Hi ,

M3M is slated to launch it's high end residential project in Sector 67 , Gurgaon by the name of MERINO around July 15,2011. ( Singapore Style Living ) as they have opted to position these apartments

Minimum Ticket Size : 1800 sq ft

Current Rate : 6750 / sq ft less inaugral discount of 650 for few
editions / limited period.

Effective Current Rate : 6100 / sq ft.

Location : Sector 67 , adjacent to Ireo Victory Valley and
between Landmark Commercial.

M3M has huge land bank in Sector 67.
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  • Well i dont think they would be doing it to test their brand equity in the market , i dont think anyone would like to test things like these when thousands of crores are involved . It can also be that as lavish as BANSALS are they are busy with 100 Cr wedding of their daughter in TURKEY and this project is not on the priority list right now due to personal reasons .
    May be that is why they have priced it lucratively as they know they cant be involved right now with full throttle advertising campaigns for this .

    Also , if you are in it for the long haul , my personal perception is to enter IREO VV rather than this project as my personal belief is that VV is a better project than M3M merlin . But then again its dependent on your personal evaluation and study of the project .

    May be there is something i have missed !
    take care
    Originally Posted by rdhawan15
    Ishan Bhai,

    Thanks for the detailed review. I learnt a lot from your reply to my direct questions.

    I have read your concerns on a probable difficulty in exit from the project. But I guess, given the fact that M3M needs investors and buyers more than us, for the sake of establishing its credibility in the market, the project may turn out to be better than the ones available from some of the better names like DLF, unitech.

    Going by the logic of common sense based on the premise that M3M is here for a long haul, I think the investment may be considered. However, since I am looking for a long term perspective with a horizon of 3-5 years, it may not be a bad deal at all.

    On a sidenote, the M3M corporate website sucks and I hope someone tells them to at least update it and present more meaningful information to the public in the form of financial reports like Balance Sheet for the last 3 years or so.

    Or maybe, they just started because I see a lot of activity from the company on job boards to hire all sorts of Senior Management.

    All indications look like that M3M is definitely a newer name, and has to do most things right to establish the name. This includes investor returns and timely construction of the projects.

    Coming as it is after the Golfestate project, I am still not sure why they would not disclose more information on the project and the nature of planning. May be they are just testing their brand value and seeking investments to see if they have some goodwill.
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  • I agree with your view point Ishan, that Merlin is a low priority right now for the Bansals.

    I think I missed the bus on VV because it has already got a nice premium.

    But, your viewpoint definitely, makes sense and I am thankful to you for taking the time to read through and reply,

    Cheers,
    Rajesh
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  • The most competitive price available for Merlin is INR 5,850/sft. Without saying much, it would be pertinent to highlights that at M3M's flagship project - Golf Estate, the company quoted BSP is 10,100 INR/sft but resales are languishing at sub-8,000 INR/sft with hardly any takers.

    The luxury market is anyway heading for a correction...


    Originally Posted by rdhawan15
    First of all, thanks in advance for reading this.

    And now, Questions for the veterans including Ishan, Manoj, BlessU and Amit:

    - Is M3M group a safe bet for long term investment of 5 years? How has been their track record so far?

    - I have been offered a discount of 2.5% for M3M over 6100, is this ok?

    Thanks,
    Rajesh
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  • Dear Mr Dhawan,
    Its never too late to catch a bus either. You can still try your hands to pick up IVV at around 5800-6000 level depending on the location. Besides IVV is already a year ahead of Merlin so that give you a head start with IVV.
    In terms of specs, IVV is again better than Merlin at least on paper..
    300-500 premium could be worth it to lay your hands on IVV.
    Wish you all the best


    Originally Posted by rdhawan15
    I agree with your view point Ishan, that Merlin is a low priority right now for the Bansals.

    I think I missed the bus on VV because it has already got a nice premium.

    But, your viewpoint definitely, makes sense and I am thankful to you for taking the time to read through and reply,

    Cheers,
    Rajesh
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  • Originally Posted by Genreal
    The most competitive price available for Merlin is INR 5,850/sft. Without saying much, it would be pertinent to highlights that at M3M's flagship project - Golf Estate, the company quoted BSP is 10,100 INR/sft but resales are languishing at sub-8,000 INR/sft with hardly any takers.

    The luxury market is anyway heading for a correction...



    The phase of the golf estate that company is selling at 10,100 is a completely different phase than the ones avlble at 8k range . They started booking the phase m3m is selling started at 9100 only .

    And the ones avlble at around 8k is the phase whose booking was started at 5100(only 10 odd units at that price) and max was sold at 5600 , then the phase was sold till 8100 per sq ft . so you can calculate the gains .

