Finding fault with your buildings

Recent building collapses in India’s financial capital and nearby Bangladesh have opened a debate about the safety of buildings, which are new or considerably old. Even buildings, which are as old as 10 years are susceptible to damage due to poor construction. So, how to find the faults or gauge the life of a building? It is pretty difficult unless one is an expert in that field; otherwise one has to believe what the builders have to say about the quality of their construction.

Since builders are not giving any form of surety to the purchasers about the quality of their construction, one can’t sue them in the appropriate court of law in case damage to building occurs soon after taking possession of the building. While 74 people had lost their lives in the Thane building collapse, the death toll in the Savar building collapse was more than 700. 

In South Asian cities due to rapid urbanisation building collapses are a common feature in small buildings belonging to low income and informal or semi-formal neighborhoods. In fact, if one goes by the number of building collapses, it is quite possible that the death toll caused by such collapses can be higher than the large-scale ones, which happen occasionally.

One of the reasons, which lead to building collapse, is gap in the system due to poor quality of construction. Also, usage of substandard materials and untrained or unskilled workers making multi-storey buildings without engineering knowledge, are also lead to structural collapse, says Kishor Pate, CMD of Amit Enterprises, a leading builder.

Soil testing is very important procedure to understand the nature of the soil to withstand the building’s weight. Constructing high-rises without performing proper soil analysis can cause cracks on the main structure and on pavement.

Improperly built structures may face foundation problems, which include noise from windows and doors, windows get jammed or separated from main frames, cracks near corners of doors or windows and wall joints, widening of cracks in basement or water seepage or leaky roofs.

Cracks that are horizontal or vertical on plastered walls are normal that are only due to shrinkage and drying. But jagged cracks resemble stair steps generally indicate settling condition or structural movement.

Cracks, whose widths are less than 1/8th of an inch is occurred due to stress and hence is harmless. However, cracks that are 1/4th of an inch or more can be more serious, says Kishor.

For concrete walls, diagonal as well as vertical cracks signify foundation movement. If the vertical crack increases at the bottom or top, it can be because of gradual heaving or settling. Stair-step cracks also indicate something basically wrong.

Horizontal cracks happen due to design defects or building up of pressure behind the wall. Horizontal cracks can be more serious. Those who do not have adequate technical knowledge on design aspects should not build buildings. In India since there is no legislation to decide the qualification of builders, inexperienced builders build even approved buildings designed by international repute designer.

Economic condition and rising cost of land and building materials drive people, especially those living on low income, to seek cheaper options. This invariably means people would be at the mercy of fly-by-night developers with no reputations to protect consumers’ interests. This is regrettable, as many reputed developers have projects in different price-bands. Also, one should understand that lower price does not mean bad or low construction quality.

We’ll introduce real estate bill in monsoon session: Girija Vyas

The government will introduce the Real Estate (Regulation and Development) Bill, 2013 in the monsoon session of the parliament and the industry can give further suggestions at the time of examination by the Parliamentary Standing Committee, Girija Vyas, minister for housing and urban poverty alleviation (HUPA) said at an ASSOCHAM event held in New Delhi recently.“The real estate bill is a very important regulatory issue which has been approved by the cabinet and we intend to introduce it in the ensuing monsoon session of the parliament,” said Vyas while inaugurating the 6th national summit titled ‘Regulatory issues and clearances for real estate sector,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“The bill would ensure consumer protection and promotion of real estate sector through effective regulation and introduction of speedy mechanism for adjudication of disputes,” said Vyas, adding, “It is a pioneering legislation which shall instill standardization and professionalization in real estate sector thereby catalyzing domestic and foreign investments.”

The minister further informed that all the industry’s concerns have been taken into account through wide ranging consultations with all stakeholders and the government is further willing to incorporate industry’s suggestions at the time of examination by standing committee of the Parliament.

Talking about the rental housing policy, the minister said, “Our goal is to make our cities slum-free and also stop mushrooming of new slums, as such we have introduced the concept of rented houses and we hope to make significant achievements in this regard as we are getting positive signals from state governments.”

