Indianpropertysearch - Real Estate India

Want to buy Commercial Office Space - This is the right TIME Part-2

2009-12-23T00:54:00.000-08:00

Continued....

As per industry estimates, Mumbai office rentals have declined significantly over the past two years. Rentals in Nariman Point declined by a maximum of 14% from 2008 peak levels, and currently range from Rs 200-400 per sq.ft. per month. In the IT hubs of Gurgaon and Noida, rentals declined by almost 25% from 2007 peak levels, but have since stabilised. Hyderabad was one of the worst affected, as rentals dipped over 35% from peak-levels.

Investors who want to invest in rental yield funds should re-focus their investment strategies
around rental income rather than property appreciation, which has been the case for most investors up till now. However, experts point out that the tax implications of investing in rental yield funds may turn out to be cumbersome.

“Rental yield funds have huge tedious tax implications. Investors will have to pay tax on income generated by way of rental yields. Moreover, expenses are high on such funds and are payable upfront to the fund manager,” said independent financial planner Gaurav Mashruwala. According to Mr Mashruwala, such funds will do well if asset are bought at lower price levels or just after a deep correction.

Source: Economic Times

Want to buy Commercial Office Space - This is the right TIME Part-1

2009-12-23T00:44:00.001-08:00

With the economic slowdown about to end, experts are suggesting people to invest more into Real Estate which is showing positive signs of comeback. If you want to buy Commercial property, then this is the right time. For just Rs 5 Lakh there are commercial office space available at one of the best corporate locales in India - "Nariman Point, Mumbai". The 30-40% decline in property prices(from peak levels), coupled with firming interest rates have resulted in private equity (PE) funds eyeing investment opportunities in real estate rental space. A few fund houses have already begun seeking investment commitments from investors, indicating 16% to 22% as annualised portfolio returns.

PE funds investing in real estate rental space follow a simple investment strategy. These funds are suited for investors who are risk-averse and prefer returns similar to those from fixed income schemes. According to PE industry officials, Milestone Capital Advisors, Xander Real Estate Partners, Indiareit Fund Advisors and an investment arm of Delhi-based real estate company DLF are planning to launch rental yield funds in India.

“Real estate rental funds are launched when property rates are close to their troughs. This helps funds to buy property at lower prices. Moreover, yields of investments increase in a rising interest rate environment,” said Ashish Joshi, managing partner, Milestone Capital Advisors, which raised money for a second fund investing in rental assets.

A ‘rental yield PE fund’ only invests in properties that are either occupied or under long-term lease or rent. In simple terms, the money collected from investors is used to buy out the property from the current owner. Once the property is acquired, the PE fund becomes eligible to receive rent from tenants. The rent portion is restructured or re-negotiated regularly in order to meet the return profile of the investor. The fund (and its investors) gain by way of rent recovery and appreciation in property prices. PE funds, normally, invest in commercial property. The managers route a major chunk of the pool into office properties and the remaining into IT/ITeS parks, shopping malls and warehouses.

“The segment looks good as rentals are likely to go up 10-15% over the next few months. Demand for commercial real estate space will go up as supply has come to a standstill post the economic slump. This will not only improve yield for investors but also increase overall commercial property value,” said Kamal Khetan, vice-chairman & MD, Piramal Sunteck Realty.

Rental returns from real estate investments have been traditionally higher in India compared to other Asian countries. This is mainly due to the restrained capital flows and the lack of an organised institutional investment market. According to real estate experts, a sharp correction in rentals during 2008 and first half of 2009 will result in rentals surging over the next few months. The rental market usually reacts to the surge in equity market with a 5 to 8-month lag.

UBI Comes up with 8% home Loan Scheme

2009-12-23T00:38:00.000-08:00

The city-based state-run United Bank of India (UBI) has launched an eight percent home loan scheme available till March 31 next year, a release said here on Tuesday. The bank would charge eight percent interest on home loan for the first year and nine percent for the second to fourth years. From the fifth year onwards, it would charge interest on a floating basis, which would be two percent less than the benchmark prime lending rate (BPLR) prevailing at that time, the release said. Under fixed rate, the bank would charge one percent less than the BPLR and the interest rate would be revised every five years, it said. ‘United Bank of India announced reduction in interest on ‘Car Loans’ by one percent on the card rates up to December 31, 2009, and to add to the toppings, it also announced waiver of processing fees on car loans during the period,’ the release added.

Source: Indian Real News

New rules on real property valuation coming to India

2009-07-23T00:37:00.000-07:00

Valuation of real estate, agriculture, industries and machinery and plants, marine properties etc. is under the consideration of Parliament. In June 2007, Delhi Government has also approved new property valuation rates for registration of property aimed at correcting undervaluation of property in the city, which affects taxes raised. Property will not be registered at values below the minimum value set for different locations and areas.

Initiated by the Ministry of Company Affairs, the draft bill to recognize, regulate and frame rules and regulations is under examination by different agencies and very soon will be tabled in Parliament, according to S S K Bhagat, Vice-President, Institution of Valuers-IIV (India).

He told PTI that the ministry had elicited views from various institutes and submitted its recommendations. Rationalization of valuation techniques is also under the purview of Institute of Chartered Accountants, Institute of Company Secretary, Institute of Cost and Works Accountants of India, Institute of Insurance Surveyors, The Indian Council of Arbitrator's.

The Department of Company Affairs, Government of India (www.mca.gov.in), had also convened different rounds of meetings among various bodies and the draft bill is also under circulation with the ministry of finance, company law, as per PTI.

