Leasing Aspects of Real Estate and Its Effect

7/31/2019 Leasing Aspects of Real Estate and Its Effect

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Prepared by : S. SiddharthRoll No. 01

Leasing Aspects of Real Estateand its Effect on Retailers.


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Pre 1970 1970-1995 1995-2004

- Only HP companies

- Automobile financing

mainly forcommercial vehicles

- Fixed Deposit: mainsource of funds

- Entry into equipmentfinance through:

* Leasing

* Hire Purchase

- Commencement of carfinance

- Access to Capital Markets

- Funds from FDs and Banks

- Exit of large no. ofcompanies:

* Small & Large

* Indian & Foreign

- Regulation by RBI

- Few companiesdiversified intorelated financialservices

Evolution phases


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Major Players in RealEstate


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DLFGroup

DLFGroup


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Founded in 1946.DLF Group is one of the biggest real estategiants.

Built many high-quality buildings across thecountry, specifically in Gurgaon Tied up withHilton Group to build whopping 100 hotels inIndia over the next few years.In current expansion plans, DLF has over 425

million sq. ft. of development across itsbusinesses, including developed, on-going andplanned projects.Spread over 32 cities, mostly in metros and key

urban areas across India.

DLF

Group


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ANSALS


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Founded by Lala Chiranji Lal Ansal.

By far most dominant activity of Ansals hasbeen Real EstatePromotion & Development.

Company has several landmark high-risecommercial buildinglike Statesman House,Ambadeep, Antriksh Bhawan, TolstoyHouse,Indra Prakash, Navrang House and Ansal

Bhawan.Ansals have also completed several

residential buildings likeGauri Sadan, Upasanaat Hailey Road & Dhawan Deep at

Jantar Mantar road, all in the heart of New

Ansals


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It was incorporated on July 24, 1990 under theCompanies Act,1956 as Parsvnath DevelopersLimited.

With more than two decades of experience inits repertoire, thegroup has already stampedits presence already in seventeenstates andgoing Pan India.

It has made various developments in areaslike GURGAON, Noida, South Delhi.

Parsavnath Developers


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Plans to invest US$ 720 million in buildinghotels in the country.

Its partner for this venture is MarriottInternational.

Carved a niche for itself in India with itssprawling properties and projects inBangalore, Gurgaon, Noida, Greater Noida and

KolkataUnitech Group took over projects inInternational areas as well.

Actively involved in construction projects ofpower plants, expressways, highways,

transmission lines, classrooms, amusement

Unitech Group


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DLF is the market leader in this sector withnet profit of 1547 cr.

It was way lower than its last year profit bymore than1000 cr.

It was well supported by the timely launch ofIPL.

The share of this company touched the all

time high of 1227 in Dec. 2007 which was just6 months after its issue and now trading at337.

Financials Of DLF


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Their profit declined by 81.24% in the lastfinancial year over the last year.

This is one of the badly hit company by theeconomic slowdown.

569 is the all time high of this company in2006 and now trading at just 10% of its alltime high.

Financials Of Ansals


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Gurgaon is already a nucleus for retaildevelopment. The coming times will seeGurgaon developing into a major retail giant.

These approving trends highlight the fact that

there is great worth in investing in retailproperties of Gurgaon.

The retail real estate segment of Gurgaon is

experiencing an unabated growth. Retail realestate structures includes space for boutiqueshops, banks, shopping malls, fashion/garment stores, restraints, supermarkets and

corporate suites to name a few.

Retail space in Gurgaon


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Size1110 sq ft.

1700 sq ft.

3200 sq ft.

5000 sq ft.

6500 sq ft.

55000 sq ft.

Rs. 99,900.

Rs. 1,87,000.

Rs. 3,20,000.

Rs. 5,00,000.

Rs. 6,50,000.

Price on request.

commercial retail space in

Gurgaon. Rent Price permonth.


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Advantages:

No large outlay.

Security.

Tax advantages.

Budgeting.

Cash flow.

Easier financing.

Flexible terms.

How it affects the Retailer.


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Disadvantages:

No ownership.

Lang term expense.

Maintenance.

Overall cost.

Early termination fees.

How it affects the Retailer.


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ThankYou.

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Leasing Aspects of Real Estate and Its Effect