Bangalore Reality Speculation

CITY’S NORTH, EAST SET TO GROW

2015-12-31T16:23:00.002-08:00

Knight Frank projects Thanisandra and Panathur-Varthur as the future of Bengaluru

Looking to invest in residential property next year? Panathur-Varthur and Thanisandra are the areas you could keep an eye on. Knight Frank India on Wednesday came out with the second edition of their Residential Investment Advisory Report 2016 in which they mentioned Thanisandra and Panathur-Varthur areas which are likely to see a price appreciation of 61 per cent and 55 per cent by 2020.

The company has made the predictions based on key factors of infrastructure and employment opportunities.
Satish BN, executive director, Knight Frank, said, "Areas like Sarjapur, outer ring road and Whitefield are exhausted. The traffic has made companies look for locations that are congestion-free. Current rates of Thanisandra are at Rs 4,000 per sq.ft that would appreciate to Rs 7,450 by 2020. Similar is the case with Panathur-Varthur which currently is running at a rate of Rs 4,350 and expected to appreciate to Rs 7,000 per sq.ft."
In Bengaluru, the realty sector is determined by IT/ITes sector and this has been followed by the recent entry of ecommerce players in terms of employment apart from metro rail in terms of infrastructure.
Thanisandra, located in North Bengaluru, is expected to have a seven million square feet office space potential in the next two years. This would create almost 80,000 new jobs. Satish said, "Once the companies set up offices, the prices will shoot up. It is advisable to buy at the current rate. North Bengaluru is increasingly being considered as a new location by companies. There is also good social infrastructure in terms of malls and hospitals near the area."
Thanisandra is located in proximity to three under construction employment hubs - Brigade Magnum located at Hebbal (7 km), Karle IT SEZ at Nagawara (4 km) and Ecopolis IT SEZ at Yelahanka (12 km). The international airport is 30 km away from the area and Hebbal railway station is 11 km away. Retail hubs such as Esteem Mall and Elements Mall are also nearby.
Panathur-Varthur on the other hand is located in East Bengaluru and is expected to have 8 million square feet office space in the next two years. This is expected to see 90,000 jobs. The area is in close proximity to seven
employment hubs namely ITPB, Whitefield, Prestige Ozone, Whitefield, HUL Research centre, Whitefield, RMZ Ecoworld, ORR, Cessna Business Park, ORR, Pritech IT Park, ORR, and Embassy Tech Village, ORR. The Whitefield railway station is 15 km away and the airport is 51 km away. Retail hubs such as Forum Value Mall, Inorbit Mall and Soul Space Arena Mall are all nearby.

Though both areas are marked as "high appreciating", it is believed that Thanisandra would grow better as most tech companies are looking to shift towards North Bengaluru. Satish said, "The only discouraging point of Thanisandra is water shortage. But we do not know what can be done of that."

Property dealers looking to invest in office segment

2015-11-05T16:18:00.000-08:00

With commercial real estate showing signs of recovery, property developers that had stopped investing additionally in this segment are now looking to invest in office projects. The rising interest is this space has been generated by better demand outlook and constrained supply of grade A office spaces as most developers did not launch any major office projects since 2009, given the weak uptake until recently.

According to property consultancy firm Cushman & Wakefield, net office absorption in the top eight cities is expected to touch 36.5 million sq ft in 2015, which will be 18% more than last year, and 65% higher than 2013. "We will see the highest net absorption for office space this year since 2008 peak of 40 million sq ft. This has clearly attracted developers' attention as given the current stagnation in residential market, commercial segment is offering some optimism to them.

"Eventually, the fact that more jobs are getting created will lead to increased demand for residential projects among buyers," said Sanjay Dutt, executive MD, South Asia, Cushman & Wakefield. Developers such as RMZ Corp, Mantri Developers, Supreme Universal, Vatika Group across property markets are now looking to launch and build more commercial projects. "Mood to buy homes is somber now but when market picks up, south (India) will be the first to flip back as most white collar jobs are created here," said Raj Menda, Corporate Chairman, RMZ Corp. Bengaluru-based RMZ is in the process of acquiring some commercial assets of BPTP and Equinox Realty to increase its portfolio. The company is also entering Mumbai, Gurgaon, Pune and Hyderabad markets by acquiring assets. It has been annually constructing 2 million sq ft of commercial property across major cities in India and expects to step it up to 3 million sq ft.

Apart from looking to construct more commercial projects, developers are also building their commercial projects portfolio by acquiring ready properties.

"Given the current response for our 1.5-lakh sq ft commercial project at Baner in Pune, we are looking to launch one more commercial project spread over 5 acres there. In Mumbai, we are reviewing proposals for joint ventures for undertaking commercial projects as well as for acquiring preleased commercial properties," said Sunny Bijlani, director, Supreme Universal. In Delhi-NCR too, Vatika Group is also increasing its focus on commercial projects, given the sluggish state of residential market for developers, the alignment in focus is also a part of balanced business strategy.

Sushil Mantri of Mantri Developers of Bengaluru said his company is looking to build a portfolio of 10 million sq ft in five years. "Real estate is a cyclical business with ups and downs. There is a need for balanced portfolio, so we diversified into yield business," said Mantri. The company has converted a one million sq ft of hotel property in Bengaluru to commercial.

