Pres­tige to hand over units in King­fisher Tow­ers

HT Estates - - FRONT PAGE - Mad­hurima Nandy mad­hurima.n@livemint.com

tem­sand­pro­cesses in ad­di­tion to iden­ti­fy­ing ar­eas where more fo­cus is needed.”

When asked about the ini­tia­tives taken to strengthen project plan­ning for timely com­ple­tion of projects, more than 50 per cent of the re­spon­dents ex­pressed that a fo­cused ap­proach to en­hance skillsets of in­ter­nal teams with train­ings is cru­cial. In fact, over 75 per cent de­vel­op­ers have used train­ing as a tool to im­prove cus­tomer ex­pe­ri­ence. How­ever, 37 per cent re­spon­dents felt the need to hire in­de­pen­dent ex­perts as Project Man- age­ment Com­pa­nies (PMCs) to man­age their projects.

Post RERA im­ple­men­ta­tion, where are the pos­i­tive changes seen?

As per the sur­vey, more than 70 per cent of the de­vel­op­ers have made changes to the cus­tomer and ven­dor agree­ments. Sig­nif­i­cant changes have been made to the Agree­ments, with the de­vel­oper and ven­dor now shar­ing equal li­a­bil­i­ties un­der the con­tract. M

How has RERA been im­ple­mented across states in In­dia? The state with best re­sponse to RERA has been Ma­ha­rash­tra where 12,000 real es­tate projects are reg­is­tered till date, and 350 com­plaints filed. This is fol­lowed by Kar­nataka where 1900 real es­tate projects have been reg­is­tered, Ut­tar Pradesh with 730 and Haryana with 400 projects reg­is­tered.

Pun­jab, Ra­jasthan, MP, Gu­jarat and Ma­ha­rash­tra are states where RERA reg­u­la­tor is ap­pointed and por­tal launched. How­ever, the RERA rules have not been no­ti­fied in the states of Goa, West Ben­gal and states in the North East belt. BEN­GALURU: Lux­ury res­i­dences in Ben­galuru’s King­fisher Tow­ers, the city’s most ex­pen­sive res­i­den­tial project with 81 apart­ments and a 40,000 sq. ft man­sion-style pent­house, will fi­nally be­hande­dover­toits buy­ers from June on­wards.

The sky­scraper, which is be­ing built on a 4.5 acre land that once housed­formerliquor baron Vi­jay Mallya’s an­ces­tral home, is cur­rently un­der­go­ing in­ter­nal fin­ish­ing.

It is be­ing de­vel­oped as an ex­ten­sion of UB City, the lux­ury re­tail and of­fice space built un­der­a­joint de­vel­op­ment agree­ment be­tween United Brew­eries Hold­ings Ltd (UBHL) and Pres­tige Es­tates Projects Ltd. UBHL owns55% andthede­vel­oper 45%. Pres­tige is con­struct­ing the project.

“We have re­cently got the oc­cu­pancy cer­tifi­cate. Ex­ter­nally, al­most ev­ery­thing is done, in­ter­nal fin­ishes and ameni­ties workareon. It’s acom­plexstruc­ture to build and these are luxurious, in­di­vid­u­ally hand­crafted apart­ments. By May-June, we should be able to start the han­dovers,” said Ir­fan Razack, chair­man and man­ag­ing di­rec­tor, Pres­tige Group.

An oc­cu­pancy cer­tifi­cate or OCisadoc­u­men­twhichi­sis­sued by the plan­ning au­thor­ity or mu­nic­i­pal body at the end of the con­struc­tion and is proof of the build­ing’s com­pli­ance with laws. At around Rs30,000 per sq. ft, the 8,000 sq. ft apart­ments in King­fisher Tow­ers are priced at around Rs25-26 crore each while the pent­house is roughly val­ued at $20 mil­lion.

Pres­tige, which has 42 apart­ments in its share, has six un­sold units. The last apart­ment it sold last year was at around Rs26-27 crore.

Razack said once fin­ished, there will be de­mand for the re­main­ing homes.

UBHL’s share in­cludes 39 apart­ments and the pent­house. It has sold and is­sued al­lot­ment let­ters for seven, for a lit­tle over Rs150 crore. There have been no trans­ac­tions since 2014 after UBHL was barred from sell­ing any­thing more. A UBHL spokesper­son didn’t re­spond to an email query.

In Septem­ber 2016, the En­force­ment Direc­torate (ED) at­tached Rs6,630 crore worth of prop­er­ties be­long­ing to Mallya in a money laundering probe that in­cluded flats in King­fisher Tow­ers, along with some other as­sets in­clud­ing the Mandwa Farm­House, Alibaug and­shares of UBHL and United Spir­its Ltd (USL).

In Jan­uary 2017, the debt re­cov­ery tri­bunal (DRT) in Ben­galuru ruled in favour of State Bank of In­dia (SBI) and al­lowed it to start the process of re­cov­er­ing the Rs6,203.35 crore it is owed by Mallya’s com­pa­nies. Last March, UBHL moved a di­vi­sion bench of the Kar­nataka high court chal­leng­ing the or­der for wind­ing up­the­firm­for its fail­ure to pay ad­mit­ted li­a­bil­i­ties to the cred­i­tors, in­clud­ing the banks. Fol­low­ing this, the Kar­nataka high court asked UBHL to make an of­fer to banks for a one-time set­tle­ment of dues.

“Sta­tus quo has pre­vailed in the case since then,” said S.S. Na­ganand, se­nior coun­sel ap­pear­ing for the lenders’ con­sor­tium.

“The seven buy­ers can hire a lawyer and ask for the re­lease of their apart­ments. If they re­lease one, they can re­lease all. It is un­for­tu­nate that when the tower is handed over, half of it will be oc­cu­pied and the re­main­ing empty,” said a per­son fa­mil­iar with the de­vel­op­ment, but didn’t wish to be named.

The lux­ury real es­tate mar­ket in In­dia has suf­fered a sig­nif­i­cant blow due to the pro­longed slow­down in the sec­tor but there is still de­mand for unique of­fer­ings, said prop­erty con­sul­tants.

“This is an iconic project with not too much in­ven­tory. There is suf­fi­cient de­mand for lux­ury projects par­tic­u­larly be­cause the city hasn’t seen a de­vel­op­ment like this be­fore,” said Jug­gyMar­waha, ex­ec­u­tive man­ag­ing di­rec­tor at real es­tate ad­vi­sory JLL In­dia.

USL is also in the process of sell­ing 31,000 sq. ft in UB Tow­ers, Ben­galuru for around Rs100 crore as well as a sea-fac­ing man­sion called Ni­ladri in south Mum­bai’s Ne­peansea Road in a bid to mon­e­tize its non- core as­sets.

MINT/FILE

RERA, which came into force from 1 May 2016, is now seen as one of the most sig­nif­i­cant re­forms in the sec­tor

MINT/FILE

King­fisher Tow­ers would be an ex­ten­sion of UB City

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