Monday, March 31, 2008

Hazoor Multi Corp, Hazoor Multi Projects and Optilum Business Enterprises JV, to develop commercial cum residential real estate project in Pune

Recently, Hazoor Multi Projects decided to form a joint venture company in the name of `Hazoor Multi Corp` to carry out the real estate project in the Pune City. The real estate project will be a combination of commercial and residential buildings. The joint venture agreement between the company and the joint venture partner Optilum Business Enterprises was to provide the firm with a major stake holding in the joint venture company.
Hazoor Multi board to raise Rs 14.72 mn through share allotment

Sunday, March 30, 2008

Migrant worker remittances amount to around 3% of India's GDP - recent analysis by World Bank economist Dilip Ratha

Remittance revolution:

India is now considered the biggest beneficiary of the remittance revolution. With more than 10 million workers worldwide, many of them high-skilled guest workers in the West, India's annual remittance is said to have crossed $27 billion in 2007.

It's good money:

But it's not just the money flow that's important, Ratha says. Having someone who is doing well abroad brings confidence and inspires families. Unlike foreign aid, it cannot be skimmed by politicians and middlemen; money goes directly to the beneficiaries. Besides, unlike 'hot money' from foreign investors and NRIs, which flees in an economic crisis, migrant worker inflows increase in times of emergency, as it did after the nuclear tests.
Migrant moolah--Chidanand Rajghatta--The Times of India

Saturday, March 29, 2008

Deutsche Bank picks up 40% stake in Ramprastha Promoters and Developers, a group company owned by Delhi-based Ramprastha Group for $80 million

Ramprastha Promoters and Developers has been primarily engaged in developing housing projects in the national capital region(NCR).

Last year, the group had received foreign funding from South Asian Real Estate (SARE), a private equity fund based out of the Isle of Man.

The Ramprastha Group has also entered into an equal joint venture with Gurgaon-based engineering company, Punj Lloyd.

In the largest private equity deal in real estate sector, Deutsche Bank had picked up around 25% stake in a special purpose vehicle (SPV) owned by Mumbai-based developer Lodha Group for Rs 1,700 crore, last year.

Despite global recessionary trends, the Indian real estate sector seems to be attracting investments from private equity. Currently, several big players like DLF, Unitech and Omaxe are also looking at raising money through PE route.
-The Economic Times

Andhra Pradesh real estate - Repeal of the Urban Land Ceiling Act - Will the middle benefit? Will the prices come down?

Ceiling repeal no big deal:

Some real estate agents feel that the prices will stay where they are because those sitting on vacant land now freed following the repeal of the Urban Land Ceiling Act will not be in a tearing hurry to sell. Only those in dire need might do so, but their numbers are minuscule, says Anwar Pasha of Silicon Properties.


ULCA repeal to check land prices:

The repeal of the Urban Land Ceiling Act (ULCA) is likely to check the spiralling land prices. With more land becoming available to the market, the demand-supply situation is expected to improve significantly thereby indicating stability in property prices if not bring them down immediately, analysts feel.

In the city market alone, it is expected that about 20,000 acres would become available for realtors and builders.
-The Times of India

Realty prices may go down in AP:

“We expect prices to stabilise in the immediate future. But in the coming months, say six months from now, land prices will come down,” said George Johnson, Regional Director, Jones Lang La Salle Meghraj.

"The whole world is moving towards liberalization. So, we have repealed this ULC Act to speed up economic growth. In fact, McKinsey has said that litigation-free land can boost economy growth rate by 1.3%," said Dharmana Prasada Rao, Revenue Minister, Andhra Pradesh.

But concerns remain. An earlier decision to free up the Floor Space Index in Hyderabad was expected to bring down property prices. Instead, stringent conditions attached to the new rules, fuelled a 50% increase in realty prices. Land in Hyderabad currently costs between Rs 40 lakh to a whopping Rs 55 crore an acre. So, even a small reduction in land prices will be a blessing for residents.
Moneycontrol India

Friday, March 28, 2008

Ajmera Group - Dhaval wishes to see Ajmera Realty & Infra Ltd in the top 3 real estate developers of India over the next 5 years

A USD 450 million group, with interest in steel and real estate (merged in listed entity- Shree Precoated Steels Ltd.), the Ajmera Group is synonymous with mega residential projects in the financial capital.

Taking the 45-year old family legacy forward is Dhaval Ajmera, who joined the family business right after his MBA from Cardiff University. He is spearheading the realty business and is responsible for taking the Ajmera Group beyond Mumbai and Maharashtra.

With a group turnover of approximately Rs 1,327 crore, Dhaval is keen to give the competition, a run for their money. Expect large townships and affordable housing from this man on the move. Malls, multiplexes and entertainment hubs will also be given a push.

