Industry Monitor

Real Estate
Vol.908 August 2009

CONTENTS
INDUSTRY AT A GLANCE ....................................................................................................2 KEY DEVELOPMENTS ..........................................................................................................3 MARKETING .......................................................................................................................3 OPERATIONS ......................................................................................................................4 INVESTMENTS....................................................................................................................5 INDUSTRY STATISTICS .........................................................................................................7 PRODUCT FOCUS ...................................................................................................................8 ECO HOUSING....................................................................................................................8 Overview ............................................................................................................................8 Indian Scenario ...................................................................................................................8 Budget Issues ......................................................................................................................9 New projects.......................................................................................................................9 Outlook ..............................................................................................................................9 COMPANY SCAN...................................................................................................................10 DLF Group ..........................................................................................................................10 Products & Services ..........................................................................................................10 Business Strategies ............................................................................................................10 Key Ratios.........................................................................................................................10 Performance Analysis........................................................................................................11 Cost Structure Analysis .....................................................................................................11 Stock Performance............................................................................................................12 Outlook ............................................................................................................................12 UPCOMING EVENTS ...........................................................................................................13

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INDUSTRY AT A GLANCE
MARKETING High-End Homes Frozen Out of Budding Housing Rebound - USA Hansteen launches US$300m UK industrial property fund - London Work resumes at Queue Point real estate development in Dubailand - Kuwait Dubai Real Estate Down 50% from Peak Real estate, infrastructure loans show strong growth - India RBI issues revised draft norms on commercial real estate exposures - India Risesun Real Estate acquires land for RMB538.61m - China

OPERATIONS
Washington Real Estate Investment Trust sells Rockville property - USA ProLogis cuts back Nashville operations - USA Big real estate write down potential overhangs GE - USA Hammerson names new CEO as UK property market thaws - London INVESTMENTS Lone Star Said to Secure Pledges for US$20 billion Property Funds - USA Tesco Hungary reportedly in 63m store sale/lease-back deal - UK Bundesbank had big investment in Hypo Real-report - Berlin Overseas property investors in Central London doubled in last 12 months - London 2.2km roadwork complete for Emirates Lake Tower real estate project - UAE National Projects & Construction expands real estate project - Dubai AXA Real Estate to invest in China property - China IREO to pump in US$500m in India

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KEY DEVELOPMENTS
MARKETING
Americas USA: High-End Homes Frozen Out of Budding Housing Rebound Housing is fast dividing into two markets: sales of low- and moderately-priced homes are picking up and values have stopped falling in some parts of the nation. But on the upper end, sales remain mired in a deep slump and price declines are expected to accelerate. Signs of the divide are visible across the country, including in suburban Chicago. In middle-class Schaumburg, Ill., which had a median income of US$65000 in 2007, sales were up 41% in June from the depressed level of a year earlier and bidding wars have broken out on some properties. Europe London: Hansteen launches US$300m UK industrial property fund Property investment firm, Hansteen has set up a US$301m fund to buy UK industrial properties, as it expects attractive deals to emerge following a sharp market downturn. The Hansteen UK Industrial Property Unit Trust has raised 90 million pounds in equity, comprising 30 million from Hansteen and the rest from institutional investors. The 180 million pound fund will include 50% gearing. The fund is aiming to acquire industrial properties valued at 15 million pounds or less, or property portfolios worth under 30 million pounds, and is targeting annual returns, after fees and expenses, of 12 to 15%. Middle east/Africa Kuwait: Work resumes at Queue Point real estate development in Dubailand Al Mazaya Holding, Kuwaiti Shareholding Company working in the field of real estate development, has announced that that the work on all buildings at Queue Point in Dubailand has resumed with delivery was set for 2010. Queue Point real estate project is located at Al Liwan in Dubailand, Dubai. It is 40 to 60% complete and 95% of the units had already been sold. Buildings in Queue Point will be between 5 and 15 storeys, and will be interspersed with gardens, green spaces and waterfalls. Dubai: Dubai Real Estate Down 50% from Peak Home values in Dubai have fallen by about half from their peak late last year in the wake of the global real-estate slowdown. Property prices in the emirate, which had been driven sharply higher in past years as foreign investors snapped up real estate, have been sliding since the third quarter of 2008. Property prices in Dubai were rising sharply as recently as the first half of last year. But since the third quarter of 2008, as the impact of the global crisis has drawn in on the emirate, real-estate agents have reported softening prices and a dearth of buyers, especially those buying investment properties which had earlier helped drive steep price increases. Asia-Pacific India: Real estate, infrastructure loans show strong growth Loans to the real estate sector, or loans to the commercial housing sector, grew by a strong 52% year-on-year, albeit on a much lower base. Between 28 February and 22 May, housing loans increased by Rs31.38 billion, while bank loans to real estate companies went up by Rs37.34 billion. In short, loans to real estate companies were more than loans for individual housing. After a rise in bad loans in the credit card business; banks have started to cut back on lending to this segment.

