Needs to realise roughly Rs 3,000 crore to keep to debt decrease target for current financial year.

India’s largest developer by market capitalization, DLF Ltd, is banking on at least two to three big ticket sales in early 2012, to stay to its debt reduction target for the current financial year. The developer needs to realise Rs 3,000 crore to Rs 3,500 crore from noncore asset sales, to attain its 2011-12 goals.

Although the company is still far from the divestment figure it had set, Rajeev Talwar, executive director sounded sure about making it on time. He told Business Standard the developer was expecting a couple of big ticket sales before the current financial year closes.

Besides the much talked Aman-Resorts deal, DLF is looking at a transaction to offload stake in its Pune IT Special Economic Zone (SEZ), sometime early next calendar year, Talwar said. Another deal to sell stake in the Noida IT-SEZ is also in the offing. According to analysts, these three deals could fetch DLF Rs 3,300 crore.

“The Aman hotel sale is only at arm’s-length, but would not conclude this calendar-year. Early next year looks more likely,” said Talwar. The stake sale in Aman will exclude the Delhi hotel (earlier named Lodhi). Analysts said the Aman Resorts sale could be a projected Rs 2,000 crore deal. The Pune-SEZ deal could be worth Rs 900 crore and the stake sale in Noida SEZ could fetch the company between Rs 400 crore and Rs 450 crore.

The company may seem at selling the un-built land of DLF Hotels and Hospitality Ltd (DHHL), again as part of its noncore divestment strategy. “We will try to get the maximum valuation of the sale,” he said.

Earlier this week, DLF acquired an additional 26 per cent stake in its joint venture DLF Hotel Holdings Ltd (DHHL), from Aro Participation Ltd and Splendid Property Company, affiliates of Hilton International, for Rs 120 crore. The joint venture has one Hilton hotel, in Delhi.

Another divestment DLF has initiated is in Galaxy-Mercantile, a JV between DLF Home Developers Ltd and Infrastructure Development Finance Company. Four days ago, DLF announced signing an agreement to divest its entire stake in Galaxy-Mercantile. Galaxy will buy the entire DLF stake in the project for Rs 450 crore over the next 12 to 18 months. DLF has already received the first share of Rs 200 crore from this deal. The balance payment has been linked to various leasing milestones.

As for the SEZ-projects in Pune and Noida, DLF holds 70 per cent in both. The Pune SEZ is a joint venture with Ackruti City. According to Talwar, the company is in talks with Indian and foreign companies to sell its stake in the Pune SEZ. The industry buzz is that international private equity Major Blackstone will buy into DLF’s Pune SEZ. The Noida SEZ asset is a JV with another real estate company, 3C.

In the case of Aman hotels, DLF has got the final-bids from four or five companies. Khazanah, Malaysian government’s wealth fund, is being seen as the most possible buyer. Other prominent bidders include Kingdom Holdings, the company which owns the Four Seasons Hotel, and a Chinese hospitality group, it is learnt.

DLF’s net debt stood at Rs 22,519 crore as the half end of September. It aims to bring down debt to Rs 19,000 crore to Rs 19,500 crore by the end of this financial year, and to Rs 10,000 crore by 2013, through sale of noncore assets.

Las Vegas high rise condominiums have at all times been known for their world class designs and above average amenities exclusive to Vegas. The weakness in the American dollar in comparison to other foreign currencies has made investing so much more attractive to foreign buyers.

Banks are also making it easier for foreign investors to purchase real estate in the United States with their low interest rates and new lending guidelines.

According to public records from the Clark County recorder’s office, 10 percent of all Las Vegas real estate dealings in southern Nevada are non-citizen buyers. According to Ashley McMcormick of Realty one, Nevada’s largest broker, Canadians make up a majorly of these buyers followed by the Asian market.

In mixture to the strength in the Canadian dollars these days and to get away the cold winter months, Canadians are opting for second homes in Las Vegas.

Fortune Magazine only just described that foreign buyers have bought just about thirty percent of the high rise condo units in the newly build Mandarin Oriental section of MGM City Center in Las Vegas.

Within months, the entire building was almost sold out to foreigners. For those looking to get off the strip, communities like Lake Las vegas are becoming popular. First time buyers from previous years are now returning and buying homes and condos for sale investing rentals, some sight unseen.

These foreign buyers are “Getting a Taste of the Las Vegas Lifestyle” and they want to retire here. They are fascinated by the high-class amusement, excellent restaurants, great shopping experience and nice temperatures during the winter months. With the ease of sending pictures, images, reviews and documentation by email to prospective real estate investors, previous buyers are getting Las Vegas condominiums and homes sight unseen and renting them out.

There are presently over twenty five high rise and mid rise condo communities in Las Vegas to include the nationally known Turnberry and internationally acclaimed One Queensridge in Summerlin.

In spite of statewide trends, Miami-Dade shopping centers are providing alluring development opportunities for commercial real estate developers.

Miami-Dade county vacancy rates are bringing down and occupancy rates are higher than anywhere else in Florida. With occupancy rates over 90 percent and rental rates above $18 per-square-foot, Miami has seen a decrease in retail vacancy rates for five straight quarters a recovery not seen in many markets across the nation.

A report by Crossman & Company was presented at the International Council of Shopping Centers Florida that demonstrated Miami-Dade County’s average rental rate clocking in at $21.84 and occupancy at 94.1 percent. These numbers come up as a surprise to many who know that Miami-Dade County also has a near record unemployment rate of 13 percent and wilting consumer confidence that is similar to what is seen statewide.