Hospitality has a long gestation period and is a non-viable loss making business. We will only do hotels in mixed used development, depending on demand," said Mantri. The company has created a rental yield business under Aditya Sikri as CEO to drive commercial and retail business for the company. The company aims to now have 65%residential portfolio from 85% now.

RMZ has also converted a 5-lakhsq-ft property in Bengaluru's Devanahalli into commercial with demand being high on this segment. In 2009, a reverse trend was observed wherein developers converted their commercial projects into residential ones. "There is a significant pick-up in commercial in the last one and a half year. Office leasing has been booked in advance with around 70-80% of the under construction properties being pre-committed in advance by Fortune 500 companies," said Nishant Singhal director-strategy, Investors Clinic, explaining the reversal in trend.

Realty firm Salarpuria set to buy Essar luxury project Water's Edge in Hebbal

2015-10-18T23:13:00.000-07:00

City-based developer Salarpuria Sattva is in advanced talks with Equinox Realty, the real estate arm of $35 billion conglomerate Essar Group, to acquire its luxury residential project Water's Edge that's located in Hebbal. The project spread over 8 acres houses would be amongst the tallest building in the city. The project is learnt to have run into delays leading to cost-overruns. Essar has been in protracted talks with multiple suitors to offload the residential project for sometime now.

The deal making with Salarpuria was nearing closure though financial details could not be ascertained at the time of going to press. Sources said the projected was valued at over $100 million but Equinox had already sold a part of the inventory.

Calls and text message to Bijay Agarwal, managing director of Salarpuria Sattva Group, remained unanswered till the time of going to press.

Piramal Fund, Altico Cap to invest Rs 725 crore in century projects

2015-10-11T12:43:00.003-07:00

Piramal Fund Management and Clearwater Capital's non-banking financial company Altico Capital have entered into an agreement to invest Rs 725 crore in a clutch of projects of Bengaluru based Century Real Estate.

The investment will be made through structured debt in stages over the next five years as part of the deal, which is one of the largest private equity transactions for Bengaluru's real estate market.

Of the total investment, Rs 620 crore will be structured debt while Rs 105 crore will be construction finance, executives said. Piramal Fund Management and Altico Capital will put in 50% each of the structured debt amount, while construction finance will be entirely funded by Piramal Fund Management.

"The investment is being made into a portfolio of nine projects across different locations in Bengaluru. We will have security of cash flow from these projects and have additional security in the form of land," Khushru Jijina, managing director of Piramal Fund Management told

An email query sent to Clearwater Capital remained unanswered till late evening on Thursday.

Part of the funds raised will be used by Century Real Estate to support Kotak Realty Fund's exit valued at Rs 375 crore from its portfolio of three projects. Kotak Realty had invested Rs 170 crore in these projects through its funds in 2011 and has managed to get over 20% internal rate of return for its investment.

The three projects in the portfolio include a joint development project with Salarpuria Group, while the other two are completely owned by Century Real Estate.

"We have made an exit from Century's portfolio of three projects we had invested in 2011. The partnership has proved fruitful as the investments have provided us over 20% IRR," said Vikas Chimakurthy, director at Kotak Realty Fund. Century Real Estate Holding's managing director Ravindra Pai said the company raised the money against "6 million sq ft receivables including joint development projects".

The company has invested the funds for a period of six years. Century has about 21 million sq ft of property under development including joint development. It has a debt of Rs 500 crore. Pai further said that the company has deferred its initial public offering plan as the "primary market is not good" and it has been able to raise money privately.

According to Cushman & Wakefield, PE investments in real estate across the country increased to Rs 10,876 crore during the first half of the year fromRs 4,000 crore a year ago. The total number of deals increased to 39 from 27.

Steve Waugh inaugurates Sports Arena @ Brigade Orchards, Bangalore

2015-10-11T03:33:00.000-07:00

Former Australian Cricket Captain and Co-Founder of Sporting Edge, Steve Waugh and CMD of Brigade Enterprises Ltd, Mr. M R Jaishankar inaugurated the world class Sports Arena at Brigade Orchards.

Brigade Orchards in Devanahalli is Bangalore's first smart township. The 130 acre integrated enclave, located just minutes away from the Kempegowda International Airport and a short drive from Hebbal, is designed by American Master Planners Nbbj keeping in mind global best practices. With more than 80% open spaces, this integrated smart township is thoughtfully provided with everything one could possibly need - from school, hospital, cultural and sports facilities to entertainment, retail and office spaces.

Sports Arena @ Brigade Orchards

The Sports Arena will host academies for Cricket, Football, Tennis, Swimming and Athletics run by Sporting Edge, a Steve Waugh company. The lush green turf and picturesque backdrop of the Signature Club Resort amidst a series of Tropical Green Landscaping create a perfect setting for a day of sports with friends and family. Some key statistics of the facilities associated with the Sports Arena at Brigade Orchards are:

- Football field as per International Standards

- 400m Running Track with 6 lanes

- Cricket Oval with 5 practice pitches

- 4 Tennis Courts

- Volley Ball court

- Basket Ball court

- Half-Olympic size Swimming Pool

- Seating Capacity of 1000 with a proposed future capacity of 3000

Shares of BRIGADE ENTERPRISES LTD. was last trading in BSE at Rs.138.7 as compared to the previous close of Rs. 132.7. The total number of shares traded during the day was 13961 in over 380 trades.