Efforts to inculcate professional and academic touch to the concept of valuation has been coordinated with leading educational institutions as well, report added. Currently, Periyar Maniammai University, Thanjavur, Annamalai University at Chidambaram, both in Tamil Nadu and Sardar Valabhai Patel University at Anand in Gujarat offer post diploma courses in valuation with focus on real estate, plant and machinery and relevant topics.

The Bengal Engineering and Science University at Shibpur near Kolkata also plans to commission a MBA programme with six semesters on Real Estate Valuation. Similarly Sivaji University at Kolapur in Maharasthra is to offer Master's Degree Programme in Real Estate Valuations. Mysore University is also planning to to start similar PG Degree programs on valuation.

Sources: Livemint, Business Standard, PTI

Indian Real Estate's Condition going to get better

2009-05-21T04:22:00.000-07:00

Taking into account the future property prospects of real estate sector in Indian capital, Dubai-based Sherwoods Independent Property Consultants has set sights on New Delhi property sector and will open an office over there shortly.

Property adviser in Dubai, with a strong presence in the UAE as well as Europe, foresaw New Delhi's buoyant housing market with rising demand among the burgeoning middle class as India's economy booms.

Sherwoods estimated that there is a supply It also aims to beef up its presence across other major Indian cities. As well as showing signs of recovery from the global crisis, interest rates in India have from fallen from 11.5 per cent to 9.25 per cent, making mortgages cheaper.

Real Estate - Indiabulls raises Funds

2009-05-10T04:20:00.000-07:00

Indiabulls Real Estate Ltd. said Wednesday it has raised around 26.56 billion rupees ($557 million) via a share sale to institutions, joining a growing list of Indian realty companies that are raising funds to reduce debt and boost liquidity.

Indiabulls, one of the country's biggest property developers, issued about 143.59 million shares to institutions at 185 rupees each, the company said in a filing to the Bombay Stock Exchange.
Indiabulls, part of the diversified Indiabulls Group, didn't identify the investors and company executives didn't immediately respond to queries.

A person familiar with the matter said Tuesday the shares were sold to 49 institutional investors from India and overseas. Morgan Stanley was the sole bookrunner for the deal, the person said.
Higher borrowing costs and fears of job losses in a slowing economy have hit property sales in India, affecting cash flows of the realty companies. This has led several developers to raise capital via share issues, asset sales and also replacing their costlier debt with cheaper loans.
The companies are also introducing mid-priced residential projects and offering customized loan packages to lure customers.

"Most real estate companies across the region (India) had improvements in access to capital from January/February this year," Unmesh Sharma and Gautam Duggad, Mumbai-based analysts at Macquarie Research, said in a recent note. "Only now do Indian property developers appear to be experiencing better capital conditions."

Macquarie rates India's property sector overweight, citing improving liquidity for the property developers.
Founders of DLF Ltd., the country's biggest property developer by market value, raised 38.60 billion rupees on May 13 by selling a 9.9% stake to investors that included HSBC Holdings Inc. and Fidelity.

Unitech Ltd., the second-ranked realty company by market value, is also gearing up to raise additional long-term funds via a warrant issue to its founders as well as an issue of securities.
The company had raised 16.21 billion rupees in April by selling shares to institutional investors including HSBC Holdings PLC, Prudential PLC and Singapore's Orient Global.

Unitech plans to repay up to 17 billion rupeesc of debt in the current financial year that began April 1 through cash flows from sale of apartments and shopping malls, a senior company executive, who asked not to be named, said last week. Its debt is currently at about 80 billion rupees.

Shares of Indiabulls traded 5.1% higher at 210 rupees as of 0724 GMT on the Bombay Stock Exchange, compared with the benchmark index which was down 1.4%.
Shares of Indiabulls have gained 52% since January, outperforming a 46% rise in the BSE's realty index.

Post Election Scenario may change

2009-05-02T00:26:00.000-07:00

With the UPA returning to power, the property pundits anticipate the revival of real estate market in the northern region that has witnessed shrinking of transactions when the country was in election mode. “The sale and purchase of property will now start taking place as the Center is expected to have stable government led by the UPA,” Punjab Properties and Colonizers Association Chairman Anil Chopra told PTI.

The property transactions dipped by 70 to 80 per cent in the northern region ahead of the elections as people were not inclined to invest in the real estate due to apprehensions that no major political party would get majority in the elections to form the government, experts said. “We observed just ahead of the start of the elections that the sale and purchase of land or residential or commercial properties almost came to halt with investors as well as end users preferring to wait till the new government is formed,” Chopra said.

He said that with the demand expecting to start emerging after the elections, the property rates would again move upward which would bring some relief for the realty sector. “We are seeing enquiries for residential as well as commercial properties by customers particularly in Gurgaon and Delhi after the elections which is a good sign for the real estate industry,” Realtech Group CEO Rohit Malhotra said.