She further informed that government will cover entire country in the next lag of government initiated housing scheme of Rajiv Awas Yojana. “We will take it to the cabinet and whole of the country will get covered under the scheme.”

Outlining the focus of the government, the minister said, “Our priority is to provide houses to the weaker sections of the society and this we are willing to do together with the private sector under the public-private partnership model.”

“If the state governments are willing to co-operate then the concept for a single window clearance system should be introduced,” said Ms Vyas while sharing her views on the industry’s equivocal demand for an online single window mechanism.

In his address, HUPA secretary, Arun Kumar Misra said that both government and private sector need to come together and provide housing facility to the poor people of the country.

“Poor and weaker sections of the society have remained a neglected lot for years and the industry including both government and private sector should make significant efforts to provide housing stocks which actually cater to the EWS (economically weaker section) and LIG (low income group) people,” said Misra.

He further informed that ministry would launch a state-wise campaign on July 22 to sensitise state governments about need for an affordable housing policy and the need for single window clearance system.

Talking about the Real Estate (Regulation and Development) Bill-2013, the secretary said, “I would like to assure the industry that it’s a ‘development and regulation’ bill and not only a regulation bill and as and when it gets introduced in the Parliament you will realize that most of the industry’s worries and concerns are actually not well founded.”

“The bill will mark the beginning of a reform movement that will come into the real estate sector,” said Mr Misra.

Amid others who addressed the ASSOCHAM summit included: Dhanendra Kumar, former chairman, Competition Commission of India (CCI); Rajkumar Dhoot, president, ASSOCHAM; Rajeev Talwar, chairman, ASSOCHAM Urban Development Committee; Amrish Jain, co-chairman; Sunil Dhaiya, co-chairman, ASSOCHAM Real Estate Committee and secretary general, D.S. Rawat.

JLL India’s Mumbai Office gets LEED Platinum Rating

Jones Lang LaSalle India's office at Lower Parel in Mumbai has achieved a rare distinction of being awarded (Leadership in Energy and Environmental Design) LEED Platinum certification. The office has been developed conforming to the highest green building standards, with the requisite green design features incorporated by the Firm's own sustainability team from the inception stage, according to a release.

On achieving the highest LEED certification, Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India says, "This initiative was driven by two of our most fundamental priorities - providing an enhanced workplace experience to our people, and walking the talk on the Firm's commitment to sustainable real estate standards. Achieving the highest LEED certification for commercial premises was therefore a logical step.

 A sustainable office space is most likely to succeed in its objective if sustainable features are envisioned and incorporated right at the design stage. The design has to take into consideration the entire supply chain—from material sourcing, energy use, resource re-use, civic amenities and waste disposal to tenant education."

With a clear focus on providing a more conducive workplace environment for employees, these sustainability features have contributed significantly towards occupant’s comforts in terms of lighting, air quality and healthier workspaces. Also implied in LEED Platinum certification are the highest possible optimization of electricity and water use without in any way compromising the overall workplace experience.

Rajat Malhotra, COO – Integrated Facilities Management (West Asia) Jones Lang LaSalle India says, "We conceived our Mumbai office with the objective of achieving the highest LEED certification for commercial spaces in order to foster a sense of community, create a healthy indoor climate and provide enhanced comfort to our staff. Designing an office space on such lines goes a long way in the overall psychological well-being of those who work there."

Sustainable office premises provide better air quality, natural light and an optimal and pleasant indoor environment. Enhanced IEQ (Indoor Environmental Quality) for occupants are achieved by initiatives such as using less toxic interiors, low-emitting adhesives, paints, carpets and composite wood, illuminating 75–90% of the space with natural light, and increasing thermal comfort via zone controls for air conditioning and better ventilation.

These factors are most important in improving the quality of work life and the efficiency of occupiers. Cumulatively, they directly translate into improved productivity and decreased ailments for occupants. Contrary to the general view, platinum-rated buildings cost more but also offer attractive payback, while gold and silver-rated buildings cost the same standard buildings.

Larsen and Toubro wins contract for building expressway in Oman

Engineering and construction major Larsen & Toubro (L&T) has said it has won a Rs 2,085 crore
overseas order from Oman government for construction of Al Batinah Expressway.