    And what are you talking about that luxury segment is headed for correction , in the last two-three months only PV spa in sec 47 has increase 300-400 , Park place,belaire have rose 500-600 per sq ft , palm springs has increase 800-1000 bucks , MGF vilas 300-400 and so on , so i dont see any signs of correction in the luxury segment which you pointed out in particular !!
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  • Exit Clause for Merino / i mean Merlin :) is after 15% payment.Net rate after all discounts comes to around 5650/sq ft and not 5850/sq ft.
    This surely seems to be investor friendly proposition.Not bad at all.
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  • NET BSP - Rs. 5850/ sq.ft (Rs 6750 less Rs 650 /sq ft inaugural discount.Less Rs 250 TDR)

    Book Value – 6100 Less Rs 61 as Brokerage Discount.Rs 250 TPR will be adjusted in the last 2 instalments.
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  • Originally Posted by vineetm
    NET BSP - Rs. 5850/ sq.ft (Rs 6750 less Rs 650 /sq ft inaugural discount.Less Rs 250 TDR)

    Book Value – 6100 Less Rs 61 as Brokerage Discount.Rs 250 TPR will be adjusted in the last 2 instalments.



    That is what i have been telling you guys , TPR is 250 rupees , And BSP is 6100 !! TPR ka fayeda short term medium investors ko nahi milega because TPR end mei hoga , Long term investors ki bhi agar ek bhi installment ek din bhi late hai toh TPR does not apply . In reality only 10-15 % enjoy the benefit of TPR !!

    having said that , the project pricing seems good as it is in original booking itself .

    BTW what is the max discount one is getting for the project ?
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  • Ishan,

    2.5-3% is what brokers are offering as a discount. Getting the credit note encashed is PITA.
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  • Originally Posted by rdhawan15
    Ishan,

    2.5-3% is what brokers are offering as a discount. Getting the credit note encashed is PITA.



    i am being offered a discount better than that , by a tried and tested source , although my main concerns remain the same , pricing is getting very attractive . But yehi hai ki saalaa discount ke chakkar mei aisa na ho ki aage jaake exit karna mushkil ho jaye !! very confused state of mind , price is very attractive butdid not fall in love with the project at first sight , jaise golf estate mei tha !! Those who have invested or have studied the project well please give your comments ?? kya lagta hai project ke baare mei from a short/mid term perspective !
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  • Hi Ishanb

    Could you throw some more light on why the pricing looks attractive to you?
    Arent the properties accoss the sohna road available in the range of Rs 4500-5000 psft. How would you add for the good specs?

    Similarly, the Emmar Palm drive are also available at about 5400 psft and location is far better...

    M3M is a new builder. At one point in the recent past, there was so much negative publicity about the owners, that it was difficult to exit the M3M golf estate. How much confidence anybody have on the M3M being professionally managed and behaved organsiation?



    Regards
    Amit
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  • Ishan Bhai - Discount's story is amusing. You will have a credit note in your hand, and you will be running around for your money 6 months from now. So, I would prefer a broker who would at least be credit worthy. I am learning my lessons though.
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  • the price is attractive given the location , Gc ex versus sohna road . Secondly its a new launch , no builder would be able to launch a project with these specifications in an area like sector 67 and a co. like M3M whose brand building has been quite good .

    And regarding golf estate , when its delivered would people realise its real worth , and as the construction progresses the prices would also rise , i heard someone saying that the price in original booking would be increased by a 1000-2000 bucks near diwali for golf estate .


    Originally Posted by Amit08
    Hi Ishanb

    Could you throw some more light on why the pricing looks attractive to you?
    Arent the properties accoss the sohna road available in the range of Rs 4500-5000 psft. How would you add for the good specs?

    Similarly, the Emmar Palm drive are also available at about 5400 psft and location is far better...

    M3M is a new builder. At one point in the recent past, there was so much negative publicity about the owners, that it was difficult to exit the M3M golf estate. How much confidence anybody have on the M3M being professionally managed and behaved organsiation?



    Regards
    Amit
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  • Originally Posted by rdhawan15
    Ishan Bhai - Discount's story is amusing. You will have a credit note in your hand, and you will be running around for your money 6 months from now. So, I would prefer a broker who would at least be credit worthy. I am learning my lessons though.


    Haha , yes i have also suffered like you have in the past that is why if i am being offered even half percent less from a tried and tested source , jinse payback receive ho chuka hai , i go with them only !!! zaadaa laalach karne se jo milna hota hai woh bhi haath se jaane ka darr reheta hai !!
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  • Am I missing something here.
    Why is location better. Won't it be next to Badshahpur and far away from main GCex/SPR. Badshahpur is not a small village like Kanhai / Chakarpur and will always have

    If I compare it with other new launch say Unitech South Park then
    1. Specs are similar
    2. SP will have better access to HaldiRams, Sohna Road, Rajeev Chowk
    3. Has similar status neighborhood in Tata, NC-2
    4. More reputed builder albeit people with myopic view might not agree
    5. No village in vicinity

    Why should one invest in M3M and not in SP at 5200 or whatever the current price.

    Disc: Yes, I am invested in SP and was re-evaluating my decision to hold or not as people said this is very attractive pricing and could not convince myself
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