Tuesday, October 2, 2007

"Western and southern India are our focused markets. We are scouting for more land in Bangalore and Chennai," Rajeev Piramal, Peninsula Land

Mumbai-based developer enters into the southern India :

Hyderabad : The Ashok Piramal group's real estate arm, Peninsula Land (PLL), has purchased Rallis India's 31 acres of land at Patancheru near Hyderabad for Rs 90 crore. The acquisition, made through PLL subsidiary RR Mega Property Developers.

Tata Group :

Rallis India is a Tata group firm. Rallis manufactures agricultural products like pesticides and fertilizers. It has put around 150 acres of land in Hyderabad on the block. Out of this, Godrej Properties had purchased 30 acres of land earlier.

Land acquisitions :

1. Right of First Refusal (RoFR) : Besides buying the 30 acres, PLL has signed a right of first refusal (RoFR) agreement with Rallis for the remaining 90 acres. This is Peninsula's 9th deal in the past one year.
2. Deals : Pune 3 deals. Goa 3 deals. Nashik 2 deals. Nagpur 1 deal.

Merger :

Recently, PLL had acquired a 72.6% stake in Dawn Mills for over Rs 600 crore and merged the company with itself.

Under development : Peninsula has over 36 million sq ft under development.

While working on major residential-cum-commercial projects in Mumbai, Peninsula (PPL) has broadened its portfolio by entering more specialized projects like SEZs and IT and biotech parks.

Mumbai : Strong project pipeline

Parel (South Central Mumbai) :
At present, Peninsula (PLL) has 4 ongoing projects in Parel (South Central Mumbai), with cumulative saleable area of 4mn sqft.
1. Ashok Garden 2. Ashok Towers 3. Peninsula Technopark 4. Peninsula Business Park.
The company has gained significantly through manifold rise in property prices in Parel. (moneycontrol-ICICI).

SEZs : Gems and Jewellery, IT and Biotech Parks :

Peninsula (PLL) is developing 4 SEZs with cumulative saleable area of 17.4mn sqft and estimated value of Rs15.5bn.
A. 2 biotech SEZs
B. 1 gems & jewellery SEZ in Goa :
According to the news in The Hindu Business Line (Aug. 8, 2006) the Goa Government has given about 250 acres for two biotech SEZs and a gem and jewellery SEZ.

"We received the land under the Biotech Policy of the Goan Government. PLL will develop infrastructure and invite companies to these SEZs. Companies have begun approaching us for space in our biotech parks," Mr Piramal told Business Line.

Total estimated investment (excluding land) of the group in biotech parks would be to the tune of Rs 600 crore. The group also has a villa project (1/2 million sq ft) in Goa.

C. 1 IT/ITES SEZ in Pune :
100-acre purchased for Rs 85 crore, from City Park, a special purpose vehicle formed by the individual land owners in the SEZ. Peninsula will develop a 45 lakh sq ft park. Peninsula's 1st project in Pune.
Rajeev Piramal, executive vice chairman said, Peninsula is looking at some more acquisitions in Pune. And his strategy is a combination of developing large layouts that may take up to 5 years, as well as smaller 18-30 months projects that allow them quick exit.

Townships : Pune and Nashik :

Peninsula (PLL) is developing 2 large townships in Pune and Nashik with an estimated total value of Rs3.3bn

Nashik :
1. Township : Peninsula has acquired a 90 acres of land on Gangapur Road (near Sula Wines) and planning a township.
2. Commercial : Peninsula also has plans to develop a large commercial complex spread across 19 acres. (myiris)

Real Estate Mutual Funds (REMFs) :

Peninsula (PPL) is launching 2 real estate mutual funds (REMFs).
A. US$350mn raised overseas
B. US$100mn raised in the domestic market

Share Market :

Peninsula Land Ltd (PLL), formerly known as Morarjee Realties Ltd, is a listed company of Ashok Piramal Group. Ms. Urvi A Piramal is Executive Chairperson and Rajeev A. Piramal is Executive Vice Chairman.

1. "Hold Peninsula Land, target Rs 672: Ambit Capital"
on Moneycontrol India (September 25, 2007)

Ambit Capital had recommend a hold on the stock with a target price of Rs672, indicating an upside of 14% from current levels, because:

2. "Buy Peninsula Land: ICICI Securities"
on Moneycontrol India (September 21, 2007)

ICICI upgraded Peninsula Land’s (PLL) NAV estimates 23% to Rs34.5bn or Rs732/share from Rs 28 billion or Rs 596 per share primarily because:

1. Dawn Mills:
A. Doubling of FSI of its Dawn Mills property on account of land use change to IT Park, which increases the saleable area from 0.6million to 1.15million sq ft.
B. Sale transaction of one of the two buildings in this property for approx Rs.10.54billion
2. SEZs :
Change in approval status of its SEZ projects from our previous update, from 2 formally approved SEZs to 3 formally approved SEZs and 1 notified SEZ.

For more details read "Ambit Capital research report on Peninsula Land" and "CICI Securities report on Peninsula Land"

Retail :

If i did not talk about Peninsula's retail activity, you can understand, my wife will get mad at me. One of the first companies to venture into retailing, Piramyd Retail & Merchandising Pvt. Ltd., commenced operations with Piramyd Megastore in September 1999.

Piramyd :

The success of the store encouraged the expansion of the Piramyd Megastore brand into a retail chain.
Piramyd Megastore caters to menswear, women's fashion, unisex casuals, kids apparel and toys, accessories, perfumes and cosmetics.
Today, Piramyd Megastores are present in Mumbai, Pune, Nagpur, Ahmedabad, Ludhiana and Delhi.
By 2008, a total of 17 Piramyd Megastores will dot the retail scene in India.
Log on to www.piramyd.com for more information.

TruMart :

The Group identified a new opportunity and entered food and grocery retail in 2001.
Enthused by the success of the Pune supermarket, two more were started at the Megastores in Mumbai and Nagpur.
Their encouraging performance and the loyalty commanded inspired the first independent Piramyd Supermarket in Kalyani Nagar, Pune.
This heralded the expansion plans in the Food & Grocery, Home and Personal Care (FHPC) retailing business.
TruMart has 12 supermarkets since its first.
TruMart plans to launch 42 TruMart stores by 2008 and increase presence across western and northern India.

Crossroads :

In 2006, the group sold it's `Crossroads', the famous mall, in central Mumbai, for raising capital to create land bank for its future projects. Pantaloon Retail bought the mall for a price above Rs 250 crore.


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