The stock hit an intraday high of Rs. 140.5 and intraday low of 132.4. The net turnover during the day was Rs. 1913411.

Source: Equity Bulls

Embassy Industrial Parks to acquire around 200 acres at Hoskote and Devanahalli near Bengaluru

2015-10-11T03:12:00.002-07:00

Embassy Group, a real estate developer, on Thursday announced a joint venture with an affiliate of global private equity firm Warburg Pincus to foray into industrial and warehousing business.

Warburg Pincus will invest $175 million with majority stake in the newly created joint venture – Embassy Industrial Parks – while Embassy Group will pump in the remaining $75 million. FE had first reported the development in June this year. “This is our first foray into industrial parks and will focus on the development of warehousing spaces across key cities in the country. Over the next five years, we are looking at acquiring 50-200 acres in many cities to develop industrial parks,” Jitu Virwani, chairman & managing director, Embassy Group, said.

To begin with, the JV firm will mainly operate in six key cities such as Ahmedabad, Bengaluru, Chennai, Delhi, Mumbai and Pune. The firm is actively looking for land in these cities and hopes to acquire in these cities over the next year.

“We already have around 200 acres land at Sriperumbudur near Chennai, where our first industrial park will be established. We are in advanced stages of acquiring around 200 acres at Hoskote and Devanahalli near Bengaluru and 50 acres at Chakan near Pune,” Anshul Singhal, chief executive officer, Embassy Industrial Parks, said.

The JV will primarily operate on the lease-rental model that the Embassy Group has deployed in its commercial projects. These technology-enabled industrial and warehousing spaces are targeted at industry verticals such as e-commerce, FMCG, automobile ancillaries and retail.

“Warehousing in India is rapidly evolving from traditional set-ups with modern facilities. The market for such space is estimated to reach 125 million sq ft over the next five years. We want to play a significant role in this space,” Singhal said.

Embassy Industrial Parks will offer spaces in industrial parks and help clients set up or expand their operations in India. “Some of the big e-commerce players such as Amazon, Flipkart and Snapdeal are looking to expand their operations pan-India and we will provide them with modern warehousing space in our upcoming industrial parks,” Virwani said.

Embassy Group has till now delivered over 37 million sq ft space to over 150 marquee global and Indian corporates. Currently, the group is building a 2 million sq ft office space for Flipkart in Bengaluru.

“E-commerce has been one of the big drivers for warehousing space. Embassy Group, which has done so well in the commercial space, has started as an early mover in this space. The joint venture has put in place a dedicated team and we believe will help drive a rapid growth trajectory,” said Niten Malhan, managing director, Warburg Pincus India said.

In addition to the present investment in the new JV with Embassy Group, Warburg Pincus has invested over $3.5 billion in Indian companies. The firm has more than $35 billion in assets under management globally.

RITES Examining 2 Routes to Connect Nagavara with Bangalore’s International Airport in Phase 2A

2015-10-11T03:01:00.000-07:00

The Bangalore Metro Rail Corporation Ltd’s 9th Annual General Meeting held on September 24 at the Ministry of Urban Development’s Nirman Bhawan in Delhi discussed all matters pertinent to the Bangalore Metro – existing lines, financials along with the Phase 2 and 3. A PDF report covering it can be viewed here on the BMRCL’s website.

The report also includes the following note on Phase 2A of the project which envisages a link from Nagavara to the Kempegowda International Airport which opened for operations a little more than seven years ago in May 2008 (time flies fast, doesn’t it?)

Note on Phase 2A in AGM Report

Ever since the BIAL Airport was opened, many proposals have been made to connect it with either a regular metro line or with a high speed rail link with fewer stops similar to the one in Delhi. However, none of those options materialized due to a lack of consensus on the route and the financial viability of it. Even before Phase 2 of Bangalore’s metro project was cleared by the Central government in January 2014, the BMRCL issued a press note in June 2013 indicating they have engaged RITES Limited, an engineering consultancy firm, to prepare the Detailed Project Report (DPR) for Phases 2A and 3.

As per a report from earlier this year, RITES in their preliminary investigation had identified the following five routes to connect to the airport:

The consultants are primarily focusing on extending Namma Metro from Nagawara to International airport via Thanisandra, Begur; or Nagawara to International Airport via National Highway through Hebbal and Yelahanka; or from M G Road to International airport through Cubbon Road, Mehkri circle; Hebbal, Peenya to KIA through Jalahalli ; Hebbal and Peenya to KIA through Jalahalli, Yelahanka.

Fast forward 8 months, and now the AGM’s note indicates that RITES has now narrowed down to the following 2 routes which will be an extension of the new 21.2 km metro line between Gottigere & Nagavara in Phase 2:

Nagavara to Airport via Tanisandra & Begur;
Nagavara to Airport via National Highway — Hebbal & Yeliahanka

Here’s a map I’ve made which shows both the routes:

Phase 2A connecting Nagavara with Kempegowda International Airport

Note: The red line between Arabic College and Nagavara is part of the new 21.2 km metro line between Gottigere & Nagavara which will be developed in Phase 2.

So from 5 potential routes, it’s good to see that they’ve narrowed down to 2 options. What’s certain is that both routes will be designed to contain both elevated & underground sections. Construction of the elevated section will help bridge the gap quickly while the route will likely be underground within the Airport’s land & vicinity.

