| That’s really BAD. Actually when you see all the prominent builders of bangalore are non professionals and lack basic knowledge of multi-storeyed building. This is even the case with puravankara, who take ages to complete their project. I saw many ppl staying in still under construction site (only 40% completed). This is ridiculous, high time these builders learn some professionalism and don’t cheat customers |
Thursday, September 17, 2009
Sobha Developers - One among cheats in Bangalore
Sobha Moonstone - Biggest Blunder and no compensation to customers
| I have booked apartment in moonstone in 2006 and till date they have hardly constructed it. After fighting for 6 months they have cancelled it and taken away 80,000 Rs of my money citing service tax and cancellation fees. I am yet to understand how a cancelled apt have service tax. |
Sobha Developers - biggest crooks on Earth
I was stupid enough to fall for the Sobha brandname and book a flat in one of their HSR properties. This is what I got in return:
3. As per CDP 2015 which was released in 2005, a 30-m road is supposed to run through the property cutting it into 2 pieces. SDL kept customers completely in the dark about this. It was only when some local villagers put up some banners in protest that we, the customers came to know about it. Even then, SDL first lied saying it was the act of some local miscreants trying to extract money. Now, the entire issue has come in the open. SDL, not only refuses to come to any solution - they are trying to pass the buck onto customers saying it is our problem. Strangely, even today if you call their marketing posing as a prospective customer, they will say that there is "no issue" with any CDP road.
4. Charges have been hiked by 150% for BWSSB and KEB. SDL says they are not liable to show receipts to customers as it is not "standard industry practice". They have levied an additional 20k for solar lighting to all customers citing a 2006 govt order while most customers purchased the flats well after that. An independent evaluation shows that they are making 6x profit on cost/watt. Service tax refunds are not paid back to customers - instead we are being told to take this up with the govt directly.
1. It’s 16 months past their committed delivery date and still no signs of handover.
2. There is no access road to the property. The 40 ft road that was marketed as access turns out to be pieces of land owned by different individuals who have filed cases of encroachment against SDL. One of them filed a case 4 yrs back and won it recently and has now fenced off his land thereby rendering the apts almost inaccessible. SDL knew about this for at least 4 yrs but still went on with the sale of apts hiding this litigation from customers. When some customers found about this through RTI, SDL flatly denied at first. When pressed further, they lied saying it is about some "other" stretch of land, whoch is NOT part of the access road. It has been 3 months since this road was fenced off and SDL has not been able to arrive at any solution.
4. Charges have been hiked by 150% for BWSSB and KEB. SDL says they are not liable to show receipts to customers as it is not "standard industry practice". They have levied an additional 20k for solar lighting to all customers citing a 2006 govt order while most customers purchased the flats well after that. An independent evaluation shows that they are making 6x profit on cost/watt. Service tax refunds are not paid back to customers - instead we are being told to take this up with the govt directly.
5. A major architectural blunder renders 3 blocks inaccessible from the ground floor level. Residents are expected to go to the basement and enter the blocks. Now, they are trying to make up by putting some iron staircase (remember factories) at the back side.
6. They have not paid compensation for the delay to any customer who have made even the slightest modification like changing a tile, fitting a bathtub or a switch (for which Sobha charged exorbitantly). To those, who did not make any changes (probably only 10% of the owners), they held back compenstation for 69 days citing reasons like Rajkumar’s death, rains in Oct 2005, sand strike of 2006 - events that took place well before most people booked their flats. Wonder why they left out Indira Gandhi’s murder, 1993 blasts, Godhra riots, .... And the list goes on.... Last but not the least, they shout at customers, misbehave with them and have no shame or decency. Their customer service folks never pick up the phones, seldom respond to emails.......
So friends, this is the true picture of the city’s premier builder - arrogant, unethical and full of fraudulent practices. I made the worst decision of my life by going with them. Please don’t go down the same path. If my post dissuades even one person from investing with SDL, I would consider to have done some service to mankind!!
So friends, this is the true picture of the city’s premier builder - arrogant, unethical and full of fraudulent practices. I made the worst decision of my life by going with them. Please don’t go down the same path. If my post dissuades even one person from investing with SDL, I would consider to have done some service to mankind!!
Horrible Experience Dealing with Sobha Developers
I own a Sobha flat. Sobha flats look beautiful and they haven’t fallen down - yet. That’s why I went with them. That’s the good part. The bad part is:
1. They use horrible plumbing and electrical material. They leave wide gaps between the tiles. Anything that can be replaced with cheap material without changing the looks from outside - they will.
2. They cheat and mislead their customers on the sales agreements with fine prints and levy false charges.
3. For customer service they employ people who occasionally take your phone call - and try to be your shrimp instead of taking down your complaint.
4. They will not be there when you need them. They will leave one soul to maintain 150 odd apartments in the name of "maintenance agreement". And you will never hear back from that one bloke unless you chase him down like a maniac.
5. They are way too expensive.
For the amount of money they charge - its just not worth it. The process of handing over was stressful and the realization was sharp that I had paid a premium price to buy a lot of pain. It was a mistake to buy from Sobha.
For the amount of money they charge - its just not worth it. The process of handing over was stressful and the realization was sharp that I had paid a premium price to buy a lot of pain. It was a mistake to buy from Sobha.
Thursday, August 6, 2009
Lenders agree to Sobha debt recast
Bangalore: Banks and financial institutions, which lent close to Rs 1,900 crore to Sobha Developers Ltd, have agreed to reschedule part of the debt.