Making Property Investment Simpler for Non-Residents

2009-04-25T01:27:00.000-07:00

As property markets fall world-wide, one of the few consolations for real-estate investors is that some governments have become more open to nonresident property owners. A growing number of them are considering loosening or temporarily suspending foreign property-ownership restrictions in a bid to stimulate their real-estate markets. In January, for example, Beijing issued a one-year suspension of a one-year residency requirement for foreign nationals buying a house. The Cayman Islands and Australia have also recently loosened their rules. Meanwhile, the issue is being discussed in numerous other countries, including the Philippines. Loosening foreign-investment restrictions isn't new. Governments have been attempting to stimulate foreign investment for years in response to swelling interest from international investors. In 2005, India began letting foreigners invest directly in Indian residential and commercial real-estate development. And in late 2006, the government lifted a required 10-year lock-in period on repatriating property sale proceeds, although it's limited to $1 million a year.
Slumping property sales has given the issue renewed urgency, as countries strive to find ways to stimulate local economies. Last month, the historically foreign-investment-friendly government of the Cayman Islands temporarily lowered rates on their real-estate transfer "stamp duty" taxes, including a reduction to 5% from 7.5% on waterfront property. At the same time, the country's real-estate brokers group, Cayman Islands Real Estate Brokers Association, announced a 20% rebate on commissions.
Ways to restrict foreign investment aside from outright bans include high transfer taxes and limits on when and how much money investors can repatriate. Rules can differ depending whether the purchase is a residence or an investment. To be sure, not all countries are choosing to loosen regulations. Some may crack down on foreign investment, blaming it for driving prices to unsustainable levels, says Danny Bance, managing partner of U.K.-based International Property Investment Network, a research and investment services provider for investors. But many governments believe that foreign investment spurs infrastructure development, which spurs economic opportunity, says Mr. Johnson, 59 years old, of Detroit, who got his start developing luxury property in Michigan, including a large Lake Michigan resort. He says he helped convince the British Virgin Islands government to loosen curbs on foreign investment partly through his willingness to hire local residents for senior management positions.

Real Estate again taking the lead

2009-03-19T00:02:00.000-07:00

March 18: The Indian markets shed a part of their gains during the final hour of trade on the back of profit booking. However, they ended the day well above yesterday’s closing level. The BSE-Sensex closed with gains of around 110 points, while the NSE-Nifty closed higher by 40 points. Stocks from the mid-cap and small-cap indices ended the day in the green as well. Buying activity was witnessed in stocks across sectors, with realty and metal leading the pack of gainers. However, the BSE-FMCG Index ended the day in the red.

Most other Asian markets closed on a firm note. The European indices are currently trading mixed. Rupee was trading at 51.34 against the US dollar at the time of writing. Real estate stocks ended the day on a firm note led by Akruti City, Mahindra Lifespace, DLF and HDIL. Stocks from the real estate sector have been amongst the worst performers in the past one year. This is mainly on account of lower demand and liquidity issues. In fact, until last week, the BSE Realty Index had fallen by nearly 46% since the beginning of 2009. However, the index has been amongst the top gainers in the past few trading sessions. The reason behind the same is price cuts in the range of nearly 30% to 40% announced by real estate players. While this move may impact their margins significantly, it will benefit the companies by reducing their inventory, bringing about much needed liquidity. It may be noted that a handful of realty players are sitting on a stock pile of projects that were launched a year back.

Auto stocks ended the day on a firm note led by Bajaj Auto and Ashok Leyland. As per a leading business daily, M&M has recently inaugurated its defence auto facility at Faridabad. This facility has the capability to produce nearly 200 specialised vehicles, which will be used by the armed forces, paramilitary and the police. However, it plans to increase the capacity to 350 units in the next fiscal. This facility will also produce bullet-proof versions of its multi-utility vehicles such as Scorpio and Bolero. With sales of the mainstream auto market drying up, companies such as M&M, which have a certain amount of exposure in the defense area, have been focusing on increasing defence supplies.

As per a report issued by McKinsey & Company, India is likely to face a shortfall of nearly US$ 150 bn to US$ 190 bn in funding its infrastructure projects in the current five-year plan period (FY07 to FY12). The reason behind this view is the global economic slowdown and rising interest rates, which have made project financing expensive and financial closure more difficult. It may be noted that the Planning Commission had earlier envisaged infrastructure investments to the tune of US$ 500 bn. Of this, nearly one-fourth was to be spent by the private sector and the balance by the public sector.
Credit: Seekingalpha

Orange Realty Project Approved

2009-03-16T00:05:00.000-07:00

The Government today allowed Orange Realty to set up a wholly owned subsidiary in India. The company has already received Rs 2,051 crore from IREO Investment Holding III, a Mauritius-based fund focused on setting up SEZ, IT/BPO Parks, and development of real estate projects.
An IREO spokesperson said that Orange Realty’s application to Foreign Investment Promotion Board was for creating a subsidiary. “Orange Realty has a mixed-use project in Gurgaon. The latest approval sought for the step-down subsidiary of Orange Realty, is more of a blanket nod and specifics are yet to be decided,” he said.

The funds injected by IREO Investment Holding III have flowed into Orange Realty since 2005, when the latter started its operations. Orange Realty is a subsidiary of IREO Investment Holding III Ltd. However, not many in the real estate industry seem to have heard about the company in spite of over Rs 2,000 crore of FDI inflow that has already come in. In its application to FIPB, the Delhi-based firm had sought to “acquire the status of foreign owned Indian holding-cum-operating company” and to make downstream investment in companies engaged in real estate activities and development of SEZs.

The change in status from operating company to operating-cum-holding company requires FIPB nod. The FIPB, in its meeting on January 9 recommended that the proposal be placed for consideration of the CCEA, as “the initial investments inflow for making the holding company exceeded Rs 600 crore.”

Briefing the media after the meeting of the Cabinet Committee on Economic Affairs (CCEA) on Wednesday, the Home Minister, Mr P. Chidambaram, said, “The investing company is by the name of IREO-III... That company has a large of number of well-known investors. That company is now investing in Orange Realty.”

Hamtons International eyes Indian Realty !

2009-03-04T08:13:00.000-08:00

Hamptons International is one of the premier international residential agents offering an extensive portfolio of properties across the globe. It has announced a strong focus for the Indian market. Recently, it has established a leadership presence in India through its wholly-owned subsidiary – Hamptons International India. Already, it has established a strong base in markets of Delhi & NCR and Mumbai, and is also expanding marketing of select projects on a Pan-India basis.