Dhaval talks about Bhakti Park Gardens, the largest private gardens (25 acres!) in Central Mumbai, upcoming projects in Bahrain and about his listed company. Read excerpts from CNBC-TV18’s exclusive interview:
Moneycontrol India

Thursday, March 27, 2008

Abu Dhabi Investment House launch $400m Shariah-compliant India Entertainment City fund to finance India Entertainment City in Navi Mumbai

The fund, which has an investment period of two and a half years, is expected to achieve a 75% return on investment (ROI) over the period of the investment.

The new project is built on ADIH's innovative Entertainment City concept, which is currently being implemented in Qatar. The concept consists of a mixed-use development comprising residential and retail components and focusing on the family entertainment industry - a concept that is unique to the countries in which it is being executed.

Wednesday, March 26, 2008

Indian real estate shows a rapid shift in the focus from the metros and Tier I cities to the Tier II and Tier III cities

The industry is moving over from Delhi, Mumbai, and Chennai, to pave the path for the new contestants in the race. The real estate industry has realised that there is life and potential for growth of the industry beyond the mega and metropolitan cities in India.

Tier II cities like Ghaziabad, Rohtak, Faridabad, Bhiwani, Chandigarh, Indore, Ahmedabad, Kochi, Secunderabad, Rajkot, and Pune,, Nagpur, Surat, Vadodara, Visakhapatnam and Jaipur are experiencing the initial phase of rapid economic growth.

The major industrial sectors are making huge investments in these cities, making them hotbeds for growth and development. These towns have a sea of opportunities in store, both from the demand and supply sides.
Shaping dreams: The emerging metros of tomorrow

Tuesday, March 25, 2008

Satra Properties acquires property in Jodhpur

Satra Properties India Ltd has announced that the Company has signed DEED OF ASSIGNMENT for prime Retail property in Jodhpur Rajasthan.
The company made this announcement during trading hours today, 25 March 2008.
Dreams the Mall:
The state-of-the-art shopping mall is located in the prime shopping destination of Jodhpur.

The proposed mall will be home to Anchor Store, Food Courts, Restaurants and 4 screen multiplex which shall create a delightful shopping ambiance and entertainment experience.

The 200 sq ft frontage on Nayi Sadak Road, Jodhpur will be city's one of the largest retail and entertainment complex, having potential to develop Saleable Area of approx. 1,21,000 sq ft generating approx. revenue of Rs 133.78 Crores.

The Mall is planned to provide business opportunity & offers international retail and entertainment facility to enhance shopping pleasure in the historic City of Jodhpur.

The construction work on the said project is started in full swing and expected to be completed within a period of 18 to 20 months.

The stock was trading at Rs.81.10, up by Rs.7.80 or 10.64%. The stock hit an intraday high of Rs.83.50 and low of Rs.72.

The total traded quantity was 84615 compared to 2 week average of 94567.

Private Equity investments in Indian real estate markets: Builders to feel the pinch as PE firms stay away

With a slowdown in private equity (PE) investments in real estate markets in India, builders and international property consultants believe that holding power of builders in certain real estate projects is expected to reduce in the 2008-09 fiscal.

While on one hand PE money is pouring into the real estate sector, the moot point is that capital available in real estate funding is very limited and is offered to only select clients. As a result, top five developers in suburban Mumbai are cutting down on the realty selling prices by about 10% to 12%, according to sources.
- Financial Express

Monday, March 24, 2008

Socially responsible investing

Socially responsible investing (SRI) is an investment strategy that could pave the way for future markets and economies. It's the inevitable future and the faster one learns, adapts and uses the fundamentals presented, the better it would be for the individual, company and the nation's growth. The reason it is touted as the inevitable future of investment is, as we all know that sooner or later we will run out of resources to support man and it will not be long before humankind makes drastic changes to ensure its survival.
- Yahoo! India News

Sunday, March 16, 2008

At least 50 property-related initial public offerings in the next year as Indian real estate industry booms - Anish Jhaveri, HSBC Holdings

Jhaveri said that venture capitalists and NRI investors were poised to invest over $5 billion in the Indian real estate sector, without providing more details. “People are seeking more clarity” on possible changes to property regulations before investing, he said.

His forecast takes into account the possibility that India could allow real estate investment trusts, or REITs, to invest in the nation’s property industry. Still, of the 50 real estate related IPOs that he predicted would take place in the next year, he only expected a “small” number to be REITs.
Indian Real Estate Boom Lures Foreign Investors

Friday, March 14, 2008

Unitech, Indiabulls and DLF: exploring private placements instead of Singapore REIT

The two companies, Unitech Ltd. and Indiabulls Real Estate Ltd., have deferred plans to list their respective real estate investment trusts on the Singapore Stock Exchange owing to a shortage of liquidity in the global markets.

Unitech fell 28.6 rupees, or 9.7 percent, to 265.95 and Indiabulls Real Estate dropped 73.95 rupees, or 13 percent, to 494.15.


Larger rival DLF Ltd might also delay its plans for a Singapore RIET listing, a source told Reuters earlier this week.

