Consultation India - Pune, Mumbai Real Estate/ Properties Investment, Property Management Services

Source: The Hindu Business Line Real estate industry is the second largest provider of employment after agriculture. We urge the Finance Minister to recognise this and accord the same consideration and treatment as other industries like software. Service tax should be reduced along with the modification of entire income tax structure for real estate industry. The real estate industry has matured significantly in the last few years. Hence, the Government should consider introduction of sectoral concepts such as rental housing, and real estate investment trusts (REITs) to allow housing more easy and affordable for common man along with raising more funds. Such developments proved their worth in number of other industries. M.A. Vakil, CMD, Vakil Housing Development Corporation, Bangalore

MUMBAI: Real estate firm Anant Raj Industries Ltd said on Friday it has priced its global depositary receipts (GDRs) at $7.494 each. Each GDR represents one equity share of the company. It said the company has received commitments for $151 million. The GDRs will be listed on Luxembourg Stock Exchange.

Source: 18 Feb 2008 The Financial Express ‘Budget Homes’ are gaining popularity among builders and middle class has finally begun to dream. India’s urban population is growing at the rate of 2.5% annually. By 2011, close to 41% of India’s total population will be living in the urban areas. This has lead to increasing demand for budget homes. The country is witnessing an average addition of 2.3 billion sq ft of residential area each year, which means that 2 million houses of 1,175 sq ft each will be built every year. Industry experts believe that builders should plan keeping a certain clientele in mind. For such houses, they need to concentrate on volumes rather than ‘limited editions’ and price homes in a manner so that the lower or middle income segments can afford them, depending on target clientele. According to Mr. Anuj Puri, Chairman and Country Head of Hoems LaSalle Meghraj, ‘All major cities have a ‘budget home’ segment. Most of the activity would be in the sub

Source: DNA Analysts say the move makes sense as it is already fairly diversified Mithun Roy. Mumbai Textile major KSL and Industries Ltd (KSL), promoted by Saurabh Kumar Tay-al, is betting big on its realty business. A banker close to the development said the Rs 800 crore company plans to demerge its realty business into a separate company and list it on the bourses. The rising rupee, which has hit exporters hard, seems to have taken a toll on its core business - textiles. Hence the focus on realty play in the next few years, said the banker. Analysts say the demerger makes sense considering the company has diversified into the realty business in a big way Tayal told DNA Money, "We are analysing all possible growth areas including hiving off and thereafter listing on bourses, but not immediately A separate team is looking into it and once the internal report comes, we will take the final call and subsequently inform the exchanges." Going by industry sources, KSL has started

Source: Business Standard RAGHAVENDRA KAMATH Mumbai, 26 February A fter Biyani's Future Group. BSE-listed stationery maker Today's Writing Products is entering into the retail of office supplies and stationery products. Today's is planning to open 500 stores under the brand name OFFIX in the next three years. The company has earmarked nearly Rs 160 crore for the venture and plans a mix of company-owned and franchises for the same. The company has floated a subsidiary Today's Stationery Mart for the venture. Today's is also setting up six warehouses, in the range of 70,000 to 80,000 sq feet, to cater to the operations of the company across the country. Last year, Future Office, the office products venture of Future group, entered into a joint venture with $16 billion US company Staples to form Staples Future Office Products in the country's $ 10 billion office products' market, which is dominated by city-specific unorganised players. According to estimates, t

Source: The Asian Age By MAYUR SHEKHAR JHA New Delhi, Feb. 26: Indian Railways is getting real about estate. Lalu Yadav wants to put up for commercial use his department's surplus land assets. In 2008-09, the department plans to invest about Rs 4,000 crore in public private partnerships (PPP) for commercial development. A staggering 43,000 hectares of land, no less, across the country has already been identified for the purpose. "It makes good business sense for both the Railways, as well as the private developer. Often, this surplus land is around the main stations, bang in the heart of a city, and thus, commands huge value," says DLF group executive director Rajeev Talwar. India's largest real estate developer plans to bid for PPP projects mainly on the Delhi-Mumbai freight corridor. "At present, we are bidding for the land around New Delhi railway station. We would make use of opportunities as and when they arise," Mr Talwar said. The other real estate gi