Hamptons International in India is headed by Shruti Gupta, who is one of the most reputed professionals in the areas of real estate and investment. Hamptons India is set to provide world-class services such as sales, corporate leasing, residential development consultancy, lettings, global asset management and investments, etc,. Hamptons International is owned and operated as a subsidiary of Emaar Properties, one of the world’s largest real estate companies.

Emaar Properties PJSC is present in India through a joint venture with MGF Developments Ltd. It commenced operations in India in February 2005. Its primary business is development of properties in residential, commercial, retail and hospitality sectors. In addition, it has also identified healthcare, education and infrastructure as business lines for future growth. Its operations span across various aspects of real estate development, such as land identification and acquisition, project planning, designing, marketing and execution.

Some of its projects include Commonwealth Games Village 2010 (Delhi), The Meadows (Gurgaon), Boulder Hills Golf and Country Club (Hyderabad), Garden Terraces at The Palm Drive & Meadows (Gurgaon), Esplanade (Chennai) and others. Hamptons International continues to expand both locally and internationally, positioning it as one of the most valuable residential property groups in the world.

Credit: Webnewswire.com

Tatas & Birlas now focusing on Real Estate

2009-02-23T08:33:00.000-08:00

Two of India’s large business houses, the Birlas and the Tatas, are looking at real estate as a major investment area, albeit in different ways. While the Birlas, through a financial services arm, are offering real estate as an alternative investment option to clients, the Tatas are planning to develop surplus land held by group companies. The Tatas may also invest in the sector part of funds raised through recent public offerings.

These moves come at a time when real estate prices are correcting and low demand for projects has prompted large developers to default on financial commitments and project deadlines.
Aditya Birla Management director Ajay Srinivasan, who also heads the financial services business, said the conglomerate is merely gearing up for the future. “We are now putting a team in place and want to be ready when the time is right,” he told ET.

Tata Housing is now identifying excess landbanks owned by companies such as TCS, Voltas, Rallis India, Tata Motors, Tata Coffee and Tata Tea. Tata Capital, the financial services arm of the Tatas, is scheduled to close a largely successful non-convertible debenture issue on Tuesday; it has so far raised Rs 2,300 crore against a targeted Rs 1,500 crore. Although Tata Capital has said that it won’t lend to group companies, it has proposed to invest in most asset classes.
Anticipating a large value erosion in the realty space, Indian corporates are planning to float new funds to acquire assets in the domestic property market. Real estate funds such as Saffron Advisors have either floated or are in the process of floating funds with corpus ranging between Rs 500 crore and Rs 1,000 crore.

“As far as Indian realty is concerned, for the right projects, funds are still available,” said Saffron Advisors MD Ajoy Kapoor. “Conservative European investors, after conducting extensive due diligence and research, are more comfortable with investing in Indian real estate, provided they are able to align with right partners,” he added. A few months ago, Munich-based retail aggregator Deutsche Capital Management underwrote $20 million for Saffron India Real Estate Fund I, an India-focussed real estate fund. DCM is raising a specific fund for investing in Indian real estate through Saffron Advisors.

Tough lending norms, unfavourable primary market and global financial worries have affected fund flow into the Indian property market. Real estate deals have fallen and fancy valuations by developers are being corrected to a large extent.

Credit: Economictimes.com

Suplus FDI in Real Estate

2009-02-15T00:36:00.000-08:00

In a move to help the cash-strapped real estate sector, the commerce and industry ministry is likely to waive end-use restrictions and allow realty developers to divert surplus foreign direct investment to real estate projects where it was not allowed so far. According to the norms, FDI is allowed only in projects with a minimum investment of $10 mn (in wholly-owned subsidiaries) or $5 million in joint ventures, and which has a minimum area of 10 hectares.

As per the proposal, which will require a Cabinet approval before being implemented, a real estate company which has brought in FDI in a project meeting the mandated conditions can now use the surplus funds in another project which may not meet the prescribed conditions. For example, a realty company that has raised FDI for a township in Faridabad which meets the minimum capitalisation and minimum area norms may now use a part of the surplus funds for a project in Gurgaon which may not have got a clearance from Foreign Investment Promotion Board (FIPB). Put simply, while the new norm does away with the end-use restrictions, it also nullifies the mandatory meeting of conditions for using FDI.

In the last FIPB meeting, the board deliberated that in view of the difficulties being faced by the real estate sector, some leeway is required, even if for a temporary period. “We will soon issue the guidelines to be followed in case of requests for receiving FDI by realty companies engaged in various projects, not all of which are FDI-compliant as per Press Note 2 of 2005,” a senior official directly dealing with the new policy told ET. He asked not to be identified. The official added that the relief would be extended to the realty sector for a temporary period with an in-built sunset clause.

Interestingly, this comes even as the government had recently stepped up vigilance against companies channelling FDI money to projects that had not received FIPB clearance. While examining real estate company Keystone’s proposal in a meeting held in January, the board had asked the department of industrial policy and promotion (Dipp) to set up a monitoring cell to track FDI inflows into non-FDI compliant projects under the veil of FDI.

FIIs to invest $20b in Indian real estate

2008-06-03T05:30:00.000-07:00

Even if there are reports of some correction happening in the real estate market in India, foreign institutional investors (FIIs) have full faith in India's growth story. They have lined up investments of up to $20 billion in the Indian real estate funds for the next three years.

After the easing FDI investment norms in 2005, FIIs were keen to put their money in the fast growing Indian realty sector.Jones Lang Lasalle Meghraj, a research firm that tracks real estate in India, has estimated that up to 150 real estate funds were in various stages of operation in India last year. In a report, the firm estimates that 50 % of these funds are in active category.

