malaysia

Healthcare Major Fortis to Raise $500mn through Singapore REIT Listing

by Paul Joseph April 29, 2011 Uncategorized

Fortis Healthcare (India) Ltd. plans to raise as much as $500 million by hiving off some of its properties into a real-estate investment trust, or REIT, and listing it in Singapore, according to three people familiar with the matter who didn’t want to be named. The Indian hospital-chain operator has hired Citigroup Inc., Nomura Holdings Inc., Royal Bank of Scotland Group PLC, Standard Chartered PLC, and Religare Enterprises Ltd. to manage the issue, they said. Fortis Healthcare has begun preliminary work and the real-estate trust could be in place as early as the July-September quarter, they said. The company has been looking to grow in India through acquisitions and by adding hospital beds as it seeks to benefit from the increasing demand for quality health-care from an affluent middle class. A REIT is a business trust that allows investors to directly invest in a portfolio of real-estate assets. Such a listing by Fortis Healthcare would make it the second Indian company to do so after Indiabulls Properties Investment Trust raised $165 million in October 2009. It would make it the first Indian healthcare company to package its properties into a REIT. Fortis currently plans to raise as much as $500 million, one of the people said, adding that the size could change with evolving market conditions. Singapore is the base of operations for Fortis Global Healthcare Holdings Pte Ltd., an entity set up by Fortis Healthcare’s founders, the Indian billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh. The Singh family has been projecting Fortis Global as the entity for international expansion following an aborted bid for Parkway Holdings Ltd., Singapore’s largest hospital chain. In July 2010, Fortis Healthcare bowed out of a bidding race for Parkway and sold its stake of about 25% to Malaysia’s sovereign wealth fund Khazanah Nasional Berhad, which made a general offer for the Singapore firm. Fortis Healthcare now focuses on the Indian hospital business. Fortis’ Singapore venture follows a spate of recent business-trust deals in the island nation, including Mapletree Commercial Trust’s $1.54 billion REIT listing earlier this month and Hutchison Port Holdings Trust’s $5.4 billion initial public offering via a business trust. There are more in the pipeline, including Perrenial China Retail Trust’s plans to raise as much as $840 million through a business trust. The activity highlights Singapore’s focus on matching Hong Kong’s dominance in the equity capital markets by making rules more attractive for fundraising through REITs and business trusts. While Hong Kong has REITs, it limits public listings by other kinds of trusts. As a result, business trust and REIT-fundraising activity has focused on Singapore, which now has 25 REITs valued at $30 billion, against Hong Kong’s seven worth $13.5 billion.

Tagged as: fortis, fortis-global, hutchison-port, indian, investment, malaysia, malvinder-mohan, nomura-holdings, people, perrenial-china, raise-as-much, real estate, real estate india, retail

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Bangalore Based Embassy Property Developer to Raise 2400cr through IPO

by Paul Joseph November 13, 2010 Uncategorized

Bangalore-based real estate developer Embassy Property Developments (EPD) today said it will raise Rs 2,400 crore through an initial public offer. “The company filed the draft red herring prospectus with the market regulator SEBI in July this year, and is now awaiting a nod,” Embassy Property Development (EPD) Managing Director Jitu Virwani told reporters. We expect the IPO to hit the capital markets by this month end, he said. “The IPO proceeds shall be used to finance the construction of ongoing projects, repayment of debt and shall be used for general corporate purposes,” Virwani said. “We shall use Rs 1,500 crore for financing the ongoing projects, Rs 430 crore for repayment of debt and Rs 470 for general corporate purposes,” EPD General Manager Corporate Finance Sandeep Subramanya said. The company has debt of Rs 1,500 crore, of which Rs 1,100 crore is linked with the rental income inflows from lease of commercial space in IT parks to niche software giants like IBM, Microsoft and others, he said. EPD, with a land bank of 1,300 acre is developing four IT-SEZs in India. It has presence in Pune, Coimbatore, Cochin, Chennai and Corg in South Karnataka, besides projects in Malaysia and Serbia. The company has forayed into residential housing segment. It plans to construct 5,000 units in Bangalore on a pilot project using expertise of its Malaysian counterpart. The company turnover was at Rs 380 crore in February 2010 and it reported a loss of Rs 6 crore.

