Hi, I am a investor and looking to invest in Hiranandani Palace Garden in Chennai.
I am not from Chennai, so my knowledge is ltd.
I spoke with hiranandani and they are quoting me 3300/psf. I am planning to buy around 1500 sq.f.
I am going to put this money from my pocket.

My question
1) Is this worth the investment?
2) I have read, there won't be any new airport coming in Chennai Link - https://www.indianrealestateforum.com/forum/city-forums/chennai-real-estate/7955-no-airport-in-sriperumbudur?t=10455
3) They are going to charge 10% of the total amount and rest in installments. How is your experience with this? Do they stick to their promise OR sit on people's money ?

What are your thoughts/suggestions.

Thanks
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  • Is chengalpet next annanager or next velacherry? cannot believe it? 3300/psf? crazy?

    Maybe it will take another 10 years or even more?
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  • Better planned than Velachery

    Originally Posted by mrnice
    Is chengalpet next annanager or next velacherry? cannot believe it? 3300/psf? crazy?

    Maybe it will take another 10 years or even more?

    Take a trip into Chengalpet Mahindra city SEZ...you will know.

    Check this : http://www.skyscrapercity.com/showthread.php?p=52557213#post52557213

    Also let you know that gated communities inside this SEZ yeilding rental of upto Rs 20 per sq ft.
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  • Hello all,
    For your kind advice!!Please dont buy / book any appartment in HIRCO Palace gardens ,Chennaii have boooked an single BHK appartment Longleat -I in 2008 with a booking advance of 4.85 lakhs still now no approval and i have planned to cancel my booking last year end.They are making me to run here and there and no responce To your kind notice there is no email id you can find in the website for chennai and u can never get a single mail from their side.After months together of fight with the Head Bora and the lady in Mumbai Pripal they say the compnay is not in a postion to give money and we can do what ever we want do any thing legally they have told,inspite of having all receipts and documents .I have no option of doing any thing now.I am dare to give my no 99624-91166.Please advice i am almost waiting for 4 years + 1 yr for refund.HIRCO are hi fi cheat and frauds,playing with the hard earned money of working class people.
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  • Wow unbelievable
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  • Looks more of a corporate tactics to gain management control. Default on loan make it a financially unsustainable company. Mr. Niranjan comes forward as a savior to buy the company in throw away price. Lenders happy, Management Happy, End customers "Greater Fools".
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  • Originally Posted by srivat
    Looks more of a corporate tactics to gain management control. Default on loan make it a financially unsustainable company. Mr. Niranjan comes forward as a savior to buy the company in throw away price. Lenders happy, Management Happy, End customers "Greater Fools".


    srivat

    corporate tatic to gain management control? Does not make sense at all . Like you said end buyers are not fools but get stuck when things like this happen.
    So builder starts project with his name all over and people buy the property because of the name and reputation. Now reputation is down the drain, why will new investors even want to take a chance

    hiranandani as a brand will suffer the consequences. .. it was hiranandani name and project that the brother started, he decidea to resign and still lets his brand name to be used ?? Well it is misrepresentation and playing with innocent buyers who will be the ultimate victims .
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  • This scenario brings up an interesting question....

    Has the time arrived for builders collapsing? We all know that sales are low specially for these huge townships. Eventually if a builder has lots of unsold inventories, they can end up with a similar fate.

    omr has been hyped and hope this doesnt spread there too.
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  • Originally Posted by navink
    srivat

    corporate tatic to gain management control? Does not make sense at all . Like you said end buyers are not fools but get stuck when things like this happen.
    So builder starts project with his name all over and people buy the property because of the name and reputation. Now reputation is down the drain, why will new investors even want to take a chance

    hiranandani as a brand will suffer the consequences. .. it was hiranandani name and project that the brother started, he decidea to resign and still lets his brand name to be used ?? Well it is misrepresentation and playing with innocent buyers who will be the ultimate victims .


    Exact reason why I say it can be a corporate tactics. First of all we all agree HOH has nothing to do with palace gardens even then most felt it was a Hiranandani project.

    Reason is Hiranandani name as such carries a high goodwill in RE space and they exactly capitalized well on that. Now palace garden is not a public company so difficult for us to get the share holding pattern. In case if Niranjan had major shareholding why does he need to cease exit from management committee. Reason can be he was thrown out since he is a minor shareholder or he wanted to seize control but not all partners of shareholders agreed.

    Because of internal problems the projects moves nowhere. Debt level goes high not able to pay off FI's. Palace garden goes for CDR and FI's have a major say in company now. Person with most cash takes complete control. Thats when FI's accept to Niranjan proposal of buying back partners, debt etc.

    My own thoughts but not that it is not possible. For end customers ....
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  • At times Good Brand is used by two Brothers like Reliance . Here in Hirco , the feud is between Daughter Vs Brother+Father and again between shareholders of Hirco Plc and Indian counterpart .

    Though NH resigned from Hirco Plc as Chairman , he continues to control the property in Indian soil and pushing Tata towards Hirco Plc citing that he is nothing to do with Project . It is all total confusion and misleading one with lot of knots to be untied at the cost of Innocent Investors by Hirco Plc and NH

    HOH was coined as separate identity by SH and Property in OMR was bought through outright purchase and nothing to do with Palace Gardens of Hirco Plc

    Article about actual status quo


    Hiranandani has offered to buy out its London AIM-listed investment arm Hirco Plc.

    "We made the offer (to acquire Hirco) a few months ago," Niranjan Hiranandani, Managing Director of Hiranandani Group, told PTI

    He did not disclose the offer price, but according to sources close to the deal, "Hiranandani has offered to buy out Hirco for a consideration of 55 million pounds".