The growing interest in the Indian real estate is attributed to the change in perception of the sector from ‘quicksand' to ‘emerging sector'. Improved performance of the listed realty stocks made it more attractive. Allowing FDI in the sector has led to the entry of multinational developers such as IJM, Ascendas, Hines, CapitaLand and Keppel Land to name a few.Booming IT and ITES sectors as well as the state governments' emphasis on infrastructure development also changed the perception.

An interesting fact revelled in this report is that real estate funds are not just restricted to the metros when it comes to sourcing opportunities. There are established transactions in tier-II and III cities such as Bhavnagar, Jalandhar and Dehradun.With an overall positive sentiment about economy, majority of these funds (64 per cent), expected the Indian realty sector to remain stable.However, funds still prefer investing in Mumbai, Chennai, Bangalore, Delhi NCR and Hyderabad followed by tier II cities such as Pune, Ahmedabad, Chandigarh, and Kochi...

India Real Estate Infra Fund eyes $100 mn mop-up end June

2008-06-03T05:28:00.000-07:00

Mauritius-based India Real Estate Infrastructure Fund’s first round of fund raising exercise will come to an end by June by which it plans to mop up $100 million. Launched in January, the fund targets a mop-up of $250 million from across the world for private placements in Indian real estate companies. Balance $150 million will be raised in the following closures. “We plan to invest the money in unlisted Indian real estate companies under the FDI guidelines. We prefer to have weightage of up to 50 per cent in every company so that we can have a ‘say’ in the management. It will help us to drive the policies in the right direction,” said Arun Goel, CEO of DHFL Venture Capital India Pvt. Ltd, which has been mandated to create an investment portfolio on behalf of the fund. The fund will invest in real estate companies pursuing projects in residential, commercial and hospitality domains which also encompass SEZ, IT parks, hotel. DHFL Venture has appointed Mumbai based Yen Management Consultants Pvt. Ltd as financial advisor. The fund will consider factors like the number of development projects in hand, FDI compliance, local presence and growth plans and execution in choosing the company. Explaining the investment rationale, Goel said, “an increasing population and flourishing services sector have resulted in a number of green field projects to build residential and office buildings. Further, rising cost of hotel accommodations across major cities in India has led to high demand for ones with reasonable rates.” Besides EU based countries, the fund is getting good response from Japan, the UK, UAE, said Goel, who expects the fund to give 25 per cent internal rate of return. “We are getting tremendous response from investors across the board but some of them are currently buying time. They are taking stock of the situation in India. However, they will soon get involved in a 2-3 months time,” revealed Sunil Shirole, managing director and CEO, Yen Management Consultants. “We strongly believe in the fundamentals of the Indian economy and its prospects. So we have no doubt about the success of the fund,” added Goel, who did not rule out the possibility of a mutual fund by DHFL in two years.

Dubai-based real estate major Majid Al Futtaim looks to India

2008-06-03T05:27:00.000-07:00

Dubai-based real estate major Majid Al Futtaim (MAF) is likely to enter India for which it is in the process of identifying a local partner. The country's estimated 16 billion dollar realty sector, which has already attracted UAE-based players like Emmar, Limitless, Nakheel and SmartCity, has been identified by MAF as a 'market to be in'. The company is looking to tie up with a local player to build shopping malls, residential properties and other commercial spaces. "We are studying the Indian market and soon we are going to have a place in the country. India is the company's target and we need to set up operations in the next one or two years," Majid Al Futtaim VP Business Development Younis Al Mulla said. He said a team of senior company officials visited India in the month of March to evaluate various options and held talks with companies here. "We are visiting India again in June to organise roadshows in major cities, including Bangalore, Delhi, Mumbai and also Goa," he added. Asked about the investments planned for India, Al Mulla said, "We do not know it yet as nothing has been finalised. We have not decided on that." MAF also operates hypermarkets, in joint venture with the world's second largest retailer Carrefour, in the Middle East, North Africa, Iran, Pakistan and other markets.

Bank of Baroda, UAE Real Estate Firm Sign MoU

2008-05-19T06:01:00.000-07:00

Bank of Baroda, a leading Indian public sector bank, has signed a memorandum of understanding (MoU) with Dubai-based real estate company Dubai Properties for financing buyers of the latter’s products in the United Arab Emirates (UAE).
The agreement was signed between Bank of Baroda chief executive for Gulf operations Ashok K. Gupta and Dubai Properties chief executive Mohamed S. Binbrek, according to a Dubai Properties statement.
Bank of Baroda is the only Indian bank offering full-fledged banking services in the UAE.
It has six branches, in Dubai, Deira, Sharjah, Abu Dhabi, Al Ain and Ras Al Khaimah and an electronic banking service Unit at Jebel Ali near here.
In Oman, the bank has three branches and in Bahrain one.

