Monday, July 21, 2008

Milestone Capital Advisors, a management Venture Fund House to invest up to Rs. 1,000 crore in Maharashtra

"Pune has emerged as a favored destination for the IT sector. This has led to an explosive growth in the real estate markets, with prices rising by almost 200 per cent in three years. Therefore we believe that in Maharashtra, Pune presents among the best opportunities for a good return on our investment. We believe Pune is ripe to have low cost (Rs 10 - 25 lakhs) affordable housing integrated township projects," Ved Prakash Arya, managing director of Milestone Capital Advisors said.
- ExpressIndia.Com

Saturday, July 12, 2008

Hinjewadi, Pune to Tirupur - Dalmia’s Landmark Holdings Goes South!

Delhi-based Landmark Land Holdings Pvt. Ltd. has ventured into south India’s real estate market. The investment arm of the Dalmia group has picked up a 25 per cent stake in a special purpose vehicle floated by Prime Textiles, a vertically integrated textile manufacturing company based out of Tirupur.

The SPV will develop 20 acres of residential, retail, commercial and hotel development with a built up area of 1.9 million square feet.

Landmark has recently picked up a 10 per cent stake in a SPV floated by Kumar Builders that is developing a 124-acre integrated township and SEZ project at Hinjewadi in Pune.
Dalmia’s Landmark Holdings Goes South; Picks Up 25% In Tirupur SPV

Friday, July 11, 2008

Tips by Money Central, Times Online Blog

Advice you can bank on:

I enjoy reading tips. I suddenly feel enlightened and happy. Some times, actually most of the times, the tip is not new. I knew about it all the time. Still tip is a tip. Even when it is published on Times Online blog and not relevant to Pune or India. So what? We are creative enough to get inspired and alter it according to our circumstances. Because we also want to survive in all time high inflation, we wish to save, we enjoy getting things free and yes, we want to invest and prosper. Go ahead and visit the links:

1) 50 tips to ride out a recession:

With the economy teetering on the brink of a nervous breakdown, it is time to prepare for the worst..Tips -

2) Ten ways to save without even noticing:

Fear not, there are ways that you can save without even noticing...Ways to save -

3) 50 great things you can get free:

"The best things in life are free", sang the Beatles....Free! -

4) The Thrifty 50:

From couch sufing to dumping your TV, get rich quick with our ultimate guide to penny pinching...Save -

5) The 20 Golden Rules of Investment

Investing your own money is a complicated and potentially dangerous business. One slip in the tricky world of stocks and shares can prove very costly. So Times Money offers a guide on how to survive and profit in the investment jungle...Rules -

6) 3 tips to invest smartly in Pune real estate market:

First tip is - share your tips in the comments. Second tip is "subscribe now" to my Ravi Karandeekar's Pune Real Estate Investment Blog. Third tip is - "visit my Google group" Ravi Karandeekar's Pune Real Estate Blog Group to know about my blogs on Pune real estate and related topics.
Visit the individual blog and subscribe for free! ( Free tip!)

Wednesday, July 9, 2008

Even if you own a house, you can claim HRA deductions

Leading up to the last date of filing tax returns (July 31), over the past few weeks, this column has been dealing with various issues related with the tax-filing process.

Continuing with the same theme, this week we shall examine some of the finer points related to tax deductions —- these nuance are less commonly known and it is hoped that an understanding of the same would help the reader optimise his or her tax return, not only in terms of paying lesser tax but also making it error free.

First up is HRA or House Rent Allowance. Though the following point was covered in a recent piece, such widespread is the misperception that I think a reiteration is warranted. HRA and home loan provisions are two different issues as far as the Income Tax Act (ITA) is concerned and one does not influence the other. So, you may own a flat or any number of flats, either in the same city that you work in or anywhere else in the whole of India or for that matter abroad — this will, in no way influence the HRA deduction that you are entitled to. Conversely, notwithstanding the amount of HRA that you receive, your home loan deductions on the EMIs for the house that you have bought or intend to buy will not.
DNA - Money - Don’t mix HRA, home loan benefits

Tuesday, July 8, 2008


After having raised Rs 1,500 crore from private equity funds Citi Venture Capital International and AIG, the publicly listed Akruti City, Akruti City Limited (formerly known as Akruti Nirman Limited), is now planning to form a 50:50 joint venture (JV) with USA-based Pacific Alliance Group (PAG) - an entity involved in construction apart from residential and townships development.

