and
adjust their own best comfort position.
With the automatic restore position, the
backrest automatically restores to its
original position when the user leaves
the chair.
The Nuvem chair is available in
various specifications, colours and
styles.
Optional accessories with the chair
include:
Mesh/leather adjustable modern
Ottoman
Speaker system for iPhone, iPod
and walkman
Nuvem ergonomic cup holder
Nuvem ergonomic notebook stand
which is also foldable
real estate
A guide to investing in prime
commercial property
It is a visible
demonstration of your
firm’s commercial worth
to your clients, partners
and other businesses
It is easier for employees to travel
to work every day -- a major factor,
considering that employee retention
ranks very high on employers’ list of
priorities today.
A prime office space purchased
for self-use is arguably the soundest
business decision any firm can make.
Apart from the fact that such a property
is extremely convenient to commute
to, a commercial office in a prime
location increases a firm’s visibility
and reputation.
It is a visible demonstration of your
firm’s commercial worth to your clients,
partners and other businesses. Also,
the capital appreciation of a prime
office property reflects very favourably
on a company’s balance sheet.
Prime locations
Both in terms of business potential
and returns on investment, the
highest value lies in prime office
spaces. Invariably, the ‘prime’ value
in commercial real estate is vested
in the location, which leads to the
question – how does one define a
‘prime location’?
The factors that make a location
prime are a function of its overall
accessibility within the city, the quality
of infrastructure that supports it, the
saturation of high-profile companies
represented there and the overall
quality of buildings in the sub–market.
To determine if a location is prime,
investors need to examine the following
parameters:
Can the office property be reached
easily via all modes of transport?
Is the office property close to major
commercial hubs?
What is the demand-supply gap?
What is the tenant profile of the
location? Which industries prefer it and
what are their growth potential?
Does the location have good social
infrastructure such as restaurants,
malls, shopping centres etc.?
Is the location well-planned (e.g.
Bandra Kurla Complex in Mumbai
or has it grown with increased
requirements (Nariman Point, which
was reclaimed from the sea?)
Are there a lot of commercial
space transactions happening in this
location?
Do the buildings have a modern
look and feel (glass façades)?
If the answers to most of these
questions are positive, then the
location is a prime one.
Prime properties
The next aspect to determine is
whether the project and property
meet ‘prime’ criteria, as well. There
are over 30 important technical
specifications that a commercial
property must meet, and this needs to
be verified by an expert. If the project
is under construction, the buyer or
investor must be fully updated on the
construction risks, the developer’s
track record, etc.
The project and property must also
be assessed for:
a) Repositioning potential
b) Refinancing potential
c) Refurbishment potential.
Finally, prime locations and prime
commercial properties in them naturally
come with prime prices. Since returns
on investment are important, one must
determine whether the location will
also offer good capital appreciation.
Regardless of whether the purpose
of buying a commercial property is self-use
or investment, using the services
of a reputed real estate consultant
is a key factor for success. Expert,
research-driven advice can ensure
that one is not buying into a property
or location which has or will have major
drawbacks high vacancies and result
in low returns on investment.
Gyms as mixed-use tenant
strategy in malls
Gyms, in particular,
are a unique category
of tenants that brings
several advantages
with it
One of the aspects that attract
customers to a mall is a wide range of
interesting stores and services. Many
malls in India are today facing a crunch
in terms of footfalls and occupancy
rate, and the reason often is that,
with most malls offering more or less
the same brands and stores, visitors
are not finding any difference. The
visitors therefore look for convenience
and ambience and some of the well-tenanted
malls may lose out on these
footfalls.
The main focus of al l mal l
developers is to lease (or sell) out the
spaces in the mall quickly and at the
most profitable rates. What sets the
more successful ones apart is a more
imaginative tenant mix and a better
differentiation strategy accurately
tailored to location and catchment.
An interesting selection of tenants is
crucial in various ways, not least of all
in terms of defining the kind of visitors
that will be attracted to the mall.
Effective strategy
Many owners or vacancy-plagued
malls in India have now discovered
that including non-retail tenants such
as fitness clubs, spas, travel agencies,
vacation brokers and car servicing
centres is a very effective strategy.
Gyms, in particular, are a unique
category of tenants that brings several
advantages with it. For many retail
Shubhranshu
Pani
Regional Director,
Retail Services,
JLL India
Ramesh
Nair
COO, Business
National Director,
JLL India
At the best of times, investing
in commercial real estate requires
forethought, research and planning.