PE Funds Shy away from Real Estate Sector

2008-05-19T05:59:00.000-07:00

An apparent slowdown in the real estate sector is forcing PE (private equity) funds to rein in their exposure to the sector, with nearly 30 per cent of the deals now stuck over valuations.
PE funds and analysts have become far more cautious in evaluating real estate investments in India. One of the analysts said that some of the funds are tightening norms for valuations after the slowdown and at least 30 per cent of the deals are taking a much longer time to go through because of valuation issues.
Residential projects Mr Ritesh Vora, who is a director (investments) for PE fund Saffron Asset Advisers told Business Line that as the residential projects are in a correction mode, PE funds are becoming more selective. “The evaluations are more rigorous than they were a year ago. We are being more selective than before,” Mr Vohra said.
But the situation was not so tough for real estate companies earlier. With the stock market on a downslide, real estate companies deferred their IPO plans and turned to PE funds to raise money. According to ICICI Securities, during the last two years, around 60 funds raised $30 billion in assets to invest in Indian real estate.
“The returns have been as high as between 25-30 per cent on an annualised basis, which kept PE funds to continue investing in the sector,” Mr Vohra said. In developed countries, returns for similar investments are between a mere 3 and 4 per cent.
Marginal slowdown The real estate services company Cushman & Wakefield’s Joint Managing Director, Mr Anurag Mathur, pointed out that some of the PE funds, particularly foreign funds, are taking a more cautious approach. “Funds are now more selective and wary of the delivery timelines, costs, quality as well as performance of projects,” Mr Mathur said. He said marginal slowdown in the Indian economy, distressing conditions at home (for foreign players) and the dampening of investor confidence because of mortgage crisis in North America and Europe were some of the reasons for the PE funds to become cautious.
Mr Om Chaudhry, Chief Executive Officer of another PE fund FIRE Capital Fund said because of the slowdown faced by the sector, the developers were witnessing more realistic valuations of their projects. “As a result, PE funds are getting wider choices at attractive valuations than was the case earlier,” Mr Chaudhry said. But Mr Vohra of Saffron Asset Advisers points out once the stock market returns to normal, “real estate companies might return to the market.”

ASPIRE got new Brand Ambassador - Deepika Padukone

2008-05-14T03:53:00.000-07:00

Bollywood actress Deepika Padukone (Om Shanti Om) is the new face of Dubai’s own Aspire Real Estate. The company calls the alignment the union of ‘Rising Stars’.

Aspire Real Estate is the success story of Harshit Kantaria, a young entrepreneur who came to Dubai three years ago with a vision to build a real estate enterprise that would capitalize on the enormous opportunity this city has to offer.

Today Aspire Real Estate boasts an Dhs5.5bn portfolio with developments from Business Bay to Jumeirah Village and Dubai Marina, with a special focus on waterfront properties.

Model/Actress Deepika Padukone’s claim to fame is her debut film ‘Om Shanti Om’ with super star Shahrukh Khan. Deepika began her career as a model and has been associated with some of the biggest international brands in India. Deepika is also the current face of Maybelline cosmetics, Levi Strauss and Tissot SA. Her debut performance was well received, earning the actress a Filmfare Best Female Debut Award as well as her first Filmfare Best Actress nomination.

The association was announced during a press conference where Aspire Real Estate’s existing projects were presented along with their future plans and vision.

Harshit Kantaria, Chairman, Aspire Real Estate commented, “Dubai poses immense opportunities for all, I am glad that we have been successful in capitalizing on them. It is an honour to be referred to as the rising star of Dubai real estate industry, and with a true rising star like Deepika as the new face of the Aspire brand, we look forward to doing justice to the title,”

“I love everything about Dubai, the people, the places, the achievements; it has the best of everything. And when it comes to achievements, I truly see Aspire in the rankings. Harshit is a good friend and a role model for young entrepreneurs all over the world. I am proud to be associated with Aspire real estate and hope to be a part of its future successes,” said Deepika Padukone, Brand Ambassador, Aspire Real Estate.

Aspire Real Estate’s existing portfolio of projects including Jehaan Residences in Jumeirah Village South, Sobha Ivory and The Sanctuary at the Business Bay and Al Dua’ Marina at the Dubai Marina. Besides its own developments, Aspire Real Estate is the exclusive sales agent for several prestigious projects.

Indian Real Estate Expo In Dallas and Seattle

2008-05-12T03:45:00.000-07:00

INDIA Real Estate Expo 2008 is showcasing residential and commercial properties in Dallas, TX & Seattle, WA. Expo begins on May 31st 2008, and ends on June 8th 2008.

Horizon Expo recently announced the debut of INDIA Real Estate Expo '08 in DALLAS & SEATTLE. India is reckoned as one of the fastest growing economies of the world and owing to its inherent advantages of a large consumer base, raw material resources, world class manufacturing capabilities, competitively priced talent base, a comprehensive legal & tax system and a strong operating financial system has become a preferred investment and business destination. Real estate, a "sunshine industry" in India, is flourishing rapidly, propelled by strong demand drivers and significant transformations such as deregulation of the sector, increasing transparency and professionalism, improved product quality and service standards etc.

Availability of housing loans to Non Resident Indians (NRIs) has impelled property investment in India. Reserve Bank of India (RBI) has reported that inward foreign remittance has grown 3 folds in last couple of years, and majority of these funds have been used to buy immoveable property in India.

In the midst of all the available property investment options in India, it becomes an extremely difficult task for an overseas investor to perform a due-diligence to find a reliable investment opportunity. Recognizing this particular issue, Horizon Expo LLC, a value-added licensed entity in USA, has announced its 3rd edition of INDIA - Real Estate Expo '08. This exhibition would bring home buyers and real estate developers under one roof, providing the necessary platform to perform a proper due-diligence before making a life-saving worth of investment. Real Estate Developers from Major Indian Cities like Delhi, Bangalore, Mumbai, Pune, Chennai, Hyderabad and Punjab would be showcasing residential, commercial & retail projects at the exhibition.

This would be the third Indian property exhibition that Horizon Expo would organize in United States. Its previous exhibitions held in year 2007 have helped numerous home buyers from San Jose, Los Angeles, New York and New Jersey. FIA has thrice awarded Horizon Expo LLC with Excellence in NRI Real Estate Services. Bangalore's top property developer, "MANTRI DEVELOPERS" is platinum sponsor of the exhibition, a Delhi based realty major, OMAXE is a Gold Sponsor, showcasing an upscale residential condominium project in Ludhiana, Punjab.........