Sobha Developers' managing director J C Shama said, "The company has managed to reschedule a substantial part of its loan portfolio." However, he did not elaborate. "Almost all the financial institutions have realigned our loans and our target is to bring down the debt to equity ratio of 0.5 by this fiscal from the current 0.85," he added. Of the total debt of Rs 1,900 crore, the Bangalore-based real estate developer will be able to repay Rs 1,130 crore on easier timelines.
Sobha has also refinanced/ rescheduled its near-term debt to match expected cash flows. The realty major is currently paying an average rate of interest of around 13% and has an annual interest outgo of Rs 240 crore and fixed overheads of Rs 60 crore. Sharma said, "We are looking at operational improvement and plans to bring down the debt through land monetisation, QIP and private equity deals."
Instead of paying Rs 960 crore and Rs 460 crore in FY10 and FY11, respectively, as per the rescheduled timeline, Sobha will pay an easier Rs 450 crore and Rs 690 crore in the period, the analyst said.
The company is looking to mop up between Rs 1,200 - Rs 1,400 crore by selling its land parcels at a premium. These parcels, totalling up to 475 acres, were valued at between Rs 600 and Rs 800 crore sometime back, according to market sources. However, Sharma refused to give any details .
Sobha recently raised around Rs 530 crore by diluting close to 22.5% equity through a qualified institutional placement (QIP). It intends to use Rs 410 crore of the QIP proceeds to reduce part of the debt.
Sobha Developers' managing director J C Shama said, "The company has managed to reschedule a substantial part of its loan portfolio." However, he did not elaborate. "Almost all the financial institutions have realigned our loans and our target is to bring down the debt to equity ratio of 0.5 by this fiscal from the current 0.85," he added. Of the total debt of Rs 1,900 crore, the Bangalore-based real estate developer will be able to repay Rs 1,130 crore on easier timelines.
Sobha has also refinanced/ rescheduled its near-term debt to match expected cash flows. The realty major is currently paying an average rate of interest of around 13% and has an annual interest outgo of Rs 240 crore and fixed overheads of Rs 60 crore. Sharma said, "We are looking at operational improvement and plans to bring down the debt through land monetisation, QIP and private equity deals."
Instead of paying Rs 960 crore and Rs 460 crore in FY10 and FY11, respectively, as per the rescheduled timeline, Sobha will pay an easier Rs 450 crore and Rs 690 crore in the period, the analyst said.
The company is looking to mop up between Rs 1,200 - Rs 1,400 crore by selling its land parcels at a premium. These parcels, totalling up to 475 acres, were valued at between Rs 600 and Rs 800 crore sometime back, according to market sources. However, Sharma refused to give any details .
Sobha recently raised around Rs 530 crore by diluting close to 22.5% equity through a qualified institutional placement (QIP). It intends to use Rs 410 crore of the QIP proceeds to reduce part of the debt.
Sobha profit dips to Rs 13 cr in Q1
BANGALORE: Realty major Sobha Developers has seen its net profit nosedive for the first quarter ended June 30, 2009, at Rs 12.7 crore, against Rs. 50.5 crore for the same period in FY09. Income from operations stood at Rs 177.1 crore (Rs 346.8 crore).
Sobha, which bore the aftershocks of the global economic slowdown, has seen a revival in fortunes in the first quarter compared with the fourth quarter ended March 31, 2009. Net profit in the first quarter increased 76.4% to Rs 12.7 crore from the fourth quarter, while total income was sequentially up 15.6% at Rs 178.6 crore.
“The real estate industry has seen clear signals of revival in demand during the first quarter. With the Indian economy growing at 6-7% and expected to achieve a higher growth rate in the next couple of years, real estate infrastructure industries are poised to play a more significant role. It will be a domestic-driven industry, growing at a much faster pace,” a company filing made with the bourses added.
On its part, Sobha Developers has realigned debt, brought on board a private equity partner, besides successfully completing a qualified institutional placement (QIP) raising Rs 500 crore.
These steps, the filing goes on to say, have added the much-needed comfort in operations and have helped the company focus on progress in various projects across key cities, including Bangalore. The company intends to focus on debt reduction and cost optimisation and believes it is well-equipped to capitalise on the early revival in the Indian economy.
As of June 30, 2009, Sobha Developers has completed 50 residential / commercial in-house projects and 146 contractual projects covering 31.9 million sq ft of built-up space.
Sobha Developers has currently 31 residential / commercial ongoing projects totalling 9.2 million sq ft. The company has contractual projects in several states like Karnataka, Kerala, Andhra Pradesh, Orissa, Tamil Nadu, Punjab, Haryana, the NCR, besides Maharashtra.
On the bourses, the Sobha scrip was down 1.2% at Rs 219, with 3.5 lakh shares changing hands on BSE.
Sobha, which bore the aftershocks of the global economic slowdown, has seen a revival in fortunes in the first quarter compared with the fourth quarter ended March 31, 2009. Net profit in the first quarter increased 76.4% to Rs 12.7 crore from the fourth quarter, while total income was sequentially up 15.6% at Rs 178.6 crore.
“The real estate industry has seen clear signals of revival in demand during the first quarter. With the Indian economy growing at 6-7% and expected to achieve a higher growth rate in the next couple of years, real estate infrastructure industries are poised to play a more significant role. It will be a domestic-driven industry, growing at a much faster pace,” a company filing made with the bourses added.
On its part, Sobha Developers has realigned debt, brought on board a private equity partner, besides successfully completing a qualified institutional placement (QIP) raising Rs 500 crore.