Source: The Economic Times Our Bureau MUmbaI BOOMING Islamic finance is likely to acquire assets in India through Islamic Real Estate Investment Trusts. According to a report by Moody's although IREITs are not in existence in India, the draft IREIT guidelines issued by Sebi may pave the way for these funds into the Indian property market. With high oil prices funnelling billions of dollars to the Middle East, there is an increased demands for Sharia-compliant finance products. According to Moody's, Islamic finance is now estimated to be worth around $700 billion globally while Sukuk, or Islamic bonds, are the fastest-growing segment, with volumes worldwide reaching $97.3 billion till 2007. Moody's pointed out that the property boom in the Middle East makes IREITs a much-needed product and a useful investment tool, given the existing favourable investment and regulation environment. Moreover, there has been a growing appetite for the real estate asset class among regional in

Souce: Economic Times MUMBAI: Real estate firm Housing Development & Infrastructure (HDIL) on Wednesday said the private equity firm DE Shaw is investing $250 million in Mack Star Marketing, an HDIL group company. Mack Star Marketing holds development rights for a 54,000-metre commercial complex being constructed in Andheri. Last week, HDIL had transferred its development rights to this complex to Mack Star for Rs 900 crore. DE Shaw’s investment is in the form of equity and debt. HDIL managing director Sarang Wadhawan said DE Shaw will hold a minority stake, but declined to give details. The investment comes at a turbulent time for India’s capital and real estate markets. The steep meltdown in January and the withdrawal of Emaar MGF’s IPO in February rattled real estate firms who rely on equity to fund their expansion projects. PE money, which was always sought after, has become attractive now, but funds are being very selective and managements are also being forced to offer realis

Source: Economic Times MUMBAI: Realty sector hopes that Finance Minister P Chidambaram will provide tax breaks on REITs in line with the Mutual Funds while he unveils the Union Budget on February 29. Market regulator SEBI has already come out with a draft guideline to allow Real Estate Investment Trusts (REITs), but there was no mention on the tax breaks that is imperative to popularise the REIT market to start with like any other global market. "I believe that income of the investors under REIT should not be taxed, like in the US. This will attract investors to further invest in REITs," Ansal API Chairman Sushil Ansal told PTI. The country needs to introduce REITs as soon as possible, he said adding that this would help to bring in funds to the sector. "All the benefits that the Mutual Fund industry enjoys should be made available to REITs as well. Long-term capital gains on sale of REIT units could be made tax exempt and short-term capital gains could be taxed at 10 pe

Source: The Economic Times MUMBAI: The booming realty sector wants a status equal to telecom and aviation with amendments in the foreign direct investment guidelines to boost construction and infrastructure development in the country. "The realty sector is growing at a dizzying pace of almost 30 per cent each year. The bulk of construction activity - 80 per cent - is dedicated to housing, while the rest is commercial, including offices, malls, hotels and hospitals," said Akruti City Ltd Managing Director Vimal Shah. The double-digit growth in this sector is mainly on account of offshoring of business including high-end technology consulting, and improved techniques employed here. "In order to give a further boost to this sunrise sector and make mass urban housing affordable, tax exemptions are necessary in the next union budget. Then, property prices can come down by up to 20 per cent, bringing more people into the self-owned housing net, and enable the industry grow in

Source: The Economic Times KOLKATA: Singapore’s largest private property developer, the $4-billion Far East Organization, is keen to get a toehold in India. The Singapore conglomerate is talking to prospective Indian partners for its proposed foray in the booming realty market, especially in major metros like Delhi, Mumbai, Kolkata and Chennai. “We are talking to partners who will complement our property development expertise. Big realty players who know the four markets don’t need a partner, but regional ones who have the land and are in the business may find partnering with us beneficial,” Far East Organization executive director Chia Boon Kuah told ET. But discussions are at a preliminary stage, Mr Kuah added and declined to name realtors who are in talks with them. The Singapore firm has developed a string of high-end residential and commercial properties, including the iconic Fullerton Hotel in Singapore. It is also building Orchard Central as part of $1.6-billion makeover of Orch

