Dear friends,

Hiranandani Panvel will be launching by next week at the rate of Rs 3600 psf on builtup area.

I was reading through the new housing bill legislature passed by and was signed by Hon. VILASRAO DESHMUKH (Chief Minister) dated 23 July 2007, that builder have to sell the property on carpet area rate and not on builtup or super built up.

For those who are intrested in buying an apartment/villas/penthouse in Hiranandani panvel project please insist the builder to book on carpet area.

Here are the official link for Housing bill legislature:
http://www.maharashtra.gov.in/pdf/HPeng.pdf

Also see the very intresting article in Indian express about the (the Maharashtra Ownership of Flats Act, 1963,)
http://www.indianexpress.com/news/ol...ilt-up/366208/

This mail is just to educate investors and the individual buyers about the new option.

Regards

This mail is just to educate investors and the individual buyers about the new option.

Regards
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  • Originally Posted by vestore
    Dear sir or madam,

    I am a long standing shareholders in Hirco and therefore understand exactly what has been going on with this development. It is fair to say that is very much not the case on this board.

    Seems to be a fair amount of misunderstanding about who is actually in charge of this project. The answer is it is not Hirco Plc but in fact the Hiranandanis.

    The Hiranandani's raised £350 million pounds by floating Hirco in London. In exchange for this cash Hirco were issued with £250m of preference shares in the projects. On these preference shares Hirco shareholders were entitled to a 12% dividend per annum. The balance of the equity raised entitled us to 40% share of the residual asset value left after paying back both the preference shares and accrued interest as well as the £106m the Hiranandani's had invested.

    For example in Sept 2007 the valuation of the projects was £590m. At that point Hirco were due £266m in preference shares and accrued dividends. That leaves £324m of equity in the project. The Hiranandani's £106m is next in line which leaves £218m left for the equity holders. Hirco's 40% share of that was 87m and the familes share was £130m.

    What has gone horribly wrong is that the projects have been massively delayed and in that period the amount of accrued dividends due to Hirco has shot up. As of Sept 2012 we are owed £469m. The valuation on the projects have gone down below this figure so effectively Hirandani's have nothing left in the company and neither are they ever likely to given the £469m is accruing at 12% a year.

    The big problem between the parties is that the Hiranandani's realise their equity in the project has no value and they have lost whatever money they had put in. What they do have unfortunately have is 100% of the voting rights in the operating company. This they have been using to effectively blackmail Hirco into a deal where they merged their interests in the project with Hirco's. They wanted the company to be simplified and for them to have a 51% share going forward. In exchange they offered to hurry projects along with the promise of cash being available to be returned if the deal was approved. Now given they had virtually no equity left Hirco shareholders quite rightly said we are not willing to agree to those terms. Also having already been screwed over once would you really then let the family still have a controlling stake whereby they could renege on their promises again.

    The Hiranandani's have been hoping that by taking a go slow approach and telling Hirco shareholders that they won't see any cash returned back to them for another 10 years or so that Hirco might just fold in and accept some sort of deal. Unfortunately for them Hirco raised some cash from some high profile investors to ensure they could tough it out and explore legal avenues to seek redress.

    That brings us to where we are today. At present Hirco have no running of the projects at all. The Hiranandani's have operational control. They are in charge of the construction schedule. They are in charge of pricing. They are in charge of where the money is spent. They are in charge of sales. They are in charge of construction. Everything is in the hands of Hiranandani. So much so that they are not even providing Hirco with data and information they are legally obliged to do as part of the initial agreement. The fact the projects are delayed time and time again is down to the fact the Hiranandani's have no interest in the projects being completed quickly. Hirco have no legal rights to overrule the family despite being owed more money than the projects are worth. If they had input they would hurry the process along by pricing more competitively and selling the units so that they can extract their cash from the project.

    The matters are going to court. Arbitration in Singapore will ensue and I am sure Hirco will be arguing that the Hiranandani's are playing silly beggars here and that given they have no equity left in the project that overall control of the operating companies should revert back to Hirco. Proceedings are also being launched in London against Priya and Niranjan for misleading investors at the time of the IPO. Personally I think the pair of them are pretty low forms of life. Having fleeced shareholders of £350m Niranjan thinks that 6 years on that a fair value for the company £40m.

