Photo by bartmaguire

They were to construct a mall in Ludhiana, Punjab.

The project company ended up in violation of their financial covenants to banks after Mondon’s partner violated their covenants financially.

The loan was not repaid by the end of May through the joint venture as a result of which bank had to open up legal procedures.

Mondon plans to take legal action against its partner on the account of breach of contract for damage to the firm because of the joint venture.

They had bought 121-hectare site for the mall for NIS 26 million two years back.

One of the leading apparels brand in India Provogue India announced to enter Real Estate on Friday. Provogue India with it’s joint venture Prozone enterprises has planned to build 300,000 sq. feet of Real estate property in Aurangabad. The project is stated to go on floor in October 2010.

The Managing Director Mr. Nikhil Chaturvedi said that the mega project will be a mix of residential projects and malls.

Also they are planning to launch three residential projects in Coimbatore, Nagpur and Indore by the end of this year.

Provogue also plans to construct 75 stores across the country in financial year 2011 with an investment of 35 cr.

Similarily Century textiles, Alok Industries and Bombay Dying are some other firms planning to develop or sell Real Estate as land rates rise in the buoyant economy.

The company, which is planing to invest the amount in the first phase of the plan that will see development of 102 townships, is looking at both debt and private equity investments to raise the fund. The move by the firm follows consolidation of real estate business of the Sahara Group under it as the holding company.

“We plan to develop 102 townships in the first phase. The average project cost for developing townships would be 150 million dollar,” Sahara Prime City Head (Strategic Finance) Sandeep Wadhwa said. Asked about source of funding for the project that will spread over 100-300 acre, he said it was being done through sales, debt and promoters contribution but there is a gap of Rs 100 crore in each project.

“We will raise Rs 2,000 crore by 2009-10 fiscal as debt and private equity,” Wadhwa said, adding the company was in talks with banks, financial institutions and private equity firms. The company is open to selling stakes at both company and project level, he added. It is also in talks with global developers to form joint venture for townships development.

On initial public offer, he said the company would unlock value when market condition improves. Sahara Group had announced its plan to develop townships in 217 cities in 2004-05. It has launched nine townships where construction is in full swing and is planning to launch 22 more townships by middle of 2009.

Sahara Prime City has 20,000 acre of land, including 10,600 acre in Aamby Valley City near Mumbai.

The unveiling of ‘Spire World’ also marked the launch of the company’s first “Mainstream Green” project in India, Spire Edge, a sprawling 1.6 million square feet of scalable eco-office complex with an energy saving capacity of up to 30%, costing Rs. 400 crore. It is a 50:50 joint venture between Millennium Spire and A. N. Buildwell, a company with over 25 years of experience in real estate development. The project would be located in the emerging IT hotspot, IMT Manesar along the Delhi-Jaipur highway.

Ashish Bhalla, Managing Director, Millennium Spire said Spire Edge offered a never before commercial advantage bringing better sense and viability to any office project. The uniqueness of the project is the design and infrastructural superiority.

PBEL Property Development (India) Pvt Ltd has announced the launch of ‘PBEL CITY’ an environmental coexistent project at APPA junction, on outer ring road of the city. Within days of the announcement PBEL has booked unexpected numbers of dwellings, buyers being enthused by the competitive pricing and amenities, including the high focus on environment.

PBEL City is bringing in new technology with world class amenities like adequate traffic management where all drive ways are under ground and facilitating direct access to cellar parking. The whole project is designed with earthquake resistant technology. Every home comes with a modular kitchens & bedroom wardrobes. It has a facility of sports courts, state of the art club house and baby care to conference facilities, water treatment plants and much more.

Mr. Anand Reddy, Executive Director, PBEL, said, “We are offering this project to early birds at a very affordable price. It is literally a steal – nobody at present can offer this with our range of amenities. With professionals at helm of the activity this project comes with world class technology and facilities. I have no hesitation in stating that this is a perfect opportunity for many to invest in their dream home.”

According to Mr Jain Fifty out of one thousand seven hundred premium segment apartments, developed by Far East Organization, is estimated to be sold to Indian buyers by the end of this fiscal (08-09). Each one apartment will costs approximately SGD One million (Rs 31 million).
Mr. Jain further added, “Easy availability of housing loan, even up to 70% of property cost at a rate of 2.5% per annum is an additional advantage to the buyers who want to acquire property in Singapore.”

In the meantime, the CEO pointed out his company’s wish to set up a Special Economic Zone (SEZ) on two thousand seven hundred thirty four acres of land within a couple of years in Hyderabad. The SEZ will be set up at an initial priced of ten thousand crore rupees.

The project will be a joint venture between Land Solution (India) and a Dubai based property developing company.

But the message for the sizzling Indian real-estate development business was worse: get ready for a slowdown.

Emaar MGF Land Pvt. Ltd. said it pulled its initial public offering of shares because of “prevailing adverse market sentiments, fueled by renewed indications of a U.S. recession and global meltdown.” Emaar MGF is a joint venture between the developers Emaar Properties PJSC of Dubai, United Arab Emirates, and MGF Development Ltd.

Once confirmed, Ikea is expected to give tough competition to Hometown, home improvement stores launched by the Future Group last year. UK-based Roseby’s is also planning a foray into India soon. Home furnishings stores in India are typically spread over an area of about 80,000 to 2, 00,000 square feet.  Whereas Ikea, whose stores are normally spread over 3, 00,000 to 5, 00,000 sq/ft. Ikea has more than 235 stores in more than 30 countries across the world. The company clocked in a turnover of Euro 20,685 million in 2007.  Business strategy of Ikea is based on offering a wide range of well designed, functional home furnishing products at prices so low that as many people as possible are able to afford them.  Rather than selling costly home furnishings that only a few can buy, the IKEA Concept makes it possible to provide low-priced products that contribute to helping more people live a better life at home. In fact, the Ikea Concept relies on customers to choose, collect, transport and assemble the products themselves. IKEA gives a slogan “You do your part. We do our part. Together we save money” to its customers.