When tracking down the ideal
commercial property for business
operations or for investment, various
factors such as soundness of location,
health of the local job market, current
and future infrastructure initiatives in an
area and migration patterns into a city
play important roles. While the broad
guidelines above hold true for any
commercial property investment, prime
commercial properties require even
greater insight and investigation.
Manifold advantages
Obviously, investing in a commercial
property in a prime location can have
multiple benefits:
It is easier to find tenants for
properties in prime locations than in
low-demand locations. Finding tenants
quickly is important, since it plays
a role in yield calculations. Leaving
a commercial property vacant for
extended periods will result in loss of
income.
Banks are more willing to give
loans to commercial projects in prime
locations, since there is very low
likelihood of capital loss.
landlords they are, in fact, a cavalry
riding to the rescue.
In the first place, inviting gyms to
occupy space in a mall can quickly
and effectively offset the pull-out of
traditional retailers. Secondly, since
fitness regimens are regular and
planned activity, having a gym in a mall
increases visibility for other stores.
Thirdly, gyms use up space which
is generally not usable by other
categories, such as non-prime spaces
on higher floors in malls or the by lanes
of high streets.
Fourthly, gyms also act as magnets
for locals and operate at all hours.
Doing workouts in a gym is not an
impulse activity but a planned one.
Nevertheless, other tenants close to
them who are dependent on impulse
shopping get eyeballs throughout the
day as well as late in the night.
Importantly, gym clients tend to
come during slow hours when parking
is available, thereby driving footfalls
even at non-optimal times. This can
and often does lead to an increase
in pre-meditated shopping decisions
where the impulse factor has failed.
Gyms do not clash with surrounding
stores and often complement them
very favourably -- such as in the case
of sports clothing of health supplement
stores. Further, leasing spaces to a
health club or gym makes financial
sense as the rents such outfits pay are
comparable or only slightly lower than
those paid by big-box retailers.

September 22-28, 2014 9
EQUIPMENT
Konecranes launches
new overhead crane
for emerging markets
Volvo excavators
to assist in China
underground mall
“It was the first time I’d seen just
one brand of machinery on a jobsite,
and it was very impressive – the
machines were working together as
one solid unit,” he explained.
Volvo excavators – including
EC140BLCs, EC210Bs, EC240BLCs,
and EC360BLCs – will be deployed
to make way for an underground
shopping mall.
“Volvo machines meet the strict
regulations that are increasingly being
implemented, so it’s one less thing for
us to worry about,” said the official.
A total of 20 Volvo excavators will be
put to work for building a subterranean
shopping mall in Eastern China. The
project is taking place in the city of
Hangzhou, the capital of Zhejiang
Province. Main contractor, Hangzhou
Qiangjie Municipal Construction, is
using its Volvo machines to excavate
several thousand cubic metres of
soil.
“In 2008, I visited Ningbo, China,
where six Volvo excavators were
working together on a construction
site,” said a top official from Hangzhou
Qiangjie Municipal Construction.
DJSI honours SKF for
sustainability initiatives
For the 15th year in a row, SKF
has been listed as one of the world’s
most sustainable companies by the
Dow Jones Sustainability World Index
(DJSI). In particular, the company has
once more been recognized as best-in-class
within both environment reporting
and environment management.
“Fifteen years after first being
included in the DJSI, I am incredibly
proud to see that the hard work and
commitment to sustainability that is
exhibited by our people across the
world continues to be recognized,”
says Tom Johnstone, SKF President
CEO.
SKF defines sustainability as SKF
Care, which encompasses Business
Care, Environmental Care, Employee
Care and Community Care. SKF
BeyondZero is SKF’s strategy to
create a positive impact on the
environment.
It consists of two simultaneous
approaches : to reduce the
environmental impact resulting
from SKF’s operations; and to
provide customers with innovative
technologies, products and solutions
that offer improved environmental
performance.
SKF works to improve economic,
environmental and social performance
over the full value chain. A good
example is the Group’s climate
strategy, which includes suppliers, SKF
operations, transportation, distribution
and customer solutions. This strategy
and approach has been recognized by
WWF through the nomination of SKF
as a WWF Climate Saver.
The Dow Jones Sustainability
Tom Johnstone, SKF President CEO
Indexes were launched in 1999 and are
longest-running and most prestigious
global sustainability benchmarks
worldwide. In addition, SKF is also a
member of the FTSE4Good Index.
over the last few years. Following the
rollout in India, the plan is to introduce
the CXT UNO in other countries in the
near future.
Thanks to its simple, standardized
design, the CXT UNO will be available
with very competitive delivery times.
