After low-cost airlines, budget hotels, cheap cell phones, low-cost computers et al, it’s now time for branded low-cost houses. Delhi-based real estate major Omaxe is planning to invest Rs 8,000 crore in next five years in affordable housing projects. The company has floated a subsidiary National Affordable Housing and Infrastructure which will be building the affordable houses. In all, Omaxe plans to build about 10 lakh low-cost houses. Read More
Monthly Archives: May 2008
Rupee seen holding at 13-mth lows
May 15, 2008 – 12:54 am
Mumbai: The rupee is likely to hold at thirteen month lows on Thursday as investors wait for the stock market to gauge overseas appetite for local assets, with a dip in the oil price offering some slight respite from current falls.
The partially convertible rupee ended down 0.8 % at 42.45/46 per dollar on 14th may, off an intraday low of 42.67, which was its weakest since April 13, 2007. It had closed at 42.10/11 on 13th may, and has fallen 4.6 % so far this month.
Oil , India’s biggest import, traded below one hundred twenty four dollar per barrel, after touching a record near one hundred twenty seven dollar on 13th may. High global oil prices raise the risk of widening India’s trade deficit and putting downward pressure on the rupee.
Ritz, Nitesh to offer $1 million luxury residences
May 14, 2008 – 5:16 am
Ritz Carlton Residences, the benchmark in luxury homes for the rich and famous in busy metros and exotic retreats, may be ready to redefine the ultimate in apartment living in India.
It is believed to have chosen the stunning backdrop of the Kochi coastline and the posh Boat Club area in Chennai as addresses for the million-dollar residences it will offer in partnership with Nitesh Estates. Read More
CLSA Sells Shares Worth Rs 35 Crore In Indiabulls Real Estate
May 13, 2008 – 5:23 am
Foreign fund house CLSA Ltd on Monday sold shares worth about Rs 35 crore in Indiabulls Securities Limited on NSE.
Further, MindTree Consulting bought shares worth nearly Rs 2.2 crore in AztecSoft today on the NSE.
In a bulk deal, CLSA sold 31.8 lakh shares in Indiabulls Securities for an average price of Rs 110.15 per share. MindTree Consulting in another bulk deal acquired about three lakh shares in AztecSoft for an average price of Rs 73.55 per piece.
Kerala Properties On Offer At Qatar Show
May 12, 2008 – 5:42 am
A lot of township development projects and designs of residential complexes in Kerala were displayed at a property show in Qatar which aimed at attracting investments from NRIs.
Kerala Property Expo in Doha is featuring about 50 builders. The show organized by the Kerala Builders Forum (KBF), is sponsored by HDFC bank and State Bank of India.
Mr. V Raveendran,Executive Director, KBF, said, “Kerala gives good investment opportunities now. Earlier stress was given to the tourism industry. But now it has shifted more or less to the IT sector. A number of IT parks are coming up in major cities of Kerala, resulting in increase in population density here”.
The real estate industry in Kerala has off late witnessed an upward trend with about 70% of properties being sold to buyers in the Gulf region.
KBF is the organization of 75 builders and real estate companies of Kerala. It is affiliated to the CREDAI.
Township Rush Has Begun In Pune
May 12, 2008 – 5:40 am
Pune:- By the 2020 Pune will be nothing like what the city is these days. The small city’s boundaries are being stretched in all directions. Now, the city is gaining suburbia around itself. Adding another totally new dimension to the city is the rush of integrated townships into Pune.
The city is set to reap a rich harvest for those having the capacity to invest and develop large tracts of land and put in the physical and social infrastructure. This is what the new Special Township Policy Act of the Maharashtra government stipulates. A minimum area of 100 acre, investment in public infrastructure, such as roads, water, sewage—an integrated approach to development of townships to decongest municipal corporation areas and encourage new settlements in the periphery though higher FSI (floor space index) than what is normally allowed in the municipal limits.
There is a rush to develop all these in Pune. Three of these townships have already started taking shape. City Development Corporation’s Amanora Park Town took off first with its four hundred acre for ten thousand crore rupees township, followed by Paranjape Schemes Construction’s One hundred thirty eight acres for three thousand two hundred crore rupees Blue Ridge and Megapolis, a Rs 1,500-crore 150-acre project by Pegasus Properties Pvt Ltd, a joint venture between Kumar Properties and the Avinash Bhosale Group.
