Reuters has an interview with Orbit Corporation's finance head, Ramashrya Yadav and states that the company expects to add new projects worth Rs.8-10 billion ($400-500 million) in 2008/2009. Orbit has historically focussed on redevelopment and sees an opportunity in cluster redevelopment where it acquires a number of buildings and redevelops them together. The interview is surprisingly upbeat given the negative news around Mumbai real estate.
A few days ago DNA had an article about Kotak Realty Fund calling off a deal to buy Orbit's Hafeez Contractor House, a 0.25 million sq. ft. commercial property in Lower Parel. While the company is looking to pre-sell the property by 2Q08, given the fact that the space will only be available after 2 years and an estimated 5 million sq. ft. of office space is expected to hit the market in that time period, chances are that it will be a buyer's market and Orbit may be forced to lower expectations on the sale price.
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