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Anand Rathi Financial Services, its affiliates and subsidiaries, do and seek to do business with companies covered in its research reports. Thus, investors should beaware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in makingtheir investment decision. Disclosures and analyst certifications are located in Appendix 1.

Anand Rathi Research Ind

Property

Sector Report

4 October 2010

Mumbai Property

The old order changeth, yielding place to new

OverweightNifty/Sensex: 6143/20445


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Anand Rathi Financial Services, its affiliates and subsidiaries, do and seek to do business with companies covered in its research reports. Thus, investors should beaware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in makingtheir investment decision. Disclosures and analyst certifications are located in Appendix 1.

Anand Rathi Research Ind

India I EquitiesProperty

Sector Report

4 October 2010

Mumbai Property


Mumbai-based developers would continue witnessing high profits overthe next 3-5 years given: i) low ready-inventory in the market, ii) highdemand, iii) lower land cost vs high margins, iv) low execution due toregulations. Given the citys unique geography and dense population (inslum areas, chawls), acquisitions via the rehabilitation/redevelopmentmode will give access to prime land at low cost, with the older

construction giving way to large areas for new projects (higher FSI).Although we expect slight correction in the next 3-4 months, we believeinflation-adjusted prices would remain stable in the long term(4-5 years). We have an Overweight stance on the sector.

Land limited, area unlimited. Due to its tight geography, Mumbaimarket has limited land; however, its old constructions viz. slums, chawls,cessed buildings are opening up for redevelopment (higher FSI) via slumrehab schemes (SRS) and urban renewal schemes (URS), thereby freeingup land for organised development. Such projects involve lower (anddeferred) acquisition costs, leading to higher profits for developers.

Residential demand high.With an estimated 1.2% population CAGRover the next decade, demand would remain strong owing to Mumbaicontinuing to attract commercial activity and, hence, high immigration, for

which +300m sqft of residential space will be required. Although we donot expect a major price correction, we believe prices will soften onaccount of affordability concerns in the near-term. Inflation-adjustedstable prices over the next few years are likely to lead to volumes, givenhealthy economic growth. We are positive on central suburbs and Bandra(E) and expect them to outperform vis--vis other micro-markets.

Stock ideas.We favourHDIL (on execution & location skills) andAckruti City (on niche developments). We initiate coverage with Buy onDB Realty, Orbit Corp, Peninsula Land and Sunteck Realty.

Risks. i) Economic slowdown ii) Regulatory risks iii) De-coupling ofMMR from Mumbai City.

OverweightNifty/Sensex: 6143/20445

BSE Realty vs Sensex

BSERealty

Sensex

60

70

80

90

100

110

120

Oct-09

Dec-09

Feb-10

Apr-10

Jun-10

Aug-10

Oct-10

Source: Bloomberg

Sector valuation matrix

Company RatingPrice

(`/share)Sep'11 Target

(`/share) M Cap (` bn) PE(x) (FY11e)PBV (x)(FY11e)

Sep '11NAV

(`/share)Ackruti City Buy 510 872 37 13.3 2.1 967

DB Realty Buy 410 564 100 20.4 3 564

HDIL Buy 270 375 112 18.6 1.2 419

Orbit Corp Buy 123 181 13 11.4 1.1 181

Peninsula Land Buy 66 78 18 6.9 1.3 78

Sunteck Realty Buy 685 811 43 722 6.8 957

Source: Company, Anand Rathi Research


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4 October 2010 Mumbai Property The old order changeth, yielding place to new

Anand Rathi Research 2

Mumbai Property


Investment Argument and Valuation ............................................ 3

Land limited, area unlimited....................................... 3

Residential demand high............................................. 5

Valuation ..................................................................... 6

Risks............................................................................ 7

Recommendations ....................................................................... 8

Land limited, area unlimited ......................................................... 9

Greater Mumbai .......................................................... 9

Avenues for development.......................................... 10

Slum Rehabilitation Schemes ................................... 11

Redevelopment Next best option ........................... 18

Public Private Partnerships (PPP)............................. 22

Mill-land development ............................................... 25

Residential demand high............................................................ 29

Residential................................................................. 29

Commercial property market..................................... 35

Company section........................................................................ 38

Ackruti City......................................................................... 39

DB Realty........................................................................... 49

HDIL................................................................................... 72

Orbit Corp .......................................................................... 82

Peninsula Land................................................................ 100

Sunteck Realty................................................................. 115


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The huge scope of and enhanced focus on re-development (private andpublic colonies) in Mumbai lead to 15% contribution from such projects(which is likely to further increase).

Fig 2 Land acquisition mode of large developers

SRS

52%

Redev

4%

Factory

Land/Mill Land

16%

Virgin land

16%

PPP

9%

URS

3%

Source: Companies

Asset class contribution

The national average of residential development is 80% of the totalproperty market; 60-70% of total development for Mumbai-baseddevelopers is residential. Given no free land and higher density than othermicro-markets in the city, South Mumbai has minimum new supply. Thecentral and western suburbs share ~80% of space, (~55% is in the formof developments and ~25% in the form of transferable developmentrights (TDR), which acts as a supplement for additional FSI. South-centralMumbai), with its opening up of defunct mill land andredevelopment/URS, contributes ~14% of the supply.

Over the years, SRS (~8,600acres), URS (~1,500 acres), mill land (~200acres of undeveloped), redevelopment of Maharashtra Housing & AreaDevelopment Authority (MHADA), private colonies (+4,500 acrescombined) and part lease of port trust land will release large supply in the

market. This could eventually lead to price correction, which is, however,dependent on execution scaling up.

Residential remains the mostfavoured and profitable vertical to

be offered by developers

Fig 3 Asset class contribution

Hotel1%

Others1%

Retail2%

Comm21%

TDR22%

Resi53%

Source: Companies

Fig 4 Location spread

Others (TDR)23%

WesternSuburbs

28% Bandra6%

CentralSuburbs

28%

South CentralMumbai

14%

South Mumbai1%

Source: Companies


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Residential demand high

Residential

Mumbai is the most densely populated city in India, with some pocketseven more populous than an average Mumbai micro-market (e.g., the

Dharavi slum: 13x of average; C Ward in South Mumbai: 2.6x). Thenatural population growth in Mumbai is less than the rate of immigrationinto the city (80% of these migrants stay over a decade) over the past fivedecades. Although MMR still depends on commercial activity in Mumbai,

we believe that over the years, given the infrastructure constraints in theCity, Mumbai Metropolitan Region (MMR) would become self sufficient.Hence, we believe that Mumbai city population would see slowdown ingrowth. Even so, demand for quality residences would be much higherthan supply, till execution picks up.

According to our estimates, ~324m sqft of non-slum space in Mumbaiwould be required by 21 and another 193m sqft by 31. Slums in Mumbaiand slum population set to reduce at a relatively high pace (vis--vis pastfour decades) would release more space for organised development.

Of the listed developers, Ackruti City, DB Realty and HDIL have thelargest offerings of space in Mumbai City. The Mumbai property industryremains fragmented and an equal number of unlisted as well as many smalldevelopers crowd the market.

According to our assumptions (from our sample of 17 developers),residential space would remain in short supply unless: i) the proportion ofplanned commercial space reduces, ii) population growth slows more-than-expected and iii) slums decline is lower than expected. Till then,property prices in Mumbai are likely to remain high/stable.

Fig 6 Estimated space additionSample as a % of total Total (m sqft) Residential (m sqft)

35 891 466

40 780 408

50 624 326

Source: Anand Rathi Research

Micro-markets

None of Mumbais micro-markets are in the infancy stage. Hecne, the newCBD at BKC near Bandra (E) as well as available land and betterinfrastructure at the central suburbs of Ghatkopar (E), Vikroli and

Bhandup would witness higher price appreciation than other micro-markets in Mumbai.

There are over 1.1m households (exslums) in Mumbai

In the near term, we expect pricesto correct in certain micro-markets,

as they are above their 08 peaksalready

Fig 5 Population growth rate estimates

Year ending People (m) 10-year CAGR (%) Slums Family Size No. of HousesSize of a house

(sqft)

Area req (non-slum)

(m sqft)

CY 1971 6.0 50% 6 497,548 550 274CY 1981 8.2 3.3% 50% 6 686,950 500 343

CY 1991 9.9 1.9% 59% 5 813,923 475 387

CY 2001 12.0 1.9% 59% 5 982,232 450 442

CY 2011e 14.2 1.7% 55% 5 1,276,006 450 574

CY 2021e 16.0 1.2% 50% 4 1,996,797 450 899

CY 2031e 17.6 1.0% 45% 4 2,426,229 450 1,092

Source: Census, Anand Rathi Research

DB Realty, Ackruti City andHDIL have the largest residential

offerings in the city


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Fig 7 Micro-markets to look atEmerging Maturing Established

Bandra (E) South Central Mumbai South Mumbai

Gharkopar (E) along highway Parel Bandra (W)

Vikroli (E) Sewri Worli


Of the listed developers, HDIL and Ackruti City have 32m sqft and 31msqft of land projects under construction and planned in the centralsuburbs respectively. Also, most of these are in the form of low-cost SRSand PPP projects and, hence, are primed for high returns.

Commercial

Commercial property is still lagging residential as regards priceperformance, given high oversupply in the vertical. Even with increasedleasing in the past 2-3 quarters, vacancy levels are rising, as continuoussupply hits the markets. But micro-markets such as BKC, with little new

space available in the near future, have already seen rentals picking up fortransformation into the new CBD.