More are waiting to take off. HCC Real Estate, the 100% subsidiary of Hindustan Construction Co Ltd has announced plans to get into a township project in Pune. The company is in the process of acquiring land and is planning a five hundred acre township. It has indicated to analysts that it is in the process of acquiring two hundred thirty acre to create five million square feet of development.
Lalit Kumar Jain, promoter of Kumar Builders, said his company had received clearance from the state government for three townships in Pune. The first one coming up at Hinjewadi phase II will be spread over One hundred twenty four acre and will be launched in August 2008. Another Kumar township coming up spreads across One hundred twenty acre. The third township of One hundred ten acre is slated to come up in Kharadi in September 2008.
The recently listed Kolte Patil Developers has a four hundred fifty acre township at Hinjewadi with ICICI Ventures investing in this venture with a fifty per cent share in this project.
Residential Township Project In Mysore
May 9, 2008 – 4:11 am
PBEL PROPERTY Development (India) Pvt Ltd, a joint venture of Israel based Property and Building Corporation (PBC), Electra Real Estate (ERE) and INCOR infrastructure, has invested twenty crore rupees in Mysore to build a residential township.
Announcing this progress, PBEL, executive director Anand Reddy said, “The Company has invested twenty crore rupees on a ten acre plot of land at Devanoor village along the ring road in Mysore to build a residential township. This is in tune with our strategy to build a land bank in secondary cities across south India. The company, in addition to Mysore, has short-listed Coimbatore in Tamilnadu and Vizag in Andhra Pradesh for sizeable investments.”
PBEL has invested five hundred crore rupees so far and is actively pursuing more investment opportunities in the real estate sector across south India. It intends to develop and build high quality high-rise apartment buildings with modern amenities in environment friendly surroundings. PBEL will be bringing internationally known high quality products and consultants from abroad who have worked on renowned projects world wide to ensure that international standards are met. The investment has seen the company acquire ten acres of residential land in Mysore. This is in addition to fifty eight acres in two land parcels in Hyderabad and forty two acres in Chennai for a mixed township project.
PBC, a subsidiary of the IDB group, is active in the realty space in three continents: North America, Europe and Asia. The IDB Group is Israel’s largest business conglomerate with global assets in excess of twenty seven billion dollar. PBC is a major participant in the development of the new plaza Las Vegas hotel. ERE is one of the leading real estate companies in Israel, owning over one hundred nine properties and fifty eight hotels in Europe and North America and is a subsidiary of Elco holdings, one of the main business groups in Israel.
Gujarat’s first IT SEZ Will Be In Sanathal
May 8, 2008 – 3:47 am
Ahmedabad, May 7 The Pune-based Vascon Engineers Limited has initiated construction of the state’s first Information Technology Enabled Services (ITES) SEZ at Sanathal village off the Sarkhej-Gandhinagar highway. Read More
Realty Has Designs For Foreign Architects
May 8, 2008 – 3:46 am
It’s not just the consultants, funds and law firms that are coming to India. The booming real estate sector has attracted yet another important segment of the global industry—the architects. Celebrated British architect Lord Norman Foster, who shaped London’s 21st-century skyline with buildings such as the Gherkin, the new Wembley stadium, and has designed other structures like the Beijing airport and the Reichstag in Berlin, has entered India in tie-up with a Mumbai real estate firm, the Neptune group. Read More
Rakindo Plan To Set Up $250-m Arm May Get Okay
May 8, 2008 – 3:42 am
Chennai-based real estate developer Rakindo Developers’ proposal to set up a wholly owned subsidiary with $250-million FDI from Dubai-based Rakeen Development is expected to get Cabinet clearance on Thursday.
Rakindo has plans of building a $1.5-billion (Rs 6,000- crore) integrated township at Coimbatore which will be ready for launch after the CCEA clears the FDI proposal. The plan envisages developing over 1,000 acres of property with an 18-hole golf course as the centerpiece. Rakindo is proposed to be a holding company that will promote investments in several SPVs to develop and operate townships. It is a joint venture company formed by Rakeen, a joint stock global business company promoted by the Ral Al Khaimah group, UAE and the Chennai based mineral conglomerate Trimex group owned by Koneru Prasad. Read More
For Some Mahindra Lifespace May Opt PE Funding
May 7, 2008 – 7:36 am
MUMBAI – Real estate firm Mahindra Lifespace Developers Ltd may consider private equity funding for some of its projects, but has no immediate plans to dilute its stake, a top official said. Read More
Hindujas Plans Investment Of Two Lakhs Crore Rupees
May 6, 2008 – 7:19 am
The Hinduja family is setting up investments of around fifty billion dollar (2 lakh crore rupees) in the subsequent 5 years in India and out of the country, led by a foray into oil and gas in Iran. Read More
Wardhawan Group Plans Big Investments
May 5, 2008 – 6:10 am
Mumbai:- Real estate and retail player, Wadhawan Group is now betting big on food and beverages and lifestyle segments and planning to invest around three thousand five hundred crore rupees in launching new restaurants format and luxury retail expansion plans. Read More
Real Estate Need Talent And Skill
May 5, 2008 – 12:29 am
The demand for talented and skilled individuals to power the growing real estate industry has increased. “The Indian real estate sector is maturing from the short-sprint mindset and is gearing up for the long distance stakes of sustainable real estate development,” says Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj, real estate money management and services firm.