At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home.

We would like to take the opportunity to welcome all the community members living world wide to our real estate portal.(NRI)

37 Real Estate Builders showcase projects in exhibition

2008-05-10T03:51:00.000-07:00

A large number of potential buyers visited the three-day Kerala Property Expo yesterday which opened on Sunday at the Kuwait Ramada Hotel in Riggai. The show organized by Kerala Builders Forum (KBF) showcases a wide range of projects of top real estate developers from Kerala state. The exhibition will end today. Kuwait Times Deputy Editor-in-Chief Abd Al-Rahman Alyan toured the stalls yesterday and got a glimpse of the projects on display. He was impressed at the wide array of projects and showed interest to visit Kerala shortly.

The exhibition is very good as it reflects the solid relations between Kuwait and India. This also shows how things have changed dramatically over the years since the days of pearl diving. Today, Indian expatriates are buying flats and houses in India," commented Abd Al-Rahman Alyan, after touring the stalls.

According to organizers, investments worth several million dollars have already been concluded within two days of the expo. They hope that this year's turnover will cross last year's figures. Those who visited the exhibition yesterday included Ali Al-Otaibi, CEO and Chairman of Danat Al-Sultan, the local event organizer, Lal Pereira, Country Manager (Kuwait and Lebanon, SriLankan Airlines and Lalith Peres, Sales Manager, SriLanakn Airlines.

We see a huge response this time. Last year, about 600 people visited the two-day exhibition. This time, the number is expected to go up drastically. And most importantly, most of them are serious buyers," said Harish Babu, Managing Director, Impresario Event Management India Ltd, who is the event manager of the exhibition.

About 37 reputed builders are showcasing their projects at this year's exhibition. Kerala Builders Forum (KBF) is an innovative group of renowned builders of Kerala and is registered with the state government. It consists of professional builders with proven track records of excellence and quality.

The real estate sector in Kerala has emerged as an organized industry today," said Srikant K, Director, Skyline Foundations and structures (P) Ltd and former chairman of the KBF. The real estate market is growing by at least 50 percent a year, he said.

According to Srikant, despite the rapid development that is sweeping Kerala, real estate industry is struggling to cope with the burgeoning demand.

Demand for apartments and building complexes has multiplied in the last few years with the fast-paced economic growth and the launching of mega projects in the state," he said. Projects such as Vallarpadam Container Terminal, LNG Terminal, the IT and ITES projects in Infopark, Kakkanad and other urban development projects in and around Cochin have fuelled the demand for housing.

The primary mover in Kerala, besides NRIs, is the IT industry. Today, the real growth cities are Cochin and Trivandrum," he noted. In Trivandrum, Infosys is setting up its campus and will employ 10,000 people on a full time basis. Similarly, Wipro is establishing its campus in Cochin. Cochin airport area is going to be a mini city," he said. Srikant said he anticipates no downturn in the market in the near future. "Even the new builders are able to sell well because the demand is so huge. So, we don't e

xpect any burst in the market," he claimed.

If you have a good track record of delivery, good builder and good location, you can see a very good appreciation of your property. And the home care division which is also beneficial to the NRIs. All this put together, there is a huge boom in Kerala real estate sector," he added.

Kuwait is the third GCC state where KBF is holding exhibition after Doha and Dubai. KBF is the only professional body of builders affiliated to the Confederation of Real Estate Developers Association of India (CREDAI). CREDAI is an apex organization of promoters and builders covering more than 80 percent of real estate development activities in India.

KBF has held several exhibitions in the Gulf region successfully, providing NRIs an opportunity to buy their dream homes back home. The exhibitors appeared bullish about the exhibition and the outcome. "Kuwait is a better market compared to other Gulf states. Here, people are ready to invest not only in flats, but in huge properties also. This is the time for them to realize the builder, choose the location and quality of the project," said G Satheesh, chief manager, Marketing Overseas, Heera Homes.

The advantage for the customer is that he can talk to all the builders and choose the best out of them. We have representations of banks -- State Bank of India and HDFC Home Loans -- here who can arrange loans for the customers on the spot," noted Babu.

Premanandan G, Chief Marketing Executive, Home Loan sales team, State Bank of India said, "We look into two things before we arrange housing finance; the cost of the property and the repayment capacity of the buyer. We extend loans on the basis of documents such as salary certificate and the bank statement. We seek legal opinion on the property and verify its position before we provide a builder tie-up certificate to the builder," he informed. "We are providing consultancy services here in Kuwait. NRIs ca

n apply directly from here and receive the loan in India," said Kapil Kapur, Manager Mortgages, HDFC Home Loans. He said people could take loans for buying flats, houses or land loans.

The local event coordinators are Danat Al Sultan, while Impressario is the event organizers. The last day of the exhibition is Tuesday May 13.

$ 800 million deal - Emaar may get it

2008-05-05T00:13:00.000-07:00

Goldman Sachs, Deutsche Bank and another financial investor are likely to make a combined investment of $800 million in three special purpose vehicles (SPVs) being created by real estate major Emaar MGF. Each SPV will have one financial investor, who will hold minority stake.

Emaar MGF, 40% owned by Dubai-based leading property developer Emaar and 56% by Delhi-based MGF, was forced to withdraw its Rs 7,000-crore offering—the third largest in the history of the country—due to poor market sentiment.

Since then, the market has lost steam on global cues, leading to dramatic erosion in the market cap of real estate firms. Realty biggies such as DLF and Unitech have lost 45% and 50%, respectively, of their market cap while smaller players such as Parsvnath and Omaxe have seen whopping two third erosion in their market cap from their January peaks.