These steps, the filing goes on to say, have added the much-needed comfort in operations and have helped the company focus on progress in various projects across key cities, including Bangalore. The company intends to focus on debt reduction and cost optimisation and believes it is well-equipped to capitalise on the early revival in the Indian economy.
As of June 30, 2009, Sobha Developers has completed 50 residential / commercial in-house projects and 146 contractual projects covering 31.9 million sq ft of built-up space.
Sobha Developers has currently 31 residential / commercial ongoing projects totalling 9.2 million sq ft. The company has contractual projects in several states like Karnataka, Kerala, Andhra Pradesh, Orissa, Tamil Nadu, Punjab, Haryana, the NCR, besides Maharashtra.
On the bourses, the Sobha scrip was down 1.2% at Rs 219, with 3.5 lakh shares changing hands on BSE.
Tuesday, May 26, 2009
Sobha best at only disappointing and cheating its customers
I had booked a flat with Sobha for their reputation. I already own a flat built by a lesser known builder. I know the pain of dealing with builders and getting the job done. But I must say my experience with Sobha has been very very bad.I feel like having made a big mistake by entrusting them with my hard earned money!
They have all the bad things that you may encounter while dealing with builders. And they charge a hefty PREMIUM for it. They have delayed my project by 1.5 yrs as everyone including the lesser known builder is struggling with the liquidity (And I thought Sobha was big). OF course they are smart enough not to pay any money to the customers for the delay. On the contrary they are prompt in charging interest if your payments are delayed by a single day.
Simple stuff like keeping track of changes requested by the customer is made a mess of by the staff. And they want you to accept the poor quality work. They have hidden facts and manipulated the terms.
Stay away from paying premium for poor quality , unprofessional work!
They have all the bad things that you may encounter while dealing with builders. And they charge a hefty PREMIUM for it. They have delayed my project by 1.5 yrs as everyone including the lesser known builder is struggling with the liquidity (And I thought Sobha was big). OF course they are smart enough not to pay any money to the customers for the delay. On the contrary they are prompt in charging interest if your payments are delayed by a single day.
Simple stuff like keeping track of changes requested by the customer is made a mess of by the staff. And they want you to accept the poor quality work. They have hidden facts and manipulated the terms.
Stay away from paying premium for poor quality , unprofessional work!
SOBHA NAHIN DETA HAIN
I made the mistake of buying a flat in SOBHA PRIMROSE. The cheating habits come as a package with the flat. Maybe if one reads the fine print in the agreement, one would find a clause which states that the customer can be cheated to any degree at the discretion of SOBHA. They installed SOLAR HEATERS only for the 9th floor buyers at 60,000/-,while the rest were not forced to buy the same. The best of solar heaters doesn't cost too very much.The damages to the walls etc were pointed out but never corrected.The quality of doors and windows was absolutely disgusting.Luckily i found a buyer, otherwise i had already filed a case in the consumer court. The attitude of the people in the office too is very pompous.They behave as if they are PNC MENON. What started off as a world class product, was reduced to a sham in a very short time, only because of the jokers employed by Mr. Menon.
Sobha Developers pays Re. 1 per share
BANGALORE: Sobha Developers has reported a revenue of Rs. 974.74 crore and a profit after tax of Rs. 109.68 crore for the year ended March 31, 2009. Compared to the previous fiscal, revenues had declined by 32 per cent and profit after tax 52 per cent. The directors have recommended a dividend of Re. 1 per share of Rs. 10 each against Rs. 6.50 per share in the previous year. — Special Correspondent
Sobha Developers rises on plans of raising funds
The company's stock is the largest gainer in the real estate sector.
It has appreciated by 75 per cent from Rs 111.15 to Rs 194.25 on reports that the company was going to raise funds through Qualified Institutional Placements (QIP) issue.
The board of directors of the company has called an Extraordinary General Meeting (EGM) on June 17, 2009.
The Extraordinary General Meeting will consider the increase in the share capital of the company up to Rs 1,500 crore and the increase in the limit of investment by foreign institutional investors (FIIs) in the equity shares of the company up to 100 per cent of the equity share capital of the company.
The Bangalore-based real estate firm that engages primarily in the construction and development of contractual and residential projects, is looking to raise around Rs 1,000 crore via QIP issue.
The company has posted 53 per cent fall in net profit to Rs 107.80 crore (Rs 228.10 crore) for the financial year ended 31st March, 2009, while net sales have declined by 32 per cent to Rs 974 crore (Rs 1,431 crore) during the year.
The counter clocked combined volumes of four million shares in last week as against two million shares were traded in previous week.
The real estate sector has been facing a liquidity crunch for some time now but the situation has improved post the election results.
In fact, many industry players are encouraged by the response Indiabulls and Unitech have received. Indiabulls Real Estate has raised Rs 2,656.50 crore through QIP.
The company issued 14.36 crore equity shares at Rs 185 per share. Unitech had raised about Rs 1,615.25 crore through QIP. The promoter’s stake after the QIP has come down in both the cases.
Sobha Developers says gets 2.25 bln rupees for projects
MUMBAI (Reuters) - Realtor Sobha Developers Ltd said on Tuesday it sold stake in projects in Bangalore and other cities for a total consideration of 2.25 billion rupees from Bangalore-based Purna Partners.
The firm entered into a term sheet with Purna Partners and has received 250 million rupees from the investor on Tuesday.
Sobha Developers is identifying certain land parcels in Bangalore and other cities for residential, commercial and mixed development projects via a special purpose vehicle (SPV).