Aniruddha Joshi, executive director, Hirco Group, concurs, “The real estate sector is expanding beyond the basic bricks and mortar. Demand for real estate in growing segments like retail, hospitality, healthcare, biotech, ITES, etc, is driving the sector. In the same way, SEZs (Special Economic Zones), townships, and IT parks have created demand for skills beyond just the conventional fields of architecture, and civil and electrical engineering, to specialised knowledge on infrastructure and urban planning. People with specialisations in environmental aspects are also preferred as developers and consumers become increasingly aware of ‘green’ issues.”
DLF Setting Up JV Company With Italian Major Piquadro
May 5, 2008 – 12:27 am
Real estate developer DLF is learnt to be setting up a joint venture company with Italian leather and luggage accessory major Piquadro to hawk its products in India. This is part of the real estate major’s retail strategy to bring in some of the world’s leading premium brands across categories into the country.
Read More
SEBI clarification on real estate MFs
May 3, 2008 – 6:58 am
MUMBAI: The SEBI on Friday said real estate mutual funds can invest in properties located in million-plus cities and urban agglomerations. Issuing a clarification, SEBI said the cities for investment by real estate mutual funds would include thirty five cities in million-plus urban agglomerates and twenty seven under the million-plus category as per the Census 2001.
DLF Assets Raises $450 Million from Symphony Capital; Singapore IPO On Cards
May 3, 2008 – 6:58 am
DLF Assets, the property fund of DLF Ltd, India’s largest real estate developer by market capitalisation, has raised $450 million from Symphony Capital, a London based investment firm. DLF Assets has earlier received two hundred million dollars from a fund sponsored by Lehman Brothers and $400 million from another global investment firm DE Shaw for an SEZ project. The investors got the representation on the board of directors of DLF Assets. DLF Assets Pvt. Ltd. or DAPL is independent of DL. It was set up for bidding along with other companies in potential assets sale by DLF Ltd. Read More
Land Deals At Prime Locations In Metros Losing Its Shine
May 3, 2008 – 12:51 am
The soaring land deals in prime location of metro cities, which had scaled astronomical levels in the past few years, seem to be losing steam. The deals being struck this year are at increasingly lower prices than the ones last year.
Parsvnath Developers has bought 1.18 acre land, jointly owned by Mahajan Industries and Videocon group in Connaught Place for Rs 200 crore. Compared to hotel major Leela group’s acquisition of 3 acres in Chanakyapuri last year for Rs 611 crore, Parsvnath land deal has come at a discount of almost 17 percent at Rs 169 crore per acre. Read More
Real estate expecting twelve billion dollar PE funds
May 2, 2008 – 7:15 am
Mumbai, With the Indian real estate market slated to grow 35-40% in value terms over the next two years, private equity (PE) players are lining up significant investments in the segment. Led by Blackstone and the PE arm of Deutsche Bank, a host of players—including Red Fort Capital Advisors, Starwood Capital and Walton Street—are expected to invest close to $12 billion combined in homes, offices, townships, hotels and other projects.
Red Fort Capital is preparing to invest Rs 3,500 crore, mainly on budget hotels, while Starwood is committing Rs 800 crore to Chennai-based Shriram Properties. Deutsche Bank will help Suncity Projects raise Rs 1,500 crore, and the Blackstone Group has said it would invest around $18 million (around Rs 73 crore) in Synergy Property Development Services. Kuldeep Chawla, director, Red Fort Capital, said, “We will focus on developing a chain of budget hotels by associating with local developers. About 400 budget hotels with 60,000 hotel rooms are expected to come up in India. We will look at investing in a diversified portfolio of properties.”
