Heard DLF is coming up with another residential project in New Gurgaon to be priced at ~Rs5500psf.

Not sure whether it will be an extension of Regal towers or a completely new one...... Any clues?
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  • Originally Posted by arunaggarwal
    Agree this is a problem and hence would have been happier if they were to sell more in New Gurgaon at lower pricings!

    The key now is whether DLF can come with flying colours in Galleria Market in New Gurgaon and Phase V properties.


    Galleria, @17000/Sq. Ft.....
    I don't think the pricing is sensible at all..
    For that matter, I dont know on what basis they fixed the price. GCX commercials are available in that price.
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  • Originally Posted by AshuPant
    Galleria, @17000/Sq. Ft.....
    I don't think the pricing is sensible at all..
    For that matter, I dont know on what basis they fixed the price. GCX commercials are available in that price.


    Is that broker given or developers themselves
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  • Originally Posted by arunaggarwal
    An example of opportunistic journalism....This is an excerpt from the above article....
    "......But this is not the first distress sale made by DLF. In August this year, DLF sold its prime Worli property in Mumbai at Rs 2,727 crore, which included debt of Rs 1,500 crore. It thus got only Rs 1,227 crore net, against a purchase price of Rs 702 crore seven years ago. That’s a 75 percent appreciation – which yields a compound interest rate of around 10 percent per annum, when real estate has been rising even faster till recently....."

    The knowledgable writer is comparing Enterprise value of the purchase consideration (Rs700cr) with the equity value of the sales consideration (Rs1227cr)..... this is just to prove that the sales was at lower valuations.....!

    To give a glimpse of whether the deal was really sweet for the buyer or the seller, the second biggest bidder was willing to pay Rs1500cr vs the final dealworth Rs2727cr!

    Ask any big developer in Mumbai and he will tell you that he can't make money at this valuation!


    arunaggarwal,
    What's wrong and opportunistic in this report? As per this and another report (see here), DLF bought it at 700cr and then incurred another 1500cr (perhaps financed by debt) for developing it. So, that makes it 700->1200cr for DLF's equity in 7 years.

    Moreover, have you factored in 'political risk' in your valuation model? If congress loses power in Haryana or in Center - how's DLF fortune impacted in your valuation model?
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  • Originally Posted by jaijai
    arunaggarwal,
    What's wrong and opportunistic in this report? As per this and another report (see here), DLF bought it at 700cr and then incurred another 1500cr (perhaps financed by debt) for developing it. So, that makes it 700->1200cr for DLF's equity in 7 years.

    Moreover, have you factored in 'political risk' in your valuation model? If congress loses power in Haryana or in Center - how's DLF fortune impacted in your valuation model?


    kaun sa political risk congress nahin to BJP sahi ,t wo sides of the same coin. that is the reality of politics in india.
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  • Originally Posted by arunaggarwal
    Or whosoever has invested would have chosen to remain quiet lest the folks would have thrashed him for committing a sin :bab (45):


    True that!!!! and I think you're already getting a taste of that from DLF baiters my friend!!! :bab (59):
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  • What is dis dlf doin yaar.ek project aya brokers kehte hain sab bik gaya.yahan escltn clause dlf ne laga rakha hai.wat type of attitud is dlf playin.dlf to naam se bikta tha,par lagta hai kuch dinon mein dlf ka brand name kharab ho jayega.
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  • Originally Posted by rahul40
    go to dlf office in CP, and you will get a unit.. that's not a problem, broker always tell you lie, he is saying this to deprive you from broker discount of 1%.

    if you are not getting any discount. then why go with broker, go alone and dlf will give u more respect rather then booking through broker.


    Boss u r exactly rit :-).they were in a tent wid some dhfl or idfc cards.went to see emmar site. He told everythin sold in regal garden n sky court :-) lolz.
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  • Originally Posted by jaijai
    arunaggarwal,
    What's wrong and opportunistic in this report? As per this and another report (see here), DLF bought it at 700cr and then incurred another 1500cr (perhaps financed by debt) for developing it. So, that makes it 700->1200cr for DLF's equity in 7 years.