"The transportation infrastructure business of L&T has made a major breakthrough in its international business by bagging a new order worth riyal Omani 135.6 million (Rs 2,085 crore) from the Ministry of Transport and Communications, Sultanate of Oman, for construction of the Al Batinah Expressway Package 4," the company said in a statement.

The project is scheduled to be completed in  36 months and involves building a 50-km four-lane dual carriage expressway, two grade separated interchanges, seven overpass, five bridges and cross drainage work, as per international standards.

The company said the order was won against stiff international competition and augers well for L&T's expansion in international infrastructure.

It said the company has been making significant strides in the areas of roads and bridges both in international and domestic markets through its capabilities in design, engineering, project execution and construction among others.  L&T is a USD 14 billion conglomerate with global operations.

Magarpatta Belt Becomes Pune's Investment Hotbed

Situated on the eastern side of Pune, Magarpatta is close to the Kharadi EON IT Park, Kalyani Nagar, Koregaon Park, Fatimanagar and the Hadapsar Industrial Estate. Crossing North Main Road towards Koregaon Park annexe approaching Mundhwa Road is the point of the most talked-about new D.P. road that will connect Koregaon Park to Magarpatta.

This road, from the northwest region of Magarpatta City and touching the Botanical Gardens, will virtually make the Koregaon Park area one of its closest neighbourhood locations from Magarpatta. This connecting route from Magarpatta to Koregaon Park will fuel the development of residential projects, as it provides a vast improvement in commuting towards the CBD (Central Business District).

The entire Magarpatta and Amanora belt is lined with beautiful housing complexes, state-of-art projects, commercial developments and an array of shopping outlets, giving a glimpse of one of Pune’s most hip-and-happening areas. The rate of development in and around the Magarpatta belt in terms of residential, retail and commercial real estate has been significant over the past two years. 

The ready infrastructure such as schools, hospitals, offices and IT hubs and the array of available entertainment options at Amanora Town Centre andMagarpatta complement the growth of residential property buying in and around the area, says Pravin Mahurkar, Head (Pune) - Residential Services, Jones Lang LaSalle India.

From the standpoint of residential development, the area at present comprises of major developers offering quality and affordable housing options. End users and investors in the budget housing right up to the super luxury and premium housing segments have a tempting bouquet of options. The tentative price range in the area begins at Rs. 4500/sq.ft and goes up to a whopping Rs. 14000/sq.ft.

The presence of some premium developers who are creating customized luxurious residential projects has changed the entire lifestyle housing ethos in the Magarpatta belt. Big players such as Panchshil, Marvel Realtors, Kumar Properties and VTP Group (Urban Homes) are well established in this area. Projects such as One North and Yo! Pune by Panchshil and Diva and Ritz by Marvel, Amanora Town and Magarpatta City are just a few currently present there.

There are numerous upcoming developments such as Urban Balance by VTP Group (Urban Homes), Privie Sienna by Kumar Properties, Bounty and Arco by Marvel Realtors and Ela by Vascon. The housing development along other parameters will have a great impact due to the connectivity from Koregaon Park to Magarpatta. It will not only ease commuting and save time but also benefit the overall development of Hadapsar and the adjoining areas.

Economic slowdown doesn't break HIG-luxury market: ASSOCHAM

Despite the global economic slowdown, size of the High Income group (HIG) consumers continue to enlarge and spend over 40% of their monthly income on some of the world’s largest luxury brands whereas the middle income group (MIG) consumers have come under heavy pressure, reveals the ASSOCHAM latest survey.

The factors that have fuelled the luxury industry's growth are the rise in disposable income, brand awareness amongst the youth and purchasing power of the upper class in Tier II & III cities in India whereas the middle income groups spending on food products and education have increased significantly in the last 10 years.

The ASSOCHAM recent survey on “Indian Luxury Market Holds Strong despite Global Economic Downturn” was conducted in major places like Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabd, Pune, Chandigarh, Dehradun etc. A little over 200 employee were selected from each city on an average. 