Sobha Developers will be the shareholder along with Purna Partners in the SPV and will also execute the projects as the principal contractor.
Saturday, May 2, 2009
Sobha may finalise fund raising options next week
Sobha Developers, Bangalore-based real estate developer, has announced that a meeting of its board of directors will be held on May 4 to consider the various alternatives available towards raising of additional capital. The company is evaluating offloading around 25 per cent stake through preferential allotment and is expected to also evaluate the QIP route. The company hopes to raise around Rs 350 crore.
Sobha has a debt of close to Rs 1,900 crore and is leveraged 1.6 times. The company is looking to sell around 200 acres of its 3,000 acre land bank in addition to roping in investors at various projects to settle debt. The company is also negotiating with 12 banks and financial institutions to restructure around Rs 850 crore of debt.
Monday, April 27, 2009
Sobha Developers - Sending False Status Reports to its Customers
Hi All
How are you all doing ? I found a few discrepancies in the status reporting of Sobha. For my apt they reported the Electrical switches have been fixed. I checked it yesterday, a month after their status report (Sobha Sunscape), and found it is incorrect. There was not even a single switch fixed. Same is the case is with doors. they reported all the internal doors have been fixed. Even after a month of their report I found the door of the balcony door is not yet fixed. These are minor gaps but still I have pointed it to them. I would suggest people to check the actual status w.r.t to what they are reporting.
Follow Ups:
============
what the hell are these Sobha people thinking. They seem to be taking us for a ride in every little thing. That's so damn pathetic.
Hello Guys, On numerous occasions, I felt Sobha has resorted to very cheap and unethical ways in doing business. I feel they are worse than a low class builder. I really doubt their construction quality also now. I will never recommend any of my friends to buy a Sobha apt based on my personal experience.
How are you all doing ? I found a few discrepancies in the status reporting of Sobha. For my apt they reported the Electrical switches have been fixed. I checked it yesterday, a month after their status report (Sobha Sunscape), and found it is incorrect. There was not even a single switch fixed. Same is the case is with doors. they reported all the internal doors have been fixed. Even after a month of their report I found the door of the balcony door is not yet fixed. These are minor gaps but still I have pointed it to them. I would suggest people to check the actual status w.r.t to what they are reporting.
Follow Ups:
============
what the hell are these Sobha people thinking. They seem to be taking us for a ride in every little thing. That's so damn pathetic.
Hello Guys, On numerous occasions, I felt Sobha has resorted to very cheap and unethical ways in doing business. I feel they are worse than a low class builder. I really doubt their construction quality also now. I will never recommend any of my friends to buy a Sobha apt based on my personal experience.
Saturday, April 25, 2009
Troubled Sobha Magnolia Resident
Sorry for the late posting... But I got to check this AM only as the CRM sent a mail, I had asked them to send a mail to all concerned and I am hoping they did so.
The Magnolia Residents continue to be taken for a ride "fullon" and nothing is being done. We cannot simply be mute spectators to happenings over there. I have gotten tired of being voluble in these sites as there is no use other than us exchanging verbose language it falls into deaf ears.
Every possible excuse, denials and delays in completion and handover of Magnolia Property that is the biggest CON GAME going on right now. I have taken possession in Mar09. Regd the flat. Interior work is on expedited pace. But what use? I cant move in May end as I thought.
They promised Mar end power. Then April 15th then 20th. Still no signs of power and elevators. I use the stairs to climb 12 flrs and wanted to do POOJA in April 3rd week again CANT DO IT!
I am just venting what else can I do? I am powerless frustrated and feel wronged and totally made fool of. We are watching and not doing anything.
Friends please come to the occassion and see if we can do something gather with and present with our feet.
In the final analysis I say all the investors, land owners have no interest in fighting. Only genuine owners who want to live there are fighting the nos for these are paltry single digits. So Sobha for all its transparency, honesty, publicly held status does not care a fig for small owners such as me and others.
Please think over the injustice done. It is high time someone pays for this denials & delays and taking responsibility for these and compensating the owners in due ways. It looks are cards are with the builder and we are just living in a Banana Republic with no rights at all.
- Troubled Sobha Magnolia Resident
==========================
Hello,
Fully understand your frustration... Although I am not as eager to occupy the place in May, I am concerned about the lack of communication from Sobha and their inability to forecast anything...
I am going to be in India for a couple of weeks, starting May 01 - partly to get the apartment registered on May 12, but more to understand what else we can do about this....
In addition to the delays, there is over Rs.1 lac of Service Tax that they have collected and over Rs.4 lacs extra they have charged for BWSSB and KEB. In all cases, they are refusing to provide receipts of what they have paid to IT department or the State Bodies... Also they are refusing to pay any compensation for the delay claiming that there were modifications...
I think we ought to formally register the Sobha Magnolia Owners Association (SMOA), and get all owners to formally authorise SMOA to file a case against Sobha for recovering the excess payments made... That may well be over Rs.8 crores (4-5 lacs * 160 apartments) and will pay for the ongoing maintenance of the buildings for many years...
Let me know how the meeting goes...
Regards
The Magnolia Residents continue to be taken for a ride "fullon" and nothing is being done. We cannot simply be mute spectators to happenings over there. I have gotten tired of being voluble in these sites as there is no use other than us exchanging verbose language it falls into deaf ears.
Every possible excuse, denials and delays in completion and handover of Magnolia Property that is the biggest CON GAME going on right now. I have taken possession in Mar09. Regd the flat. Interior work is on expedited pace. But what use? I cant move in May end as I thought.