    Hirco was started in London in 2006 as the investment arm of the Hiranandani Group with an aim to co-invest in large scale mixed-use township developments in suburban locations.

    This is the second time that the city-based Group has offered to buy out the company. Hiranandani had made an offer of 100 million pounds to shareholders, which was rejected by the board last year, the sources said.

    In October 2010, Hiranandani's estranged daughter, Priya, had reportedly filed arbitration proceeding against her father and brother Darshan, claiming that they had violated a business association agreement involving commercial rights to real estate projects.

    The father and brother, however, made a counter claim, alleging that the fight caused them to lose out on business opportunities.

    In December 2010, Hiranandani had resigned as Chairman of the England-listed firm citing corporate governance issues, while his daughter had ceased to be the director on the Hirco board from September that year.

    Hirco, which had been reporting decline in profits, had said that merger of the interest of the members of the Hiranandani family would simplify its investment structure and improve transparency as a fully integrated development firm.

    "The board continues to believe a merger of interests would also represent an obvious solution for Hirco and its shareholders, but only if on acceptable terms," it had said.

    At present, Hirco has 66.4 million square feet in development at Hiranandani Palace Gardens mixed-use township projects in Chennai and Panvel ( Navi Mumbai).
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  • Ravi, Thanks for the details. Went through the details of Hrico Plc and it's financial details clearly has the problem mentioned.

    "Progress on the projects continues to be modest and both Chennai and Panvel remain at least a
    decade away from completion. As at 31 December 2012, 1,689 of Chennai’s 2,665 available
    residential units and 2,556 of Panvel’s 2,968 available residential units had been sold. The average
    selling price per square foot as of at the year-end was Rs 4,382 at Chennai and Rs 5,106 at Panvel.
    We estimate that approximately Rs 12.2 billion in cash has been collected from the Panvel and
    Chennai residential sales (£142.8 million at year end exchange rates) though we have no visibility as
    to when any cash will be returned to the Burke companies. The completion of Chennai and Panvel
    Phase One Residential are now projected for September 2015 and November 2015 respectively.
    Newcastle and Edinburgh, the two office buildings at Panvel totalling 1.9 million square feet gross,
    are now projected to be completed later this year. No tenants have been secured for these buildings.
    Shareholders should note that the Panvel and Chennai projects comprise over one hundred million
    square feet of developable area. This figure is equivalent to many times the size of Canary Wharf.
    Currently approximately eight per cent of the total developable area (or eight million square feet) is
    under development with the remaining ninety-two percent to be developed in the future.

    The information flow about the financial and technical aspects of the projects, the progress on the
    projects and the sharing of cash with Hirco Plc has not been what investors envisioned when Hirco
    was floated. We still do not have complete clarity over who is really in control of the projects in
    India. In addition we are two years behind in receiving audited financial statements from the Burke
    companies, the Mauritius entities in which we hold preference shares, and we have not been
    informed over the period of these accounts of the fees payable to the Hiranandani entities that
    provide marketing and development management services in connection with the projects. We have
    raised issues of transparency and reporting with the Hiranandani family on many occasions; our
    concerns have not yet been satisfactorily addressed. In light of this plainly unsatisfactory situation,
    we have put a lot of effort into trying to negotiate an exit from these investments and have had many
    meetings over the last year with various family members. However, these efforts have so far been
    fruitless, and notwithstanding what you may have read in the media, we have not so far received
    settlement indications in the form and substance which we think our shareholders would find
    acceptable. We consequently retained counsel over a year ago to examine our legal options.

    As a consequence of this legal analysis and our view of the likelihood of success of these negotiations
    in the foreseeable future, the Board issued proceedings in February against two former Company
    directors, Niranjan Hiranandani, the Company’s former Chairman and Priya Hiranandani-Vandrevala,
    the Company’s former CEO, in the English High Court and in the Isle of Man courts. The timing of
    this decision was dictated by relevant statutes of limitations, which, had we not filed when we did,
    may have barred forever any claims that were not then asserted."

    Even they returning back the cash collected in near time looks like a very remote possibility. Better for end users to invest in other projects are carry this investment as a NPA until something works out.
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  • Let me share the similar sensitive topic from actual experience about JV .

    Bonami Begium foundry allied with one Coimbatore based foundry X with 50:50 .

    When X sold the equity to Y , Bonami budged to the pressure of Y .

    When Bonami was asked to come for Negotiation with Y Management , none came from Belgium

    Sometimes Soil is the issue leave alone land for RE JV , Sea for Navy Ships !!!!

    If X and Y are same , what will be the climax?

    Same thing happens here .

    Avoid all PE, FII,FDI,JV venture is the message here in RE Projects and enter when real flat or house is ready to move in and live
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  • Right now all business people are following this split and multiply model in the name of so called family "feud"! Mantri also had similar issue, now Hira, RIL, Sun Group/MK family split drama, Bajaj family split....all seem to have been well orchestrated ones!

    I am seeing a specific pattern to blame one arm of the group and the other one trying to wash their sins !!! Though I cannot substantiate with hard evidence but I feel they are merely multiplying and not dividing, is my opinion.
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  • Does any one know what is the current sq ft rate for Hirco Palace garden, oragadam, chennai.pls post if came across rates recently (for both resale or new).

    Thanks.
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  • Originally Posted by bitstream
    Does any one know what is the current sq ft rate for Hirco Palace garden, oragadam, chennai.pls post if came across rates recently (for both resale or new).

    Thanks.

    rates at Rs 4000/- plus Rs 25 as a floor rise
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