In 2006, Markets regulator Sebi opened up the real estate market to PE investments. The first year was a learning period. “The following year saw a real correction in the market, with large incremental growth rather than dramatic growth, where stock market money went into special purpose vehicle-level investments,” says Arun Natarajan, founder & CEO, Venture Intelligence India, which tracks the PE segment.
Balaji Rao, managing director, Starwood Capital said, “We are strategic partners with Chennai-based Shriram Properties to develop a three hundred acres township in Kolkata, which requires an investment of five thousand crore rupees. Apart from Starwood Capital, Shriram Properties is also looking at raising funds from Walton Street Capital. Likewise, following its partnership with Synergy, Blackstone Real Estate is eyeing further opportunities here.
Experts say that in calendar 2007 alone, PE players would have invested five billion dollar in the Indian real estate sector. But there is need for investments of up to $18-20 billion, which are expected in FY09 and FY10, they say. Says Jayesh Kariya, partner, Deloitte Haskins & Sells, “Investments of one thousand four hundred billion dollar are being made by Real Estate Investment Trusts globally. Hence, more global investors will start looking at Indian realty.”
Retail real estate to see up to $10 bn investment by FY10
May 1, 2008 – 7:49 am
Mumbai, Apr 30 Developers and private equity players are set to put India’s retail space market on full throttle with investments worth around$5 -10 billion in FY09-FY10.
In moves that would lend retail space gigantic proportions, the Runwal Group and Singapore’s GIC will use a joint venture to launch a ‘Our City Centre’ retail mall over 1.1 million sq ft of area in Ghatkopar, Mumbai. In the second phase of their foray, they will develop another ‘Our City Centre’ over 7 million sq ft of area in Hyderabad. Mumbai-based ICS Group is their project advisor.
Equally bullish is Sheth Developers, which is building a shopping centre called ‘Viva City’ over1 million sq ft in Hyderabad and Thane, Mumbai. The company is investing four hundred crore rupees in this new retail development and has not associated with any private equity firms.
The sudden gush of investments has also swept across smaller cities. Media major Dainik Bhaskar Group will develop a 7.5-lakh sq ft retail mall in Bhopal. With construction already under way, the mall is likely to be up and running in December 2009. The mall comprises a basement, ground and six floors with seven anchor shops, 180 retail shops, six-screen multiplex and food courts. JMC projects have been appointed as the civil contractors and Bentel Associates, Mumbai, are the property advisors.
Sistema Will Invest In Hospitality Sector In India
May 1, 2008 – 7:48 am
Kolkata, April 30:- Mr Alexander A. Chinyaev, the chief representative in India of Sistema said that after venturing into the Indian telecom business, Russian conglomerate Sistema is now planning to tap the real estate and hospitality industries in India. The London Stock Exchange-listed public sector company is looking at investing an estimated eight hundred crore rupees to construct office and commercial projects in the country by year end.
Talking on the sidelines of a conference organized by the Indo-CIS Chamber of Commerce here recently, Mr Chinyaev said, “We are looking to launch an ‘A class’ office and hotel projects in Delhi, Goa, Gurgaon, and in almost all the metros, including Kolkata. If we find proper partners, we will invest $100-200 million in a pilot project by the year-end.” Sistema, however, will not build residential projects in India, he clarified.
The company, which deals with thirty star hotels across the CIS countries, is also looking at building and managing hotels in India.
“We have plans to take part in the tourism business in India through exchange of tourists between the two countries. We can bring our tour agencies to India for this purpose. This will be supported by developing businesses like hotel and resort projects,” Mr Chinyaev said.
Emaar SPVs To Get $800 Million PE Funding
May 1, 2008 – 7:47 am
Goldman Sachs, Deutsche Bank and one more financial investor are likely to make a combined investment of $800 million in three special purpose vehicles (SPVs) which are being created by real estate group Emaar MGF. Each SPV will have one financial investor who will hold a minority stake.
Read More
HCC Sets Up Arms For Key Businesses
May 1, 2008 – 7:45 am
Hindustan Construction Company (HCC), a leading construction house, will transfer its real estate, infrastructure and investment businesses into separate fully-owned subsidiaries in an attempt to provide these high-growth businesses with a distinct focus and identity.
HCC officials said two subsidiaries, HCC Real Estate and HCC Infrastructure, have already been formed and the third, HCC Capital, is in the process. HCC will focus on large-scale construction and engineering projects. Read More