Emaar MGF too is raising funds at the SPV level because the current market situation may not have given it the expected valuation. The three SPVs, where PE money is likely to come in, are expected to take up projects across housing, retail and office space development.

Emaar’s 3 SPVs to develop projects in housing, retail and office. Each SPV to have one PE investor, who will hold minority stake. The 3 deals may be inked in a month PE deals to be first major fund flow into Emaar since it withdrew its Rs 7,000-crore IPO in February due to poor investor response. Emaar has developed a 3,000-acre integrated township in Mohali, a 531-acre township in Hyderabad and a 14-acre residential project in Chennai. It is also executing the Commonwealth Games village project. It plans to develop more than 200 hotels over 7-9 years.

Emaar has big projects on hand. The exact projects to be undertaken by these SPVs couldn’t be ascertained, but they would be part of projects already being developed by Emaar MGF. Some of the larger projects the company has undertaken include a 3,000-acre integrated township in Mohali, a 531-acre integrated township in Hyderabad and a 14-acre residential project in Chennai.

The company is also executing the prestigious Commonwealth Games village project, where it is developing a 27.7-acre residential complex with an estimated saleable area of 1.8 million sq ft. The company also plans to develop more than 200 hotels over 7-9 years. It has two equal JVs with Accor for 100 budget hotels and Premier Inn for 80 hotels. The company has also entered into separate management tie-ups with Hyatt, Intercontinental and JW Marriott to run 26 hotels.

1400 Crore Township coming in Pune

2008-05-03T00:16:00.000-07:00

Pune-based real estate companies, the Avinash Bhosale group and Kumar Properties, have joined hands to set up a Rs 1,400-crore township in the third phase of Rajiv Gandhi Infotech Park in Hinjewadi here. The project - Megapolis - comprises 5,800 flats, studio apartments and an IT special economic zone.

Pegasus Properties, a 50:50 joint venture floated by the two firms, would develop the project over the next five years. Spread over 150 acres, the township will have all 21-storied buildings.

“Of the total 150 acres, only 20 per cent of the space would be used for construction. We will develop gardens and various other amenities on the remaining land,” Kumar Properties director Manish Jain told reporters. The township will also have special towers for old-age homes.

The first phase of the project would be ready by April 2010 while the entire project is expected to be completed by 2013. The project is coming up under the new township policy enacted by the Maharashtra government.

“We want to promote the walk-to-work culture as most of the prominent IT firms like Wipro, TCS, Infosys, Tech Mahindra are close to this project. We have also created vehicle-free zones within the township,” said Amit Bhosale, director, Pegasus Properties.

Singapore-based RSP architects and Belt Collins International is the architect and landscape designer respectively for this project.

Designer Interiors fuelling Real Estate in India

2008-05-01T00:06:00.000-07:00

Townships with designer interiors and world-class architecture are passé. Developers are now turning to golf to attract non-resident Indians and high net worth individuals in the premium housing segment. Residential dwellings built around a golf course are the latest buzzword in the super-premium housing segment of the Indian realty industry, estimated at $15 billion and growing at 35 per cent annually.

No wonder big players like Unitech, DLF, Ansal API, Omaxe and Jaypee have already taken the plunge with an array of golf-centric projects. “These high end customers are ready to pay big bucks for a sprawling home amidst the greens with a promise of high class lifestyle,” said a spokesman from DLF. “And even with a hefty price range from Rs.7.5 million to Rs.90 million, these projects have been snapped up like hot cakes,” he further added.

“Golf home projects are exclusive projects. Slight slumps in the market that generally slow down the middle housing segments usually do not affect these projects, as the buyer is exclusive and very selective about the property,” Magu said.

And the trend is fast spreading from metros to emerging cities. For example, Ansal API’s Sushant Golf City Lucknow is spread over 2,000 acres on the outskirts of the Uttar Pradesh capital.

“Earlier golf was restricted to a select group, but it has grown popular over the years with many middle level executives and business class taking active interest in the game,” Banerjee said. And with top-tier Indian players like Jeev Milkha Singh and Digvijay Singh teeing off at $ 2.3 million world tournaments, the sport’s popularity is booming across the socio-economic spectrum.

That is the reason Ansal API are proposing a Royal Palms Golf and Country Club in Lucknow that will offer residents the services of golf trainers and coaches. Even Sahara is providing a golf academy to impart professional golf training in its Amby Valley project built around an 18-hole golf course at Lonavala, 96 km from Mumbai.

Provogue India sells 27% stake in its Nagpur Real Estate arm

2008-04-30T11:26:00.000-07:00

Provogue India Ltd has informed that the company has sold 27 percent stake of Mumbai-based, real estate developer, Prozone Enterprises Pvt. Ltd to Triangle India Real Estate Fund, promoted by Old Mutual Investment and ICS Realty for Rs 457 crore.

Prozone Enterprise Pvt. Ltd (subsidiary of Provogue (India) Ltd) is a joint venture between Provogue (India) Ltd and UK-based, Liberty International. The stake purchase in Prozone Enterprise is Triangle fund’s first investment in Indian real estate sector. Prozone's arm is developing commercial complexes which would include retail, entertainment, food courts, cafes, restaurants, fine dining, hotels and convention centres.

The company plans to use raised funds in the completion of four real estate development projects, which are coming up in the cities of Aurangabad, Indore, Nagpur and Jaipur covering 16 million square feet. Provogue (India) has reported a 7% increase in net profit at Rs 8.01 crore for the quarter ended December 2007. Its sales increased by 40% to Rs 100.08 crore.