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India: RBI issues revised draft norms on commercial real estate exposures The Reserve Bank of India (RBI) has come out with revised draft guidelines on commercial real estate (CRE) exposures. The revision comes in the wake of doubts raised in certain quarters on treatment of specified exposures. The new draft is also necessitated by the need to align with the rules with Basel-II framework. The Basel-II framework has clearly spelt out the definition of income-producing real estate (IPRE) in para 226 of its framework. According to the Basel-II framework, IPRE has a strong positive correlation between the prospects for repayment of the exposure and the prospects for recovery in the event of default, with both depending primarily on the cash flows generated by a property. China: Risesun Real Estate acquires land for RMB 538.61m Risesun Real Estate Development Co. Ltd., which mainly deals with businesses in Hebei Province, Jiangsu Province, Anhui Province and Shandong Province, announced that it has won a bid for a piece of residential land for RMB538.61m in Wucang District, Handan, Hebei Province, sources reported. The parcel, which covers a land area of 203,718 square meters, will have landscaped areas covering more than 35% of the development. The floor area ratio will not exceed 3 and the building coverage rate will not exceed 20%.

OPERATIONS
Americas USA: Washington Real Estate Investment Trust sells Rockville property The Rockville-based real estate investment trust bought the 35,000-square-foot office property at 11810 in 1993 for US$1.4m. The identity of the latest buyer of the two-story building, which was built in 1969, was not immediately available. The Rockville-based real estate investment trust said it achieved a net book gain of US$1.0m on the sale and a 13% unlevered internal rate of return during the 16-year ownership period. Late last month WRIT said it gained US$4.2m on the sale of an Elkridge, Md. industrial park. ProLogis cuts back Nashville operations ProLogis is shrinking its Nashville office, which will now be managed out of the real estate company's Memphis office. Through a combination of asset sales and fund contributions, a common equity offering, repurchases of debt at a discount and reductions in business expenditures, ProLogis has cut its direct debt by US$2.9 billion. ProLogis is a real estate investment trust, with some 475 million square feet of space in North America, Europe and Asia. ANALYSIS - Big real estate write down potential overhangs GE The potential for multibillion-dollar write downs in General Electric Company's US$84 billion real estate portfolio is emerging as one of the key questions about the future of its GE Capital unit. Deepening concerns about global liquidity -- given a prolonged U.S. recession, tight credit around the world and the rapidly declining value of U.S. commercial real estate -- have led GE investors to question the company's method of valuing its real estate holdings, an issue some say speaks to an overall lack of transparency at GE. "What GE is doing is not recognizing any impairment of any significance on this stuff," said Jack De Gan, chief investment officer with Harbor Advisory Corp, which owns GE shares. "(GE is) hoping they can ride through this recession using held-to-maturity type accounting on everything, not mark it down, and wait for the market to recover under it so they don't have to charge earnings." The financing needed to roll over a lot of the commercial debt coming due in the next few years is not available. Much of the company's commercial real estate equity is not worth what GE paid for itespecially assets

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bought near the market peak in 2006 and 2007. De Gan said GE should recognise the deterioration in commercial real estate markets and mark down its US$84 billion portfolio by 2 to 5%. Europe London: Hammerson names new CEO as UK property market thaws Anglo-French property investor, Hammerson cited stabilising UK prices for slowing a decline in net asset value and unveiled a new CEO to coincide with an imminent new dawn in Britain's withered property market. The FTSE 100-listed company has appointed UK Managing Director, David Atkins to replace Chief Executive, John Richards, who is retiring after 30 years' service in the month of September.