They promised Mar end power. Then April 15th then 20th. Still no signs of power and elevators. I use the stairs to climb 12 flrs and wanted to do POOJA in April 3rd week again CANT DO IT!
I am just venting what else can I do? I am powerless frustrated and feel wronged and totally made fool of. We are watching and not doing anything.
Friends please come to the occassion and see if we can do something gather with and present with our feet.
In the final analysis I say all the investors, land owners have no interest in fighting. Only genuine owners who want to live there are fighting the nos for these are paltry single digits. So Sobha for all its transparency, honesty, publicly held status does not care a fig for small owners such as me and others.
Please think over the injustice done. It is high time someone pays for this denials & delays and taking responsibility for these and compensating the owners in due ways. It looks are cards are with the builder and we are just living in a Banana Republic with no rights at all.
- Troubled Sobha Magnolia Resident
==========================
Hello,
Fully understand your frustration... Although I am not as eager to occupy the place in May, I am concerned about the lack of communication from Sobha and their inability to forecast anything...
I am going to be in India for a couple of weeks, starting May 01 - partly to get the apartment registered on May 12, but more to understand what else we can do about this....
In addition to the delays, there is over Rs.1 lac of Service Tax that they have collected and over Rs.4 lacs extra they have charged for BWSSB and KEB. In all cases, they are refusing to provide receipts of what they have paid to IT department or the State Bodies... Also they are refusing to pay any compensation for the delay claiming that there were modifications...
I think we ought to formally register the Sobha Magnolia Owners Association (SMOA), and get all owners to formally authorise SMOA to file a case against Sobha for recovering the excess payments made... That may well be over Rs.8 crores (4-5 lacs * 160 apartments) and will pay for the ongoing maintenance of the buildings for many years...
Let me know how the meeting goes...
Regards
Sobha Developers plans to launch high-end apartment project in Bangalore
Even as the demand slump is forcing leading property developers across the country to prefer affordable housing in place of high value apartments, Bangalore-based Sobha Developers is firming up plans to launch a high-end apartment project in the city. The project, which would carry a price tag of about Rs 6,000 per sq ft, will be the first luxury apartment project from Sobha after crisis hit the Indian real estate sector.
According to sources, the J P Nagar project, to come up on 36 acres of land in J P Nagar in the south of the city, will be announced during the present year.
The company also plans to enter the affordable housing segment by announcing apartments in the Rs 25 lakh to Rs 30 lakh range in Coimbatore, Tamil Nadu.
Sobha’s move is in line with the industry trend to announce new launches in select areas and chosen price bands in the residential real estate segment. Availability of bank loans makes residential projects a safe bet for cash-strapped real estate developers.
Unlike other players who have lined up dozens of such project launches during the year, Sobha has decided to test the waters with just two launches in 2009-10.
“We are not in a hurry to announce future projects as our priority is to sell the ones nearing completion. Of about 2,000 flats / villas that are under various stages of construction across the country, Sobha has been able to sell about 50 per cent until now. The company expects to see the balance being sold off by the time the projects get completed within the next two and a half years,” a senior Sobha official said. He added that their projects in the neighbouring states of Kerala and Tamil Nadu are in greater demand than the ones in Bangalore.
Sobha’s plans for new investments come amidst its struggle to manage its Rs 2,000 crore debts. Company officials said the debt repayment plans are going ahead and the company will have no problems in funding the new projects.
“Of the total debts, about one-fourth has to be repaid this year. We are exploring various options, including issue of preferential shares and sale of land to generate the required amount,” company official said.
The company is also expecting a 25 per cent increase in its revenues from contract works for corporates like Infosys.
According to sources, the J P Nagar project, to come up on 36 acres of land in J P Nagar in the south of the city, will be announced during the present year.
The company also plans to enter the affordable housing segment by announcing apartments in the Rs 25 lakh to Rs 30 lakh range in Coimbatore, Tamil Nadu.
Sobha’s move is in line with the industry trend to announce new launches in select areas and chosen price bands in the residential real estate segment. Availability of bank loans makes residential projects a safe bet for cash-strapped real estate developers.
Unlike other players who have lined up dozens of such project launches during the year, Sobha has decided to test the waters with just two launches in 2009-10.
“We are not in a hurry to announce future projects as our priority is to sell the ones nearing completion. Of about 2,000 flats / villas that are under various stages of construction across the country, Sobha has been able to sell about 50 per cent until now. The company expects to see the balance being sold off by the time the projects get completed within the next two and a half years,” a senior Sobha official said. He added that their projects in the neighbouring states of Kerala and Tamil Nadu are in greater demand than the ones in Bangalore.
Sobha’s plans for new investments come amidst its struggle to manage its Rs 2,000 crore debts. Company officials said the debt repayment plans are going ahead and the company will have no problems in funding the new projects.
“Of the total debts, about one-fourth has to be repaid this year. We are exploring various options, including issue of preferential shares and sale of land to generate the required amount,” company official said.
The company is also expecting a 25 per cent increase in its revenues from contract works for corporates like Infosys.
Sobha Developers - Sobha Sunscape offers 2, 3BHK affordable units
The sluggish real estate market seems to have pushed almost all developers to jump into the affordable housing bandwagon. All of them, big and small have realised that this segment has the potential to prop up their sagging business. And they are wooing customers with the promise of offering quality homes for a lesser price.