Tagged as: construction, general-manager, malaysia, real estate, real estate developers, real estate india, real estate trends

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Synergy Delivers Landmark 100 mn Sq Ft of Property Development

by Paul Joseph November 11, 2010 Uncategorized

The Bangalore based project management company, Synergy Property Development Services has achieved a record by helping frontline developers and builders, office occupiers and direct end user clients, manage and deliver over 100 million square feet of property development across various cities in India and overseas. In 2008, Blackstone Real Estate Partners, an affiliate of The Blackstone Group LP picked up 35% stake in the company. In a short span of seven years Synergy has emerged as a leading project and construction management company targeting revenue of Rs.300 crores in 2010. Click here to visit SME Buzz Also Read Related Stories News Now – Hindustan Tin’s Canvironment Week to commence from Nov 10 – N. Shridhar joins the DB Group – Regus joins forces with Frasers Hospitality and Oakwood Asia – Emirates Enters WTM in Good Shape – Toyota Classics to return to Mumbai – Rahul Arora to Head Institutional Equities at Nirmal Bang Also Read Related Stories News Now – Markets slide due to sell-off in heavyweights – Big-size banks necessary to meet eco demand: lenders – ‘Land acquisition bill may not be tabled in winter session’ – Obama says no deal yet on SKorean trade agreement – India IOC Panipat plant to hit 300,000 bpd in 10 days More The 100 millions sq ft consists of IT parks & Commercial Office buildings – 40 m, Retail Malls 18 m, Hospitals 5 m, Mixed Used Developments 20 m, Residential 17m. Mr. Sankey Prasad, Chairman & Managing Director – Synergy said, “The delivery of 100 million square feet is only the beginning for Synergy. Our plan is to leverage on this milestone along with our strong attributes of dedicated professionals, commitment to cost effective and quality delivery record. Our mission is to synergize our strengths to create new standards for project management.” Apart from India, Synergy has a large client base in Malaysia and the UAE, providing its expert services to large retail outfits, IT parks, Special Economic Zones, Corporate campuses, hotels, hospitals and mixed-used developments. “Strict customer focus, prompt delivery record and adherence to international quality have distinguished us from our competitors,” said Mr. Prasad. In recognition of its services, Synergy has been conferred with the ‘Best Engineering firm of the Year’ 2010 award for the second consecutive year at GIREM, the flagship Urban Planning and Real Estate Leadership Summit held in Goa. A bouquet of marquee brand projects that earned Synergy laurels include -Embassy Golf Links, Embassy Manyata Business Park, World Trade Centre all in Bangalore, Divyashree Omega in Hyderabad, Ambit IT Park in Chennai, HCC Tech Park in Mumbai, IT Park Cyberjaya – Malaysia, Medicity Hospital in Gurgaon, Columbia Asia hospitals in Yelahanka and Yeshwanthpur in Bangalore, Select Citywalk Mall in New Delhi to name a few. The company is currently implementing several prestigious projects like the US Technology IT campus in Thiruvananthapuram, Divyashree Techno Park, Bangalore and various projects in Mumbai, Delhi, Pune, Hyderabad, Kochi and Coimbatore. Synergy is also working on some of the premium five star business hotels, which are coming up in the country. About Synergy Property Development Services: Synergy is a project management company, offers complete project management, delivery support and design services through all phases of the development process. It provides a single-point-contact and helps strategize to minimize risk and ensure safety. Established in January 2003, Synergy has been the launching platform for a group of engineering and architectural teams with diverse experience in India and abroad. Synergy has a strong team of over 600 people, with its resource pool including talented architects, engineers and project management personnel. The Company has a pan India presence with overseas offices in Malaysia and in the UAE. Till date, they have delivered over 100 million sft of development in India and Malaysia. Synergy specializes in retail malls, IT parks/SEZs, large campuses, hotels, and hospitals, premium residential and mixed-use developments. Synergy’s strength is the ability to deliver buildings to international standards, within the cardinal parameters of cost, quality and schedule. Synergy’s project management processes are supported by innovative, hands-on delivery procedures, including a new online Management Information System (MIS), custom made for Synergy by IBM, which is for greater transparency and is accessible by the respective clients too.