Delhi ranks first in spending most on luxury brands followed by Mumbai (2nd), Ahmedabad (3rd) Chandigarh (4th), Kolkata (5th), Bangalore (6th), Chennai (7th) and Dehradun (8th), says Mr. D S Rawat, Secretary General ASSOCHAM.

Around 55 per cent of the survey respondents fall under the age bracket of 20-29 years, followed by 30-39 years (26 per cent), 40-49 years (16 per cent), 50-59 years (2 per cent) and 60-65 years.

The survey was able to target employees from 18 broad sectors, with maximum share contributed by employees from IT/ITes sector (17 per cent). After IT/ITeS sector, contribution of the survey respondents from financial services is 11 per cent. Employees working in engineering and telecom sector contributed 9 per cent and 8 per cent respectively in the questionnaire. Nearly 6 per cent of the employees belonged from market research/KPO and media background each. Management, FMCG and Infrastructure sector employees share is 5 per cent each, in the total survey. Respondents from power and real estate sector contributed 4 per cent each. Employees from education and food& beverages sector provided a share of 3 per cent each.

The report says that the slowdown in the economy has not affected the spending patterns of high income group (HIG), with many of them stating that maintaining their lifestyle is an extremely important facet of their social life. “Throwing lavish parties such as business success, wedding or launch parties has become a new area of spending”, reveals the survey.

The survey also highlights that majority of women tend to make purchasing decisions around cosmetics, perfumes, spa treatments, clothes, footwear, bags and jewelry. Men on the other hand mostly decide on purchases related to alcohol, watches and automobiles. Joint decisions are made on hotels, resorts and restaurants. While there are some similarities in terms of motivation, women appear far more likely to buy luxury as a form of self-reward and pampering, whereas men are traditionally driven by status, mentioned the ASSOCHAM survey.

A majority of survey respondents (85%) said they purchase luxury items during overseas trips, with cosmetics, watches, bag, and perfumes etc. The survey also notes that buying habits don’t change whether it is a business or a leisure trip.

The survey data shows that around nearly 75% of potential consumers search for luxury brands on the internet at least once a month. There are also increasing signs of changing consumption patterns in major cities.

High income group (HIG) in metro cities are increasingly engaging via online forums in discussions around luxury brands; data shows that around 75 percent of potential consumers search for luxury brands on the internet at least once a month, a substantial increase from 25 percent in 2013.

The demand for luxury goods in metros are booming as incomes continue to rise. The survey also reveals the role of digital media and the extent to which it is being used as a tool to engage high-end consumers, adds the survey.

The brand recognition continues to rise as consumers become more discerning and seek experiential luxury as well as unique one-of-a-kind luxury brands and products, said Rawat.

Many of the major luxury brands are continuing with their current investments, despite the ongoing global economic slowdown, women are an important target market for luxury players, as their purchasing power rises and start to seek a wider range of products, adds the survey.

The survey respondents cited convenience as the main motivation to purchase online, while cost saving did not matter as much as a factor. In terms of barriers to online purchasing, they cited concerns over authenticity of products, payment safety concerns and lack of after-sales service, highlights the survey.

Over 66% of survey respondents said they prefer to purchase well known luxury brands, whilst 69 percent separately indicated they would pay a premium for well-known, popular luxury brands.

The luxury market in India is pegged to grow at 25% in 2013 till 2015, and is likely to touch US$ 15 billion from the current level of US$ 8 billion, reveals a study by industry body ASSOCHAM.

While the Indian Government's recent Foreign Direct Investment (FDI) policy for single brand retail is one that can revolutionize the retail sector, further fine tuning keeping all stakeholder interests in mind, is needed to facilitate the smooth entry of foreign luxury brands into India, said Rawat.

 The luxury sector in India can be broadly split into the following verticals:   Products: Apparel and Accessories, Pens, Home Décor, Watches, Wines & Spirits and Jewelry  Services: Spas, Concierge service, Travel & Tourism, Fine Dining and Hotels  Assets: Yachts, Fine Art, Automobiles

How To Spot Bad Construction In Buildings

Kishor Pate, CMD, Amit Enterprises

Two building collapses have received a great deal of media coverage thus far in 2013: the building collapse in Thane, Mumbai and Savar, Bangladesh. Whereas 74 people lost their lives in the Thane building collapse, the death toll was more than 700 in the Savar building collapse. 