INVESTMENTS
Americas USA: Lone Star Said to Secure Pledges for US$20bn Property Funds Lone Star Funds founder, John Grayken is securing pledges toward his goal of raising US$20 billion to invest in distressed commercial real estate and securities. Lone Star is doubling the size of its funds as the deepening crisis in commercial real estate increases opportunities to buy at discounts. Falling rents and occupancies will accelerate defaults and delinquencies in mortgages sold as bonds. Europe UK: Tesco Hungary reportedly in 63m store sale/lease-back deal UK supermarket chain Tesco is selling its real estate in Hungary and renting it back as part of a global strategy to reduce the number of properties it owns, improving liquidity. Tesco is selling real estate in Europe and the US to American investment company WP Carey and Company, who will sign 15- to 20-year leases for the properties with Tesco. Berlin: Bundesbank had big investment in Hypo Real-report Germany's Bundesbank had some 2.3 billion euros invested in Hypo Real Estate at a time when the central bank urged the government to rescue the stricken real estate lender, a newspaper reported. Business daily Handelsblatt said the Bundesbank sum included 5 million euros the central bank had invested in HRE for Germany's financial markets watchdog BaFin. It cited a confidential Bundesbank report as evidence for the investments. The paper argued that this placed the two bodies in a 'serious conflict of interest' during a decisive phase in the rescue of HRE at the end of September last year. London: Overseas property investors in Central London doubled in last 12 months The number of foreign property investors from Africa, Asia, Australia, China, and the Middle East buying prime real estate in central London worth 1m or more has doubled in the last year. The number of overseas property investors has jumped from 35% in the second quarter of 2008 to 43% in the second quarter of this year. There has been a doubling of overseas demand from foreign property investors from Africa, Asia, Australia, China, the Middle East and central Asian countries like Kazakhstan, Azerbaijan and Uzbekistan.

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Middle East UAE: 2.2km roadwork complete for Emirates Lake Tower real estate project in Azman CHAPAL, UAE's leading real estate developer, has completed the 2.2km road works to facilitate the construction works on its 21 million sq ft BUA master developmentEmirates Lake Towers. Being set besides the Emirates Road in Ajman, this development features 51 high-rise towers designed for residential, retail and commercial purposes has now opened an escrow account up to latest regulations by Ajman Real Estate Regulatory Establishment. Dubai: National Projects & Construction expands real estate project National Projects & Construction (NPC), one of the leading Abu Dhabi-based real estate and construction conglomerates, has moved into its new headquarters in Musaffah as part of its corporate expansion plans on the back of robust growth in business. As a part of its strategy for growth and expansion, NPC also entered into strategic knowledge and expertise sharing partnerships with a number of international companies that are leaders in handling megaprojects. Asia-Pacific China: Ping An Trust to invest in China property China Ping An Trust & Investment Co Ltd, a subsidiary of the country's second-largest insurer, Ping an Insurance (Group), has inked a memorandum of understanding with AXA Real Estate Investment Managers to jointly develop high-end residential projects in China. AXA, the largest real estate fund manager in Europe and the fourth-largest in the world, said that the partnership could provide an opportunity to launch a dedicated Chinese real estate fund. India: IREO to pump in US$500m in India IREO, a leading global investment fund dedicated to the Indian real estate sector, has announced its foray into real estate development with a portfolio of 13 projects located in prime locations around the country, and plans to pump in US$500m in various infrastructure projects over a period of seven years. IREO has already commenced construction and leasing of a 5-million sq ft IT SEZ and the sale and construction on 3 million sq ft of housing, and is poised to launch a number of projects that will entail development of more than 8 million sq ft of housing in the coming 12 months. Currently IREO has 13 projects under various stages of development and implementation in the NCR, Haryana, Punjab, Tamil Nadu and Maharashtra.