    Moreover, have you factored in 'political risk' in your valuation model? If congress loses power in Haryana or in Center - how's DLF fortune impacted in your valuation model?


    Jaijai ji ...... the devil is in the details, you would not have asked this question had you gone through the details...... For everyone's benefit, DLF bought the land and spent some money (Rs500cr) on approvals and ground levelling etc.... no major construction was done there till now.....

    pls try and understand the whole deal, the land cost of Rs700cr was funded by a combination of debt and equity (say 100cr equity and 600cr debt).... over the period this debt swelled to Rs1500cr because of interest capitalisation and ~Rs500cr spent on approvals/initial constt....Now when you say purchase consideration was Rs700+500cr =1200cr (land cost plus constt costs) then the same was sold for Rs2727cr. Now, if you want to compare only equity value then equity investment would have been as low as Rs100cr for which you got RS1200cr...... remember debt plus interest was paid from the sales proceeds only!!


    On political risk Congress vs BJP vs INLD, my view is that such big businesses/businessmen are largely immune to the change in political parties...... people do get benefit from one party or the other but a change of CM would (in my view) will not break the business proposition significantly.....

    if you would have noticed, why didn;t Vadra issue became a big political issue, BJP/INLD could have used this in much bigger way??:bab (45):
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  • Originally Posted by Aman1983
    True that!!!! and I think you're already getting a taste of that from DLF baiters my friend!!! :bab (59):

    I am not a pro-DLF or XYZ builder, but people are getting extremely biased against one developer ignoring the size/land holding/capabilities........ "

    I somewhat think, people are missing a structural change in the way DLF operates its construction business....
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  • No Doubt this is a structural change...
    The Escalation Clause will certainly change the rules of the game...


    Originally Posted by arunaggarwal
    I am not a pro-DLF or XYZ builder, but people are getting extremely biased against one developer ignoring the size/land holding/capabilities........ "

    I somewhat think, people are missing a structural change in the way DLF operates its construction business....
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  • Originally Posted by Lazybell
    No Doubt this is a structural change...
    The Escalation Clause will certainly change the rules of the game...


    yes sure, escalation clause is clearly a dampner from whatever way you look at....... this is ultimately telling you to buy a property once it is ready and not to punt on something which is on papers!

    Loved this Sarcasm!
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  • Originally Posted by arunaggarwal
    Jaijai ji ...... the devil is in the details, you would not have asked this question had you gone through the details...... For everyone's benefit, DLF bought the land and spent some money (Rs500cr) on approvals and ground levelling etc.... no major construction was done there till now.....

    pls try and understand the whole deal, the land cost of Rs700cr was funded by a combination of debt and equity (say 100cr equity and 600cr debt).... over the period this debt swelled to Rs1500cr because of interest capitalisation and ~Rs500cr spent on approvals/initial constt....Now when you say purchase consideration was Rs700+500cr =1200cr (land cost plus constt costs) then the same was sold for Rs2727cr. Now, if you want to compare only equity value then equity investment would have been as low as Rs100cr for which you got RS1200cr...... remember debt plus interest was paid from the sales proceeds only!!


    On political risk Congress vs BJP vs INLD, my view is that such big businesses/businessmen are largely immune to the change in political parties...... people do get benefit from one party or the other but a change of CM would (in my view) will not break the business proposition significantly.....

    if you would have noticed, why didn;t Vadra issue became a big political issue, BJP/INLD could have used this in much bigger way??:bab (45):


    Thanks arun for clarifying this. The newspaper report doesn't give that much details; it simply said that DLF spent Rs 1500 cr extra in developing land (not 500 cr as you pointed out). Anyway, its difficult to comment further unless we have more facts.

    As for 'political risk', RE is more prone to it due to excessive regulation and govt control. And DLF is too closely identified with Congress. It'll gain more than others if congress comes back and lose more than others if congress loses.

    The BJP didn't make an issue out of Vadra because there seems a consensus between top leadership of both parties. Arun Shourie said this in an interview around 2 years back before retiring from active politics.
    I think top BJP leaders have been co-opted by Congress, the way media is.