Fig 8 Commercial stock and vacancy levels

0

10

20

30

40

50

60

70

80

1QCY08

2QCY08

3QCY08

4QCY08

1QCY09

2QCY09

3QCY09

4QCY09

1QCY10

2QCY10

7

9

11

13

15

17

19

21

23

Stock Vacancy(RHS)

(msqft) (%)

Source: DTZ, Anand Rathi Research

Valuation

Given lumpy earnings in the property sector and no standard accountingpolicy, it is not meaningful to value all companies on an earnings basis. Webelieve a project-level DCF-based method is apt for most property

developers, with a few companies valued at PE. Also, as each companyhas various asset classes normal development, SRS, PPP and re-development projects.

Fig 9 Valuation (%)

Company RatingFY10-13e EPS

CAGRValue contribution

from Mumbai

Value contributionfrom ongoing

projects FY11e net D/E

Ackruti City Buy 78.6 68 41 84.4

DB Realty Buy 137.1 80 40 38.9

HDIL Buy 35.7 83 40 19.9

Orbit Corp Buy 28.2 85 20 54.7

Peninsula Land Buy 2.7 47 38 (4.5)

Sunteck Realty Buy 171.8 82 38 63.7


Even with absorption of over3m sqft in the past two quarters,vacancies in Mumbai are as high

as 21%

We believe central suburbs tooutperform western suburbs on

pricing in the next decade


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For companies focusing on SRS, PPP and re-development, aproject commences only after clearing the land for development (e.g.,shifting families in SRS projects) Land is available to developers onlyafter the rehab/redevelopment/PPP portion has been constructed.Hence, we have determined development schedules for all suchprojects, taking into account the required timeframes, given their longgestation period.

For residential projects, we have assumed selling prices in accordancewith prices ruling in particular micro-markets, depending on the stageof construction. City-centre projects nearing completion andconstructed by reputed developers usually command premiums overthose that are in the preliminary stage of construction.

For commercial and retail properties under the lease model,considering a development schedule depending on brand and location,

we have assumed two years or more for 95% threshold occupancy andcap rates of 11-13%, given a developers grading and project location.

Some companies (Peninsula Land) having been into development andfollowing an asset-light model warrant a terminal value for the highcash on books and a small land bank.

For each property, we have assumed costs as per product offered.This includes construction costs, selling & marketing fees and othercosts.

For future projects, we have assumed tax rate of 34% for theresidential sub-segment and 20% for leased assets for normal projects.

Premiums/discounts to the NAV usually arise from factors such asmanagement capability, land-bank quality, marketability of land, new

value-accretive land parcels, delay in execution, sales rate and capex

planned. For most cases, we have made necessary assumptions in ourmodel for the aforementioned parameters. In certain cases,development models have not yet been cemented and may not be insync with our assumptions. Also, regulatory risks in Mumbai play amajor role. Hence, we have calculated a discount to the NAV forcertain companies.

We have assumed a standard WACC per company rather than forindividual projects.

Fig 10 Accounting policy followed by Mumbai developersDeveloper Accounting policy for revenue recog Remark

Ackruti City POCM*: Threshold 25% of total cost Aggressive

DB Realty POCM: Threshold: 25% of const cost and 30% of total cost Relatively conservative

HDIL Project completion method Most conservative

Orbit Corporation POCM: Threshold: 25% of free sale const cost Relatively conservative

Peninsula Land POCM: no threshold Aggressive

Sunteck Realty Project completion method Most conservative

Source: Companies, Anand Rathi Research *POCM percentage of completion method

Risks

Economic slowdown Regulatory risks De-coupling of MMR from Mumbai City and ~1000m sqft of

projects from developers

For project completion method of

accounting companies, one shouldlook at movement of customer

advances


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Land limited, area unlimited

Due to its tight geography, Mumbai market has limited land;however, its old constructions viz. slums, chawls, cessed buildingsare opening up for redevelopment (higher FSI) via slum rehab

schemes (SRS) and urban renewal schemes (URS), thereby freeingup land for organised development. Such projects involve lower (anddeferred) acquisition costs, leading to higher profits for developers.

Greater Mumbai

Present statistics

Greater Mumbai (Mumbai City) is spread across 437.77sqkm (~108,173acres) and is made up of a group of seven islands, separated by creeks andchannels, which have been filled up reclaimed. The citys geographicspread is linear, stretching from the South (Nariman Point) to the western

(Borivili), central (Mulund) and eastern (Mankhurd) suburbs that formGreater Mumbai.

The city is the most densely populated in India, with over 12m residents atpresent, ~55% of which are slum dwellers. The city being largely sea-

locked along with its high density renders further horizontal expansionimpossible. The government remains the largest owner of land in MumbaiCity.

Mumbai, although a combinationof seven islands, is linear

Fig 11 Mumbai City Earlier

Source: Wikimapia

Fig 12 Mumbai city At present

Source: Indian Properties


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Avenues for development

Of the 312m sqft (total projects area) of our sample of listed and unlisteddevelopers, ~53% is earmarked for residential development, followed bycommercial at 21%. HDIL and DBRL are the largest generators of TDRin Mumbai and contribute 22% to total projects development. The high-

value South and South-Central Mumbai offer a healthy 46m sqft, while thesuburbs display an evident concentration of developers with 92m sqft inthe central and 86m sqft in the western suburbs.

Fig 13 Project profiles of Mumbai developments

Acquisition routes

SRS51%

Redevelopment

4%

Factory Land/Mill

Land

17%

Virgin land

16%

PPP

9%

URS

3%

Source: Companies

Asset class

Residential53%

Commercial21%

TDR22%

Hotel1% Others

1%Retail

2%

Source: Companies


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rehabilitation development (SRD) scheme, offering FSI of 2.5 and a unitsize of 180sqft for slums, at upfront payment of one-third the cost and theremaining over 15 years. It kept the profit ceiling for developers at 25%and was the first time that the 70%-consent concept was introduced. Evenso, such regulations led to clearing of only 60,000 slums.

The current governing body Slum Rehabilitation Authority (SRA) which was formed in 1995, has the authority to grant rights forredevelopment of slums and rehabilitation of slum-dwellers, and actsparallel to the Municipal Corporation. For the first time in India, theconcept of free housing was introduced for slums on the electoral rolebefore Jan 1995 and a 75% free sale of the rehabilitation built-up area forthe participating private developer. The first project under SRA(SRA/001) was completed by Akruti Nirman (now Ackruti City) in 1997in Dharavi (the largest slum in Asia). Since 1997, ~150,000 slumrehabilitation units (mostly in tie-ups with private developers) have beenconstructed and handed over by the government; 210,000 units are underdevelopment at present.

Fig 16 Slum rehab stats8% of Greater Mumbai occupied by slums

Over 9m people stay in slums (~55% of the population)

300,000 people migrate to Mumbai annually

Average density is six times higher than the density of Mumbai (Mumbai is highest in India)

Average home size is less than 100 sqft for slums

Average people per family: 6-8

Approx. `200bn of tax / land rehab loss to State exchequer*

Maharashtra is the only state that gives free homes to slum dwellers

Source:, Industry, Anand Rathi Research *approximate

Major players

Of the many small and medium-size SRS-focused developers, 10-11 leadthe pack in terms of number and type of project. Amongst listeddevelopers, HDIL has the largest development of rehabilitating slum-

Maharashtra is the only state togive free houses

Fig 15 Evolution of SRS

BMC Act Sec 34A

1954

GoI approval for slum

clearance plan

1956

Slum improvement programs

starts

1970

First world bank funded project

commenced

1985

Use of TDR started in Mumbai

1980

First census of slums, I card

issued

1976

Slum Rehab Developmentformed

FSI 2.5Unit size 180sqft25% profit ceilingOne-third a ment b slums

1991

SRA formed free housesfor slums

Surplus to be given as TDRCarpet area 225sqft

1:0.75 free sale

1995

Some changes inregulations

Rehab area up to 269sqftFSI increase 3-4

25% premium for land

2008

Source: Government of Maharashtra, Anand Rathi Research

Currently, as per SRA, 210,000rehab units are under construction


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dwellers encroaching airport land the Mumbai International Airport(MIAL) project. The other large project nearing completion is a DCR3(11) project executed by DBRL, which has constructed +14,000 rehabunits for project-affected people (PAP). Ackruti City has been a pioneer inslum rehab in Mumbai and the only developer to complete large projectsas of date (two projects which entailed rehab of +4,000 tenants each).

Though slums in Mumbai average 2.5-3.7 acres, there are larger ones suchas in Santacruz (Golibar), Wadala (Swami Samarth) and HanumanNagar(Kandivili), across +100 acres. High-density slums are those in Ghatkopar(W), Vikhroli, Worli, Goregaon and Ghatkopar (E), where density is over743 tenants per hectare.