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INDUSTRY STATISTICS
Major Lease Transactions during AMJ 2009 in Major Cities CITY National Capital Region (NCR) Tenant Etisalat ZTE Technologies Infosys Telecom Pearson Education Tata Teleservices State Bank of India BASF British Counsel Schering Plough Amicorp Samsung Next Links Sony Lifetree Convergence ARM LSI Logic TCS Serco Scientific Publishing CMRL Datacom Swan SBI Athena Health Ericsson Macmillan Dupont Aircel Unitech Wireless ICT Tieto Enator India HCL Perot Systems Mc Nelly Bharat Tech Mahindra mJunction Building, Location Vatika Business Park, Gurgaon Vatika Business Park, Gurgaon Time Tower, Gurgaon Knowledge Boulevard, Noida A-37, Sector 60, Noida World Trade Tower Vibgyor Towers, Bandra Kurla One India Bulls, Lower Parel Platina, Bandra Kurla Complex RMZ Titanium, Airport Road Bagmane Tech Park, C.V Raman Nagar CBD (Prestige Al Kareem) Vrindavan Tech Village, ORR Bagmane Tech Park, C.V Raman Nagar Salarpuria Touchstone, ORR Salarpuria Infinity, Bannerghetta Prestige Libra, Mission Road Prestige Libra, Mission Road Gulecha Towers, T Nagar Apex Towers, R A Puram RMZ Millennia, Perungudi, OMR Chennai Tech Park, Ambattur KRM Plaza, Chetpet RMZ Millennia, Perungudi, OMR Tamarai Tech Park, Guindy Ratha, Perungudi, OMR Elnet, Taramani, OMR Spencer Plaza, Anna Salai Samson Tech Park, Egmore Mindspace, Hitec City Mindspace, Hitec City JST, Kondapur JST, Kondapur RMZ Ecospace, New Town DLF IT Park-I, New Town Godrej Waterside, Sector-V Approx. Size (sq.ft.) 72,000 10,000 6,000 25,000 2,40,000 1,600 24,000 16,000 43,000 20,000 66,000 20,000 30,000 33,000 18,000 9,500 8,500 35,000 25,000 10,000 40,000 48,000 10,000 30,000 30,000 25,000 12,000 30,000 10,000 16,000 52,000 12,500 25,000 1,50,000 22,500 18,000

Mumbai Banglore

Chennai

Hyderabad

Kolkatta

Source: CBRE, Cygnus Research

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PRODUCT FOCUS
ECO HOUSING
Overview
In the marketplace for housing, we are often limited choices that are aimed at a consumer prototype as imagined by a typical developer or marketing team. The designer and developer of most multifamily residential communities are faced with the often daunting task of predicting who will ultimately live there and what their preferences will be. Direct involvement of future residents in the design and decision making process takes away the guess work and allows for creation of a tailored residential environment. The Environmental Designed Group (EDG) is dedicated to utilising "green" technologies and to the creation of sustainable residential environments. This is going to be a new concept in Indian real estate market. The Eco Houses consist The houses are equipped with key features, both technological and common sense - for example, designed in south facing terraces to maximise solar heat gain, that utilise renewable, and conservable, energy. A small-scale combined heat and power plant on site, powered by wood off-cuts, provides most of the energy to the estate. All buildings have a thick insulation jacket, made from recycled materials. The project has a legally-binding green transport plan, incorporating a car pool system for residents, great public transport links, and is linked in to a cycling network. For these, and many more social and environmental initiatives and technologies, Bed ZED has won many national and international awards for sustainability, design, innovation and more. It is an inspiring achievement on a local and social level. Companies providing services for those who are going for Eco Housing Identifying the buyers - To sell them a house Eco - To manage the development entity and project development Lenders - To borrow money for the initial predevelopment and other soft development costs Architects and Engineers - To design the project A Commercial Bank - To finance the construction A General Contractor - To build the project The Cohousing Community - For spending the unspent construction contingency

Indian Scenario
This is a new concept in India which is a Natural Choice to Reduce Green House Gas Emission in the country. In India, demand of housing particularly in residential sector is growing-up. The policy makers in India have planned to provide shelter to every shelterless people by providing disaster-resistant housing in urban and rural areas. Stress has been given on 'affordable and durable houses' and adoption of 'costeffective, environment-friendly housing. The cost-effective and eco-friendly technologies do not mean low-grade construction with inferior quality materials or compromise with the safety of the buildings and comfort of the inhabitants. Rather the technologies follow the relevant building codes and can also improve the comfort level of the users if designed properly. Changing Housing Scenario in India - from Kutcha to Pucca Common people in India always prefer masonry wall and R.C.C. roof for a building of permanent nature. In the National Urban Housing and Habitat Policy 2007 of Government of India, current housing shortage in Urban Areas has been estimated as 26.53 million units. Whereas the Working group on Rural Housing for the 11th Five Year Plan - Ministry of Rural Development estimated Housing shortage in Rural Areas as 47.43 million units. If the trend of conversion into "pucca" houses from "semi-pucca" / "kutcha" continues it is expected that by 2012, about 81% permanent houses in urban areas and about 50% of permanent houses in rural areas will be constructed to fulfil the declaration of "Housing for All" by the Government of India under the National Housing and Habitat Policy 1998.

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The trend of conversion from temporary to permanent or semi-permanent structures is likely to continue in view of economic upliftment of common people and different government schemes on providing durable shelters to people of economically weaker section and lower income group. It has been stated in the Government Policies that about 99% of the housing shortage pertains to Economically Weaker Sections and Lower Income Group sectors. To provide minimum basic housing need it may be considered that about 45.2 million housing units with a minimum area of 25 square metre as per the standards of Indira Awaas Yojna scheme will be required, which means a total of 1130 million square metre of built-up space needs to be constructed by 2012.