Currently, Akruti City is developing three large-scale commercial projects in Andheri, Kanjurmarg and Bandra-Kurla Complex (BKC). Shah said, “By August, we will also launch 12 new real estate projects in Mumbai, Pune, Thane, Surat, Ahmedabad and Baroda
Financial Express

SBI raises floating rate on home loans by 0.5 per cent

HDFC, ICICI Bank have already increased home loans rate by 0.75 per cent.

State Bank of India, the country's largest lender, has increased its floating home loan rate by 50 basis points across all tenors with effect from 27 June, the day on which the bank increased its PLR by 0.5 per cent.

For home loans of up to Rs30 lakh and 20 and 25 years tenure, the interest rate has been increased by 0.5 per cent to 11 per cent against 10.5 per cent, SBI said in a release.

Equated monthly installment (EMI) for 25 years would go up from Rs945 to Rs980 per one lakh while for 20 year EMI would go by Rs35 to Rs1,035.

For housing loans with maturity between 10 and 15 years, the interest rate has gone up to 10.75 per cent. EMIs under these maturities would go up to 35.

For five years, the new rate of interest is 10.5 percent, against 10 percent earlier. EMI in the category would rise by Rs 25 to Rs 2150 per one lakh.

For housing loans above Rs30 lakh, the increase is 0.5 per cent across all tenors. The maximum rate in the segment has gone up to 11.25 per cent.

SBI, however, has left fixed rate home loan untouched at 12.75 per cent.

Floating interest rate is linked to State Bank Advance Rate(SBAR) 12.75 per cent per annum, it said.

The decision follows Reserve Bank's 24 June announcement of a 0.5 per cent hike in both its short-term lending rate to banks and the cash reserve requirement of banks. :

Monday, July 7, 2008

Managing repayment of home loans

In this article Shubha Ganesh discusses options available for the existing home loan borrowers to manage the additional cost of borrowings; means increased EMI because of the higher interest rates.

What should the floating rate borrowers do now? What are their options?

1) Pay higher EMI (equated monthly installments )

2) Increase the tenure of the loan

3) Prepay part of the loan to retain the original EMI.

4) Options for the new home loan borrowers.:
Shubha Ganesh - The Economic Times

Friday, July 4, 2008

DS Kulkarni sells 50 % stake in 250 acre Phursungi multi-service special economic zone to investment firm GTC Cyprus for $90 million

DS Kulkarni Developers Ltd (DSKDL) and GTC Cyprus, a Kardan Group Company: 50:50 joint venture (JV)

1) Business Standard says: DS Kulkarni Developers Ltd (DSKDL) has executed a shareholders agreement with GTC Cyprus, a Kardan Group Company, to jointly develop a 250 acres Multi-Service SEZ Project in Pune through a 50:50 joint venture (JV).

2) DS Kulkarni sells 50 pct in Pune SEZ unit for $90 mln | Reuters

3) DSK shares closed Friday 4.54 percent higher at 94.50 rupees on the Bombay Stock Exchange, while the benchmark Sensex ended up 2.75 percent at 13,454.00, writes Thomson Financial.

4) According to India Infoline: Any further equity contribution will be made by DSKDL and GTC in their respective shareholding proportion.

The total built-up area of the SEZ is estimated to be over 15mn sq. ft. and the total investment in the project is estimated to be around US$1bn.

5) RTTNews: Friday, DS Kulkarni Developers said that they have executed shareholders agreement with GTC Cyprus, a Kardan Group company.

6) Incidentally it may be the first Multi-Service SEZ in Maharashtra that may soon start taking shape: The Hindu Business Line:

DS Kulkarni Developers Ltd (DSKDL) has informed BSE that the Company has executed a Shareholders Agreement with GTC Cyprus, a Kardan Group Company.

7) My iris: Shares of DS Kulkarni Developers gained Rs 4.6, or 5.09%, to trade at Rs 95. The total volume of shares traded was 71,837 at the BSE (3.05 p.m., Friday).

8) The Economic Times: ET has it's usual clarity in it's news. For example: 1) GTC Cyprus, would infuse about $ 90 million (about Rs 388 crore)
2) net investment of one billion dollars (about Rs 4,311 crore)
3) the Pune-based firm said in a filing to the Bombay Stock Exchange.
4) GTC Cyprus is a part of Netherlands-based Kardan Group, which is engaged in developing real estate projects in Western Eastern Europe, Central Europe and China.