Source: The New Indian Express New Delhi, Feb 25: The government today approved 10 more proposals for Special Economic Zones, including those by Videocon Realty and Mahindra Worldcity. The Board of . Approval, chaired by Commerce Secretary Gopal Pillai, met here and took up 14 SEZ proposals, including three in-principle conversions to formal approval. Formal approval was granted to 103-hectare transport engineering goods zone by State Industries Promotion Corporation of Tamil Nadu Ltd (SIP; COT) in Tamil Nadu as well as to a mineral-based products SEZ in Madhya Pradesh by Madhya Pradesh Audyogik Kendra Vikas Ltd. Wardha Power Company's 102-hectare SEZ in Maharashtra and Anant Raj Industries IT/ITES zone in Haryana was also given formal approval. Mahindra Worldcity' s (Jaipur) 103-hectare handicraft and 104-hectare light engineering zones in Rajasthan were also approved. The in-principle nod to SIP-COT's 103-hectare automobile/automobile parts zone in Tamil Nadu and Videocon

Source: DNA Ficci panel seeks clarification on draft guidelines for such trusts Sanat Vallikappen. Mumbai The new Securities and Exchange Board of India (Sebi) dispensation under chairman C B Bhave looks all set to carry on from where M Damodaran left off. On Thursday, senior officials at Sebi met with a team from the real estate committee of the Federation of Indian Chambers of Commerce and Industry (Ficci). The latter made about 15 recommendations, meant to clarify certain aspects relating to the draft guidelines for real estate investment trusts (REITs) put out by the regulator on December 28, 2007, when Damodaran was chairman. One of the key recommendations was to make the tax structure on REITs favourable to investors. With REITs mandated to distribute 90% of the income they generate as dividends, the thinking is that there should only be a dividend distribution tax, to be paid by the real estate investment management company, and not the investors. REITs are essentially instrumen

Source: The Economic Times Lynn Adler NEW YORK THE distressed US housing market should get a lift this spring as bargain prices lure prospective buyers out of hibernation, but tighter lending means no one should expect the boom days to return any time soon. Spring is a pivotal season in the housing market. Potential buyers typically emerge from a winter hiatus and shop in earnest for a new home or an investment. The strength of the market in March, April and May usually sets the tone for the entire year. This year, spring has assumed even greater importance as it coincides with a sharp US economic slowdown, triggered largely by a dysfunctional real-estate market. After sales of existing homes sank almost 13% last year, a housing revival could put the economy back on solid ground. When the housing asector is thriving, so does the economy as buyers spend heavfly on new appliances and furniture while owners pump cash into remodelling or additions. Even in Arizona and Florida, which are am

Source: livemint.com Education Is The Next Move Of Real Estate DevelopersThe latest concern of home-buyers is the quality and proximity to their children’s educational institutions. Developers such as Delhi-based Emaar MGF Ltd and Mumbai-based Hindustan Construction Co. Ltd (HCC) have teamed up with different schools for the township projects they have announced. While Emaar tied up with Singapore-based Raffles Group, HCC has teamed up with the Girl’s Day School Trust, UK, for its new hill station project in Lavasa, near Pune. Several players are looking at educational infrastructure as a possible investment opportunity. For instance, Trikona Capital, a Delhi-based realty fund plans to dedicate around 10% of its new $1 billion (Rs3, 970 crore) fund Trident to investments in this sector. Mr. Mahesh Gandhi, president of Trikona Capital, says: "We see a lot of opportunity in the social infrastructure sector in the coming years. We have already invested in hospitals, now we are lo

Source: Hindustan Times COMPARED WITH developed countries, India's real estate sector still lacks sophistication and transparency However, it is now the cynosure of international investors, thanks to the gradual opening up of certain sub-sectors like townships and retail to foreign direct investment. This has naturally brought on the need for better, more capable human resources. Though real estate is not rocket science, there is a fair degree of complexity involved in the business. As in any other business, real estate businesses operate either by responding to existing market trends or opportunities, or on the basis of an in-depth understanding of the market, keeping an eye on both emerging possibilities and long-term integrity of the market. The first method is reactive and often opportunistic. The latter is based on information rather than gut feeling, and results in assured growth rather than short-term gains that only involve calculated risks. India's economy is growing a