Budget Issues
In the Union Budget 2009-2010, the honourable Finance Minister has rightly emphasised on low-cost housing and boosted up the rural housing sector by allocating Rs88 billion for Indira Awas Yojna, which is 63% higher than the previous allocation. The minister has also created a Rs20 billion Rural Housing Fund under the National Housing Bank. The budget also has allocated Rs39.73 billion for housing and provisions for basic amenities for the urban poor. The sum also includes provisions for a new scheme "Rajiv Awas Yojana (RAY)". At the same time under the National Action Plan on Climate Change, "Sustainable Habitat" is also a key issue, where stress has been given on energy efficiency in buildings.

New projects
Tata Housing Development Company will build 1300 low-cost homes at Boisar, 100km from Mumbai. The houses will be priced between US$8,258 and US$14,187. Atlas Group, which has carved out a niche of itself in the jewellery and healthcare industries across Gulf countries, is diversifying into real estate sector and plans to invest US$201.51 in Kerala in the next two to three years. Mexican global multiplex operator, Cinepolis plans to invest US$357.7m in India for its film exhibition business over the next seven years. It will open 500 movie screens. The Avinash Bhosale Group (ABIL) is planning to invest US$126.25m for setting up three five-star hotels in Pune, Nagpur and Mumbai over the next three years.

Outlook
The Indian real estate sector plays a significant role in the country's economy. The real estate sector is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP). Almost 5% of the country's GDP is contributed by the housing sector. In the next five years, this contribution to the GDP is expected to rise to 6%. According to industry players, housing accounts for 4.5% of gross domestic product (GDP) with urban housing accounting for 3.13%. Nowadays, this sector is doing well as the government is giving good support to this sector by allocating more funds, and encouraging for some kind of technical innovation products.

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COMPANY SCAN
DLF Group
DLF Group is Indias one of the most famous and successful builders group. DLF Group is India's largest real estate company in terms of revenues, earnings market capitalisation and developable area. DLF has registered its presence across 32 cities across the country. The primary business of the group is residential commercial and retail properties. It has a unique business model with earnings arising from development and rentals.

Products & Services

Some of the major construction projects undertaken by the company are residential commercial and retail properties. DLF has recently ventured into the infrastructure SEZ and hotel businesses too.

Major Projects Houses Retail Offices Commercials

Business Strategies
Increase land reserves in strategic locations Expand core business verticals nationally Diversify into SEZ development Undertake infrastructure development with Laing ORourke Diversify into hotel development Enhance execution capabilities

Key Ratios

Company Performance 2008-09 Net Sales 28279.00 Operating Profit 27325.20 OPM (%) 96.62 NPM (%) 54.73 Depreciation 1138.80 Interest 8098.60 PAT 15477.70
Source: BSE India; Cygnus Research

2007-08 55328.44 35912.55 64.90 46.53 256.85 4476.47 25744.01

Debt-Equity Ratio Long Term Debt-Equity Ratio Current Ratio OPM (%) NPM (%) ROCE (%) RONW (%)
Source: Company; Cygnus Research

Key Ratios 2007-08 2006-07 2005-06 2004-05 2003-04 1.27 7.54 3.54 1.70 0.97 0.70 6.46 3.18 1.59 0.88 1.93 1.91 1.55 1.36 1.31 64.91 87.11 50.58 29.54 12.50 46.53 36.02 23.10 15.00 7.36 26.34 17.65 21.13 13.71 9.70 43.19 62.93 44.21 19.29 11.79

Sales Other Income PBIDT Interest PBDT Depreciation PBT Tax PAT

Performance Analysis of DLF India Quarterly Performance Financial Year Performance AMJ08 AMJ09 Var (%) 2008-09 2007-08 Var (%) 12786.10 4179.70 -67.31 28279.00 55328.44 95.65 2152.50 1478.60 -31.31 10113.90 5256.16 -48.03 10286.60 3558.3 -65.41 27325.20 35912.55 31.43 1816.80 2067.30 13.79 8098.60 4476.47 -44.73 8469.80 1491.00 -82.40 19226.60 31436.08 63.50 285.00 307.40 7.86 1138.80 256.85 -77.45 8184.80 1183.60 -85.54 18087.80 31179.22 72.38 1174.90 179.60 -84.71 2610.10 5435.22 108.24 7009.90 1004.00 -85.68 15477.70 25744.01 66.33