Konecranes has introduced a new
overhead crane in Pune, India on
September 18, 2014. The new crane,
the CXT UNO, has been developed
to give small and medium-sized
customers in emerging markets access
to Konecranes’ proven technology,
and will extend Konecranes’ product
offering for these markets. The
CXT UNO is primarily intended for
companies operating in manufacturing,
construction, and logistics.
The CXT UNO is based on
Konecranes’ existing CXT hoist, and
delivers many of the industry-leading
strengths of the CXT. It is Konecranes’
second product to be launched for
emerging markets this year and follows
the BOXHUNTER, an innovative new
type of RTG for ports and terminals.
The CXT UNO combines a strong
range of features based on a simpler
set of components and technical
solutions compared to existing CXT
products. This simpler design, together
with easy access to spare parts, means
that the CXT UNO will be easy to
maintain. “The CXT UNO is important
for us because it expands our product
offering into a segment where we
haven’t been present before,” says
Jukka Paasonen, Konecranes’ Vice
President, Head of Business Line
Industrial Crane Products. “The CXT
UNO offers customers in this category
access to Konecranes’ quality and
reliability in what we believe is a very
attractive and competitive overall
package.”
Based on proven solutions
Capable of lifting loads up to 10
tons up to 9 meters off the ground,
the CXT UNO features a 2-speed
hoisting and travelling design with
a fixed pendant controller, tagline
festooning, and compact single-girder
construction, and can operate over
spans of up to 20 meters.
The design draws on input collected
in the field and prioritizes issues such
as quality, reliability in both intensive
and less-frequent usage, and ease of
maintenance.
The CXT UNO is being initially
launched in India, a market with
significant potential for industrial
cranes and one where Konecranes
has been building a growing presence
L-R: Saeesh Nevrekar - Country Manager MD, WMI; Konecranes India; Pekka Lundmark -
President CEO, Konecranes, and Ryan Flynn, Exe. Vice President Head of Business Area
Equipment, Konecranes

September 22-28, 2014 10
Demand for low-cost housing
to spur pre-fab growth
Tata Steel expects rising demand
for affordable housing in the country
to drive growth for its pre-fabricated
construction solutions. The company
introduced its low-cost, pre-fabricated
housing solution, Nest-In, last year
and saw good initial response in
the Indian market, said a company
official. The company has installed
about 300 Nest-In units covering
about 100,000 sq ft across the
country.
The cost of a Nest-In unit is Rs
900 for 1,000 sq ft, excluding cost
of plumbing and electrical fittings,
which is lower than conventional
construction costs. Using a Nest-In
solution, a comfortable and durable
house can be built in just nine days.
The pre-fabricated construction
material is of a ready-to-make type,
enabling mass customization. The
Nest-In housing solution has been
developed by the combined efforts
Vastushodh launches
low-budget homes for seniors
After successfully playing the role
of a pioneer in affordable housing 14
years ago, Vastushodh Projects has
now forayed into affordable housing
for senior citizens. The project called
SukhGram has been launched in Pune
under the company’s UrbanGram
brand.
Sachin Kulkarni, Managing Director,
Vastushodh Projects, said the project
would be an independent gated
community within existing UrbanGram
projects. “This will enable senior
citizens to interact with the residents
Nearly 19 million sq ft of
housing unsold in Gurgaon
The Gurgaon housing market has
unsold inventory of nearly 19 million
sq ft, 28 per cent of the total area
under development, due to slowdown
in demand and a surge in supply,
according to rating agency Icra.
However, Icra Research said in its
latest report on Delhi-NCR residential
market that sales would outstrip
demand in near term at Gurgaon.
“The golf course road extension and
new Gurgaon have remained the
most active micro markets in Gurgaon
witnessing maximum launches.
The total area under development
in the Gurgaon market stood at 66.11
million sq ft as on March 2014 end.
“It is estimated that the total unsold
inventory in Gurgaon is at 18.82 million
sq ft, with 63 per cent unsold inventory
being in the Golf course road extension
Nitesh Estates to buy
Pune mall for `300cr
Southern developer Nitesh Estates,
which built India’s first Ritz Carlton
hotel, has bought Israeli billionaire
Mordechai Zisser’s 1-million-sq-ft
Plaza Centre Mall in Pune for Rs
300 crore, according to at least
three sources aware of the matter.
Zisser’s diversified conglomerate
Elbit Imaging Group, through its
subsidiary Plaza Centers, operates
a global portfolio of 37 retail assets
in Central and Eastern Europe and
India, under the same brand. The
acquisition of the Pune project,
spread over 6.5 acres in Koregoan
Park, by Nitesh Estates marks Elbit’s
exit from retail in India after having
invested in prime land parcels prior
to the 2008 meltdown.