In the South Asian cities that are witnessing rapid urbanization, building collapses are a common phenomenon, but these tragedies seem to mostly occur in small buildings belonging to low income and informal and semi-formal neighborhoods. In fact, it is quite possible that the total toll caused by such collapses could be higher compared to the large-scale ones that happen occasionally.

These collapses do not necessarily occur because the buildings are illegally constructed. Gaps in the system lead to poor quality of construction. Further, multi-floor structures are constructed by untrained workers without proper engineering knowledge.

Often, generic reasons such as use of substandard materials and poor construction are attributed to building collapses without conducting any proper investigations. The aim of this article is to provide some information as to how you can spot bad construction.

#1: Constructing buildings, especially high-rise buildings, without performing proper soil analysis can cause cracks on the structure as well as on the outside pavement.

Types of foundation problems can include windows and doors that make noise, jam or separate from frames, cracks that appear near the corners of windows and doors as well as at wall joints, cracks in basement that continue to widen or cause water seepage and leaky roofs.

#2: The use of defective building material can cause construction defects. For example, water leakage caused by defective material can weaken the structure.

Defects in construction and use of bad construction material can be spotted by looking for presence of moisture, mold and mildew in buildings.

#3: The vertical or horizontal cracks on plastered walls indicate shrinkage and drying and are normal. Cracks that are jagged, resemble stair steps and are at 45 degrees generally point to settling issues and structural movement.

These cracks are usually harmless, but can be serious sometimes. A crack that is less than 1/8th of an inch width is usually caused because of stress and is considered to be harmless. However, a crack that is 1/4th of inch or more wide is more serious.

In the case of concrete walls, vertical as well as diagonal cracks typically signify foundation movement. If the vertical crack widens at the bottom or top, it may be because of settling or gradual heaving. Stair-step cracks also indicate heaving. Horizontal cracks signify design defects or build up of pressure behind the wall. Horizontal cracks can cause serious problems. Design aspects are compromised and people who do not have adequate technical knowledge related to construction of buildings are frequently entrusted with the multi-floor building projects.

Finally, the rising cost of land and building materials drives people, especially those living on low incomes, to seek cheaper options. In Indian cities, this invariably means being at the mercy of fly-by-night developers with no reputations to protect. This is regrettable, because many reputed developers have projects in various price-bands. In other words, a lower price does not have to mean dangerously low construction quality.

Shobha developers launches first project in Chennai’s OMR

Shobha developers has launched ‘Sobha Meritta’, a luxury gated apartment complex at Old Mahabalipuram Road (OMR). Spread across six acres of landscaped greenery, Sobha Meritta will have 556 elegantly crafted luxury apartments spread in five blocks with basement plus slit plus 13 floors.

Having the denominations of two and three bedrooms apartments designed with international luxury statements and standards, the 2 BHK apartments come in two sizes - 1336 Sq Ft and 1367 Sq Ft and 3 BHKs come in 1655 Sq Ft and 1726 Sq Ft. Besides this, there is super luxury 3 BHKs with the sizes ranging between1953- 2179 sq fts.

The buildings are designed in a way to utilise maximum natural light and ventilation, the a release said here. There is a clubhouse with facilities like swimming pool, tennis court, badminton court, gymnasium, indoor games and basketball court and community hall. The complex is also equipped with 24-hour-power back up, maintenance staff, round the clock security and rainwater harvesting and solar energy lighting systems for common areas. This project is expecting completion by February 2016.

Shobha Sobha Developers is a Rs. 20 billion company, with three decades of experience in both India and Middle East. The company has a number of unsurpassed projects in South India with a clear vision to transform the way people perceive quality in the real estate sector in India. Sobha Meritta is Sobha’s first project in Chennai and for the same reason, they have selected the best location.

Old Mahabalipuram Road (OMR) is one of the fastest developing areas in Chennai. So demand of property is very high in this area, which is a sure sign that this is an ideal investment opportunity.