Even though this line is part of Phase 2A, it should not be mistaken to be an official part of Phase 2. Work on it will only begin once Phase 2 nears completion in 2020/21 and as such, a final alignment of the route will only be determined after a Techno-Economic Feasibility Report is prepared and all politicians & stakeholders are on board.

L&T plans 65 acre township in Hebbal

2015-09-24T09:25:00.002-07:00

Engineering major Larsen & Toubro (L&T) is planning to monetise its 67-acre land parcel in one of the plush areas of Bengaluru by developing a residential township there, said three persons with direct knowledge of the development. The plot that used to house L&T and Komatsu joint venture's manufacturing unit for heavy machines has now been vacated by shifting the factory.
"The joint venture between L&T and Komatsu is now limited only to marketing after the buyout. Komatsu has already moved its factory to the outskirts of Bengaluru," said one of the persons mentioned above. The entire land parcel will be developed in several phases in the next few years.
"At this stage, we decline to comment on the matter," L&T said in an email response to ET's query . Japanese mining equipment maker Komatsu exited its equal joint venture for hydraulic equipment manufacturing with L&T by selling its 50% stake in L&T Komatsu to the Indian partner two years ago. "L&T is looking at real estate engagement in a significant way . The land on which the factory was set up belonged to L&T and it has decided to take up real estate development," said said the earlier person.
Under the proposed plan, which has been submitted to the city's civic body, L&T's real estate development arm L&T Realty will be undertaking the project. "L&T has already received approval from the Bangalore Development Authority for the development of the land in Hebbal," said another person in the know of the matter.
In the first phase, the company will develop 3,200 highend apartments. The proposed project on the land parcel is expected to be priced around Rs 7,000 per sq ft. Hebbal, once the end points of Bengaluru in the north of the city, has emerged as a top residential destination, dotted with high-end, premium address es with apartments priced above Rs 1 crore.
L&T owns about 1,200 acres of land parcels across the country. L&T Realty began its operations in 2012 and is now undertaking projects in cities such as Mumbai, Bengaluru and Chennai where the group has owned land parcels. L&T owns around 1,200 acres of land parcels across the country , and is currently developing a 5-million sq ft mixed-use project at Seawoods in Navi Mumbai.
L&T Realty , along with its joint venture partner Omkar Realtors & Developers, is developing a premium residential project spread over 17 acres at Parel in central Mumbai. In Powai, the company is also developing a 3.6million sq ft premium residential complex. It has developed a commercial complex in Powai and has leased space to JPMorgan and sold an entire tower to Sanofi. The developer is executing a total 25 million sq ft of residential and commercial properties in Mumbai, Navi Mumbai, Chennai and Chandigarh.

Source: http://economictimes.indiatimes.com/articleshow/49085963.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Piramal invests Rs575 cr in Ozone township project in Bengaluru

2015-09-20T15:25:00.001-07:00

In a large, single project investment, real estate company Ozone Group has raised Rs.575 crore from Piramal Fund Management Pvt. Ltd for its 150-acre township in Bengaluru.

The money has been given through a structured transaction, combining debt with an equity kicker, primarily to refinance the developer’s existing loans and provide working capital, Ozone executives said.

Of the total funding, Rs.400 crore will go towards refinancing Ozone’s bank loans and the remaining will be used as working capital.

The project, Ozone Urbana, in northern Bengaluru, is under construction and will have nearly 11 million sq. ft of saleable area, comprising residences, office space and a hotel as well as homes for the old.

The project will be developed in four phases, and the first phase with 1,000 apartments will be delivered later this year. The project is expected to be completed in 2021.

Source: http://www.livemint.com/Companies/JxF1cOLs1oEjjKr0QF88nM/Piramal-invests-Rs575-cr-in-Ozone-township-project-in-Bengal.html

Taiwan electronics manufacturing cluster with investment of $500 million to come up in Devanahalli

2015-08-15T20:45:00.000-07:00

Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) today signed a pact with Karnataka Industrial Areas Development Board (KIADB) for establishing Taiwan Electronic Manufacturing Cluster (TEMC) here with an investment of $500 million.

The state Minister for Large & Medium Industry R V Deshpande had an interaction with TEEMA's 21 member delegation, led by Francis Tsai, Executive Director, TEEMA for establishing TEMC manufacturing facility in the 100-acre Devanahally IT park, according to an official release.

The meeting was "fruitful" with TEEMA agreeing to sign an MoU with KIADB today in this regard, with an indicative investment of $500 million, it said.

Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) was founded 65 years ago in 1948.

The MoU is to establish Phase-I of 'Taiwan Electronic Manufacturing Cluster' (TEMC), Bengaluru, a manufacturing facility in Devanahally IT park with a proposed future expansion in another 800-1,000-acre industrial park near Bengaluru, it added.

TEEMA will also set up a training and incubation centre in IT park with focus on providing employment to more than 20,000-30,000 people once the TEMC becomes operational, it added.

The Karnataka government and all its authorities will facilitate for the same on a fast-track basis so that the TEMC becomes operational in the "shortest time", the release added.

http://economictimes.indiatimes.com/industry/cons-products/electronics/taiwan-electronics-manufacturing-cluster-with-investment-of-500-million-to-come-up-in-bengaluru/articleshow/48453018.cms

Electronic City & Devanahalli may see maximum launches in 2015

2015-08-08T15:37:00.003-07:00

Source: Prop Tiger

Here is a chart indicating count of proposed launches by locality along with price variation in last 26 months

Click for Interactive Chart

Prestige White Meadows Land Recovered by Govt.