Source: Deccan Chronicle M ore people in their 30s are buying houses these days, thanks to income tax concessions and loan schemes with affordable equal monthly installments. Two decades ago, the average age of people who bought houses was between 55 and 58. Other factors responsible for this 'youthful' change are exponential increase in incomes of young professionals and high rents charged by property owners on apartments and houses. Loans are also easily available now, which was not the case 20 years ago. The trend of more young professionals purchasing houses was noted in an analysis conducted by industry chambers on data obtained from major real estate developers such as DLF, Prasanth, Omaxe and Unitech. There is also a change in the 'renovation' pattern. Earlier, renovations were carried out when house owners were around 60. But now people carry out large-scale renovations when they are between 45 and 48. "The biggest house buyers nowadays are younger people,&

M ore people in their 30s are buying houses these days, thanks to income tax concessions and loan schemes with affordable equal monthly installments. Two decades ago, the average age of people who bought houses was between 55 and 58. Other factors responsible for this 'youthful' change are exponential increase in incomes of young professionals and high rents charged by property owners on apartments and houses. Loans are also easily available now, which was not the case 20 years ago. The trend of more young professionals purchasing houses was noted in an analysis conducted by industry chambers on data obtained from major real estate developers such as DLF, Prasanth, Omaxe and Unitech. There is also a change in the 'renovation' pattern. Earlier, renovations were carried out when house owners were around 60. But now people carry out large-scale renovations when they are between 45 and 48. "The biggest house buyers nowadays are younger people," says Mr Karunakar R

Source: Economic Times of India. T HE Indian real estate has gained a lot of traction from both within and outside the country in the past couple of years. A huge pent up demand and access to funds were the key drivers for propelling the Indian real estate market into an overdrive. The industry received the much-needed first shot of funding in 2005 wherein the foreign direct investment (FDI) route was opened up for Indian real estate. Since then the Indian real estate sector has transformed to reach $57 billion in 2007, and has a potential to reach $90 billion by 2012 according to the Eleventh Five Year Plan. The accelerating growth momentum has paved the way for exciting opportunities for both domestic as well as international investors. The real estate industry has multiple stakeholders right from developers to investors (including private equity funds), financiers, buyers (including Real Estate Investment Trusts) and service providers such as property consultants, contractors and pr

Souce: Economic Times of India. NEW DELHI: Real estate firm Alchemist Realty Ltd will invest over Rs 5,000 crore in the next 7-10 years for developing a land bank of 10,600 acres. "Currently, we have a land bank of 10,600 acres across the country, mainly in the northern states. We plan to invest about Rs 5,000 crore in the next 7-10 years to develop different projects," Alchemist Realty Ltd CEO Pran Khanna told PTI on the sidelines of Technopak Retail Summit here. The company plans to develop integrated townships, resorts, hotels and restaurants on its land bank, he said. Alchemist Realty proposes to open a chain of speciality restaurants in northern India under 'Red Cap'" brand. "At first, we will open 20 restaurants in two years in northern states. Excluding land and lease amount, we have earmarked an investment of about Rs 15 crore for setting up the outlets," he said, adding the eating joints would operate under franchisees as well as stand-alone ba

Source: Economic Times of India. HONG KONG: Indian fund manager Primary Real Estate Advisors is planning to launch a fund worth as much as $500 million, probably in the second half of this year, but said it will tread carefully as the country's property boom stutters. Foreign investors have taken advantage of such funds to rush into property development in India since it eased rules on inward investment in the construction industry in early 2005, sparking rampant land speculation and a near quadrupling in prices. But despite signs of a slowdown -- home sales volumes have fallen by one-fifth in Mumbai and 40 percent in Bangalore in the last year -- the head of Primary Real Estate, Ashwin Ramesh, is convinced that North American and European investors will invest. "There are certainly cowboys out there," the Indian fund manager said in a telephone interview. "But our style is more focused for a risk averse environment." "We would typically underperform in a r

Source: Economic Times of India. BANGALORE: Reliance Industries is in advanced talks with the New York-based Vornado Realty Trust, one of the world’s top five real estate asset managers, to float a $1-billion plus fund. The proposed fund will acquire and manage properties, mainly in the retail space, across India. People familiar with the development said RIL and the New York Stock Exchange-listed real estate investment trust (REIT) were discussing the possibility of an equal joint venture. Vornado, which has a market capitalisation of nearly $14 billion, owns and manages over 116 million sq ft of realty assets in the US with significant concentration in New York and Washington districts. The sources said while no definitive agreement is in place yet, both parties have made substantial progress in negotiations. RIL spokesperson declined to comment on the development. It is believed that the joint venture is likely to manage real estate for RIL’s rapidly-expanding retail arm Reliance Re

Source: Hindustan Times New Delhi: Real estate firm Parsvnath Developers will in�vest up to $5-6 billion over 5-7 years to develop its land bank and special economic zones (SEZ), its chief said on Wednes�day "It (the investment) is $5-$6 biliion, over 5-7 years. It is relat�ed to developing the current land bank and forthcoming SEZs," Chairman Pradeep Jain said.