Fig 17 Large slum rehab developersProject Remark

Ackruti City Pioneer in SRS; 30+ projects under development / planned

DBRL Large PAP scheme nearing completion, TDR holder, SRS in form of JDAs

HDIL Currently biggest slum redeveloper in Mumbai, largest TDR holder

Kiran Hemani Numerous small projects

Lokhandwala Infra Schemes in South-Central Mumbai

Omkar 20+ SRS projects across Mumbai

RNA Undertakes large-scale slum rehab projects

SD Corp Tie-ups with developers across Mumbai, completed Imperial Heights SRS

Sahana Developers Five to seven projects, Oberoi is a JDA in a Worli slum

Shivalik Ventures (Unitech JV) Around 10 in various stages, Golibar the largest; first '3K" notified project

Sumer Group Projects across suburbs, National Park (Borivili), Worli; TDR holder

Source: Industry, Anand Rathi Research

Slum schemes Numerous slums, numerous rehab schemes

In a slum rehab scheme, the government/developer undertakes

rehabilitation of slum-dwellers from the horizontally-spread shanties toorganised 1-bedroom-hall-kitchen (1-BHK) units of 269sqft carpet area

(225sqft till 08), with basic amenities and a corpus of`20,000 formaintenance.

These slum rehab schemes fall under the purview of various DevelopmentControl Regulations (DCRs), with the most profitable under DCR 33(10),

which is an in-situ scheme, where rehabilitation and the free-sale portionare on the same plot.

52% of the land offering from thetop developers arises from SRS

Milestones for a slum rehab project

Annexure 1: Development Agreement, Power of Attorney, Individual & Common Consent, Society Formation, No-Objection Certificate (NOC) from owner of plot

Annexure 2: Biometric Survey, Eligibility Check

Annexure 3: Financial Capability and Bank Guarantee (20% of cost of rehab)

LOI: Given by SRA indication of FSI, permissible FSI, Rehab and Free sale component area finalisation

Plans approval: IoA (Intimation of Approval)

Clear construction related NOCs

Payment premium (40% of the 25% of ready reckoner rate)

To get Commencement Certificate for Rehab

Pay (60% of the 25% of ready recokner rate) before obtaining commencement certificate for free-sale building


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DCR 33(10) in-situ scheme

This is the most-sought-after redevelopment route for SRSs, 80% ofwhich are under DCR 33(10). Here, rehabilitation and free sale happen atthe same site. This implies that a developer can exploit prime properties inMumbai, where there is a slum. This is termed an in-situ scheme. The

ratio between the rehab component and the free-sale component is: 1:0.75 for the island city 1:1 for suburbs 1:1.33 for extended suburbs and difficult (e.g., Dharavi) areasPermissible FSI is 3 for low-density slums and 4 for high-density ones.

Fig 18 DCR 33(10) projectsMajor Completed Projects Location Developers Tenants

Imperial Towers Tardeo Shapoorji Pallonji and SD Corp ~2,600

MIDC Andheri Ackruti City 4,589

IRIS phase 1 Andheri Ackruti City 2,169Major under construction Project Location Developers Tenants

Tulsiwadi Mahalaxmi Ackruti, SP Real Estate, DLF 4,146

Oasis Worli Sahana Developers, Oberoi 3,260

NA Sewri RNA 2,200

NA Worli Omkar Dev 2,159

Janu Boye Malad Omkar Dev 3,700

Kandivili Kandivili Shivalik Ventures 5,500

Ghatkopar Ghatkopar Shivalik Ventures 5,500

Whadwadi Ghatkopar Omkar Dev 4,500

Siddharth Nagar Chembur Omkar Dev 3,700

Sramik Ekta Nagar Worli Lokhandwala & Kataria 1,892

Daulat Nagar Santacruz HDIL 2,000

In JV with Chouhan Dev Santacruz Orbit Corp 2,500

Source: Companies, Industry, Anand Rathi Research

DCR 3(11) Project Affected People (PAP) Scheme

Under this scheme, the owner of a vacant plot can use the land forconstructing PAP tenements and is compensated in the form of TDR(both for the land and the construction).

Fig 19 DCR 3(11) ProjectsMajor completed projects Location Developers Tenants

Tata Nagar Mankhurd Ackruti City & Hiranandani 4,199

Major under construction Project Location Developers Tenants

MIAL Across Mumbai HDIL ~85,000

PAP Mahul DB Realty ~14,000

Source: Companies, Anand Rathi Research

DCR 33(14) Transit camp tenements for SRS

Under this Scheme, higher FSI is permitted to construct transit camptenements for slum rehabilitation. FSI permitted is:

1. 2.5 for suburbs and extended suburbs2. 2.99 for difficult areas3. 2.33 in the island city (applicable only for land belonging to the

government and public-sector undertakings in the island city)

DCR 33(10) is the most widelyused for rehabilitation of slum-

dwellers; it is the most profitable fordevelopers

DCR 33(14) is the least favouredscheme for development

DCR 3(11) is economically notviable, unless land is very cheap

and TDR sales are at higherrealisation


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Fig 23 Sion-Wadala 3K projectAwarded in 4QCY09

Area (acres) 106

No. of slum societies +75

No of families 30,750

FSI 4Rehab area (m sqft) 12.4

Free sale area (m sqft) 11.3

Estimated duration (years) 16

LoI 2 societies

Development stage 1 Free sale building launched (Vedant) Rest under planning

Funding arrangement Equity (Ackruti) - Debt (GMO)

Ackruti's stake (%) 50


MIAL project Major urban-infra project under DCR 33(10) and 3(11)

MIAL is the largest slum-rehabilitation project as of date and involves

shifting of ~85,000 families from encroached sites on / around the airportland. The project is classified as an infrastructure development project andis being developed under the combination of DCR 33(10) and DCR 3(11).

Fig 24 MIAL: snapshotTotal airport land 276 acres

Families to clear 85,000

Slum societies 33

Rehabilitation time-frame 4-5 years

After rehabilitation of 28,000 families HDIL gets 65 acres

HDIL area for development 10m sq. ft.

TDR that would be generated 45m sq. ft.

Land required for rehab* ~160 acres

FSI for the project 4

Source: Company, *Anand Rathi Research

Phase-1 almost complete; phase-2 to commence soon

Securing the contract for the airport rehabilitation project in Oct 07,HDIL started work on phase-1 in May 08, construction of which is likelyto be completed by Jan-Feb 11. Subsequently, 18,000-20,000 families

would be shifted in Mar-Jun 11. Most of the land for the subsequentphases has been tied up, with advances already paid for most land parcels.Construction of phase-2 is expected to commence by Oct 10.

Fig 25 Clearance of the airport land (per phase)Priority 1 2 2.A 3 Total

Airport land recovery (acres) 104 28 103 41 276

Societies to be rehabilitated 10 9 10 4 33

Source: SRA

HDIL is entitled to the TDR generated from the airport project. It is alsoentitled to 65.2 acres near the airport for commercial use, once itcompletes shifting of 28,000 families.


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Fig 26 Rehabilitation in phases 1 & 2Phase Locations Area (acres) Tenants

Kurla W 38 18,000

Kurla E 4 2,000Phase 1

Bhandup 5 2,500

Mulund 6 4,000Andhri E 5 3,000

Mahul 8 5,000Phase 2

Eastern suburbs* ~25 10,000

Source: Company, * Anand Rathi Research

TDR

Customarily, TDR is obtained when a land owner surrenders land to thegovernment or local authority for public purposes such as construction ofgardens and roads. An equivalent right to land is given on paper, whichcan be sold in the open market. Developers who wish to increase thesaleable area, from the basic FSI of 1 to an allowable 2, purchase such

TDRs.

The MIAL project also falls under DCR 3(11) of the SRA Scheme, wherea company has to acquire plots and shift slum-dwellers from encroached-upon land on/around the airport land to the new plot. For this, it obtains

TDR for the land as well as for the construction.

Fig 27 TDR-generating process

Developer

Landeg 100 sq. ft

Rehab constructioneg. 500 x 1.5*

Sum Rehab Authority (SRA)

ConveyedtoSRACo

nstru

ctedb

uildin

g

hand

edto

SRA

TDR (1097.5 sq. ft.)Land TDR: in proportion to the landconveyed.eg 100 sq. ft. X 1 = 100 sq. ftConstruction TDR: 33% incentive tothe rehab construction done.eg 500 X 1.5 X 1.33 = 997.5 sq. ft.

Developer

Source: Anand Rathi Research; *loading assumption

The land TDR is equivalent to the land handed over to the SRA; theconstruction TDR is 1.33x the rehabilitation construction, 33% of which

is the incentive to the developer.


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DCR 33(9)

Cluster redevelopment considers only those buildings erected before Sep1960 (or after Sep 1969 with tenancy till Jun 1996) and with minimum areaof 4,000sq metres. Such buildings are classified by the governmentauthorities (MHADA or BMC) as unfit for living. Applicability of this

regulation is so wide that even structures of mixed characteristics areincluded in the scheme that may include slums on the total plot area.

The island city comprises ~16,759 acres, of which ~30% could comeunder cluster development. One of the largest components is residentialchawls, constructed for mill workers in the last century, and for immigrantblue-collar workers in other industrial units.

