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“LA TROPICANA” BY PARSVNATH LANDMARK DEVELOPERS PVT. LIMITED
Project Star Rating – “NCR 5-Star”
Project Star Rating Rationale –
• Project developer quality – The developer, the Parsvnath group, has 21 years of experience in developing real estate projects and has a pan-India presence. Till March 31, 2012, the developer has completed 45 projects with total saleable area of 161 lsf in both residential and commercial segment, out of which about 88lsf was in the NCR region. Besides, the developer has 50 ongoing projects excluding La-Tropicana having total developable area of 77 million sq ft (msf). La-Tropicana is the one of the largest projects for the developer with total saleable area of 22.58 lakh sq ft (lsf).
• Project construction quality and amenities – The Project is situated at Civil Lines, Delhi, and is at a distance of 1km from Delhi University and 3km from Inter-State Bus Terminal (ISBT). Quality track record of project contractors, adequate project amenities and recreational facilities which include an International Style Club with facilities like gym, spa, jacuzzi, meditation cabana, basket ball and badminton courts, billiards and snooker room. Around 78% of the plot of land is reserved for lawns, parks, landscaped greens and water bodies. The project consists of 507 residential units spread in 21 towers (excluding one EWS tower) having about 10-17 storeys. Currently, construction is in progress for 21 towers with superstructure construction work complete for about 70% of the project.
• Project legal quality – The land is acquired from Delhi Metro Rail Corporation (DMRC) in an open auction process for a lease period of 99 years and as such the title is clear. Besides, the project has received majority of clearances. However, the developer is yet to get additional FSI of 0.30x over and above the approved FSI of 2.00x. Furthermore, revalidation of No-objection Certificate (NoC) from Pollution Control Board and Airport Authority is pending.
• Project financial quality – Moderate funding risk with debt and equity fully deployed and proceeds from the sold-out stock covering most of the residual project cost.
Project Profile
Project Name La-Tropicana
Project Type Residential - (less than 1% commercial for convenience shopping)
Project Location Located near Khyber Pass at Civil Lines, Delhi
Development Type Lease hold land from DMRC for 99 years
Project Start Date October 2009
Scheduled Project Completion Date December 26, 2013
Agreed upon Possession to the customer Within 36 months of commencement of construction or date of booking whichever later, with a grace period of 6 months
Total Saleable Area 22.58 lsf (including EWS) - 22 different towers of around 10-17 storey
Construction Status The construction work is in advanced stage with building structural portion complete for about 70% of the project.
Project Developer Profile
Name of the company developing the project Parsvnath Landmark Developers Pvt. Ltd.
Project developer group Parsvnath Group
Development experience of the developer group 21 years
No. of years in the industry 21 years
No. of projects developed till date 45
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Total area developed till date 161 lsf of saleable area
No. of ongoing projects 50 (77 msf)
Project Developer
The project is being developed under PLDPL which is a Joint Venture between Parsvnath Developers Ltd. (PDL) and J.P. Morgan Advisors India Private Ltd. (JPM). The Parsvnath Group has been in the real estate industry for more than 20 years. The developer largely focuses on North India. Till March 31, 2012, the developer has completed 45 projects with total saleable area of 161 lsf in both residential and commercial segment, out of which about 88 lsf was in the NCR region. The developer uses excel-based MIS system wherein the progress of the project is tracked on a continuous basis by both the developer and the project management consultants.
Financial Performance - Parsvnath Landmark Developers Private Limited (In Rs. Crore)
Y.E. Mar.31, 2010 2011 Operating position (12M, A) (12M, A) Income from Operations 216 148 Total Cost 161 56 PBILDT 56 93 Interest 1 9 Depreciation 0 0 PBT 55 85 PAT (After def Tax) 35 56 Gross Cash Accruals 35 56 Financial Position Equity Share capital 3 3 Net Worth 134 129 WIP 42 82 Cash 7 18 Total Capital Employed 269 344
Project Details
The Project is situated in the North of Delhi, at Civil Lines. The site is at a distance of 1km from Delhi University and 3km from Inter-State Bus Terminal (ISBT). DMRC Vishwidyalaya and Vidhan Sabha Metro Stations are at a walking distance from the site. The site is at a distance of about 12 km from Connaught Place, a major Commercial business district in New Delhi. Apart from basic facilities like water provision, power backup, car parking, the project will have various amenities including an International Style Club, inter-connectivity in basement & overall driveway and about 78% area reserved for lawns, parks, landscaped greens and water bodies.
The project consists of 507 residential units spread in 21 towers (excluding EWS). Additionally, one tower of area 2.88 lsf is earmarked for EWS and commercial area of 0.12 lsf is for convenience shopping. This entire projects stands over a land bank of 6.8 hectares (ha) (16.80 acres) with a total saleable area of 22.58 lsf, using an FSI of 2.30x. However, the company has an approved FSI of 2.00x, as on date.