“In these difficult time, consumers look at the brand name. When established names enter the affordable housing segment, consumers automatically go to them. They believe that these developers won’t compromise on the quality of finished products as well as raw materials and finer details that go into setting up a housing project — tiles, window panes, paint and other outdoor ammenities. It makes sense for top developers to cash in on that,” says Mitali Shairi of property consultants HJ Realtors.
Bangalore-based Sobha Developers has put up Sobha Sunscape, a project with 362 apartments, spread across 9 acres off Kanakapura Road on the outskirts of Bangalore. Till now, the company had been offering projects in the high-end and luxury category including villas, townhouses and cul de sac bungalow projects.
Sobha Sunscape offers two-bedroom and three-bedroom flats for Rs 37.99 lakh and Rs 40.10 lakh, respectively. Considering the prevailing rates, which are over Rs 50 lakh, prices of these units are affordaibe. According to the company, two-bedroom units will have a superbuilt area ranging from 1,276.34 sq ft and 1,317.78 sq ft, while three-bedroom units would have a superbuilt area ranging between 1,374.69 sq ft and 1,562.52 sq ft. The project will have 16 floors ,including the ground floor.
J C Sharma, managing director of Sobha Developers, said the real estate community has to focus on the affordable housing segment if they have to stay in the race. "The correction in the market was inevitable, considering the reasons that led to it, but the Indian real estate sector has the resilience to bounce back," he told FC Estate.
Company officials said that houses in the Sunscape project would be offered with a choice of options for home furniture for the living room, kitchen, bedroom, dining room and bathroom at an extra cost.
The company is targeting professionals who would take advantage of the connectivity factor of Kanakpura Road. Ammenities that Sobha Sunscape claims to offer include a clubhouse, gym, pantry and cafeteria, crèche, a mini market, an ATM, multi-purpose hall, stores, laundromat, clinic, indoor games hall, reading room, swimming pool, basket ball court and a children’s play area.
Kanakpura Road in southern Bangalore is one of the fastest developing areas in the city, company officials said and added that the USP of the project would be proximity to all major ring roads, including Mysore Road, Bannerghatta Road and Kanakpura ring road.
“In these difficult time, consumers look at the brand name. When established names enter the affordable housing segment, consumers automatically go to them. They believe that these developers won’t compromise on the quality of finished products as well as raw materials and finer details that go into setting up a housing project — tiles, window panes, paint and other outdoor ammenities. It makes sense for top developers to cash in on that,” says Mitali Shairi of property consultants HJ Realtors.
Bangalore-based Sobha Developers has put up Sobha Sunscape, a project with 362 apartments, spread across 9 acres off Kanakapura Road on the outskirts of Bangalore. Till now, the company had been offering projects in the high-end and luxury category including villas, townhouses and cul de sac bungalow projects.
Sobha Sunscape offers two-bedroom and three-bedroom flats for Rs 37.99 lakh and Rs 40.10 lakh, respectively. Considering the prevailing rates, which are over Rs 50 lakh, prices of these units are affordaibe. According to the company, two-bedroom units will have a superbuilt area ranging from 1,276.34 sq ft and 1,317.78 sq ft, while three-bedroom units would have a superbuilt area ranging between 1,374.69 sq ft and 1,562.52 sq ft. The project will have 16 floors ,including the ground floor.
J C Sharma, managing director of Sobha Developers, said the real estate community has to focus on the affordable housing segment if they have to stay in the race. "The correction in the market was inevitable, considering the reasons that led to it, but the Indian real estate sector has the resilience to bounce back," he told FC Estate.
Company officials said that houses in the Sunscape project would be offered with a choice of options for home furniture for the living room, kitchen, bedroom, dining room and bathroom at an extra cost.
The company is targeting professionals who would take advantage of the connectivity factor of Kanakpura Road. Ammenities that Sobha Sunscape claims to offer include a clubhouse, gym, pantry and cafeteria, crèche, a mini market, an ATM, multi-purpose hall, stores, laundromat, clinic, indoor games hall, reading room, swimming pool, basket ball court and a children’s play area.
Kanakpura Road in southern Bangalore is one of the fastest developing areas in the city, company officials said and added that the USP of the project would be proximity to all major ring roads, including Mysore Road, Bannerghatta Road and Kanakpura ring road.
Wednesday, April 22, 2009
Sobha Developers - Sobha Magnolia - Incomplete Handover
Sorry for the late posting... But I got to check this AM only as the CRM sent a mail, I had asked them to send a mail to all concerned and I am hoping they did so.
The Magnolia Residents continue to be taken for a ride "fullon" and nothing is being done. We cannot simply be mute spectators to happenings over there. I have gotten tired of being voluble in these sites as there is no use other than us exchanging verbose language it falls into deaf ears.
Every possible excuse, denials and delays in completion and handover of Magnolia Property that is the biggest CON GAME going on right now. I have taken possession in Mar09. Regd the flat. Interior work is on expedited pace. But what use? I cant move in May end as I thought.
They promised Mar end power. Then April 15th then 20th. Still no signs of power and elevators. I use the stairs to climb 12 flrs and wanted to do POOJA in April 3rd week again CANT DO IT!
I am just venting what else can I do? I am powerless frustrated and feel wronged and totally made fool of. We are watching and not doing anything.
Friends please come to the occasion and see if we can do something gather with and present with our feet.
In the final analysis I say all the investors, land owners have no interest in fighting. Only genuine owners who want to live there are fighting the nos for these are paltry single digits. So Sobha for all its transparency, honesty, publicly held status does not care a fig for small owners such as me and others.