    Happy to answer any queries or clarify any other points which posters may have. Think its important for people to understand exactly what has gone on and what is currently going on rather than take for gospel what Niranjan tries to peddle in the Indian media


    Sir,

    Do you mean to say that this is a plot by hiranandani family of which niranjan and priya are part of?

    What will be the future of Panvel project and what about those who have put in their hard earned money into this project?
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  • Buyers have been caught up in the cross winds here. The projects will get delivered but its just the timescale that is up in the air. Contrary to what many of you think if Hirco were to assume control they would aggressively get everything done. Pricing would come down and deliveries brought forward much quicker. Both investors and homeowners would benefit markedly.
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  • Originally Posted by vestore
    Dear sir or madam,

    I am a long standing shareholders in Hirco and therefore understand exactly what has been going on with this development. It is fair to say that is very much not the case on this board.

    Seems to be a fair amount of misunderstanding about who is actually in charge of this project. The answer is it is not Hirco Plc but in fact the Hiranandanis.

    The Hiranandani's raised £350 million pounds by floating Hirco in London. In exchange for this cash Hirco were issued with £250m of preference shares in the projects. On these preference shares Hirco shareholders were entitled to a 12% dividend per annum. The balance of the equity raised entitled us to 40% share of the residual asset value left after paying back both the preference shares and accrued interest as well as the £106m the Hiranandani's had invested.

    For example in Sept 2007 the valuation of the projects was £590m. At that point Hirco were due £266m in preference shares and accrued dividends. That leaves £324m of equity in the project. The Hiranandani's £106m is next in line which leaves £218m left for the equity holders. Hirco's 40% share of that was 87m and the familes share was £130m.

    What has gone horribly wrong is that the projects have been massively delayed and in that period the amount of accrued dividends due to Hirco has shot up. As of Sept 2012 we are owed £469m. The valuation on the projects have gone down below this figure so effectively Hirandani's have nothing left in the company and neither are they ever likely to given the £469m is accruing at 12% a year.

    The big problem between the parties is that the Hiranandani's realise their equity in the project has no value and they have lost whatever money they had put in. What they do have unfortunately have is 100% of the voting rights in the operating company. This they have been using to effectively blackmail Hirco into a deal where they merged their interests in the project with Hirco's. They wanted the company to be simplified and for them to have a 51% share going forward. In exchange they offered to hurry projects along with the promise of cash being available to be returned if the deal was approved. Now given they had virtually no equity left Hirco shareholders quite rightly said we are not willing to agree to those terms. Also having already been screwed over once would you really then let the family still have a controlling stake whereby they could renege on their promises again.

    The Hiranandani's have been hoping that by taking a go slow approach and telling Hirco shareholders that they won't see any cash returned back to them for another 10 years or so that Hirco might just fold in and accept some sort of deal. Unfortunately for them Hirco raised some cash from some high profile investors to ensure they could tough it out and explore legal avenues to seek redress.

    That brings us to where we are today. At present Hirco have no running of the projects at all. The Hiranandani's have operational control. They are in charge of the construction schedule. They are in charge of pricing. They are in charge of where the money is spent. They are in charge of sales. They are in charge of construction. Everything is in the hands of Hiranandani. So much so that they are not even providing Hirco with data and information they are legally obliged to do as part of the initial agreement. The fact the projects are delayed time and time again is down to the fact the Hiranandani's have no interest in the projects being completed quickly. Hirco have no legal rights to overrule the family despite being owed more money than the projects are worth. If they had input they would hurry the process along by pricing more competitively and selling the units so that they can extract their cash from the project.

    The matters are going to court. Arbitration in Singapore will ensue and I am sure Hirco will be arguing that the Hiranandani's are playing silly beggars here and that given they have no equity left in the project that overall control of the operating companies should revert back to Hirco. Proceedings are also being launched in London against Priya and Niranjan for misleading investors at the time of the IPO. Personally I think the pair of them are pretty low forms of life. Having fleeced shareholders of £350m Niranjan thinks that 6 years on that a fair value for the company £40m.