Kakatiya Energy launches high efficiency indoor lighting system

Chennai: Kakatiya Energy Systems, an energy management company, has launched Nature Switch Indoor (NSI) lighting control system specially designed to automate indoor light switches based on selected lumen levels. 

Nature switch indoor is an affordable, off–the-shelf alternative to traditional lighting controls, according to a company release, which further added that the lighting system would reduce energy wastages normally associated with manual operation by up to 20 per cent. 

With benefits of energy savings, user friendliness, reduced labor costs and easy installation process, Nature Switch Indoor is uniquely advantageous for industrial and commercial establishments. Having a patented advanced multi-spectral sensor technology, NSI is capable of sensing multiple bands on the electromagnetic spectrum and ensures flicker free lighting. 

Nature Switch Indoor can easily replace traditional lighting controls by a simple integration into the main switchboard, avoiding the need to replace light bulbs and switches.  Additional features like over and under voltage trip and overload trip are provided to offer protective features beyond automated switching, the release further said. 

In an area of about 3000 sq ft, with a lighting load of 1, 000 watt (Rs.6/kwh), deployment of Nature Switch Indoor can avoid wastage of over 2 hours each day, saving Rs.10,512 over the course of one year. This saving is enormous especially when lighting is a major part of electricity consumption contributing significantly to peak load.

“NSI delivers immediate energy savings for industrial and commercial establishments, while at the same time providing an optimum lighting environment. The automated lighting control eases maintenance staff workload so they can be repurposed for more critical job functions,” said. Lakshman Rao, managing director of Kakatiya Energy Systems.

Generally, lights need to be switched on when natural illumination drops below certain levels during the day, due to temporary environmental factors such as rain clouds, and then switched off when natural illumination levels return. Nature Switch Indoor eliminates the burden of manually adjusting the timing of the lights and automatically resets controls based on seasons. This dynamic switching is not found in a traditional timer. 

Mumbai office space market to cross 100 million sq ft In 2014

 Mumbai's commercial real estate stock is estimated to cross the 100 million square feet mark by the 4th quarter of 2014. The current stock stands at 87 million square feet. When it touches the 100 million square feet mark, the vacancy rate is going to hover at 22.2%, says Ramesh Nair, Managing director-West, Jones Lang LaSalle, India..

When the city's supply of CRE reaches this milestone, the three largest micro-markets will be SBD North with 22 million square feet, Thane and Navi Mumbai with 21 million square feet and the Western Suburbs with 16 million square feet. At that point, the two other heavyweight CRE markets - Bangalore and Delhi NCR - will have 86 million and 89 million square feet respectively.

Interestingly, the United States has 12 cities with over 100 million square feet of commercial property stock. New York is the largest office market with 444 million square feet, followed by Washington, DC with 327 million square feet and Chicago ranking third with 235 million square feet. Other markets with commercial real estate stock in excess of 100 million square feet include Bay Area, Los Angeles, Boston, Dallas, New Jersey, Houston, Philadelphia, Atlanta and Denver.

In Europe, Paris - the largest office market in the world - has 569 million square feet of commercial office stock. The other large markets in Europe include London and Munich with 219 million and 214 million square feet respectively. Other markets in Europe with more than 100 million square feet of office stock are Berlin, Madrid, Moscow, Hamburg, Brussels, Milan, Rome, Frankfurt, Stockholm, Copenhagen and Vienna. In Asia, Hong Kong has 88 million square feet of commercial office space.

India Commercial Real Estate Market Update - 3 Q 2013

Across India, the first half of 2013 has seen office space absorption of 13 million square feet, as opposed to 12.8 million square feet during first half of 2012. The first half of 2013 saw the completion of 19.3 million square feet of office real estate, as opposed to 10.7 million square feet in first half of 2012. Among all markets, Mumbai witnessed the highest absorption of office space in the first half of 2013, with 3.8 million square feet.

With the balance sheets of American companies looking decidedly healthier this year on account of a visibly improving economy, we can expect them to focus more intensely on the Indian office market. This is a reasonable assumption to make, given that American companies already account for 51% of the commercial office space leased in India.