2015-06-17T22:59:00.002-07:00

Prestige White Meadows project site of 3.23 acres have been recovered by the Karnataka Government. The recovered land is estimated to be worth 1000 crores.

Monetarily, this is quantified as the largest land reclamation exercise undertaken by the district administration in recent times and the move puts potential flat-buyers, mostly those from the tech-community, in jeopardy. The reclaimed property pertains to survey number 42 at Patandur Agrahara village in Bidarahalli hobli in Bengaluru East taluk.

According to the district administration, the 3.23-acre plot was initially allotted to Joy Icecream Private Limited by the Karnataka Industrial Areas Development Board (KIADB) for industrial purpose. However, the same land was subsequently sold to Prestige Private Limited (real estate company) in violation of rules pertaining to allotment. It was in this backdrop that the Bengaluru Urban district deputy commissioner V Shankar on May 23 ordered reclamation of the land, a government release stated.

Within hours after the administration announced taking back the 3.23-acre plot on which the apartment complexes were under construction, Prestige Group swung into damage-control mode and tried to assure the 200-odd investors that nothing would go wrong and the issue would be sorted out shortly.

Prestige Group spokesperson Nayeem Noor said the company had not done anything wrong. "Judiciary is still alive and we will convince them," he said. Assistant commissioner (south) L C Nagaraj said: "KIADB had allotted the land to Joy Icecream and according to the rules they should have established an industry but they sold it to Prestige Group. As the purpose was not fulfilled, the land automatically reverts to the government. If at all KIADB has executed an absolute sale deed to Joy Icecream, it is totally wrong. It is a B Kharab land and absolute sale deed cannot be executed. The procedure followed by KIADB itself is wrong."

Noor said: "The urban deputy commissioner claimed they have taken custody of the land which belongs to the government. Actually, the land was allotted by the deputy commissioner urban to KIADB and in return KIADB allotted it to Joy Ice cream.

The company was not doing well and they approached the government seeking absolute ownership. The petition was made before the then minister late MP Prakash mentioning that the company has become sick and the said allotted land can be sold at 50 per cent less price than market guidelines. The government gave its nod. But while making such a sale deed, there was no condition mentioned by the KIADB. As there was no condition made by KIADB, Joy Icecream sold the land to Prestige. After following due procedures, we went to Bangalore Development Authority (BDA) and sough change of land use."

Noor said their project was spread over more than five acres of land on three different survey numbers. "Though the district administration claims they have recovered around Rs 1,000 crore worth land, the people involved in real estate know the price of the land. I should not mention the price of the land but it is sure that it is not worth Rs 1,000 crore," Noor added.

Telling flat buyers not to panic, Noor said: "They are the rightful owners and they will remain owners".

Construction of Prestige White Meadows is almost complete with final touches in progress. The legal proceedings may take some time before the residents can take possession if the case goes in favor of Prestige.

We understand the pain of investors / residents who have put in their hard earned money and now have to go through all the pain of uncertainty. We pray that the issue is sorted in favor of the residents.

The property recovery drive is quite active in North and South Bangalore. We recommend our clients to hold back on any land purchases.

Source: Bangalore Mirror
http://www.bangaloremirror.com/bangalore/others/Rs-1000-cr-land-taken-back-from-builder-by-govt/articleshow/47422044.cms

RMZ Corp to acquire Four Seasons Bangalore

2013-11-19T19:58:00.000-08:00

Current Status

Southern IT Park developer RMZ Corp is set to buyout Indias second Four Seasons hotel project in Bangalore for over Rs 400 crore,in which Wall Street bellwether Goldman Sachs has controlling stake,said sources directly aware of the matter.

The sources added that RMZs final offer,which includes taking over a debt of Rs 180 crore from State Bank of India,could potentially value the luxury hospitality project a shy under $100 million (Rs 620 crore).

The buyout,expected to be completed before the year end,comes after a six month long bid process that saw the participation of global fund houses,GIC of Singapore,Xander,and Tishman Speyer including bigwig developers K Raheja Corp,Embassy Group,Oberoi Realty,and Shriram Properties.Investment bank MAPE was advising Goldman Sachs on the sale process.

Goldman Sachs owns 74% stake in the 1-million sqft lifestyle project,located close to the IT Citys northern suburb of Hebbal,which consists of a 230-key Four Seasons hotel,110 luxury branded residences that will also be operated by the Canadian hospitality chain,60,000 sqft of luxury retail space,and 150,000 sqft of office space.Bangalore-based Century Real Estate Holdings holds the remaining 26% stake in the project,where Bollywoods top actress Deepika Padukone and Infosys co-founders have booked homes.Around 30-branded residences,priced between Rs 5 crore and Rs 10 crore,have already been sold said one of the sources cited earlier.

One of the sources mentioned earlier said Goldman was sifting through a detailed commercial checklist on the property before transferring all shareholding to RMZ.This includes settling outstanding dues with contractors and buying out the stake of their partners and original landholders Century Real Estate.