Source: Company; Cygnus Research

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60000

Performance Analysis
During 2007-08, the Company recorded a healthy growth as compared to 2008-09. Net sales of the company reached Rs55328.44m in 2007-08 as compared to 28279.00 in 2008-09. The companys sales increased as it got major orders in housing and commercial projects during the year 2007-08. For AMJ08 the sales reached Rs12786.10m, and Rs4179.70m in AMJ09. The companys revenues dipped due to flagging demand as well as lower realisations contributed to the poor showing.
Net Sales

40000

The companys operating profit before interest 20000 2007-08 2008-09 and depreciation, amounted to Rs27325.20m as against Rs35912.55m in 2008. Net profit after Source: Company Annual Report; Cygnus Research providing for interest depreciation and tax amounted to Rs25744.01m as against Rs15477.70m during the previous year. For AMJ09 the companys net profit reached Rs1004.00m as against Rs7009.90m in 2007-08. The companys profitability declined for the quarter due to an increase in construction expenses though a fall in raw material expenses Common Size Comparison for 2008-09 (Rs m) Ackruti year-on-year (YoY) has come as a surprise. DLF Anant Raj City Ltd. Other Income 35.76 6.82 14.88 Common Size Comparison as percentage of net sales Raw Material 27.52 38.37 1.16 When we compare DLF with its peers Ackruti City Staff Costs 3.80 2.34 1.79 Ltd and Anant Raj Industries Ltd, we that the latter Interest 28.64 24.65 0.11 needs to improve its cost efficiency, particularly for 4.03 0.92 2.08 consumption of raw materials. The company also Depreciation needs to reduce its staff costs as compared to its PBT 63.96 91.24 105.78 peers. The company is the leading real estate Tax 9.23 6.77 17.05 developer in India. PAT 54.73 59.82 88.41

Cost Structure Analysis

Consumption of raw material as percent of Cost Structure as Percentage of Operating Income operating income, declined in 2008-09 as 2008-09 2007-08 compared to 2007-08. Consumption of raw Raw Material 28.48 59.79 material constitutes about 28% to 30% of the Staff Expenses 3.94 0.00 operating income. The staff costs also Purchases 0.00 0.00 increased when we compare on a YoY basis; Administrative Expenses 0.00 0.00 estimated at around 3-4% of operating income. Depreciation 4.17 0.72 When all the expenses are compared, Interest Interest 29.64 12.46 constitutes the largest cost factor followed by 9.55 15.13 raw material consumption. Other expenses Tax Charges 8.08 4.89 account for about 8-9% of the operating Other Expenses Source: Company; Cygnus Research income. The company plans to improve its profitability by reducing its operational expenses through reducing dependence on manual work and increasing productivity by adopting latest technologies and mechanisation of key activities.

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Rs m
Source: BSE India; Cygnus research

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Stock Performance
120

R elative Market C ap Perfo rmance

D LF B S E S e nse x B S E R e a l Esta te

Share Holding Pattern

Public 5%

100

80

60

Promoters 78%

40

20 Jan-09 Mar-09 May-09 Jul-08 Dec-08 Sep-08 Aug-08 Nov-08 Apr-09 Feb-09 Oct-08 Jun-09

Institutions 17%

Source: BSE India; Cygnus Research

From June 2008 to May 2009, the BSE Sensex has seen a rise of 8.64% from the base of 13461.60 basis points to 14625.25 basis points. Growth in the economy and formation of stable government created positive sentiments in the market and it aided the cause of the bulls. The highest price over the period was Rs509.30 and the lowest value of the share of the company was Rs151.70.

Outlook
DLF, Indias largest property firm, plans to launch 16 million sq ft of residential space in the current fiscal even as the company continues to have a cautious outlook. DLF has been able to reduce its debt by over Rs20 billion and has received Rs20 billion from DAL, another group company in the June quarter indicating that the companys cash situation may be fast improving. DLF which has 483 million square feet of residential projects will launch a few thousand flats on the outskirts of New Delhi and villas plots and group housing societies in the southern city of Kochi Goa state and Panchkula in Haryana. It has also acquired land for the development of malls and commercial complexes in Hyderabad and Pune. With Indian economy being on the recovery side, Real estate market is expected to pose a huge demand for the major builders in India. The company will be able to increase the revenues and PAT which were badly affected in the year 2008 due to the liquidity crunch in the market.