9) Bombay Stock Exchange: Announcement News:
Scrip Code:523890 Company:DS Kulkarni Developers Ltd :
Subject: DS Kulkarni - SEZ deal with GTC

10) NDTV Profit: DS Kulkarni, GTC Cyprus to jointly develop SEZ in Pune

Back ground:
Ravi Karandeekar's Pune Real Estate Investment Blog:

1) In November 2007, D.S. Kulkarni Developers Ltd. (DSKDL) had signed a term sheet ('TS') with international investment company Kardan's (Kardan N. V.) subsidiary GTC Real Estate N.V. (GTC RE) to develop a phased commercial and residential project, multi service SEZ, at Fursungi, near Hadapsar in Pune, India.

2) According to BNR Nieusradio, DSK and Kardan will establish a 50%-50% joint venture (JV). DSKDL will transfer to the JV a land plot of approximately 1 million sq.m. In consideration for its share in the JV, GTC RE will transfer, in installments, the current Indian Rupee equivalent of $ 95 million (EUR 64 million).

3) The closing of the transaction was subject to certain conditions precedent, including the approvals of the boards of directors of both parties, due diligence and the signing of a detailed agreement.

Looks like that now we can congratulate DSK and wish all the best to Kardan!

Has Indian growth story gone shaky? Plunging stock - high inflation - weakening rupee - now, bank loans for the first quarter confirms the slowdown -

RBI policy tightening takes a toll on credit:

According to the latest data released by RBI on Thursday, total non-food credit extended by commercial banks amounted to Rs 23,42,973 crore as on June 20 — the last reporting Friday of the quarter. This represents an absolute growth of Rs 38,879 crore for the quarter. And it seems to allay fears of a slowdown in credit offtake.

In fact, bankers are not seeing a significant pick-up in credit demand and a significant chunk is believed to be from oil companies to meet their working capital demand, as crude prices are touching new highs.

Also, demand from home-loan seekers, too, is low at such times. Besides, high real estate prices still high in most pockets and northward interest rates have further affected demand for home loans.

RBI policy tightening takes a toll on credit

Related Story:

Banks encourage prepayment on home loans, waive penalty

Banks encourage prepayment on home loans, waive penalty

Tight liquidity conditions and High cost of funds:

This move by banks follows increases in the repo rate, or the rate at which the central bank lends money to banks, and the cash reserve ratio, the percentage of deposits banks must keep with the central bank, two weeks ago.

With access to funds growing more expensive, most banks raised their lending rates 50 basis points to 100 basis points. SBI raised its rates by 50 basis points last week, and ICICI Bank and HDFC by 75 basis points.

Analysts said banks are looking at aggressively encouraging part-prepayment because of tight liquidity conditions and the high cost of funds. "Such prepayments will help banks to access cheap funds from consumers that can be redeployed to high interest earning segments like personal and corporate loans," said a banking expert.
Business Standard

Thursday, July 3, 2008

Hinjewadi: real estate investment destination in Pune real estate market

Kumar Builders' Hinjewadi Township & SEZ - Landmark Land Holdings, the real estate investment arm of the Dalmia group, acquires 10 % equity stake :

This is the first news about Kumar Builders' township and SEZ in Hinjewadi. We already have two townships in Hinjewadi. Paranjape Schemes' Blue Ridge and Kumar Properties and Avinash Bhosale Groups' Megapolis.

Both townships got very good bookings at the lunch. Property investors are eagerly waiting for the 2nd phase of Blue Ridge's bookings to open. Megapolis' 1st phase is almost booked.

Soon, mostly in the last quarter of this year, Kolte Patil's Hinjewadi township and SEZ will be launched. By that time, Nanded City Pune will also open 2nd phase of booking. Hinjewadi and west side of Pune, is going to become a center of real estate investment in Pune real estate market.

An Integrated Township & S.E.Z. at Hinjewadi:

The envisaged project size is 124 acres of land, with a saleable area of around 10 mn. sft. and an expected revenue in excess of USD1 billion. Landmark Land Holdings Pvt. Ltd. has acquired approximately 10% Equity in the project for an undisclosed sum, with an option for additional investment upto 49% in the SPV.

The project site is 2.5 kms. away from the Mumbai-Pune Expressway, and adjacent to the Rajiv Gandhi Software Technology Park. It is regarded to be one of the best locations in Hinjewadi, and is in the neighborhood of I.T. giants like Infosys, Wipro Geometrics, Tata Technologies, Cognizant, etc.