Please think over the injustice done. It is high time someone pays for this denials & delays and taking responsibility for these and compensating the owners in due ways. It looks are cards are with the builder and we are just living in a Banana Republic with no rights at all.
Srinivas
The Magnolia Residents continue to be taken for a ride "fullon" and nothing is being done. We cannot simply be mute spectators to happenings over there. I have gotten tired of being voluble in these sites as there is no use other than us exchanging verbose language it falls into deaf ears.
Every possible excuse, denials and delays in completion and handover of Magnolia Property that is the biggest CON GAME going on right now. I have taken possession in Mar09. Regd the flat. Interior work is on expedited pace. But what use? I cant move in May end as I thought.
They promised Mar end power. Then April 15th then 20th. Still no signs of power and elevators. I use the stairs to climb 12 flrs and wanted to do POOJA in April 3rd week again CANT DO IT!
I am just venting what else can I do? I am powerless frustrated and feel wronged and totally made fool of. We are watching and not doing anything.
Friends please come to the occasion and see if we can do something gather with and present with our feet.
In the final analysis I say all the investors, land owners have no interest in fighting. Only genuine owners who want to live there are fighting the nos for these are paltry single digits. So Sobha for all its transparency, honesty, publicly held status does not care a fig for small owners such as me and others.
Please think over the injustice done. It is high time someone pays for this denials & delays and taking responsibility for these and compensating the owners in due ways. It looks are cards are with the builder and we are just living in a Banana Republic with no rights at all.
Srinivas
Sobha Sunscape offers 2, 3BHK affordable units
The sluggish real estate market seems to have pushed almost all developers to jump into the affordable housing bandwagon. All of them, big and small have realized that this segment has the potential to prop up their sagging business. And they are wooing customers with the promise of offering quality homes for a lesser price.
“In these difficult time, consumers look at the brand name. When established names enter the affordable housing segment, consumers automatically go to them. They believe that these developers won’t compromise on the quality of finished products as well as raw materials and finer details that go into setting up a housing project — tiles, window panes, paint and other outdoor ammenities. It makes sense for top developers to cash in on that,” says Mitali Shairi of property consultants HJ Realtors.
Bangalore-based Sobha Developers has put up Sobha Sunscape, a project with 362 apartments, spread across 9 acres off Kanakapura Road on the outskirts of Bangalore. Till now, the company had been offering projects in the high-end and luxury category including villas, townhouses and cul de sac bungalow projects.
Sobha Sunscape offers two-bedroom and three-bedroom flats for Rs 37.99 lakh and Rs 40.10 lakh, respectively. Considering the prevailing rates, which are over Rs 50 lakh, prices of these units are affordaibe. According to the company, two-bedroom units will have a superbuilt area ranging from 1,276.34 sq ft and 1,317.78 sq ft, while three-bedroom units would have a superbuilt area ranging between 1,374.69 sq ft and 1,562.52 sq ft. The project will have 16 floors ,including the ground floor.
J C Sharma, managing director of Sobha Developers, said the real estate community has to focus on the affordable housing segment if they have to stay in the race. "The correction in the market was inevitable, considering the reasons that led to it, but the Indian real estate sector has the resilience to bounce back," he told FC Estate.
Company officials said that houses in the Sunscape project would be offered with a choice of options for home furniture for the living room, kitchen, bedroom,
dining room and bathroom at an extra cost.
The company is targeting professionals who would take advantage of the connectivity factor of Kanakpura Road. Ammenities that Sobha Sunscape claims to offer include a clubhouse, gym, pantry and cafeteria, crèche, a mini market, an ATM, multi-purpose hall, stores, laundromat, clinic, indoor games hall, reading room, swimming pool, basket ball court and a children’s play area.
Kanakpura Road in southern Bangalore is one of the fastest developing areas in the city, company officials said and added that the USP of the project would be proximity to all major ring roads, including Mysore Road, Bannerghatta Road and Kanakpura ring road.
“In these difficult time, consumers look at the brand name. When established names enter the affordable housing segment, consumers automatically go to them. They believe that these developers won’t compromise on the quality of finished products as well as raw materials and finer details that go into setting up a housing project — tiles, window panes, paint and other outdoor ammenities. It makes sense for top developers to cash in on that,” says Mitali Shairi of property consultants HJ Realtors.
Bangalore-based Sobha Developers has put up Sobha Sunscape, a project with 362 apartments, spread across 9 acres off Kanakapura Road on the outskirts of Bangalore. Till now, the company had been offering projects in the high-end and luxury category including villas, townhouses and cul de sac bungalow projects.
Sobha Sunscape offers two-bedroom and three-bedroom flats for Rs 37.99 lakh and Rs 40.10 lakh, respectively. Considering the prevailing rates, which are over Rs 50 lakh, prices of these units are affordaibe. According to the company, two-bedroom units will have a superbuilt area ranging from 1,276.34 sq ft and 1,317.78 sq ft, while three-bedroom units would have a superbuilt area ranging between 1,374.69 sq ft and 1,562.52 sq ft. The project will have 16 floors ,including the ground floor.
J C Sharma, managing director of Sobha Developers, said the real estate community has to focus on the affordable housing segment if they have to stay in the race. "The correction in the market was inevitable, considering the reasons that led to it, but the Indian real estate sector has the resilience to bounce back," he told FC Estate.
Company officials said that houses in the Sunscape project would be offered with a choice of options for home furniture for the living room, kitchen, bedroom,
dining room and bathroom at an extra cost.