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UPCOMING EVENTS
1. Event Date Venue Highlights Property Asia Aug 01-03, 2009 Karachi Expo Centre, Karachi, Sindh Property Asia is definitely poised to become Asia's biggest property and real estate show in Pakistan which would gather prospective investors, policy makers, landowners, developers, financers, real estate agents and buyers from all over the globe under one roof. E- Commerce Gateway Pakistan Private Limited. 18, C. P Berar Society, Off Amir Khusro Road, Karachi, Pakistan Tel: +(92)-(21)-4536321; Fax: +(92)-(21)-4536330; E-mail: info@ecgateway.net International Property Expo Aug 01-03, 2009 Pragati Maidan, New Delhi Coming from the house of country's leading trade show organizers with a number of successful shows in their basket, International Property Expo will focus on residential and commercial property, investment and real estate market. The show has a commendable track record with the previous shows proving to be an instant hit. It has made a mark for itself in the industry and is highly appreciated for being well-organised and extensively publicised. Media Expositions & Events. 112-A Sant Nagar, G. F., East of Kailash, New Delhi, India. Tel: +(91)-(11)-26236933; Fax: +(91)-(11)-41620861 Email: info@themediaexpo.com; Web: www.themediaexpo.com Tourism Investment & Real Estate Development Aug 11-14, 2009 Four Seasons Hotel Damascus, Damascus, Dimashq This event is considered the biggest conference which aims in presenting the real estate market and tourism in Syria to be invested through demonstrating the new projects and attracting the best companies which has a leading role in the constructional, real property and tourism property in many Arabic and Foreign Countries. Al haitham Exhibitions & Conferences. Abdul Hak Building, 1st, Damascus, Syria. Tel: +(963)-(11)-3346366; Fax: +(963)-(11)-33500889 E-mail: info@alhaitham-sy.com IMOBILIS - Exhibition of Real Estate Offers Sep 03-06, 2009 TBA, Cluj-Napoca, Cluj, Romania It is designed to provide an efficient solution so as to ensure the meeting of demand and offer from the real estate field. Therefore, IMOBILIS represents a professional frame to present the best offers of real estate agencies and the main real estate developers, moreover to present the latest tendencies in the field, as well as the residential projects, either already existing or in process of completion. Abplus Events. 2, Ungheni Street, Lasi, Romania Tel: +(40)-(232)-278811; Fax: +(40)-(232)-217791

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Properties Ahead- Real Estate Expo Sep 19-20, 2009 Pragati Maidan, New Delhi, India This unique exhibition is being organised aimed at offering the complete solution for any type of property, finance, interior or exterior requirement at same platform. The highlight of this expo is from buying a property, getting the finance for the same, finding good architects, interior designer to beautify the home, inspiring landscaping ideas and outdoor features, home improvement products and services & consultancy on vastu & Feng shui. Ecube Entertainment Pvt. Ltd. 706, 7th Floor, Devika Tower, Chander Nagar, Ghaziabad, India. Tel: +(91)-(120)-4566566 Email: info@ecubeservices.biz; Web: www.ecubeservices.biz International Fair of Investments Real Estate Sep 30-02 Oct Lviv Palace of Arts, Lviv, Ukraine International fair of investments real estate on - movable and immovable property of cities and towns, municipal management and activity, acquisition and sale of individual houses and other real estate and investments. Gal Expo. 30, Vynnychenka, Lviv, Ukraine Tel: +(380)-(322)-970627; Fax: +(380)-(322)-971756 E-mail: exhib@galexpo.lviv.ua; Web: www.galexpo.lviv.ua City Real Estate Investment Oct 10-03, 2009 Lithuanian Exhibition and Convention Centre, Vilnius, Apskritis, Lithuania City Real Estate Investment is an exhibition on movable and immovable property of cities and towns, municipal management and activity, acquisition and sale of individual houses and other real estate and investments. Litexpo. Laisves Avenue, 5, Vilnius, Lithuania Tel: +(370)-(5)-2451800; Fax: +(370)-(5)-2454511 E-mail: info@litexpo.lt; Web: www.litexpo.lt Industryscape 2009 Oct 18-20, 2009 Abu Dhabi National Exhibition Centre, P.O. Box 5546, Abu Dhabi Organised by IIR Middle East at Abu Dhabi National Exhibition Centre, Abu Dhabi, United Arab Emirates, Industryscape 2009 is known as one of the biggest exhibition for real estate industrial sector. It is 3 days event which opens up new gateways for both national and international real estate marketplace. The event welcomes real estate agents, builders, brokers, contractors etc. from throughout the world. IIR Middle East, PO Box 21743, Dubai, United Arab Emirates Tel: +(971)-(4)-3352437; Fax: +(971)-(4)-3352438 Web: www.iirme.com Real Estate Investment World Middle East 2009 Nov 01-03, 2009 Shangri-La Hotel Dubai , Dubai, United Arab Emirates Real Estate Investment World Middle East is the region's leading real estate investment exhibition which discusses various aspects of capital management in the thriving Middle Eastern property market. Real Estate Investment World Middle East 2009 will be an unrivalled and unique platform which will address the opportunities in Middle East real estate and will provide the exhibitors, new contacts and great exposure. Terrapinn Pte Limited. 12, Prince Edward Road, 03-01 Podium A, Bestway, Singapore, Singapore. Tel:+(65)-(65)-62228550; Fax:+(65)-(65)-62263264