    Happy to answer any queries or clarify any other points which posters may have. Think its important for people to understand exactly what has gone on and what is currently going on rather than take for gospel what Niranjan tries to peddle in the Indian media


    Thank you sir for providing such detailed insight. I did have some vague idea of the issues but not the exact details. If I may ask and if you are comfortable will you be willing to divulge if you have invested in Hirco plc shares in London or you are buyer of their apartments. Also can you please throw some light on what are the various possibilities now from the perspective of people who have bought apartments in their projects. Also i fail to understand why the projects were delayed when hiranandani had money from ipo and also got money from bookings. Why are they not interested in completing these projects in time. Many thanks once again.
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  • Members here pretty much understand that what Indian media portrays is not the true story and they have close nexus with big business houses. If you look at one of my posts this is exactly what I mentioned. But I am really surprised that the seasoned investors in Hirco did not foresee this risk of putting so much money on the table without having control on the operations of the company. Also assuming that Hirco wins in arbitrations and gets control of the project it will be difficult for the investors from London to execute project in India without help of any Indian partner.
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  • Originally Posted by savvy_v
    B,
    What was duration
    1] In between Booking
    2] Registration of ur property at plinth level{ In Months}? Can u plz specify to Buyers.... FORUM friends...


    Approximately 2yrs. Booking in 2009, Plinth completion in 2011.

    Originally Posted by savvy_v

    3] Can u also guide ... There was clause of 2 years block -Unlock period for Phase-2 Buyers.. Now still its there for People who opt for SELENE-FLORA....
    What was registration date /amount u paid for the end product of your flat?


    I m not aware of any such clause. Information like registration cost and all you can get it individually from your RMs, since it is different for different flats (proportionate to the area of flat). RMs will definitely get you all the precise figures for your flat.

    Originally Posted by savvy_v

    4] How was their approach when doing Reg formalities completed by HPG, were they line-ant and more cooperative...? was there any hurdles u faced while registering the flat...?


    They were v co-operative. Registration went really smooth.

    cheers,
    B
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  • Im a shareholder in Hirco plc. 2007 was a very different era in financial markets. Lots of foreign property companies raised a lot of cash in London. Most of it has been lost. Western investors probably seduced by Hiranandani's previous track record and also probably thought he wouldn't want to damage his reputation if he had plans to raise further funds overseas. Fair to say no one will ever go into partnership with them again given their track record with Hirco.

    Those invested in the projects and who aren't particularly bothered by delays don't really have much to worry about. Projects will get delivered eventually. Whether they will be rebranded is another matter. Hirco will simply bring in external contractors to finish off the project if they are able to gain control of the projects again.
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  • Originally Posted by vestore
    Im a shareholder in Hirco plc. 2007 was a very different era in financial markets. Lots of foreign property companies raised a lot of cash in London. Most of it has been lost. Western investors probably seduced by Hiranandani's previous track record and also probably thought he wouldn't want to damage his reputation if he had plans to raise further funds overseas. Fair to say no one will ever go into partnership with them again given their track record with Hirco.

    Those invested in the projects and who aren't particularly bothered by delays don't really have much to worry about. Projects will get delivered eventually. Whether they will be rebranded is another matter. Hirco will simply bring in external contractors to finish off the project if they are able to gain control of the projects again.


    Can u share a timeframe as to how much time it will take for things to settle down also can u share some insight on the rumours that Niranjan will take over Hirco's Panvel project by April end.
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  • Arbitration isn't a simple process. Will probably take at least 6 months to a year. Possibly longer. Niranjan is full of BS. There is zero chance of him taking over Panvel unless he makes an offer which is acceptable to Hirco Plc shareholders. He thinks he is being generous at 55p. He would need to offer closer to 150p to have any chance
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  • It is high time we give away our virtual names , let each other know our identities and form a yahoo or facebook group and jointly ask Horanandani for an explanation. If they play hide and seek game we have to form a public facebook group and do anti-publicity for them ..
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  • No timeline to acquire land for Navi Mumbai Airport: Maharashtra chief minister Prithviraj Chavan - The Economic Times

    All of a sudden politicians have started giving negative statements about NMIA ..looks like they have got all murgas in this area and will shift the focus in newareas ..
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  • They have already sold their plots for huge profits so don't think they care any more.
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  • Hirco PLC Results and Updates

    RNS Number : 9296A

    Hirco plc

    27 March 2013

    Hirco PLC

    Results for the year ended 30 September 2012

    Hirco PLC ("Hirco" or "the Company"), a closed end investment company that specialises in Indian real estate projects for development, today announces its results for the year ended 30 September 2012.