The company is targeting professionals who would take advantage of the connectivity factor of Kanakpura Road. Ammenities that Sobha Sunscape claims to offer include a clubhouse, gym, pantry and cafeteria, crèche, a mini market, an ATM, multi-purpose hall, stores, laundromat, clinic, indoor games hall, reading room, swimming pool, basket ball court and a children’s play area.
Kanakpura Road in southern Bangalore is one of the fastest developing areas in the city, company officials said and added that the USP of the project would be proximity to all major ring roads, including Mysore Road, Bannerghatta Road and Kanakpura ring road.
Sunday, April 19, 2009
Sobha Developers - Panchkula to soon have first five-star boutique hotel
Panchkula, satellite township of Chandigarh will soon have its first five-star boutique hotel, The Bella Vista, which will be part of an upcoming shopping mall in City Centre, Sector 5, Panchkula. The hotel project is almost in its final stage and is expected to start by July 2009. Sobha Developers Limited will develop the project.
Confirming the project, Chetan Sood, Marketing Manager, The Bella Vista Shopping Mall and Hotel, Panchkula, said that the hotel is housed on the top three floors of the mall. It has terrace gardens will offer an unobstructed view of the Himalayan Mountains. “A unique feature of this hotel is the six luxury suites, which will have their own private plunge pools and an additional six studios and suites with private, shared swimming pools,” Sood confirms. He reveals that the hotel will have 50 rooms including 12-15 suites; the rest of rooms will be Executive and Standard rooms.
The speciality restaurant for 50 covers and round the clock coffee shop with a roof top garden will offer international cuisines. The banquet and conference facilities at The Bella Vista will provide a venue for business meets and private functions. Other facilities in the hotel include a spa, swimming pool and Health Club.
Confirming the project, Chetan Sood, Marketing Manager, The Bella Vista Shopping Mall and Hotel, Panchkula, said that the hotel is housed on the top three floors of the mall. It has terrace gardens will offer an unobstructed view of the Himalayan Mountains. “A unique feature of this hotel is the six luxury suites, which will have their own private plunge pools and an additional six studios and suites with private, shared swimming pools,” Sood confirms. He reveals that the hotel will have 50 rooms including 12-15 suites; the rest of rooms will be Executive and Standard rooms.
The speciality restaurant for 50 covers and round the clock coffee shop with a roof top garden will offer international cuisines. The banquet and conference facilities at The Bella Vista will provide a venue for business meets and private functions. Other facilities in the hotel include a spa, swimming pool and Health Club.
Thursday, April 16, 2009
Top Europeon fund may invest Rs 300 cr in Sobha
Redevco, one of Europe’s largest real estate investment and development firms, with a $10 billion portfolio, is understood to be looking at investing around Rs 300 crore in various projects of Bangalore-based Sobha Developers
Redevco, part of the diversified Cafro Holdings, which is into private equity, retail, financial services and renewable energy, in addition to real estate development, set up office in India in late 2008. If the discussions with Sobha fructify, it will be its first investment in India.
Investment banking sources indicated that Redevco has had initial discussions with the management of Sobha Developers, which is mired in debt like many of its peers. The investment, if it materialises, is expected to be tied up by September 2009, they say.
Private equity investments into Indian real estate have been slowing over the past three quarters and this deal is expected to be a major one. While Redevco said it had nothing to comment, Sobha has been maintaining that it is in talks with various funds and nothing has been finalised.
Over the past two quarters, Sobha has been aggressively looking at three options to reduce its debt burden of close to Rs 1,900 crore, a leverage of 1.6 times.
The company, which has Infosys as one of its major clients, is looking to raise around Rs 850 cr by selling around 200 acres of its 3,000 acre land bank, offloading up to 49 per cent stake through special purpose vehicles and to offload up to 25 per cent stake at the enterprise level.
Sobha is understood to have identified around 150 acres of land on which projects can be implemented through special purpose vehicles by divesting stakes.
The company is also engaged with around 12 banks and financial institutions to restructure around Rs 850 cr of debt that will be due for payment during the next 18 months.
Banking sources indicate Sobha has been able to get a nod for a part of that sum and talks are also on with mutual funds to roll over Rs 350 cr of debt.
Redevco, part of the diversified Cafro Holdings, which is into private equity, retail, financial services and renewable energy, in addition to real estate development, set up office in India in late 2008. If the discussions with Sobha fructify, it will be its first investment in India.
Investment banking sources indicated that Redevco has had initial discussions with the management of Sobha Developers, which is mired in debt like many of its peers. The investment, if it materialises, is expected to be tied up by September 2009, they say.
Private equity investments into Indian real estate have been slowing over the past three quarters and this deal is expected to be a major one. While Redevco said it had nothing to comment, Sobha has been maintaining that it is in talks with various funds and nothing has been finalised.
Over the past two quarters, Sobha has been aggressively looking at three options to reduce its debt burden of close to Rs 1,900 crore, a leverage of 1.6 times.
The company, which has Infosys as one of its major clients, is looking to raise around Rs 850 cr by selling around 200 acres of its 3,000 acre land bank, offloading up to 49 per cent stake through special purpose vehicles and to offload up to 25 per cent stake at the enterprise level.
Sobha is understood to have identified around 150 acres of land on which projects can be implemented through special purpose vehicles by divesting stakes.
The company is also engaged with around 12 banks and financial institutions to restructure around Rs 850 cr of debt that will be due for payment during the next 18 months.
Banking sources indicate Sobha has been able to get a nod for a part of that sum and talks are also on with mutual funds to roll over Rs 350 cr of debt.
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