Raj Menda,MD,RMZ Corp,confirmed to TOI that his company was in the final reckoning without elaborating further.Goldman Sachs is expected to make a formal announcement once the deal formalities are completed.A Goldman Sachs spokesperson could not be reached immediately.RMZ will bring in a private equity investor into the acquisition vehicle to retire part of the buyout costs,talks for which have already started.

QIA invests $300 million in RMZ Corp

Bangalore: Qatar Investment Authority (QIA),the sovereign wealth office of the Arab state of Qatar,has invested $300 million in RMZ Corp through an equal combination of debt and equity.The equity component gives QIA a 24% stake in a special purpose vehicle,RMZ Infotech,which houses close to 8 million sqft of tenanted office space located in south India.Baring Private Equity Partners,who had previously invested approximately $100 million in RMZ,has a 23% stake in the SPV leaving the promoter family of RMZ with a 53% stake holding.RMZ Infotech has close to 6 million sqft of office space projects under development and plans to add another 5.5 million sqft of space in the next 12 months by acquiring assets for a total consideration of close to Rs 3,500 crore.RMZ is looking at a REIT listing for the SPV in the next two-years.TNN

Mantri,Xander float equal JV to build 9000 homes in Hebbal

2013-10-22T21:07:00.001-07:00

Global Funds Exposure to Blore Developer Crosses $100M

Global investor Xander and Mantri Developers have struck an equal joint venture for Bangalores largest residential township of 13 million sqft,located in the North of the city near the upcoming suburb of Hebbal.

The project involving 9,000 apartments,to be launched early next calendar,will see Xander raising its commitment to the Bangalore-based developer to over $100 million (or approximately Rs 600 crore).

Xander is already an investor in a few Mantri projects and the latest deal signals continued investor appetite for the city's end-user driven market,which absorbs between 30,000 and 35,000 residential units annually.

This is also one of the few equity investments made into the Indian residential real estate market in the recent past.Most fund houses are seen to be taking the debt-financing route to invest in the residential sector,while equity investments continue to pour in to commercial real-estate assets.

Mantri has drawn up plans to develop close to 9,000 residential units in a phased manner,by far the biggest residential rollout in the countrys IT City,on a 120-acre land parcel located adjacent to Manyata Embassy Business Park,in north Bangalore.The average ticket price of the units is expected to be in the Rs 1 crore bracket,with smaller unit sizes starting upwards of Rs 75 lakh.

Incidentally,the owner of the land parcel is one of Bangalores biggest land aggregators,Reddy Veerana,who also has a stake in Manyata Embassy Business Park among other real-estate investments in the city.

Sushil Mantri CMD Mantri Developers confirmed Xanders equity participation in the project,which is expected to get a brand identity before the end of the ongoing calendar.The entire project will be completed over eight years,with an average development of 1.6 million sqft of residential space annually.

Mantri Developers,which has on board Morgan Stanley as an entity level investor,has completed 15 million sqft of residential development with approximately 20 million sqft of residential development under various stages of construction.Mantris developments span the four big southern metros of Bangalore,Pune,Chennai and Hyderabad.

Besides residential,Mantri is also looking at a larger play in rent-yielding assets such as office,retail,and hospitality,which could see the developer build close to 10 million sqft of space over the next five years.By the end of the same period,close to 35% of the developers portfolio would constitute non-residential spaces,which at present is a small percentage when compared to the residential spaces

L&W Construction buys Bangalore plot for Rs.100 crore

2013-07-07T18:29:00.004-07:00

L&W buys 25-acre parcel of land at Devanahalli in Bangalore from a unit of garment maker Gokaldas Images

L&W Construction Pvt. Ltd bought a 25-acre parcel of land at Devanahalli in Bangalore for Rs.100 crore from a subsidiary of garment manufacturer Gokaldas Images Infrastructure Pvt. Ltd in what’s described as one of the biggest land deals of the year in the city.

L&W, a unit of Singapore-based construction company Lee Kim Tah Woh Hup Pte Ltd, bought the land from SIIC Package (India) Pvt. Ltd, the Gokaldas subsidiary, according to a media release.

“This is one of Bangalore’s largest land deals of 2013 to date,” said Mayank Saksena, managing director (land services), at real estate consultancy Jones Lang LaSalle India, which brokered the deal. “The location of this land, on NH7 at Devanahalli, is among Bangalore’s most promising growth corridors by virtue of its proximity to the Bangalore International Airport.”

The Devanahalli area has seen several premium and luxury projects being set up. According to experts, this is largely due to the ongoing and planned infrastructure development there, with the establishment of the airport being one of the primary catalysts for the north Bangalore market.

Blackstone set for big profit in Bangalore JV

2013-02-03T17:35:00.004-08:00

Global investor Blackstone is set for a possible maiden profit from the Indian real estate market,riding on robust luxury apartment sales in the tech city of Bangalore.Blackstone is exiting a joint venture with southern developer Embassy Property Developments,building 467 residential units,raking in more than Rs 210 crore,said people familiar with the matter.

It represents about 28 absolute profit and an annualized return on investment topping 40% in just 18 months,the sources added.In 2011,Blackstone funded Embassy Lakeside Terraces,developing apartments priced between Rs 3 core and Rs 10 crore,at Hebbal,located 30 minutes away from the Bangalore international airport and the city centre.Blackstone aggressively struck real estate investments,including buyouts of technology parks,investing about $1 billion in the past two years.This has given the American investor a portfolio of 16 million sqft of tenanted commercial and 9 million sqft of residential space in India.It also took over Merrill Lynchs real estate investments augmenting the residential portfolio.