Fig 30 Proposed projects under cluster developmentProject Location Developer Status

Midtown Lalbaug Orbit Corp Acquisition ongoing

NSR Block Napean Sea Road Orbit Corp Acquisition ongoing

Tulsiwadi Tardeo Ackruti City, DLF Rehab on; part slum part URS

Orchid Heights Jacob Circle DB Realty Construction commenced

Orchid Views Mumbai Central DB Realty Rehab process commenced

Orchid Enclave II Mumbai Central DB Realty Planning

Orchid Central Mumbai Central DB Realty Planning

Orchid Splendor Byculla DB Realty Planning

Orchid Skyz Byculla DB Realty Planning

Orchid Enclave III Bacchuwadi DB Realty Planning

Orchid West View Malad DB Realty Approval stage

Orchid Apartments Mankhurd DB Realty Planning

Abhudaya Nagar Parel DB Realty Acquisition ongoing

MC Project Mumbai Central DB Realty Acquisition ongoing

Source: Companies

Important know-how for DCR 33(9)

70% consent if private developer (nothing if developed by MHADA)

FSI for development: 4

Incentive FSI:

4,000-8,000 square metres, then FSI would be 55%




+20,000 square metres, then FSI would be 80%

Characteristics: Given the density and size of the projects, the projects under DCR 33(9) will be long gestation, dependingon how big the cluster and its demographics

Source: GoM


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Redevelopment of dilapidated buildings

Cessed and dilapidated buildings occupy +225 acres in prime locations ofthe island city. The last authorised records state 19,642 old & dilapidatedbuildings in Mumbai.

Fig 31 Details about cessed buildings (as per category)Category Year of construction No of buildings

A Before 1940 16,502

B Between 1940 and 1950 1,489

C Between 1951 and 1969 1,651

Total 19,642

Source: MHADA

Mumbai-based developers focus on acquiring redevelopment projects.This provides developers access to prime locations in Mumbai atreasonable costs. Successfully buying-out owners of existing propertiespromises higher margins to developers.

DCR 33(6)

Under this provision, reconstruction, in whole or in part, of a buildingthat existed on or after 10 Jun 1977 and which has ceased to exist asconsequence of an accidental fire, natural collapse or demolition forhaving been declared unsafe by or under a lawful order of theCorporation or the Bombay Housing and Area Development Board,shall be allowed.

FSI of the new building will not exceed that of the original building. This rule applies only to projects located within 500 metres of the

coast (CRZ zone)

Positive changes are likely after passing of the new CRZ Bill.

DCR 33(7)

This provision is applicable for reconstruction/redevelopment of acessed building of A category in the Island City that attracts theprovisions of the MHADA Act, 1976

FSI shall be 2.5 on the gross plot area or the FSI required forrehabilitation of existing tenants plus incentive FSI as specified under

Appendix III to the DCR, whichever is higher

This rule applies to all projects within the Island City of Mumbai DCR 33 (7) allows incentives in the form of additional FSI of 50-70%

(of rehab area) for the redevelopment of buildings in cessed CategoryA-buildings depending on the number of plots. Incentive FSI allowedfor one plot is 50%, 2-5 plots is 60%, and +5 plots is 70%.

MHADA schemes Under modified DCR 33(5)

MHADA had been created with the objective of constructing residentialbuildings under various housing schemes for different sections of society.

There are ~104 MHADA colonies across Mumbai, covering ~3,680 acres.Of these, 56 are +50 years old. Further, more than 70% of these colonies

were built for the economically weaker section (EWS) and low-incomegroup (LIG) categories where tenement sizes are small. The Maharashtragovernment, in its Housing Policy 07, highlighted the need forredevelopment of old MHADA colonies that would enable betteraccommodation for present occupants and create additional housing stock.


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Fig 32 MHADA colonies Location spread

Western

suburbs

58.5%Bandra

9.1%

Central suburbs

29.3%

South Mumbai

0.1%

South central

mumbai

3.0%

Source: MHADA

In Dec 08, the government of Maharashtra modified DCR 33(5) to allowhigher FSI for redevelopment of existing MHADA colonies. Key featuresof the DCR are:

The DCR permits up to 2.5 FSI on gross plot area for redevelopmentof existing MHADA colonies

Incentive FSI that can be availed of against the FSI required for rehabis:

I. In the island city, 50% incentive FSI for area up to 4,000sq metresand 60% for area over 4,000sq metres

II. In the suburbs, 60% incentive FSI for area up to 4,000sq metresand 75% for area over 4,000sq metres

If the difference between the FSI required for rehab + incentive FSI isless than 2.5, the balance FSI would be shared between MHADA andthe developer in the ratio of 2:1

For additional built-up FSI over & above the FSI permissible as perDCR 32, MHADA would charge premium at a rate decided by thegovernment

Fig 33 MHADA colonies being developed

Colony LocationArea (msqft)

Developer Status

Siddharth Nagar Goregaon 4.5 HDIL Rehab and Free sale Started

Pantnagar Ghatkopar 0.5 HDILRehab 50% complete; free to be re-launched

MIG Colony 1 Bandra (E) 1.1 DB Realty Rehab, Free sale to start in 2HFY11e

Jade Gardens Bandra (E) 0.8HappyHomes

Rehab, Free sale nearing completion

Sparkle Bandra (E) 0.9KalpataruProperties

Rehab on. Free sale to launch in2HFY11e

Oriana Bandra (E) 0.6 Rustomjee Rehab, Free sale under construction

Source: MHADA


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BDD chawls Prime properties (potential redevelopment)

The chawls are housing schemes that were developed by the BombayDevelopment Department (BDD), set up in 1920, to tackle the problem ofpolitical unrest in Mumbai by providing housing for the citys population.

Each chawl room covers 160sqft; the chawls were constructed between1921 and 1925 and house ~67,000 occupants. Given that the chawls wereconstructed over 80 years ago and that the FSI on the plots has beenunder-utilised, the government plans to undertake their redevelopment. Atpresent, residents are demanding an area of ~550sqft in the redevlopment.

Fig 34 BDD chawls for development

LocationNo. of

chawlsAcres

No. oftenants

Areaoccupied (m

sqft)

Rehab area(m sqft)

Free salecarpet (m

sqft)

Free salesaleablearea* (m

sqft)

Worli 121 59.8 9,680 1.5 5.3 5.1 7.1

Naigaum 42 13.5 3,344 0.5 1.8 0.5 0.7

Lower Parel 32 13.9 2,560 0.4 1.4 1.0 1.4

Sewri 12 5.7 960 0.2 0.5 0.5 0.7

Total 207 92.9 16,544 2.6 9.1 7.1 9.9

Source: MHADA *40% loading assumption for free-sale building

The State Housing Department has proposed that MHADA prepare amaster plan for redevelopment of BDD chawls. Redevelopment isproposed to be carried out by private developers through a competitivebidding process. Under the urban renewal/cluster redevelopment scheme,i.e., DCR 33(9), developers who win a project to redevelop these chawlsare likely to get FSI of 4. Given such development, a likely saleable area of10m sqft would be added over the years for ~9m sqft of redevelopmentarea.

Public Private Partnerships (PPP)

To resolve the issue of shortage of land for residential use in Mumbai, theMaharashtra government is exploring the PPP model to take up newprojects. PPP projects leverage on the private sectors expertise intechnology, management, quality, efficiency and financing, whilegovernment agencies look at policy, planning, regulation and governanceand facilitating economic growth and development. The PPP model allowsthe government to overcome resource crunches and increase housingsupply. Land, incentive FSI and policy grants are elements controlled bygovernment authorities.

Fig 35 PPP projects improve margins, reduce land costEarlier Now

Project Saleable area (m sqft) Land cost (`/sqft) PPP area (m sqft)Saleable

area (m sqft) Land cost (`/sqft)AKCL 1 0.4 623 0.2 0.9 457

AKCL 2 0.5 1,169 0.2 0.9 862

Source: Company

To promote the PPP model for creating affordable housing, theMaharashtra government introduced DCR 33(23A & 24A) that deals withrental housing projects, and formulated schemes to develop affordablehomes on private land in partnership with MHADA.

~10m sqft could be made availablefor development in South-Central

Mumbai after clearing such schemes


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Fig 36 PPP projects improve margins, reduce land cost


Key schemes under PPP

Rental housing projects DCR 33(23A) and DCR 33(24A)

The DCR was formulated to facilitate Maharashtra governments objectiveof providing affordable homes to the poor on a rental basis.

MMRDA is the project-implementing agency for all rental housingprojects undertaken in MMR

In case of construction of rental houses on unencumbered land by theland-owner or any other agency approved by the MMRDA, the FSI

would be 3. However, an FSI of 4 could also be availed in this case,subject to the following conditions: i) FSI of 1 would be used forrental housing projects on a minimum 25% of the total area. The landowner has to hand over the rental units and appurtenant land toMMRDA free of cost; ii) FSI of 3 would be used by the land owner toconstruct housing units on a maximum of 75% of the total land area

and sold in the open market to subsidise the rental-housingcomponent

FSI of 4 can be availed-of to construct rental houses onunencumbered land by MMRDA on land vested with them. Of the 4FSI, 25% would be allowed for commercial use and open-market sale

Rental units would have a carpet area of 160sqft eachAffordable housing in a JV with MHADA

FSI of up to 2.5 can be availed under these schemes. Extra FSI wouldbe shared between MHADA and the developer

Minimum land area required for such a project would be 5,000sqmetres. The scheme is limited to the municipal limits of GreaterMumbai and Thane

60% of the 2.5 FSI would be used to construct affordable housing inthe EWS/LIG/MIG categories.