Global consultancy firm JLL
India was the adviser to the deal,
which also included a 100,000-sq-ft
commercial space and land for future
development. Amarchand Mangaldas
and J Sagar were the legal advisers to
the transaction, which will be formally
announced in the coming weeks.
Nitesh Shetty, the 37-year-old founder
of the Bangalore-based property firm,
muscled out other bidders Panchshil
Realty and global investor Xander’s
retail arm Virtuous Retail.
of UrbanGram for mutual benefit,”
he said.
Located at Pirangute, about 10 km
from Pune, SukhGram will comprise
200 homes. On offer are studio
apartments (400 sq ft), 1-BHKs (650
sq ft) and 2-BHKs (850 sq ft). These
are priced between Rs 10 lakh and
Rs 35 lakh, depending on the location
and size. The complex will also have a
guest house with eight rooms for the
convenience of guests visiting their
ageing parents or friends.
‘These will be specially designed
and New Gurgaon. The high unsold
inventory is due to surge in supply
in New Gurgaon and Golf Course
Road Extension amid slowdown in
homes with special infrastructure that
would support assisted living,” said
Kulkarni. According to him, many senior
citizen groups and organizations had
approached Vastushodh for such a
project. Interestingly, the Pune-based
NRI Parents Organization (NRIPO) has
already booked 150 units at Pirangute
for their members. So far, assisted
living for senior citizens was available
only for the upper-class of society, but
with SukhGram, now it is possible for
middle-class senior citizens to afford
such homes.
real estate demand. We believe in the
near term improvement and sales
velocity will take precedence over new
launches,” said the agency report.
Presidency Heights
coming up on
Yamuna E’way
Presidency Infraheights, a Delhi-
NCR-based real estate developer,
is coming up with its first flagship
FDI-funded residential project called
Presidency Heights on Sector 25,
Yamuna Expressway, inside Jaypee
Sports City.
The project will offer 629 apartments
in 2- and 3-BHK variants. It will also
have a limited number of penthouses.
The 2-BHK units will come in sizes
ranging between 1,270 sq ft and
1,405 sq ft and 3-BHKs in the range of
1,615 sq ft and 1,850 sq ft. Presidency
Heights will offer seven high-rise
residential towers.
“Excavation has already started
at the site and we expect to deliver
the project within 48 months,” said
Jaspal Singh Kalsi, head, sales and
marketing, Presidency Infraheights.
The project has been designed by
Hafeez Contractor and landscaping
has been done by Integral Designs,
with Mahimtura Consultants being the
construction partner.
“We are planning to launch our
second residential project within six
months. The company plans to invest
Rs 2,000 crore in the current financial
year 2014-15,” said Kalsi.
real estate
of Tata Steel’s global research and
development teams in India and
Europe, and the marketing team in
India.
Pre-fabricated technology for
construction is also best suited
for an environment that is facing
challenges, such as the time taken
for construction, location, particularly
of where conventional means of
const ruct ion are not possibl e
owing to lack of — or difficulty in
transporting — raw material and the
non-availability of a workforce. Nest-
In is ideal for such applications as
houses, shops, clinics, community
centres, site offices, guard huts,
aanganwadis and schools.
Annapurna floats
premium housing
project in Hyderabad
Kumar Agarwal, partner, the sizes of
the apartments range from 2,450 sq
ft to 3,050 sq ft. Built in a G+4 format,
the project is also vaastu compliant.
The location of the project is
its unique selling point — it is
surrounded by business, leisure
and office clusters. The area is well
connected and has reputed schools
and colleges.
Sahara Group may sell over
100 acres in Bengaluru
Devanahalli and 25 acres at Whitefield.
The company has an option to swap
these properties with the list of land
parcels it is allowed to sell to raise
the money.
Sahara owns around 1,000 acre
of land across Bengaluru, Amritsar,
Ahmedabad, Ajme r, Bhopa l ,
Bhavnagar, Jodhpur, Pune and Vasai
near Mumbai.
A n n a p u r n a B u i l d e r s a n d
Developers has come up with a
premium residential project, White
House Celestia, which is expected
to be ready in about 15 months, at
Banajara Hills in Hyderabad.
The project has 30 units in
combinations of 3-BHK and 4-BHK,
and prices vary between Rs 2 crore
and Rs 3 crore. According to Manoj
The Sahara Group is in talks with
Ahmedabad-based Pacifica Group
and a high net worth individual to sell
two land parcels in Bengaluru for about
Rs 400 crore, as the conglomerate
sells assets to find money to secure
the release of its jailed chairman
Subrata Roy.
In Bengaluru, the Lucknow-based
company owns 76 acres at

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