Construction status of the project:
• The residential units are being constructed in 22 different towers having about 10-17 storeys. Currently, construction is in progress for 21 towers and as on March 31, 2012, the developer has incurred 50% of total construction cost. One sample flat has also been constructed.
• Overall, the superstructure construction work is complete for about 70% of the project. The finishing work related to painting of walls, lifts, electrical fittings, air conditioning in balcony and flooring is in progress for towers where structural work is complete.
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• Besides, units for Economically Weaker Section (EWS), recreational club and commercial area are yet to be developed.
Brief particulars about various contractors is as follows –
1. Architects
Architect Hafeez Contractor (AHC) is the principal architect to the project. AHC is a Mumbai-headquartered firm and has been in the business since 1982. It has designed & executed wide range of architectural projects including residential townships, commercial spaces, hotels, hospitals and retail malls. Apart from AHC, Thareja Designers and Architects Pvt. Ltd., New Delhi is the resident architect.
2. Structural consultants & civil engineers
VGA Consulting Civil Engineers is the structural consultant and has been providing detailed consultancy in the field of structural engineering since 1991 that includes high-rise buildings for office/commercial/group housing, bridges, industrial structures, airport terminal buildings, water/sewage/effluent treatment plants etc. The civil construction works is overseen by PDL and IL&FS Engineering and Construction Company Limited (IL&FS).
3. Project management consultants
Masters Management Consultants India Private Ltd. is the project management consultant for La-Tropicana project. It is associated with the developer since August 2011 and is also involved in other projects of the developer as well. Over the years, Masters has developed experience in the field of project management and has executed commercial, residential & industrial projects in Bangalore, Goa, Jaipur, Jamshedpur and is executing various projects in Delhi, Mumbai, Pune, Hyderabad and Kolkata.
Project Legal status
• The title of the land (measuring 6.80 ha) is clear as the same has been acquired by the developer from DMRC in an open auction process for a lease period of 99 years. DMRC has executed transfer deed in favour of the developer and the same is registered with registrar.
• The aforementioned land is permitted for property development and has been notified in Gazette of India (Extraordinary: Part-II, Section-3, sub-section (ii) No. 996). The developer has received environmental clearance from Ministry of Environment & Forests and the layout plan is approved by Municipal Corporation of Delhi for an FSI of 2.00x. The developer has applied for FSI approval of 2.30x. Also, revalidation of No-objection Certificate (NoC) from Pollution Control Board and Airport Authority is being taken-up by the developer.
• The sales agreement is adequately detailed and talks about the compensation to buyers in case of delay in possession; however, this is subject to change in case of following events:
o restrictions from any authorities
o non-availability of materials
o disputes with contractors/ work force
o circumstances beyond control of the Developer.
• The agreement specifies time frame from the booking date/ commencement of construction for possession of units instead of quoting a particular date for possession.
Project Financial Status
• The total project cost of Rs.1,369 crore is being funded by way of promoter funds of Rs.118 crore, Rs.140 crore of debt (by JPM) and balance Rs.1,111 crore through customer advances.
• As on March 31, 2012, the project has already incurred Rs.753 crore towards the land cost (Rs.215 crore), construction (Rs.188 crore) and other administrative, marketing & financial costs (Rs.250 cr) which were funded through a mix of promoter funds, debt and customer advances. With debt & equity fully deployed, the remaining cost of about Rs.615 crore is primarily dependent on customer advances.
• The company has received bookings for 73% (in terms of saleable area) of the project (455 units out of total of 507 units).
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DISCLAIMER:
CARE’s rating of real estate projects is an opinion on the developer’s ability to execute the real estate project in timely manner and with the agreed upon quality standards. Besides, it is an opinion of the legal quality of the project. The analysis draws heavily from the information provided by the developer, information obtained from sources believed by CARE to be accurate. However, CARE does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Also, CARE does not guarantee the adequacy of title search done to arrive at the legal quality of the project.
It is also not a recommendation to buy, sell or hold the rated real estate property. CARE shall also not be liable for any losses incurred by users from any use of such rating. Most of the developers whose real estate projects are rated by CARE have paid a rating fee.
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Project Photographs
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Tower-23, 27/06/2012 Tower-16, Tower-17, Tower-18, 27/06/2012
Facing entrance from Khyer Pass between Tower-23 (left) & Tower-1
(right), 27/06/2012
Top view of Tower - 10, 11, 12, 16, 17 & 18 (left-to-right), 27/06/2012
Site view from Entrance through Timarpur Road,
Interior Kitchen finishing 22/12/2011
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