DLF Converts Mumbai Mall Project Into Residential One (25-Feb-2010)
As the demands for the retail spaces have come down sharply, DLF is eyeing to build a premium residential apartment complex at Worli (Mumbai) instead of a high-end mall project.
The company official said the company eyes that the residential will do well in Mumbai and the company will fix the price depending on market conditions.
As the demand slowed down, the rents of retail spaces are reduced by 25-30 % from their peak in 2007-08. However, the demand for office spaces have picked up slowly, property consultants expect lukewarm demand to continue for retail developments.
''Worli'' is witnessing modern office developments by realtors such as - Indiabulls, Bombay Dyeing and Century Textiles, and residential apartments command a price of Rs. 22,000 per sq ft and above.
In 2005, DLF made news when it bought a 17-acre Mumbai Textile Mill land from National Textile Corporation (NTC) for Rs. 702 crore. In the same year, the company announced that it would build a futuristic retail-cum-entertainment complex on the land.
The official said, after taking all the necessary approvals, the new project is expected to be launched in the next 4-5 months.
DLF Ltd last week announced the launch of the first phase of its 200-acre project in Panchkula with an investment of nearly Rs 2,200 crore.
However, the project, that will offer apartments of 2, 3 and 4 bedrooms in the first phase in the range of Rs 28-Rs 60 lakh, will be completed by March 2012.
This will be the DLF''s biggest township project outside Gurgaon entailing around Rs 2,200 crore investment.
However, the company changed the plan several times as real estate market went through a prolonged slowdown.
Apart from DLF other players like - DB Realty in Dahisar area of Mumbai, West Pioneer in Kalyan near Mumbai and TTK group in Bangalore also changed their plans to build mall to apartment projects.
Since mid-2009, the prices of Apartment have increased by 15-20 % as home buyers returned to the market. Earlier, prices had declined by around 40 % as home buyers stayed away.
Buoyed by the response for its apartment projects, DLF is expected to launch 8-10 new residential projects in the next 1 year. DLF, which stalled some of its office projects during the slowdown, is planning to launch 2-3 commercial projects in Gurgaon and Hyderabad.
Within a week of its launch, DLF has sold 1,200 units of independent floors in its Panchkula Valley housing project in Chandigarh.
DLF is currently trading at Rs.291.7, up by 0.84%.
The stock hit an intraday high of Rs.292.65 till now, as against the 52-week high of Rs.490.8.The stock hit a low of Rs.289.3 during the day. The stock had hit a 52-week low of Rs.136 on March 12, 2009.
The stock opens at Rs.289.6 at BSE. The total traded volume of the scrip on BSE till now stood at 256290.
Meanwhile today, the BSE Sensex is trading up by 50.87 points, or 0.31% , at 16305.07 on 10:03 AM.
Meanwhile today, the NSE Nifty is trading up by 20.35 points, or 0.42% , at 4880.1.
DLF has an equity capital of Rs 339.47 crore as of 2009 Dec. The face value per share is Rs 2. At the current price of Rs 291.7, the P/E multiple stood at 31.9950430987213 with book Value of 72.91 and P/BV at 4.00.
The total shareholding pattern of the company as on Dec 2009 stood at Promoters- 78.64%, Institutional Investors- 15.91%, General Public- 3.55% and other investors- 1.91%.
Considering the current price of Rs. 291.7 at 10:03:00 AM, the stock had underperformed the market over the past one month till 26/02/2010 fell -8% as compared to the Sensex''s return of 0.09% and NSE Nifty''s 0.09 % returns.
Considering the current price of Rs. 291.7 at 10:03:00 AM, the stock had underperformed the market over the past one quarter till 26/02/2010 declined -17.04% as compared to the Sensex''s return of -3.67% and NSE Nifty''s -3.67 % returns.
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