Embassy Lake Terraces is among 1,000-odd luxury residences,priced upwards of $1 million,in Bangalore.The southern metro,with steady home prices,has seen sales recover faster than the bigger cities like Mumbai

Embassy CMD Jitu Virwani has proposed to buy back Blackstones non-convertible debentures (NCDs),triggering a profitable exit for the worlds leading private equity investor.Virwani declined to comment,while queries to Blackstone remained unanswered.

The NCD funding pattern allows Blackstone to circumvent FDI guidelines,which stipulates a lock-in period for foreign investors until a project is completed or is close to completion.The deal could be struck within the next two weeks,even as Embassy sold more than 300 luxury residences just six months after bookings began.

Land bank of Sobha developers in Bangalore

2013-02-01T16:14:00.001-08:00

Sobha Developers Land Bank - Bangalore
Hoskote, Old Madras Road, Whitefield - 48.6 million sqftSarjapur Road, Marathahalli ORR, Electronic City - 19.2 million sqftKanakpura Road, Bannerghatta Road - 4 million SqftHebbal, Yelahanka, Bangalore Airport - 5.4 million sqftCBD - 1.3 million sqftMysore Road - 1.4 million sqft.

Source: Q4 2012 Results

SERVICE TAX REDUCED ON CONSTRUCTION (FLATS) SERVICES WEF 01.07.2012

2013-01-10T00:22:00.001-08:00

Few days Back we have received a Comment from a reader that he has Booked a Flat and his builder is asking him to pay Installment in advance to save service tax as it is going to be increased from 01.07.2012" But the Fact is totally on reverse side. The fact is that service tax effective amount payable by developer is reduced and this benefit must be passed on to the buyer by reducing the rates of the Buildings etc.

Hold on ....I know that every body is anxious to know the detail and Notification number by which this reduction in effective rate has been done.Details is given below.

Service tax on activity of developers of selling the building or part of the building to be constructed on advance payment (usually construction linked payments) was made subject to service tax under the category of “Commercial or Industrial Construction Services” and “Complex Construction Services” w. e. f. 01.07.2010.

Now, w. e. f. 01.07.2012, in negative list regime, activity undertaken by developers have been included as declared service in clause (b) of section 66E of Finance Act, 1994.

Relevant abatement scheme as given in Sr. 12 of table given in Notification No. 26/2012 dated 20.06.2012 is as under:

Complete Article http://www.simpletaxindia.net/2012/07/service-tax-reduced-construction.html

Sattva Magnificia - OMR mixed use project is coming up in front of proposed Jyothipura metro station in phase-2. They filed a request to shift the station, but the same has been rejected by BMRC.

2013-01-10T00:19:00.003-08:00

http://www.bmrc.co.in/pdf/phase2/petitions/rajmatha%20reply.pdf

part-1 INDIA’S TOP RESIDENTIAL DESTINATIONS TO INVEST IN (Bangalore Report ) copy right Knight Frank

2012-12-04T16:21:00.003-08:00

complete report:http://www.knightfrank.co.in/content/upload/files/Resized_(2)_-_KF_Investment_Advisory_Report_2012.pdf

No one on the forum seems to know the potential of what is in store for Yelahanka and the future of property prices there in that locality.

2012-10-27T21:20:00.000-07:00

A big brand builder and a favorite of Techies is getting ready to put up a massive Mall, Multiplex, Commercial Complex, Office Complex, Small and Sundry Shops - "all-in-one" - in one single project.

The only thing it will NOT have is the Residential complex, flats or apartments.Currently, Arun Patios in Yelahanka, ready to move flats are available for just 36.61 lacs onwards, wth Regn and Taxes extra for a 2 bhk of 1165 sft.After 5 yrs, it will easily sell for 55 lacs, even though it will be used and old, due to the above Mall - as other builders then will launch a 1000 sft 2 bhk for the same 55 lacs, in the surroundings.

Why Prices Never Came Down? Because NBFCs Control Them

2012-10-27T20:48:00.001-07:00

First NBFCs fund the builder for construction of the project and make 22% profit.

Then the Banks fund your purchase and make another 12-15-18-20% profit over a period of 15-25 yrs.

In some projects or cases, Mutual Funds, PE (Private Equity), VC (Venture Capitalists) too fund the projects. All of them have their pound of flesh with a stranglehold on the builder, who just can not reduce the prices.

For eg., in one large project of a high rise tower on Tumkur Road of over 850 apartments, JM Financial has funded the entire project. JM needs its profits.

How can the builder reduce the prices, just because sentiments are negative and inventory is building up or buyers are waiting for a price crash?

It doesn't work that way. It works the way the Financier wishes. Not as per your wish and my wish.

Read on for more, search for more such articles and educate yourself:

DMI Finance eyes Rs 1,000-crore real estate fund - Economic Times

RBI bars NBFCs from real estate speculation

Take Home Loans from Banks, not NBFCs

Real estate companies tap PEs, NBFCs for capital need

SHRIRAM PROPERTIES BUYS 20 ACRES IN ANEKAL

2012-10-27T20:46:00.003-07:00

Another reputed, an all-India famous builder by name Shriram Properties has also bought a land bank of 20 acres in Anekal as long ago as in 2009 itself, just like DLF who also bought 38 acres in 2009 itself. For those who still don’t believe me , a simple Google search with the below mentioned buyers name along with the Village name may give you some results.