Of the additional FSI of 1.5 over the present permissible 1 FSI, 0.75would have to be given to MHADA in built-up form, for whichMHADA would pay cost of construction based on the DSR (DistrictSchedule of Rate). The developer can use the remaining 0.75 FSI foraffordable housing

The total FSI that a developer would get is 1.75 and MHADA wouldnot charge any premium for this additional FSI

Under the Rajiv Awas Yojna(RAY) GoI gives`50,000 perunit for development

Rental housing schemes areproposed more in MMR than

Mumbai city

Residential project planned

on virgin landConverted into rental housing scheme(PPP)

Residential + PPP projectHigher FSI (3), Sellable area up with no

TDR requirement, cost per sqft down


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DCR 33(24) Parking schemes; the new FSI multiplier

Besides housing, the government has adopted the PPP approach toimprove urban infrastructure. It introduced DCR 33(24), which offersincentive FSI to develop multi-storeyed parking lots on privately-ownedland.

The incentive FSI given would be over & above the permissible FSIunder any other provision of the DCR; also, the FSI would be allowedfor use on the same plot, in conformity with the DCR

The minimum area of a plot that could be considered under this DCRis 1,000sq metres in the island city and 2,000sq metres in the suburbsand extended suburbs

Fig 37 Parking schemes proposed by developers in South-Central MumbaiProject Name Area (acres) Developable area (m sqft) Saleable area (m sqft)

Orchid Heights 4.8 0.2 1.2

Turf View 5.8 0.3 2.2

Corporate Park 6.2 0.3 1.2Hill Park 20.0 0.9 2.1

West View 5.4 0.2 1.3

Orchid Crown 6.1 0.3 1.8

Orchid Views -Shantinagar 7.1 0.3 1.4

Orchid Enclave 2 7.8 0.3 0.6

Skyz - Unity 3.5 0.2 0.6

Enclave 3 6.4 0.3 0.7

Orchid Splendor - Jubliee 2.2 0.1 0.4

Central 1.5 0.1 0.3

DLF 17.0 0.7 4.2

IBREL 7.8 0.3 3.4

Lodha World One 10.5 0.5 2.0

Source: Companies

The Municipal Corporation of Greater Mumbai (MCGM) has beenempowered to grant permission to develop parking lots and additionalFSI, depending on location,. Incentive FSI available is: i) If thelocation is within 500 metres of railway stations, state transport busdepots, metro stations, jetties, existing government and semi-government and corporation offices, tourist places, important placesof worship that do not have adequate public parking facilities, suchlocations would be given 50% additional FSI, subject to a maximumFSI of 4 for the island city and 3 for the suburbs & extended suburbs;ii) For other areas in the city, incentive FSI would be 40% of theexisting FSI, subject to a maximum of 3.5 for independent buildingsand 3 for composite buildings in the island city, and 3 for independentbuildings and 2.5 for composite buildings in the suburbs & extendedsuburbs

The minimum number of vehicles that have to be accommodated in aparking lot is 50, with minimum parking space of 700sq metres

The landowner or developer or society concerned would not bepermitted to operate the public parking

DCR 33(24) was introduced tosolve inadequate public parking in

the city

Of 35+ proposals for parking lots,15 have been cleared


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Mill-land development

Prime properties not cheap anymore

Defunct textile mills

Mumbai has ~598 acres of textile mill-land (0.5% of the total area), whichis lying unused. Of this, 300 acres are from 25 mills belonging to National

Textile mills (NTC) while the remaining are private mills in the samelocations. On closure of the mills and transformation of South-centralMumbai, from a labour-class area to an upmarket residential andalternative commercial property, space is available in the form of largetracts of the defunct mills.

Fig 38 Value from mill lands We prefer a JDA model vs outright purchase

Case 1: Assuming JDACase 2: Assuming Outright

Development

Area (acres) 6.1 6.1

Developable area (m sqft) 2.8 2.8

Free-sale area (m sqft) 1.8 1.8Stake (%) 50.0 100.0

Land cost paid (`m) 1,846.0 10,980.0

Average selling price (` /sqft) 22,000.0 22,000.0

Sale value (`m) 19,748.3 39,496.7

Average construction cost (` /sqft) 3,407.8 9,524.1

Total costs (`m) 6,118.0 17,098.7

Land acquired Sep '09 Sep '09

Sales launch Oct '09 Oct '09

Construction start Jan '10 Jan '10

IRR 78% 25%


Most mill-land transactions till now have been outright purchases (fromprivate parties or in government auctions). Acquisition prices have risen~13x in the past eight years and average selling prices around 3x.

The textile mill lands were given toowners on long-term (perpetual)

lease by government for industrialuse


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Also, with less than half the mill-land in South-central Mumbai developed

and development likely to soon begin on the remaining (at higher FSI e.g. parking schemes), we believe pricing in the South-central market willnot see a considerable rise given the variety of launches, despite gooddemand. Also, the redevelopment potential of +0.2m people residing inthe South-central region is likely to churn out more space.

DCR 58 For mill-land development

DCR 58 was tabled in 1991 to develop mills. Major space distribution was:

1/3rd to the BMC 1/3rd to MHADA, for public housing The rest to be used by the owners for commercial purposesMost private developers did not abide by these regulations and, after along-drawn-out case, amendments were made in 01, to the DCR 58 Now, only open land is allotted for distribution, with the constructedportion remaining with mill-land owners.

Acquisition prices have gone up 13times as against 3 times of selling

price

Fig 39 Mill land StatsticsDate of Acq/ sale Mill Location Developer Area (Acres) Acq Cost (`m)

Acq Cost(`m / acre) AcquisitionType Status

2003 Matulya Mills Lower Parel Ashford Group 5.3 NA NA Developed

NA Shri Ram Mills Lower Parel Shri Ram Urban 13.0 0 0 Not sold Under Construction

NA Phoenix Mills Lower Parel Phoenix Mills 19 0 0 Not sold 90% developed & operationalNA Great Eastern Spinning Mills Parel Mahindra GESCO 5.0 NA NA Under Construction

FY03 Simplex Mills Byculla Godrej Properties 9.0 JDA NA JDA Developed

Q1, 2003 Standard Mills Prabhadevi Seth Builders 10.1 1,300.0 128.7 Out-right Developed

Q3, 2004 China Mills Sewri Dosti Builders 9.5 530.0 55.8 Out-right Developed

Q2, 2004 Swan Mills Parel Peninsula Land 12.0 390.0 32.5 JDA Developed

Q3, 2004 Khatau Mills Byculla Marathon Group 13.0 980.0 75.4 JV Planned

Q1, 2005 Srinivas Cotton Mills Lower Parel Lodha Group 10.5 2,000.0 190.5 Out-right Under Construction

Mar-05 Jupiter Mills Lower Parel IBREL 11.0 2,760.0 250.9 Out-right Under Construction

Jun-05 Mumbai Textile Mills Lower Parel Jawala (DLF) 17.0 7,020.0 412.9 Out-right Planned

Jun-05 Apollo Mills Chinchpokli Lodha Group 7.5 1,800.0 240.0 Out-right Under Construction

Jul-05 Elphiston Mills Lower Parel IBREL 7.8 4,410.0 565.4 Out-right Under Construction

Jul-05 Kohinoor Mills Shivaji Park Kohinoor Group 4.8 4,210.0 877.1 Out-right Under Construction

2006 Morarjee Mills Lower Parel Peninsula Land 8 NA NA Merger Peninsula business park

Q2, 2006 Dawn Mills Lower Parel Peninsula Land 6.4 NA NA Merger Under Construction

Sep-07 Hindustan Mills Prabhadevi Ackruti City 5.2 3,690.0 705.5 Out-right Planned

Gold Mohur Mill Dadar Future Group 5.5 1,292.0 234.9 JDA Planned

Apollo Mills Mahalaxmi Future Group 3.4 828.0 243.5 JDA Planned

Sep-09 Crown Mills Prabhadevi DB Realty 6.1 1,840.0 301.6 JDA Under Construction

Jul-10 Poddar Mills Worli IBREL 2.4 4,740.0 1,983.3 Out-right Auctioned lately

Jul-10 Bharat Mills Worli IBREL 8.4 15,050.0 1,798.1 Out-right Auctioned lately

Source: Industry


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Industrial units

After textile mills, several other large & medium-scale industries wereestablished in the post-independence era. Development plans madeprovision for them, earmarking industrial zones for manufacturing, tradeand logistics. Following a similar pattern as mills, industrial plots in the cityare being converted into commercial zones, with industrial units beingshifted to farther locations. Such factory land transactions across Mumbaihave increased in the past decade.