Source: The Financial Express Damac Properties, the largest private sector developer in the Middle East, has firmed up plans to invest over $5 billion (Rs 19,700 crore) over the next three to five years in In-dia's burgeoning real estate market. The company has already initiated talks with Indian companies for a joint venture to pursue its investment plan. In order to drum up interest in the group and its iconic projects, Damac will hold roadshows across India. Mumbai hosts the roadshow between February 14 and 20. Damac, which plans to build residences, offices and shops in Mumbai, New Delhi, Hyderabad and Bangalore, will fund its proposed investments in India through internal resources. The company also hopes to attract Indian investors to its projects in the Middle East. Hussain Sajwani, founder & chairman, Damac Holding, said: "Through these roadshows, we also aim to educate our audience in India about our brand personality and the quality of our projects. The Indian re

Source: The Asian Age Hyderabad, Feb. 13: Lower interest rates seems to be the rallying cry for the Indian real estate industry in the run up to the union budget. This, according to industry players, is one measure that will make housing accessible to the common man. Finance minister P. Chidambaram seems to be listening too, which is evident from the number of public sector banks that have cut lending rates over the past few weeks. On other factors such as raw material costs however, voices are as fragmented as the industry itself. Discussions with industry participants also suggest that the finance minister could introduce a tax break for developers building houses for the lower income groups. Several years of low interest rates coupled with tax benefits had led to a boom in the housing sector, while mortgages had increased at a rate of over 30 per cent per annum. Over the past year, however, the interest rates for home loans have risen between 6.5 per cent to 7.5 per cent to over 10

17 Feb, 2008, 1105 hrs IST, PTI, Source: Economic Times of India NEW DELHI: India's booming realty sector has attracted foreign investors and figures in the top three property markets, offering the best opportunity for capital appreciation after the US and China. In the league of the most preferred property market among foreign investors globally, US has retained its top position, while China was ranked second followed by India, a survey conducted by the Association of Foreign Investors in Real Estate (AFIRE) said. China moved to the second place, garnering 21.4 per cent votes and displacing India in the process, which was preferred only by 16.7 per cent of the respondents favouring the country as the most fancied place for real estate investment. In 2006, China got 14.6 per cent votes while India had 18 per cent and was ranked in the second position. One of the significant findings that cannot be overlooked is the jump in investors confidence in China. For the second time in three

16 Feb, 2008, 0048 hrs IST,Nevin John, TNN, Source Economic Times of India. MUMBAI: The US-based hospitality and real estate fund Walton Street Capital (WSC) has decided to invest Rs 1,000 crore in the booming Indian real estate market in 2008. It has already tied up with property developers for investing Rs 600 crore at the project level. These investments will be made in special purpose vehicles (SPV) floated specially to implement projects. The fund is in talks with three Indian developers for the remaining investments, which is expected in a couple of months, said WSC managing director Sourav Goswami. Last year, the $13 billion Chicago-based WSC invested about Rs 800 crore in several SPVs, including 20% in Shriram Properties. The fund has invested in retail malls, office buildings, housing and hospitality. Though the real estate sector seems less attractive for investments because of the high interest rates and fall in sales, Mr Goswami said India’s growth story will continue like

Entrepreneurship in the world's 2 most populous nations, China and India, has through modern times been somewhat asleep. But now, says Harvard Business School(HBS) professor Tarun Khanna in a new book, both societies "have woken up," and the results could reshape business, politics, and society worldwide. "In some sense people in these societies are running faster than their rules and laws can keep up. So they are creating the rules as they go along. And entrepreneurship is, after all, doing things in new ways, ahead of social norms and customs, and establishing the rules and laws. In both countries, these processes are unfolding not just in the mainstream business sector but in society writ large and even in politics and civil society," says Khanna. Khanna's book Billions of Entrepreneurs: How China and India Are Reshaping Their Futures and Yours will be published by Harvard Business School Press on February 1. Each chapter compares China and India on a br