    For further information please contact:


    IOMA Fund & Investment Management Tel: +44 (0)1624 681250
    Limited
    ----------------------------------- ------------------------
    Philip Scales
    ----------------------------------- ------------------------

    N+1 Singer
    ----------------------------------- ------------------------
    James Maxwell/Nick Donovan +44 (0) 20 7496 3000
    ----------------------------------- ------------------------

    Chairman's Letter

    Dear Fellow Shareholders,

    During the full year ended 30 September 2012 the Company reported an after tax loss of GBP53.6million or 53p per share. This loss is primarily non-cash and represents the Board's decision to write down the Company's investments based on CBRE's 30 September 2012 valuation. Administration costs over the period were GBP2.7 million, which includes some exceptional professional costs. Based on the accounting policies adopted in respect of the interest of the Company in the Burke companies, the disclosed net asset value of the Company has declined to GBP197.8 million or GBP1.97 per share. The Company continues to accrue the 12 percent return on the participating preference share interests in the Burke Companies; however, there is no visibility as to when that accrual might be paid in cash.

    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 (GBP142.8 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.

    The Company regards litigation as a last resort. It is never a decision taken lightly. All other reasonable attempts to achieve a satisfactory level of transparency, involvement and reassurance in respect of the underlying investments have failed. And there is no clarity at all about the likelihood of a return being paid on the preference share interests in the Burke companies. The litigation (and arbitrations referred to below) will be complex but have been commenced with the benefit of an exhaustive analysis of our legal rights and remedies conducted over the last 12 months. Although it would be imprudent ever to ignore the risk inherent in all litigation, and the cost of it, the board firmly believes this is the best course of action in the current circumstances.

    The English proceedings against Niranjan Hiranandani and Priya Hiranandani-Vandrevala were issued in the High Court on 6 February 2013. The High Court claim seeks damages of almost GBP220 million. Both defendants have indicated their intention to contest the proceedings and also to contest the jurisdiction of the English High Court. The same proceedings against those two former directors were also issued in the Isle of Man courts to protect the Company from the possible expiry of limitation periods. These proceedings have not yet been served, and the Board would wish to emphasise to all shareholders that the possible outcome of any litigation, should proceedings commence, or the possible amount of any negotiated settlement, may differ materially from both the amount claimed in damages of GBP220 million and the net asset value of GBP197.8 million. In anticipation of these claims, Priya Hiranandani-Vandrevala commenced her own proceedings in the Isle of Man that she ought fairly to be excused for any breaches of duty of which she is found to be liable.

    Besides the High Court proceedings, the Company's Mauritius subsidiary is also involved in a related arbitration with Mr Hiranandani and his wife Kamal. These proceedings were commenced on 6 February 2013 by the Hiranandani's. Separately, the Company and its Mauritius subsidiary have brought separate arbitration proceedings against the Burke Companies and their shareholder, Burke Consolidated Limited ("BCL") to assert rights over the control of the Company's investment and information fklow we are contractually entitled to. The proceedings against the Burke Companies and BCL were initiated on 5 March 2013.

    The confidential nature of arbitration proceedings prevents us from disclosing further details as to the substance of these actions.

    The attention of shareholders is drawn to the paragraphs set out under the heading "Disclaimer of opinion on financial statements" which are included within the Report of the Independent Auditors on pages 8 to 10, and to the further information contained in the Notes to the financial statements which are detailed in these paragraphs

    I hope when writing to you next in reporting our mid-year results to be able to give you a further update on all these matters.

    David Burton

    Chairman of Hirco Plc




    Source:Hirco Hirco plc Annual Financial Report
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