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

Source: Economic Times PUNE: The building sector in Pune and neighbouring areas is in dire straits. The mass exodus of migrant workers from UP and Bihar, following alleged threats from Raj Thackeray’s Maharashtra Navnirman Sena, has forced builders to invoke the force majeure clause to escape liabilities of delays and cost overruns. With the labour rates in the building industry almost trebling due to insufficient workers and absence of skilled employees, buyers will have to shell out more for their flats. “We have informed our customers that there will be a delay in the delivery of flats due to this force majeure situation,” said Gera Developers chairman Kumar Gera. “We can’t say when the sub-contractor’s labour will be back, when normalcy will return or when flats will be ready,” added Mr Gera, who is also the founder chairman of the Confederation of Real Estate Developers Association of India. “The number of labourers on our project sites has come down from 2,300 to 1,400 now. This

Source: Economic Times DUBAI: A Bahraini real estate firm has acquired 49 per cent stake in an information technology park in Noida at a cost of $69 million. Acacia Real Estate, a company spearheaded by Bahrain-based TAIB Bank, has acquired 49 per cent of Logix TechnoPark located at Noida in Uttar Pradesh. "We are proud to be able to offer our clients this unique opportunity to invest in India's real estate market," said Acacia executive committee board member and TAIB Bank chief executive and vice-chairman Iqbal Mamdani. With a projected internal rate of return of over 24 per cent per annum, the deal was structured to provide investors with downside protection and an average cash coupon of 8 per cent per annum over a three-year holding period, he said. TAIB Bank is the exclusive placement agent for the project. The property, along the Greater Noida Expressway, consists of four newly built 100 per cent occupied office towers with a total gross leasable area of 461,120 sq-

Source: Business Standard BS REPORTER Bangalore, 4 March T he National Association of Realtors-India (NAR-I) has signed a bilateral agreement with the National Association of Realtors-US (NAR-US) to facilitate realtors from both countries to source properties for buying and rentals. NAR-I, a New Delhi-based non-profit society registered in Bangalore, aims to streamline and promote professionalism in real estate brokerage in India to achieve transparency, accountability, fair dealing and ethical practices. Addressing a press conference on Tuesday, Farook Mah-mood, president NAR-I said, "In addition to sourcing properties, a bilateral agreement between both organisations has also been signed to provide skills, education and to share best practices." "Now local realtors in India can now extend their operations by transacting on a global level," he added. Earlier in the day, Banga-lore Realtors' Association - India (BRA-I) along with its counterparts from Chennai, P

Source: The Times of India There are no indications that investor activity has overtaken genuine buyer activity in the market, says Anuj Puri MYTH 1: There is a 'bubble' in the Indian real estate market, and it will burst soon. Fact: There is no evidence of a 'bubble'. When a bubble develops in any market, it is because prices for that particular commodity or asset have gone through the roof and beyond affordability. This is far from the case in Indian real estate. The residen�tial sector is led by endusers and it is they who dic�tate the state of the market. Neither is there a sig�nificant correlation between the state of the stock market and that of the property market. There are no indications that investor activity has overtaken genuine buyer activity. In residential, the propor�tion is approximately 80% end users and 20% in�vestors. In the commercial sector, the proportion is almost 100% end users who are taking property on lease. There are instances of overheating

Source: Economic Times NEW DELHI: The Indian real estate sector has welcomed the overall impact of budget while saying that it could have done more for the industry. "The budget will boost the socio-economic infrastructure of the country by giving due emphasis to education, health and hospitality sector. The budget has, however, not fully addressed the demands of real estate industry", said Pradeep Jain, chairman of Parsvnath Developers Ltd. "While we welcome the emphasis on education and health given by the finance minister, the long-awaited demand for industry status for real estate would have gone a long way in providing the desired impetus to the growth of the sector, which is highly capital intensive. "The sops given to infrastructure and housing sector in rural areas are welcome. However, a reduction in duties and service tax benefits directly to consumers would have propelled the demand for realty across the country. "The reduction in input cost of cemen

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