Buyer: Shriram Properties Private Limited, No. 40/43, “Nagashree Chambers", 8th Main, 4th Cross, Sadashivanagar, Bangalore-560 080 in Anekal Taluk, Attibele Hobli, Bidaraguppe Village bearing Survey Nos. 327/1, 327/2, 328/2, 342, 343/1, 344, 345, 346/1, 346/2, 346/3, 346/4 of a total land area of 20 Acrs and 311/2 Guntas and has been accorded BMRDA Approval No. APA/LAO/77 /08-09 Dt: 21.12.09.

When both DLF and Shriram launch their above projects in Anekal in another 2-3 years’ time, that is when all sleeping Bangalore beauties will wake up and run to buy in that area. By which time, other currently existing layouts in the vicinity would have doubled their prices, especially after they hear the “Launch” of the projects of big giants like DLF and Shriram as mentioned above.

The Future Of Real Estate In Electronic City Phase I

2012-10-27T20:39:00.001-07:00

Concorde is one builder who has dominated ECity Phase I with a number of his projects.

Other than this, now Godrej and Shriram are starting their projects as everyone knows.

Many sundry small builders too have a number of projects RTM here in Phase I, as everyone has seen.

Ajmera Infinity and Patel Realty's Smondo, Neo Town, Neo Mall are the 2 other big projects that come to mind here in addition to some SJR projects in the vicinity.

If Realty Enthusiasts have noticed, the trend is that whenever a big brand name like Sobha, Mantri, Prestige, Puravankara, Renaissance, Embassy or some such big builder "launches" a project in any locality, suddenly everyone becomes alert to the potential of that area/locality and price there in the vicinity actually starts to shoot up.

Reason?

These big builders are notorious for launching their projects in an area long after other builders have made the locality popular, populated the area with high density traffic, people, shopping streets etc., long after some amount of social infrastructure has sprung up in the vicinity. Thereby guaranteeing high realty value for their land which they would have bought at just 200-300 per sq.ft decades ago, which they will now sell to you at 4000-5000 psft in the form of apartments.

When these big brands "launch" a project in any locality, they start with a minimum of 4000 or 4500 psft as everyone knows. Then, other properties nearby or other builders nearby, start to play the "catch up" act. That is when even small builders launch their projects at 3500-3800 psft, the typical projects that are currently now available at 2800 psft. When this happens, even Godrej, DLF will run away dancing to the glorious bracket of 4000-4300 psft.

As far as I know, not a single big brand builder of the above kind (forget DLF, exclude it in the list for now....we are talking about Sobha, Puravankara kind of builders here) has till date launched any project in ECity Phase I.

Now, one big builder of the above Grade/Category from the above actual list is getting ready to launch his project in the next 3-4 months in ECity Phase I.

Prices all around of all builders and projects of all hues and colors will appreciate, once this big builder from the above list "launches" his project.

Those who own or planning to buy any property anywhere in Phase I, especially in, near, around Celebrity Galaxy projects, Doddathogur, Chikkathogur, Hebbagodi and nearby areas/villages - should hurry up and close their deals - as the above mentioned big builder's project launch and its price will have a ripple effect, a cascading effect on all current on-going project prices.

Bangalore residential realty prices rise by 4% in the last 3 months

2012-08-26T21:10:00.001-07:00

According to our research Bangalore prices have increased by an average of 4% in the last 3-4 months (May-August 2012) compared to the 4.5% rise witnessed in the period of December 2011 To April 2012.

These results are based on a compilation of pricing for 61 residential projects across Bangalore. We observe that 51% of the projects did not witness any appreciation which proves that developers are holding onto prices and have still not resorted to price cuts. 38% of the projects surveyed recorded a price rise of up to 10%.
Which areas, which projects & how much have prices increased?

We observe that prices for projects in Sarjapura Road have risen. Aratt Adora by Arattukulam Developers (+25%), Sai Poorna High End by Srinivasa Developers (+11%), Jain Heights Altura by Jain Heights (+11), SJR Celestia by the SJR Group (+6%), Purva Skywood by Puravankara (+5%)
Bannerghatta Road also witnessed price appreciation. Esteem Enclave by the Esteem Group (+13%), Raja Aristos by Raja Housing (+9%), Vivarta Maagan by Daya MK Developers (5%)
Other projects which witnessed price appreciation were Vaishnavi Nakshatra in Yeshwantpur by the Vaishnavi Group (+23%), Pride Springfields in Uttarahalli by the Pride Group (+17%), Anugraha in Lingarajapuram by the Bearys Group (+11%)
Major Bangalore developers like Nitesh Estates, Puravankara, Mantri Group & Prestige Constructions have not raised prices for most of their projects across the city.

Some of the new launches in the last couple of months

Brigade launched its Villa project ‘Oaktree’
Century pre-launched its ‘Century Central’ project on Kanakapura Road
Prestige pre-launched its ‘Prestige Ferns Residency’ project Off Sarjapura Road
Ezzy Group launched its ‘Corinth’ project on Hennur Road
Sobha Developers launched ‘Sobha Marvella’ on Sarjapaura ORR