In the medium term, large tenants in prime markets will have to contend with a supply-constrained marketplace, with few big blocks of contiguous quality space available on the market. However, office markets across Mumbai will continue to be tenant-favourable for the balance of the year, with occupiers benefiting from an increased choice of new high-quality premises and reduced occupancy costs.

Expansion demand is expected to be subdued in 2013, but relocations and consolidations are going to add buoyancy in leasing activity. Rents in most of Mumbai’s micro-markets have stabilised, and most of them are now showing convincing indications of having bottomed out. Given the basic scarcity of available right-sized Grade A office stock in Mumbai's prime locations, rentals are expected to go up by around 6% in 2013.

Astonfield earns CRISIL rating for solar power plant

Mumbai:  Astonfield Renewables, a leading provider of affordable renewable energy, has announced that Credit Rating Information Services of India Limited (CRISIL), a division of the McGraw Hill Corporation and whose majority stakeholder is Standard & Poor’s, has given an A-credit rating on loan facilities for its five megawatt (MW) solar power plant in the state of Rajasthan.

Astonfield is the first company to receive an A class rating by CRISIL for a solar power plant in India. The “CRISIL A-/Stable” rating was given on long-term loan facilities. According to the agency, Astonfield has “a comfortable financial risk profile, marked by healthy debt protection metrics.” Furthermore, CRISIL noted Astonfield’s debt service coverage ratio “is expected to be healthy.”

The A- rating reflects the strong revenue visibility of Astonfield’s 5 MW solar power plant, driven by its 25 year power purchase agreement with NTPC Vidyut Vyapar Nigam Ltd. with “better realisation [sic] per unit and sound operational performance.” The plant has been in operation since 2011.

“Astonfield is focused on developing renewable energy projects that earn a profitable return on investment, and this rating reinforces that core strength,” said Ameet Shah, Co-Chairman of Astonfield Renewables. “As a long-term owner of renewable power-generating assets in India, we are able to deliver healthy returns to our investors while maintaining a lower risk profile.”

“Having established ourselves early on as a premier developer of renewable energy power plants in India’s solar market, Astonfield is well positioned to capitalize on the latent emerging market demand for solar power in India, especially as the cost of diesel and other fossil fuel-based electricity generation rises,” added Shah.

Astonfield Renewable Resources is a leading provider of affordable renewable energy in emerging markets. Astonfield develops, owns, and operates a rapidly growing portfolio of utility-scale solar plants. Through strategic partnerships with global technology and finance leaders, Astonfield deploys the world’s most advanced, proven renewable energy solutions to power communities in India, Africa, and the Middle East.

DTZ restructures real estate operations in India

New Delhi: Global property consultant DTZ on Thursday said it has restructured its real estate operations in India for better client service and business growth.

DTZ said it has formed a new company structure for its Indian operations to strengthen long-term competitiveness and deliver a stronger and more differentiated client servicing experience.

"The new company structure will have three client groups comprising occupiers, investors and developers at the nucleus of its structure and an overarching Strategic Client Service organisation to augment customer experience," DTZ said in a statement.

The new organisational structure is designed to speed up service delivery and accelerate growth, DTZ-India Chief Executive Anshul Jain said.

DTZ has elevated Anuj Nangpal and Aniruddh Wahal as Managing Directors to head Investor Services and Occupier Services, Transactions, respectively.

Karun Varma has been appointed as Managing Director, Strategic Client Services & New Businesses, while Shashi Bushan has become Managing Director, Project Management Services (Fitouts).

DTZ would offer services that include transactions (corporate leasing), project management, base build development, facilities management, private and institutional investments, valuations, consulting, land advisory and research services.

DTZ operates across 217 offices in 52 countries and it offers services throughout Europe, the Middle East, Africa, Asia Pacific and the Americas.

L&W Construction buys prime Bangalore land for Rs 100 core

Bangalore: L&W Construction Private Limited, a subsidiary of Singapore's Lee Kim Tah Woh Hup Pte Ltd, has acquired 25-acre prime land at Devanhalli, Bangalore by from a large Bangalore-based industrial group for Rs 100 crore.