Fig 41 Factory land transactions in the past decade

Period Buyer Area SellerArea

(acres) Price (` m) ` m /acreDec '99 Sep '05

The OberoiGroup

Goregaon (E) Novartis 83.9 1,068 13

Apr 05The NeptuneGroup

Bhandup GKW Land 22.0 1,010 46

May 05 NA Mulund Wellcome - Glaxo 19.0 2,500 132

Sep 05 Oberoi Mulund GSK 18.8 2,210 118

Dec 05 Kalpataru Mulund Schrader Duncan 7.0 520 74

FY06The OberoiGroup

Worli GSK 4.0 1,500 375

Jun '06 Ackruti BhandupThe NationalIndustrial Corp

5.4 120 22

FY08 Ashford Bhandup Ceat 7.0 1,300 186

FY08 HDIL LBS, Mulund Bombay Oxygen 10.0 2,000 200

FY08 HDIL ThaneEvereadyindustries 15.0 1,150 77

FY08 HDIL Bhandup Kilburn Engg 8.3 1,247 150

FY08 HDIL Kurla Premier 53.0 19,000 359

Jan '09 Wadhwa GhatkoparHindustanComposite

18.0 5,710 317

Feb '05The OberoiGroup

Andheri (W) Excel Industr ies 7.0 317 46

Oct '05The OberoiGroup

Andheri (E) Fantasy Land 24.5 1,060 43

FY08 Sunteck Bor iv il i 1 .7 476 289

Feb ' 10 Sheth Juhu GTC 14.0 5,910 422

Jun '10 Sheth Andheri (E) Borosil 18.0 8,750 486

Source: Industry

Fig 40 Usage of mill land

Original DCR (58) 1991

OtherAmenities

33%

Mill owner37%

MHADA30%

Source: Government of Maharashtra

Modified DCR (58) Amended in 2001

OtherAmenities

8%

Mill owner86%

MHADA6%


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Buoyant land deals

Across regions, Mumbai has been in the forefront of land acquisitions andauctions. Rising prices in auctions and in land acquisitions last year indicatethe robustness of the property market as well as the strong balance sheetsof developers. More than `153bn in land deals has announced/transacted,

much higher than the national average. In fact, of the listed developers,other than a few acquisitions in Bangalore, Mumbai and the MMR are theonly markets with such land acquisitions/JDAs.


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Residential demand high

With an estimated 1.2% population CAGR over the next decade,demand would remain strong owing to Mumbai continuing toattract commercial activity and, hence, high immigration, for which

+300m sqft of residential space will be required. Although we do notexect a major price correction, we believe prices will soften onaccount of affordability concerns in the near-term. Inflation-adjustedstable prices over the next few years are likely to lead to volumes,given healthy economic growth. We are positive on central suburbsand Bandra (E) and expect them to outperform vis--vis othermicro-markets.

Residential

Population

The increasing population and resultant demand for quality housing(depending on price) would be the deciding factors for the amount ofabsorption of space. In the past three decades, population growth rate has

varied. Also, as Mumbai is a hub for commercial activity, migration playsan important role in gauging residential demand from such migrantpopulation. MMR (ex Mumbai) has grown faster than Mumbai, buteconomic activity is still largely dependent on Mumbai city.

Fig 42 Population growth in Greater Mumbai

0

2

4

6

8

10

12

14

1901

1911

1921

1931

1941

1951

1961

1971

1981

1991

2001

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

People CAGR

(m)

Source: Census

Natural growth in population

Natural growth in population factors in fertility rate, balance of birth anddeath rates as well as annexation of new areas. While the fertility rate isslipping, death rate is decreasing even faster. Owing to limited land anddeteriorating infrastructure, we estimate population CAGR of 1.2% overthe next decade, and at a decreasing rate ahead.

Migration contributing to population growth

Since 1961, migrants have been a major contributor (as high as 64%) toMumbais population in 1961; it was down to 43% in 01, albeit havingdoubled over the past four decades, in absolute terms. Most migrants toMumbai have been residing in the city for over a decade. Given thepresent annual inflow of ~300,000 people (and assuming it will reduce),4.3-5.1m people are estimated to immigrate into the city by 31 and residefor more than a decade.

Prices in most suburbs crossed

affordable levels in 07/08, thendropped and rose in the past twoyears. They are now within an

affordable range


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Estimated population

According to various government and independent estimates, thepopulation of Greater Mumbai is expected at 15-21m by 31. According toour estimate, it would be ~17.5m (with a slowing growth rate) by 31

versus 13m in 06 and 14.1m in 21. The depletion is mainly owing to lack

of infrastructure and decoupling of MMR from Mumbai city.

Fig 43 Estimated population growth in the next two decades

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

CY1971

CY1981

CY1991

CY2001

CY2011e

CY2021e

CY2031e

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Population 10 years CAGR

(m) (%)


Per capita

In FY07, Mumbais per-capita income was ~`65,361, more than twice that

of Indias average `29,382; we estimate it at ~`82,500 in 11 as against`57,500 in 01. Further, the citys annual household income is expected togrow 10% till 16 and Mumbai would continue to have the highesthousehold income among metro cities in the foreseeable future.

Fig 44 Increase in Mumbais per capita income

0

10,000

20,000

30,000

40,000

50,000

60,000

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

(`)

Source: Census 2001

Given such high demand and the lack of matching supply, Mumbai is themost expensive property market in India. Capital values of property inboth suburbs and the island city are much higher than those in othermetropols. Property prices in Mumbai grew rapidly, from 04 to 07, andoutpaced income growth in the city, resulting in declining affordability.

The average cost of a house in Mumbai, as a multiple of average annualincome, was 5.1 in 07, up from 4.3 in 04; it fell to 4.5 in the 08-09slowdown. With the bounce-back in property prices, the multiple has nowmoved up to 4.7. Ideally, to ensure affordability, property prices shouldnot exceed 5x annual income.

Post rising above affordable levelsin 07/08 and subsequent pricedrop as well as increase over the

past two years, prices in mostsuburbs are still in an affordable

range

Along with per capita, householdincome too is an important

indicator for buying, in whichMumbai leads


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Fig 45 Affordability in Mumbai

22.0

15.6

11.18.3

6.6 5.9 5.3 5.1 4.7 4.3 4.6 5.0 5.1 5.0 4.5 4.80

5

10

15

20

25

30

35

40

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Dec-0

9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Property value Annual income (RHS) Affordabili ty

(`Lac) (`Lac)

Source: HDFC

Even with the huge demand for quality homes in Mumbai, affordability

along with economic growth is one of the main volume drivers forresidential absorption ahead. Also, rental housing is an important avenuealong with SRS to accommodate 50% of the population (considering 40%still living in slums by 31).

Density Micro-markets may see increased supply/de-congestion

There has been a four-fold rise in density in the past four decades.Dividing Mumbai city into three parts, the Island City (comprising Southand South-central Mumbai till Mahim-Sion) has population density of+48,000/sqkm. In the past decade, however, the density has not movedmuch, except for slum population growth and minimum new organiseddevelopment. Major increase in density has been in the western andsouthern suburbs, stemming from population increase and migration.

Also, MMR (ex Mumbai) is supported and complementary to commercialactivity in Mumbai. Hence, its population has increased tremendously, andis now more than that of Mumbai.

Fig 46 Population density in Mumbai city

-

10,000

20,000

30,000

40,000

50,000

60,000

1951

1961

1971

1981

1991

2001

Island City Western Suburbs Central Suburbs

(per sqkm)

Source: Census 2001

Surrounded on three sides by sea,and its ever-growing population isthe key factor behind Mumbais

high density


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Micro-markets to watch

While looking to expand land banks in Mumbai, over & above projectviability, developers generally look at density spread, commercial activityconcentration, land available in micro-market, targeted conversionmargins, gestation period etc.

We believe price appreciation in Vikroli, Ghatkopar (E) and Bhandupwould be high versus other micro-markets of Mumbai, with the movementof industrial units from Vikroli and Bhandup to farther locations, therebyfreeing cheap land. Further, we expect Bandra (E) to witness high priceappreciation as: i) the only developments in BKC (super-luxury) are sellingat twice the current offerings in the region; and ii) development of BKC asthe new CBD and limited land availability in the form of MHADAcolonies and slum pockets would see outperformance.

Fig 48 Price movements in the central suburbs and Bandra

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2005

2006

2007

2008

2009

2010

Bandra (East) Vikhroli Ghatkopar (East) Bhandup

(`/sqft)

Source: Industry

South-Central Mumbai. Although many projects are being launched inSouth-central Mumbai, most are in the form of ambitious (+65 stories)skyscrapers aimed at the higher-income segment. Execution of suchprojects is not proven yet; developers seem to have over optimistictimeframes for completion of such projects. Also, with the opening-up ofmill-lands, movement of third generations (larger families) from SouthMumbai and location advantage from both CBDs (South and centralMumbai), South-central Mumbai has and would continue to be a demand-driven location, owing to proximity to offices. Hence, we believeabsorption would be strong in the region, at maintained price points.

Given its proximity to the newCBD, Bandra (E) would see price

rises in the next few years

We do not expect prices to risesubstantially

Fig 47 Mumbai micro-markets to watch

Stages Markets Price Trends Remarks

Vikroli, Bhandup Industrial locations moving further away, affordable Mumbai development

Ghatkopar (E) nearhighway Larges tracks of land available, better infra than other locations in the cityInfancy

Bandra (E),Santacruz (E) No space offering ex MHADA colonies (East); closet to new CBD, Airport

South CentralMumbai

Huge scope for Redevelopment, URS, Mill and MHADA Land to be developed - expediting execution can resultin volumes and rationalisation in pricesEmerging

Sewri, Parel Closet non developed locations in old and new CBD, proximity to state highways

Western Suburbs Infrastructure growth minimal post metros, highest density amongst suburbsMaturing

Chembur Space Constraints

Established South Mumbai Worli

Space to offer only in form of Redevelopment; majority already living in organised manner, higher density places

vs Mumbai CitySource: Anand Rathi Research


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Fig 49 Price movements in South-Central Mumbai

0

5,000

10,000

15,000

20,000

25,000

2005

2006

2007

2008

2009

2010

Mumbai Central Lower Parel Sewri

(`/sqft)

Source: Industry

Recent examples of sales, after the market moved up, are the Orbit

Terraces project at Lower Parel, Orchid Heights near Jacobs Circle andIBREL Sky Suites at Lower Parel, where bookings have been healthy atlower prices. Orbit Terraces (0.225m sqft) and Raheja Vivaria (0.86m sqft)

would be the only Grade-A residential projects to be completed in thenext two years. Overall, the already launched projects (in phases) andplanned launches stand at ~27m sqft, with additional supply expectedfrom large URS projects, MHADA redevelopment and BDD chawls.Hence, pricing in the area would be driven by execution of such projects,

with better execution or more projects reaching completion at the sametime, leading to price rationalisation (i.e., higher correction in prices).