Pune - IT Destination:

Landmark is quite bullish on Pune as a destination, which is emerging as an alternative I.T. hub. With its proximity to Mumbai, and with Bangalore & Mumbai's resources having been tapped to saturation levels, it is envisaged that the migration of several I.T. companies here is slated to be an ongoing process. The second largest campus of Infosys is located in Pune.

Real estate investment arm of Dalmia Group:

Landmark Holdings, as per the it's website, was formed as a focused real estate investment vehicle of the Dalmia Group in 2002. Landmark invests primarily in residential developments, and opportunistically in commercial and retail projects.

Landmark estimates that it has invested in projects whose total post-development liquidation value is approx. $6 billion. While a majority of its current interests are in North India.

Gaurav Dalmia - Founder and Chairman of Landmark Holdings:

Gaurav Dalmia is a member of a leading industrial family in India, with substantial business interests mostly in India, UK and USA. The Dalmia Group has interests in cement, industrial ceramics, chemicals, real estate, information technology, investments, engineering and trading.

Mr. Dalmia sits on the Boards of various companies and investment vehicles in India, Europe and the US. He was selected by the World Economic Forum as a Global Leader for Tomorrow for the year 2000. He has a BS in Computer Science from Salford University in the UK (Ranked 1 in 200) and an MBA from Columbia Business School (top 5% of class).
Moneycontrol India

Asia's Emerging Markets Have Crashed--Will Economies Follow?

Part of the "safe harbor" theory was the thesis that emerging-market economies would steam along even as the US economy slumped. This was (is) important not only for investors in emerging markets, but those who do business in them--the globally diversified companies that many analysts tout as immune to a US slowdown. And so far, emerging market economies have held up. The collapse of their stock markets, however, suggests that an economic downturn might not be far off.

What might kill these economies? Three possibilities:
Asia's Emerging Markets Have Crashed--Will Economies Follow?

Posted using ShareThis

Wednesday, July 2, 2008

Should you invest in ING Investment’s Latin America Equity Fund?

Only the knowledgeable investor should venture forth:

ING Investment Management India has launched the ING Latin America Equity Fund. A fund of fund, it will invest in the ING Invest Latin America Fund that invests in Latin American stocks.

High net worth investors wishing to diversify their portfolio could put up to 5 per cent of their equity investments in this fund. But clearly, this is an investment for only the informed investor who has the time and the knowledge to keep an eye on the macro-economic environment in India and Latin America.
The positives and The negatives:
Samba time?

Related Story:

Carefully examine pros and cons before investing in international mutual funds

Carefully examine pros and cons before investing in international mutual funds

Since the domestic environment is adverse, mutual fund houses are touting international funds as a panacea.

Mirae Asset Management has launched its Global Commodity Stock Fund (NFO open from June 24 to July 23).

ING has launched its Latin America Equity Fund (NFO open from June 19 to July 10). The offer document for another, ING Global Access Fund, is filed with Sebi.

If these new fund offers receive a good response, more could follow to add to the 15 international funds already available in the market.

However, before capitulating to mutual fund houses’ hardsell and investing in these products, investors need to carefully examine their pros and cons.

Mirae Asset Global Investment Management (India) Pvt. Ltd.

Mirae Asset Global Investment Management (India) Pvt. Ltd. is a wholly owned subsidiary of the Mirae Asset Financial Group head quartered in Seoul, South Korea. Globally, the diversified businesses of Mirae Asset Financial Group manage over USD 130 billion* in assets across asset management, life insurance, securities and capital & venture investment.

About ING Group:

ING Group is a global financial institution of Dutch origin with 120,000 employees. ING offers banking, insurance and asset management to more than 60 million clients in over 50 countries. The clients are individuals, families, small businesses, large corporations, institutions and governments. ING comprises a broad spectrum of prominent businesses that increasingly serve their clients under the ING brand.

ING in India:

In India, ING is present in all three fields of banking, insurance and asset management in the form of ING Vysya Bank, ING Vysya Life Insurance and ING Investment Management respectively. The presence in all three fields signifies the importance that the group attaches to the Indian markets and the group's operations here, as well as its bullish future outlook on the country.

ING Investment Management:

In India ING Investment Management (I) Pvt Ltd has an investor base of over 1,52,677 with Rs. 5080.97 crores as of June 30th, ’07 (Source: ). With a presence in 34 locations, we currently manage 21 schemes. Read more