The transaction was facilitated by  the leading international property consultant, Jones Lang LaSalle. 

L&W Construction will develop a high-end residential project in this land, according to a press release from JLL.
Mayank Saksena, Managing Director,  Land Services, Jones Lang LaSalle India said: "This is an extremely strategic acquisition for L&W Construction Private Limited, and one of Bangalore's largest land deals of 2013 to date. The location of this land, on NH7 at Devanhalli is among Bangalore's most promising growth corridors by virtue of its proximity to the Bangalore International Airport."

In developing the project, L&W Construction will draw on the extensive expertise of Lee Kim Tah Woh Hup, which is a joint venture company established by Lee Kim Tah Holdings Ltd and Woh Hup (Pte) Ltd, two of Singapore's oldest construction companies. Together, they have successfully completed projects in Australia, UK, China, Singapore, Thailand, Malaysia, Indonesia, Myanmar, Middle East, Sri Lanka and the Philippines.

The Devanahalli sub-market is defined by an impressive scale of activity on premium and luxury projects. This is largely due to the on-going and planned infrastructure developments in these areas, with the establishment of Bangalore International Airport being one of the primary catalysts for the North Bangalore micro-market.

Relaxation Of Floor Norms In Delhi: Good, Bad Or Ugly?

Santhosh Kumar

The Delhi Government has relaxed norms for construction of additional floors in residential flats having multiple ownerships, aiming to weed out corruption and help people get their building plans sanctioned without hassles. As per a new directive, people having right over third floor will no longer require to obtain a no-objection certificate (NOC) from the other floor owners for the construction of a third floor.

Not As Simple As It Seems

Municipal corporations will have to examine structural safety and compliance of building bye-laws while giving approval for construction of the third floor. They will need to look into aspects such as structural safety, fire safety, non-obstruction of passages and air and sunshine for neighbours and neighbouring buildings before approving any building plans. Also, adequate parking norms will need to be followed to get clearance. As a matter of fact, there are quite a few complications that need to be resolved to be able to effectively implement the order, says Santhosh Kumar, CEO - Operations, Jones Lang LaSalle India.

As of now, the three owners of ground, first and second floors share one-third land rights. If an additional floor is to be constructed, then the other floor-owners have to forfeit their land right - which will go down from 33% to 25%. Moreover, if it is possible to build within the 300 FAR in any house up from 200, the other floor-owners will claim 33% right on the extra 100, while the second floor owners would claim it as theirs. In other words, there will certainly be legal issues that need to be addressed.

It also seems evident that there will be a need to increase existing infrastructure due to this move, since it will have to cater to increased population. Water, electricity and all other necessary supply systems would have to be massively ramped up in order to cater to increased demand.

In short - this directive, if not complemented along with other necessary changes in the existing laws, and if not implemented with the right intent and spirit, will do no significant good in reality.

On The Positive Side...

That said, this move will not essentially result in any major influx of new population to put the existing facilities under stress. Rather, it would primarily mean creation of more housing opportunities for the currently residing population. This means that no significant additional changes will need to be made to existing colonies.

Currently in Delhi, property prices are exorbitantly high and thus are out of reach of middle-class end consumer. This move will help to put a check on the already sky-high prices. As housing options will, to a certain extent, become more affordable, the Working class population will be able to address their dream of owning a home in Delhi more realistically.

With the acute scarcity of land in Delhi, there is very limited scope of horizontal expansion - and thus, vertical growth remains a viable option. The move to allow building of an additional floor will increase usable FAR resulting in more efficient utilization of Land.

Also, since we have already seen many such constructions taking place even in the absence of a corresponding documented policy, formal guidelines will give legitimacy to all such constructions, make the process smoother and help do away with involved corrupt practices.

As far as the right way to go about this is concerned, I will advocate the implementation of this move with all necessary changes in bye-laws. Merely abolishing NOCs as an appeasement strategy is not recommended. To be able to implement this action with a view to the desired results, all involved complications and challenges also need to be proactively addressed.