Fig 50 Price assumptions for South-Central Mumbai projects

Developer Project Name Location Area (m sqft) Avg selling price `/sqftDB Realty Orchid Crown Lower parel 1.70 24,725

DB Realty Orchid Views Mumbai central 1.40 16,993

DB Realty Turf View Mahalaxmi 2.23 35,315

DB Realty Orchid Heights Jacob circle 1.23 23,400

DB Realty Enclave 2 Mumbai Central 0.60 20,929

DB Realty Skyz Unity Byculla 0.60 20,075

DB Realty Enclave 3 Mumbai central 0.70 21,746

DB Realty Splendor-Jubilee mills Byculla 0.40 21,271

DB Realty Central Mumbai central 0.30 21,273

Orbit Corporation Orbit Terraces Lower parel 0.28 17,483

Orbit Corporation Orbit Grand Lower parel 0.08 15,428

Orbit Corporation Orbit Eternia Lower parel 0.03 14,702

Indiabulls Sky Lower parel 1.10 19,000

Indiabulls Sky Suites Lower parel 1.10 20,000

Indiabulls Forest Lower parel 1.10 19,500

Ackruti City Princess Worli 0.15 20,195

Ackruti City Turf View Lower parel 0.04 20,372

Ackruti City Emperor Towers Tardeo 1.91 26,761

Ackruti City Haji Gani Lower parel 0.02 16,034

Ackruti City Opera House Hughes Road 0.16 25,832

Source: Companies, Anand Rathi Research


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Although developers are planning larger projects in south Mumbai (interms of total saleable area), we believe execution would be the keychallenge in converting redevelopment projects. Also, even if executionimproves, prices will not increase from current peaks as this location isamong the most expensive globally.

Commercial property market

Mumbai, the commercial capital of India, is home to the countrys banksand financial institutions that have their headquarters in the city. Apartfrom being a banking & finance hub, the city has several IT/ITEScompanies and, given high literacy levels and availability of intellectualtalent, Mumbai is a key centre for BPO functions of several MNCs.

Fig 53 Rental movements in Mumbai

-

100

200

300

400

500

600

2005

2006

2007

2008

2009

2010

2011e

2012e

2013e

(`/sqft/month)

Source: DTZ

Till recently, Mumbais CBD was Nariman Point (19 Grade-Adevelopments of 4.9m sqft), Fort and Ballard Estate in South Mumbai.However, in the past decade, demand for office space has movednorthwards, to locations such as Lower Parel, BKC, Andheri-Kurla, Maladand Powai. This mainly owing to availability of modern workplaces, largeareas at lower prices and proximity to residential locations.

Fig 54 Stock and vacancy movement

20

25

30

35

40

45

5055

60

65

70

1QFY08

2QFY08

3QFY08

4QFY08

1QFY09

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

7

9

11

13

15

17

19

21

23

Stock Vacancy (RHS)

(msqft) (%)

Source: DTZ

IBREL Towers at Lower Parelare 3.4m sqft (initially ~4.5) vs

4.9m sqft in entire Nariman Point

Trailing 12 months, of the sevenkey metros, Mumbai has absorbed23% of the total space, second only

to Bangalore


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Between 03 and 07, supply of office space in Mumbai ranged at 3-5msqft, with absorption at 1.5-4m sqft. In 08, supply and absorption jumpedalmost twofold, following widespread economic growth and healthyexpansion in hiring. However, during the 09 economic slowdown,absorption of office space in Mumbai fell to 5.5m sqft from the peak of~8.5m sqft in 08. Given falling demand, several commercial projects wereput on hold and some were even converted to residential projects.

Fig 55 Supply vs absorption

0.0

1.0

2.0

3.0

4.0

5.0

6.0

1QFY08

2QFY08

3QFY08

4QFY08

1QFY09

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Supply Absorpt ion (RHS)

(msqft) (%)

Source: DTZ

In spite of developers slowing down commercial projects, supply of officespace touched an all-time high of ~17m sqft in 09 compared with ~15msqft in 08. Greater supply but lower absorption resulted in increased

vacancies and declining rentals. With recovery in the economy, absorptionof office space has picked up over 2HCY10. However, supply continues to

exceed absorption; hence, average vacancy levels in the city are as high as18-21%.

Even though overall vacancy levels are high, rentals in certain micromarkets (Lower Parel and BKC) have risen yoy, since they are fastbecoming preferred alternatives to Nariman Point and Fort, especially forcompanies operating in the BFSI segment. Ahead, Lower Parel and BKC

will emerge as the new CBDs of Mumbai. Nariman Point and Fort aresaturated and have very little potential for further office development. Asoffices in these locations look to expand, they are likely to move to BKCand Lower Parel that offer modern formats of commercial spaces withlarge floor plates and better amenities. We, therefore, expect absorptionlevels to be robust in these micro-markets.

Fig 56 New CBD and off-CBD movements over a yearQ2CY09 Q3CY09 Q4CY09 Q1CY10 Q2CY10

Off CBD

Take-up (sqft) 204,000 60,500 125,500 465,000 430,000

Availability (sqft) 641,108 809,490 1,182,173 1,146,313 1,137,200

Availability ratio (%) 13 15 18 17 17

New supply (sqft) 34,000 465,000 1,130,000 72,900 96,000

New CBD

Take-up (sqft) 212,561 84,646 38,866 103,200 382,000

Availability (sqft) 648,120 876,590 820,771 802,454 796,999

Availability ratio (%) 11 13 12 12 11

New supply (sqft) 413,000 851,000 96,762 - 420,000

Source: DTZ


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Other micro-markets such as Malad, Andheri-Kurla and Powai largelycater to IT/ITES companies and BPO/back-office operations.

Absorption levels in these areas would be driven by prospects in thesoftware sector and offshoring by MNCs. We expect absorption levels toimprove, following healthy economic growth and more hiring. However,

we expect overall rentals to be stable in the next 6-12 months, tillabsorption picks pace and vacancies ease.

Of the listed companies, most of the larger ones have planned commercialspaces (ex IBREL, PLL projects nearing completion). Of the plannedprojects, the largest commercial plans are of HDIL (16.8m sqft) with mostaround the existing airport, and DBRL (~7m sqft) with most planned atBandra (E). But both these commercial space plans are long term, with notmuch construction to be seen in the next 12 months.

The high-value residential market in Mumbai has seen a slew of launchesin the past year. Most projects launched in the past 12 months haverecorded healthy sales across micro-markets in Mumbai.


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Company section


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Anand Rathi Financial Services Limited does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firmmay have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investmentdecision. Disclosures and analyst certifications are located in Appendix 1

Anand Rathi Research

India Equities

India I Equities

Key financialsYear end 31 Mar FY09 FY10 FY11e FY12e FY13e

Sales (`m) 4,348 5,796 11,050 16,192 27,557Net Profit (`m) 2,647 1,649 2,792 4,693 9,391

EPS (`) 36.4 22.7 38.4 64.5 129.1

Growth (%) (12) (38) 69 68 100

PE (x) 14.0 22.5 13.3 7.9 4.0

P BV (x) 3.3 2.5 2.1 1.7 1.2

RoE (%) 28.3 13.1 17.3 23.7 35.1

RoCE (%) 21.7 15.4 19.1 23.9 34.2

Dividend Yield (%) 0.2 1.0 0.2 0.2 0.2

Net Gearing (%) 100.5 80.1 84.4 61.0 22.3


Property

Update

4 October 2010

Ackruti City

Riding high on niche developments; maintain Buy

Ackruti City has had a good run in property sales, with over

`15bn of stock sold since the upturn in the property market andcorporate sales of ~`1bn in 2QFY11. We expect the company tocontinue its strong sales, with 2.9m sqft in FY11e. New projectsadd high value, and under-construction projects would

contribute `6bn in FY11e. We reiterate Buy on Ackruti androllover Mar 11 price target of`831 to `872 in Sep 11. Sales momentum strong. In the past six quarters, Ackruti launched

4.3m sqft and sold 2.9m sqft for `15bn; of this, 28% has been received.The company recently did corporate sales, in two of its projects atAndheri (E), worth +`1.5bn. It has aggressive plans of launchinganother 6m sqft of projects in 2HFY11 in Mumbai suburbs and Gujarat.

We expect Ackruti to sell 2.9m sqft in FY11 for `13.5bn.

New project wins; project approvals and execution.Two projects Bandra (E) government colony redevelopment, for which Ackruti hasgot the LoA; and Hindustan Mills project at Prabhadevi, for which it hasgot environmental clearance would contribute 16% and 10%respectively to the stock value and `55.6bn in gross cashflows in the next5-6 years. Pace of execution has increased and is likely to lead toconstruction-linked inflow of ~`6bn in FY11e. But, we believe debt

would rise to `15.7bn, mainly for premium payments.