Unitech, had planned to raise about $500 million, Indiabulls Real Estate about $1 billion and DLF $1.5 billion from the initial public offers of their real estate investment trusts in Singapore.

Indian developers, hit by soaring land costs and curbs on bank loans, are looking to tap REITs, which are not yet allowed in India, although draft guidelines for them were issued in December.
- The Financial Express

Related Story:

DLF : Getting real

Indian real estate sector emerges as one of the biggest areas of personal investment

Another interesting aspect of real estate, which could help tremendously in personal finance is “rent discounting”.

The tool allows an individual or company to raise money through the ownership of real estate. For instance, if an apartment has been rented out for Rs.20,000 a month and the owner needs a large chunk of money for, say, a wedding or an emergency, he/she could approach an agency, which works with rent discounting. The agency would give them a loan for a certain amount. The rent that the individual gets would be used to pay back the loan.

With rent discounting, you could utilise the amounts recovered to spin off a property investment or pay off an existing loan against an existing property and within no time an individual or company could be owners of several properties.
Gold rush

Foreign Direct Investment and Foreign Institutional Investors in Indian real estate - why the Cabinet has not cleared the proposal?

Greater stock market play in real estate scrips

Financial experts are assuming that government fears of possible greater capital inflow in case of making change in FDI norms in real estate sector.

The step to delink the FDI provision from investments by FII in real estate (under the portfolio investment scheme) might lead to greater stock market play in real estate scrips.

Government has also rejected the proposal of permitting FII in pre-IPO placements of Indian realty companies.
Government has not made a clarification on the proposal of not detaching the Foreign Direct Investment (FDI) provisions from investments in real estate sector.

The government has also not make clearance over the issue of relaxing the compulsory three-year lock-in period for Foreign Institutional Investors (FII) in real estate sector.

Thursday, March 13, 2008

Dubai Properties Targets High Net-Worth Indian Investors at Mumbai Extravaganza 2008

Indian Real Estate Investors:

Indian nationals are amongst the top investors within the booming real estate market in Dubai.

In 2007, Indian Nationals spent AED 4 billion on real estate in Dubai and over the past 10 years, a total of AED 6.5 Billion.

While the majority of these real estate buyers were Indians living within the UAE, 10% of them were living in India or otherwise.

Dubai Properties:

“We were pleased with our presence at Mumbai Extravaganza,"said Mohamed Binbrek, CEO of Dubai Properties.

Jumeirah Beach Residence (JBR) - the largest single phase residential development in the world, The Villa - an enchanting residential retreat, inspired by generous spaces for outdoor living, the coolness and tranquility of Spanish style courtyard housing and many more exclusive projects are developed by Dubai Properties.

Mumbai Extravaganza:

Mumbai Extravaganza, an event by Shorex Ltd., the award-winning London-based wealth management event specialist, offered a unique platform for international real estate institutions as well as developers to launch and promote new products.
- Property World ME

CapitaLand Limited, a Singapore-based large real estate developer, announces to found two PE funds in China and India, with total capital of USD 1.2 b

CapitaLand, a veteran company in the operation of industrial funds, invests in China once more after setting up China commercial real estate private equity (PE) fund in 2006.

USD 600 million out of the total capital, USD 1.2 billion, is to be used in the establishment of CapitaRetail China Development Fund.

The news does not mention anything about Indian private equity (PE) fund!

Sunday, March 9, 2008

Sobha Lifestyle, villa project near new Bangalore International Airport at Devanahalli, launched

Spread over 55 acres with 165 villas, ranging from price points of Rs 3 crore to Rs 5.1 crore, measuring 5000, 7000 and 10,000 square feet, the project, Sobha Lifestyle, is located around seven kms away from the airport.

The project cost is estimated to be around Rs 250-260 crore and is expected to be completed by end of 2010. The land owned by Rennaissance Developers is being jointly developed by Rennaissance and Sobha, said J C Sharma, Managing Director, Shobha Developers Limited (SDL).
-The Economic Times

Saturday, March 8, 2008

The BSE Realty index underperformed the market over the past one month till 5 March 2008, declining 21.89% compared to the Sensex’s fall of 11.37%

It underperformed Sensex.

The BSE Sensex was down 639.40 points or 3.87% to 15,902.32, on weak global cues. Concerns on the political front also weighed on the market after the Communist Party of India-Marxists (CPM) on Thursday, 6 March 2008, renewed its threat on the United Progressive Alliance (UPA) government saying that the ruling coalition’s future depended on how it took the call on pursuing the Indo-US nuclear deal.

Key losers from real estate sector were DLF (down 5.25% to Rs 645.50), Unitech (down 9.15% to Rs 283.95), and Parsvnath Developers (down 6.10% to Rs 224.70) declined.

The BSE Realty index had underperformed the market in the past one quarter, declining 26.54% compared to Sensex’s decline of 16.44%.
BSE Realty index worst hit in market fall