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Contact Details 12. Event Date Venue Highlights Contact Details 13. Event Date Venue

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Contact Details 14. Event Date Venue Highlights

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Belgrade Real Expo (BelRE) Nov 05-07, 2009 Belgrade Fair Grounds, Belgrade, Serbia And Montenegro Belgrade Real Expo (BelRE) is the property and investment fair, gathering domestic and foreign investors, key experts, property owners, project managers, consultants, credit line supporters, real estate agencies, as well as the end users. Belgrade Fair. Bulevar Vojvode Misica 14, Belgrade, Serbia Tel:+(381)-(11)-2655701; Fax:+(381)-(11)-2655364 Moscow International Property Show Nov 13-14, 2009 T-Modul Exhibition Hall, Moscow, Russia The Moscow International Property Show is specially designed to operate in a workshop environment and not as an exhibition. Many sensible Russians are not eager to advertise their wealth and would not be comfortable visiting a 'public' exhibition, however, a real estate show in a professional exhibition centre atmosphere is most suitable. aiGroup. Luzshnetskaya nab. 2/4 Bld.10, Office, Moscow, Russia Tel:+(7)-(495)-5409695; Fax:+(7)-(495)-5405190 Property Management Exposition & Conference (PM Expo) Dec 02-04, 2009 Metro Toronto Convention Centre, 255 Front Street West , Toronto, Canada It is Canada's largest property management exposition and conference. The Show will bring together key decision-makers in the real estate and property management sectors from the largest companies in the market today. Merchandise Mart Properties, Inc. Suite 470, The Merchandise, Chicago, USA. Tel:+(1)-()-1-800-677-6278; Fax:+(1)-(312)-5277980 ACRES Middle East Dec 07-10, 2009 Expo Centre Sharjah, Sharjah, United Arab Emirates ACRES Middle East is the UAE's leading international investment and real estate exhibition. The exploding property market in the UAE continues to provide some of the world's most fantastic profits for both local and international investors. In particular, real estate prices continue to rise in Sharjah, Abu Dhabi and Dubai with each new development announced selling out at record speed. Expo Centre Sharjah. Opposite Al Taawun Mall, Al Khan Area, Sharjah, United Arab Emirates. Tel:+(971)-(6)-5770000; Fax:+(971)-(6)-5770111 Real Estate & Housing Exhibition(ESTATEX) Dec 14-17, 2009 Dhahran International Exhibition Centre, Dammam, Saudi Arabia It is a distinguish and unique event attracting all kinds of real estate, consulting, investment companies aiming to launch their new projects and services for different groups of visitors. Moreover, this event is the best place to discover and esteem the Gulf Real Estate market, projects and find new opportunities and marketing ideas. Dhahran International Exhibition Co. Post Box No. 7519, Ad-Dammam, Saudi Arabia. Tel:+(966)-(3)-8592358; Fax:+(966)-(3)-8590203

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International Exhibition of Investment Jan 06-09, 2010 Isfahan International Exhibition Centre, Esfahan, Iran It is a premiere event for penetrating into the Real State agents sector, held at Isfahan International Exhibition Centre, Isfahan, Itan & Organising by ExpoKish. It is counted as one of the most awaited specialise exhibitions in Iran. It will offer better opportunities for exploring the respective sector and will therefore help in exploring latest trends and technology of the sector. ExpoKish. Flat # 25-5th Floor # 60, Tehran, Iran. Tel:+(98)-(21)-77529214; Fax:+(98)-(21)-77657133

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