In comparing, Broward County’s mean rental rate is $17.69 with occupancy at 89.6 percent while Palm Beach County’s rates are at $18 and occupancy is at 89.2 percent.

According to Greg Masin, senior director of retail services at Cushman & Wakefield, a commercial real estate firm, Miami is on fire. The phone is ringing with retailers who desire to be here. A few people are still hurting, but in general this town is healthier than people give us credit for.

For the first time in years, developers are seeing an opportunity for new evolution in Miami Dade. Several South Florida developers are pitching retailers on programs for construction of new shopping centers, something that has been unheard of since the nationwide recession. Many of the pitches are aimed at discount retailers and grocery stores businesses that have stayed relatively strong since the economic downfall.

At the conference, businesses such as Walgreens, Publix, Walmart, LA Fitness, Bealls Department Stores, Sedan’s Supermarkets, Tuesday Morning and Pet Supermarket were among the retailers looking for additional space.

In spite of the increased interest in Miami-Dade commercial development, as usual, price remains a sticking point throughout negotiations. Real estate manager for Walgreen Company, Brenden O’Brien, said, “Some people are still looking to acquire face value for their dirt; it’s just not worth it.

The prices have fall, but just not to the level I’d say my real estate committee would like to see it.” Many developers remain cautious despite the possible Miami-Dade appears to be presenting.

After driving into a ditch throughout the world-wide economic meltdown, commercial real estate has taken to the comeback trail way too quickly and could end up crashing again, real estate veterans warn.

Industry executives are worried that arising real estate prices and easing loan terms at any rate for stable properties are higher than real estate basic principle, which include measures such as occupancy and rent rates.

Commercial real estate has had a history of highs and lows but in the past, the industry has taken much longer to retrieve, said Jacques Gordon, global strategist at LaSalle Investing Management. After a recession that economists have compared in severity to the Depression, it should have taken extra time than usual, not less, for the real estate market to rebound, he said.

And this isn’t solely a U.S. market occurrence but also a worldwide one. Prices around the world are outstripping real estate fundamentals, Mr. Gordon said.

“Investment managers need to be careful and thoughtful,” he said.

The National Council of Real Estate Investment Fiduciaries Property Index has been helpful for six quarters in a row.

The total return for the 12-month period complete June 30 was 16.7%, with much of that coming from the increase in the worth of the properties. A year earlier, the return was -1.48%.

“There are lots of clouds on the prospect for commercial real estate,” said Scott Minerd, chief investment officer in the Los Angeles office of Guggenheim Partners LLC.

There are caution signs leading money managers to issue in a double-dip downturn in their commercial real estate investment scenarios.

According to the NCREIF Property Index report, the one-year return for the period finished June 30 for properties situated on the West Coast was 15.7%, with 8.7% appreciation.

The seasonally adjusted unemployment rate in California in June was 11.8%; Oregon was 9.4%; and Washington was 9.2%, according to Bureau of Labor Statistics. California’s unemployment has been in the double digits since 2009.

“We’re getting an earlier-than-expected return to growth, value-added real estate investment and renting,” Mr. Gordon said.

Real estate is an aggressive market place, Gregory Walz, a managing director for real estate loaner Northwestern Investment Management Co., said throughout a panel at the NCREIF summer conference in Chicago last month.

“It’s too foamy, too rapidly,” he said.

Simultaneously, the loans in commercial-mortgage-backed securities published before the crisis are starting to come due.

Those loans generally are the less stabilized, B-class properties that aren’t performing well, Mr. Minerd said.

India’s GDP (gross domestic product) increase stands revised upwards to 8 per cent for 2009-10 from the 7.4 per cent expansion estimated former for the fiscal, mainly on the strength of better showing by sectors such as developed and services.

According to the ‘Quick estimates of national income, consumption expenditure, saving and capital formation for 2009-10′ released by the Central Statistical Organization here on Monday, the higher GDP increase rate during 2009-10 has been achieved due to high growth in manufacturing (8.8 per cent), financing, insurance, real estate as well as business services (9.2 per cent), transport, storage and communication (15 per cent), community, social and personal services (11.8 per cent).

At factor cost

The country’s GDP at factor price at constant (2004-05) prices in 2009-10 is estimated at Rs.44.94 lakh crore as against Rs.41.63 lakh crore in 2008-09, which works out to an overall economic expansion of 8 per cent during the year. At current prices, however, it is estimated much higher at Rs.61.33 lakh crore as alongside Rs.52.82 lakh crore in 2008-09 to show an increase of 16.1 per cent for the year.

Although the higher GDP enlargement in 2009-10 signals a faster economic recovery from the slowdown in the wake of the global financial crisis, it also goes on to offer an adverse statistical impact by way of a high base effect to pull down the anticipated expansion during the current fiscal (2010-11) to the lower end of the 8.5-9.0 per cent range.

The CSO data showed that the per capita income (per capita net national income at factor cost) in real terms (at 2004-05 prices), is probable at Rs.33,731 for 2009-10 as against Rs.31,801 in 2008-09 to mark an enlarge of 6.1 per cent during the year, the CSO data showed.At current prices, however, it is expected at Rs.46,492 during the year as against Rs.40,605 for the previous year to post a increase of 14.5 per cent.