    However, Modi breaks this consensus. That's why, congress and media are more worried about Modi than BJP.
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  • Originally Posted by jaijai
    Thanks arun for clarifying this. The newspaper report doesn't give that much details; it simply said that DLF spent Rs 1500 cr extra in developing land (not 500 cr as you pointed out). Anyway, its difficult to comment further unless we have more facts.

    As for 'political risk', RE is more prone to it due to excessive regulation and govt control. And DLF is too closely identified with Congress. It'll gain more than others if congress comes back and lose more than others if congress loses.

    The BJP didn't make an issue out of Vadra because there seems a consensus between top leadership of both parties. Arun Shourie said this in an interview around 2 years back before retiring from active politics.
    I think top BJP leaders have been co-opted by Congress, the way media is.

    However, Modi breaks this consensus. That's why, congress and media are more worried about Modi than BJP.


    Yes, thats exactly what I mean by opportunistic journalism! They will twist the facts to -ve or +ve as per the sentiments! The same sales news would have been a big positive if the stock had run up or Vadxx thing would not have happened!

    On politics or Congress vs BJP vs Modi, the scenario in your mind may have a much bigger implications (+ve or -ve) and then it will be a question on the way businesses are done in India not specific to a particular one! :bab (59):
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  • Confused

    Hi Rushil and other senior members.

    I am seeking some advice on whether to invest in dlf nth or not.
    Fairly new to the real estate and currently residing in Melbourne.
    Want to keep it as a safe investment or use it as an owner occupied property in the next 3 -4 years.
    Dlf has got a big name, and I am not quite familiar with any other builders or projects.

    Could the senior members please advice whether it will be worth investing in dlf nth resale between 4100-4300 range.

    Thanks




    QUOTE=rushilarora;653783]There are two ways in which we can dissect the current situation.

    One is NTH performance and making a forecasting and other would be Primus and Regal Garden.

    NTH was launched at the Peak of Recession when DLF was facing the crisis of payment as well its stock had taken big time beating. Hence to generate cash flows NTH was launched at this rate. Had DLF launched at a higher rate, they wouldnt have sold the inventory of all three phases.

    Situation changed after 2008 when the govt gave a bailout package and all the payments of RE players were restructured/deffered meaning a joy ride for good 3-4 years.

    Due to unprecedented price rise in last 3 years even NTH have attracted buyers in resale. A year back NTH had no takers even at 3k with 90% payment gone. But today with so many other projects getting appreciation and new projects getting launched at 5500 ++, NTH has started looking attractive. So in the first 3 years of its launch ROI was pathetic and its got better only when DLF changed the equation of New gurgaon with the launch of Regal and Primus.

    So in the nutshell launch at low levels of 2200-2400 for NTH coupled with the launch of Regal and Primus at 5k+ level with high PLC and escalation cluse, only helped other projects in the vicinity to appreciate.
    Aananda for first one year had no premium, and after DLF launch jump of 1K came in 3-5 months time.

    Now the big question is will the new projects give some appreciation in short to medium term. Writing is on the wall. Just check the premium of Regal and Primus. Interestingly all these projects come towards the Q3 or early Q4. It almost looks like encashing FD once all other options are exhausted.

    Premium of 300 on such high prices with DLF brand name is not justified. Which means definitely price is not justified and most importantly both investors and end users have lost the blind faith in DLF that they had earlier.

    According to me the situation of NTH was like a train on the hills. There comes a point that the solitary engine runs out of steam to pull the train further. Hence second engine is deployed and that take the train to its destination.

    Regal and Primus were those extra engines that not only pulled up NTH but also all other projects in the vicinity.

    Now Whether "Sky" would have enough steam going in it to not only pull NTH,Regal and Primus but also other ambitious projects in that area, only time will tell.

    Only thing I dread to see is another "SkyFall"... Though I quite enjoyed the first one though neither I got shaken nor I was stirred enough.
    But if the second one happens, entire regions might get shaken and stirr the RE contours across gurgaon.

    Lets hope for the best.

    RA
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  • The PLC classifications in this project are absurd!
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