Valuation and risks. Our DCF-based valuation of the stock givesSep 11 NAV of`967. We raise our target price to `872/share inSep 11, which is at 10% discount to NAV. At CMP, the stocktrades at a 68% discount to NAV. Risks: Market slowdown.

Rating: BUY

Target Price: `872

Share Price: `510

Key data AKCL IN/ACKR.BO

52-week high/low `586.4/438

Sensex/Nifty 20445/6143

3-m average volume US$1.3m

Market cap `37bn/US$832m

Shares outstanding 72.7m

Free float 17.5%

Promoters 82.5%

Foreign Institutions 5.0%

Domestic Institutions 1.8%

Public 10.7%

Relative price performance

Ackruti city

Sensex

80

90

100

110

120

130

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Source: Bloomberg

Change in Estimates; Target; Reco


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4 October 2010 Ackruti City Riding high on niche developments; maintain Buy


Quick Glance Financials and Valuations

Fig 1 Income statement (`m)Year end 31 Mar FY09 FY10 FY11e FY12e FY13e

Net sales 4,348 5,796 11,050 16,192 27,557

Sales growth (%) (2) 33 91 47 70

- Op. expenses (258) 1,314 4,024 6,124 11,064

EBITDA 4,095 3,825 5,957 8,449 13,600

EBITDA margins (%) 94.2 66.0 53.9 52.2 49.4

- Interest 1,402 1,680 1,945 2,026 1,688

- Depreciation 57 71 114 150 180

+ Other income 200 385 200 200 -

- Tax 232 817 1,394 2,201 3,989

PAT 2,603 1,641 2,705 4,272 7,743

PAT growth (%) (13.1) (37.0) 64.8 57.9 -

Consolidated PAT 2,647 1,649 2,792 4,693 9,391

FDEPS (`/share) 36.39 22.67 38.39 64.52 129.11

CEPS (`/share) 37.20 24.37 39.95 66.58 131.59

DPS (`/share) 1.00 5.00 1.00 1.00 1.00


Fig 2 Balance sheet (`m)Year end 31 Mar FY09 FY10 FY11e FY12e FY13e

Share capital 667 727 727 727 727

Reserves & surplus 9,798 14,060 16,760 21,362 30,661

Shareholders fund 10,465 14,787 17,488 22,089 31,388

Debt 10,569 13,055 15,755 14,255 10,755

Def Tax Liab (net) (104) (50) (50) (50) (50)

Minority interests 2 1 1 1 1

Capital employed 20,932 27,793 33,194 36,295 42,095

Fixed assets 982 2,400 3,360 3,863 4,400

Investments 3,025 3,563 3,563 3,563 3,563

Working capital 15,135 19,644 25,282 28,077 30,389

Cash 110 1,216 988 792 3,742

Capital deployed 20,932 27,793 33,194 36,295 42,095

No. of shares (m) 72.7 72.7 72.7 72.7 72.7

Net Debt/Equity (%) 100% 80% 84% 61% 22%Source: Company, Anand Rathi Research

Fig 3 Cash flow statement (`m)Year end 31 Mar FY09 FY10 FY11e FY12e FY13e

Consolidated PAT 2,647 1,649 2,792 4,693 9,391

+ Depreciation (53) 125 114 150 180Cash profit 2,594 1,774 2,906 4,843 9,571

- Incr/(Decr) in WC 2,683 4,510 5,638 2,795 2,312

Operating cash flow (89) (2,736) (2,732) 2,048 7,260

- Capex 1,515 835 105 653 718

Free cash flow (1,605) (3,571) (2,837) 1,395 6,542

- Dividend 84 425 91 91 91

+ Equity raised (78) 3,098 0 (0) 0

+ Debt raised 2,277 2,486 2,700 (1,500) (3,500)

- Investments 747 538 - - -

- Misc. items 56 (56) - - -

Net cash f low (293) 1,107 (228) (196) 2,950

+ Opening cash 403 110 1,216 988 792

Closing cash 110 1,216 988 792 3,742Source: Company, Anand Rathi Research

Fig 4 PE Band

Ackruti City

6x

12x

18x

24x

30x

0

500

1,000

1,500

2,000

2,500

Jun-0

7

Sep-0

7

Dec-0

7

Mar-08

Jun-0

8

Sep-0

8

Dec-0

8

Mar-09

Jun-0

9

Sep-0

9

Dec-0

9

Mar-10

Jun-1

0

Sep-1

0

Source: Bloomberg, Anand Rathi Research

Fig 5 Price-to-Book Band

Ackruti City

1x

3x

5x

7x

9x

100

600

1,100

1,600

2,100

2,600

Jun-0

7

Sep-0

7

Dec-0

7

Mar-08

Jun-0

8

Sep-0

8

Dec-0

8

Mar-09

Jun-0

9

Sep-0

9

Dec-0

9

Mar-10

Jun-1

0

Sep-1

0


Fig 6 Ackruti City vs BSE Realty

Ackruti City

Realty Index70

75

80

85

90

95

100

105

110

115

120

Aug-0

9

Sep-0

9

Oct-09

Nov-0

9

Dec-0

9

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0



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Investment Argument & Valuation

Ackruti City has had a good run in property sales, with over `15bn ofstock sold since the upturn in the property market and corporate

sales of ~`1bn in 2QFY11. We expect the company to continue itsstrong sales, with 2.9m sqft in FY11e. New projects add high value,and under-construction projects would contribute `6bn in FY11e.

We reiterate Buy on Ackruti and rollover Mar 11 price target of`831to `872 in Sep 11.Strong sales momentum

Focus on residential development and niche projects across Mumbai,Thane and Pune has helped Ackruti sell stock worth `15bn over the pastsix quarters. It has seen mixed contribution from the commercial andresidential segments, each contributing 50% to the sales value.

Additionally, the company recently concluded block sales at both its

Andheri (E) projects, for ~`1.5bn.

Fig 7 Strong sales Banking on residential expertiseProject Asset Class Location Area (m sqft) (%) Sold Sale Value (`m)Solaris Commercial Andheri (E) 0.71 30.9 5,183

Gold Commercial BKC 0.06 100.0 1,710

Chambers Commercial Pune 0.02 31.4 48

Asmeeta Indus Park Bhiwandi 0.98 80.1 514

Sunmist Residential Andheri (E) 0.21 26.0 637

Greenwood Residential Mira Road 0.72 81.4 2,647

Countrywood Residential Pune 0.53 96.6 1,183

Shikhar Residential Andheri (E) 0.81 24.0 216

Vendant Residential Sion 0.12 27.7 152

Jewel Residential Andheri (W) 0.12 59.7 681

Gardenia Residential Thane 0.76 81.3 2,076

Source: Company

The company also plans another +6m sqft projects across Mumbai,Gujarat and Pune in 2HFY11e. The largest chunk of city-centre launches

will be from its PPP launches at Ghatkopar (E) and Chembur (~1m sqft),the high-value Hindustan Mills project and the Gujarat State Road

Transport Corporation (GSRTC) project, along with subsequent phasedlaunches of its affordable housing projects.

New project wins; project approvals and execution

The company is continuing its city-centre acquisition with a high-valuePPP project, to part re-develop the Government Colony project at Bandraalong with some PPP additions in Gujarat and Bangalore. Total initialpremium outgo for these projects is `4.9bn of premium fees, license &tenancy payments and land costs. Also, its high-value project atPrabhadevi has received all the crucial environmental clearances; further,concession agreements for the GSRTC PPP projects have been signed.

Given an increased concentration on execution with ~`2.9bn ofconstruction expenditure in FY11e, Ackruti is expected to receive `6bn inFY11e. But, debt is likely to rise to `15.7bn, primarily on account of land,

FSI and premium payments, in our view.

Rehab projects complete; free-salecomponent of the projects to be

launched

Large PPP projects to be launched insub-urban city centres


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Valuation

We value Ackruti City on a DCF-based NAV to arrive at Sep 11 NAV of

`967. Our target price of`872 per share is at 10% discount to the NAV;we await clarity on the notified SEZ projects, as well as developmentschedule and land utilisation of certain projects.

Fig 8 ValuationNAV Sep '11 `m ` / share (%) contributionSRS 23,866 328 33

PPP 22,888 315 32

Normal Projects 13,958 192 16

SEZs 20,663 284 14

Townships 4,174 57 5

Investments at Cost 870 12

Acquisitions (1,300) (18)

Debt (15,755) (217)

Cash 988 14

NAV 967


We have assumed a development schedule for SRS and PPP projectsas land is accrued only post developing the rehab/redevelopment area

For the companys township land, we have taken a premium over itsacquisition value as township projects do not provide any visibility inthe near term

We have assumed WACC of 14%, cost of equity at 17% and cost ofdebt at 15.5%

Risk

Execution schedule. In our NAV computation, we have attemptedto build a buffer for any delay in execution. Still, if tighter liquidityconditions, demand slowdown and various other macro-economicfactors further delay execution, the NAV is likely to be impacted

SRS projects are long-gestation and politically sensitive.Government policies could affect prospects

Managing joint ventures. Issues with JV partners couldhamper/delay execution and, hence, affect the NAV


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Sales momentum strong

In the past six quarters, Ackruti launched 4.3m sqft and sold 2.9m

sqft for `15bn; of this, 28

dbrealty_anandrathi_061010

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