NEW DELHI: Parsvnath Developers Ltd and Indiabulls Real Estate have come together to bid for ten prime location plots being offered by the Indian Railways for commercial development across various cities. The two companies have already submitted the request for qualification (RFQ) for all the ten plots offered by Rail Land Development Authority (RLDA) in the first phase. According to sources, Parsvnath and IBREL have entered into an understanding for the submission and bidding for the land offered by the Railway Ministry through RLDA and under the agreement, the RFQ for 10 locations have been submitted. The objective under the agreement would be to design, develop, finance and to market the developed property, they said. The 10 sites which have been selected for commercial development in the first phase are located in Delhi, Kanpur, Gwalior, Visakhapatnam, Kolkata, and Bangalore. When contacted, a spokesperson at Parsvnath confirmed the development, but declined to share any further de

HONG KONG: India could follow other Asian countries this year in creating a market for real estate investment trusts (REITs), making it easier for investors to buy into the country's sparkling new office blocks and shopping malls. The move would encourage foreign property funds, which are keen to join India's construction boom but are not allowed to own finished buildings. REITs or domestic funds could buy the assets they develop, offering them an easier way to exit the projects and take profits on their investments. In December, market regulator Securities and Exchange Board of India (SEBI) issued draft guidelines for REITs, which pay most of the rent from their buildings to investors as dividends. But people in the industry say unless tax breaks are also offering by the government in its upcoming budget, a local REIT market would be a non starter. The SEBI proposal contained no mention of the kind of tax breaks that kick-started other property trust markets, but it could be f

They had looked hesitant for a while, but foreign investors and private equity funds have now begun to pour big money into India's property development business. Morgan Stanley has just invested $68 million in Mantri Developers. Siachen Capital is investing $30 million in a joint venture with Nitesh Estates, with the promise of an additional $70 million investment in the future. The DLF Group recently announced a 50:50 joint venture with the UK-based , infrastructure major Laing O'Rourke with an initial corpus of Rs 500 crore. Mumbai-based developer Runwal Group and Singapore-based CapitaLand Group have entered into a 51:49 joint venture to develop residential projects. Bangalore-based developer RMZ Corp appears close to sealing a private equity deal. The Brigade Group expects to have a foreign partner in place in six months. The Sobha Group's immediate priority is its IPO, expected to happen in June, but it is also looking at FDI for particular projects. Industry sources s

Real estate has always been about location . But over the years, it's becoming more about reputation . Driven by positive growth in the economy, real estate in India is booming. Year 2006 started on a promising note when the Government of India provided fresh impetus to the construction and development sector by allowing 100% foreign direct investment (FDI) under the 'automatic route' in order to spur investment in the vital infrastructure sector. The relaxation of the FDI ceiling saw big names like Dubai-based Emmar Properties — the largest listed real estate developer in the world — joining hands with the Delhi-based MGF Developments to announce India's largest FDI in the realty sector , amounting to over $500 million in projects with a capital outlay of $4 billion. Groups showing interest in India include insurance company American International Group (AIG), High Point Rendel of the UK, Edaw-US , Japan's Kikken Sekkel, Lee Kim Tah Holdings and Cesma International

Ajit Bhagnani, a chartered accountant from London has bought a house in Kondhwa and also commercial place in Sohrab Hall. Amit Choudhari, also from England, has invested in an entire building in Kharadi. Similarly, Rana Sengupta from South Africa has bought three flats in areas like Viman Nagar, Kalyani Nagar and Kharadi. There are many like Bhagonani, Choudhari and Sengupta, who are parking their money in Pune's flourishing real estate industry. Experts point out that in the last one-year , several Non Resident Indians (NRIs) have invested in multiple properties - commercial as well as residential - in Pune. This trend is attributed to "reasonably good return on investments" and the "growth of the IT sector" in the city. Also, owning a property in the Motherland is one of the guiding factors . But the fact that Pune is a safe parking lot for their money, rules over all the other factors. Take the case of NRI Ramesh Kriplani, who has been living in New Jersey fo