Tagged as: bangalore, business, chairman, country, india, malaysia, management, markets, retail, urban

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Office space back in demand

by Paul Joseph August 18, 2010

Delhi NCR Prospects of the commercial real estate have started looking up along with the residential real estate market, as the economy gathers steam — it has shown a spectacular recovery from the downturn, when the GDP dipped to 6.7% in 2008-09. According to the Centre for Monitoring Indian Economy (CMIE), the GDP is expected to grow by 9.2% in 2010-11 as compared to 7.4% growth seen in 2009-10. Experts feel that with revival of the economy, demand for office space is bound to pick up. With a large number of players entering the market, the supply is also likely to go up even as connectivity through road and Metro networks in the NCR shows a vast improvement — this will further allow a huge amount of additional land in far-flung areas to be opened up for development of office space. These factors would ensure that the supply of office space is maintained at a reasonable cost leading to a horizontal expansion of the NCR. A demand for office space means the creation of new jobs. This will also augur well for the demand for residential real estate in the region.The strong recovery of the economy made realty buoyant. The office segment was especially impacted by the global economic downturn,with most organizations putting their expansion plans on hold, and in a few cases, even giving up surplus space. In a report, Colliers International says that since then, demand levels have improved across major cities resulting in improved transaction velocity. Overall, the report says, the markets are more rational now with enhanced demand managing to halt the value decline. In fact, in 2007 and early part of 2008, many of the companies engaged in business processes outsourcing (BPO) moved out some of their operations to countries like Malaysia and the Philippines, where the running cost of a business was not high. The global slowdown brought the real estate prices in India, particularly in NCR, to realistic level. At present, most micro markets seem to have adequate to oversupply conditions and values are expected to remain stable or marginally under pressure (in select micro markets) in the short to medium term, Colliers International report says. Global consultancy firm C B Richard Ellis also said in its report that after the gloom of later-2008 and early-2009, the second Quarter (April-June) of 2010 closed with a sense of optimism. Increased demand levels coupled with substantial infrastructural developments in the NCR are likely to benefit the overall real estate market. The rentals of office space have started firming up. Anshuman Magazine, MD of C B Richard Ellis (South Asia), says: “Since the beginning of 2010, we have seen movement in the real estate sector, including the office segment. Demand levels have improved across most metros and the markets are more rational now. There is an improvement in transaction velocity as well.” In its report, Colliers International says that rentals for Grade A office space across all central business districts (CBDs) like Cannaught Place, and secondary business districts (SBDs) like Nehru Place, Rajendra Place, Bhikaji Kama Place, witnessed an increase of 2-3% during April-June 2010, as against the same period last year. It said that the second quarter of 2010 demonstrated clear signs of revival in the CBD with vacancy levels dipping to 3-4% compared to 13-14% observed in January-March 2010 for Grade A projects. The absorption was primarily driven by firms in the BFSI (Banking, financial services and insurance) segment, the report said. However, no significant transaction was reported in the SBD of Nehru Place. Approximately 80,000 sq ft of Grade A secondary space became available in these markets. Going forward, Colliers International says that lack of quality space in the CBDs might shift demand to SBDs, which could change the prospects of SBD markets for the better. This could also augur well for office leasing activity in the district centres. Jasola District Centre in particularly, which is emerging as alternate corporate office destination, witnessed absorption of approximately 30,000 sq ft in the last quarter. But, due to huge supply, rentals in the outskirts remained stable in the second quarter. The report pointed out that new supply of approximately 1.2 million sq ft was added to Gurgaon’s and Noida’s existing inventory. The peripheral market of Gurgaon witnessed increased level of transaction. The report said the positive outlook coupled with availability of highquality projects at affordable rentals and flexible lease terms, led to the enhanced transaction velocity. Noida also observed improved level of transactions. Rental values remained constant and are expected to remain stable in the near future. Quick Bites The strong recovery of the economy made the office space segment buoyant markets are more rational now with enhanced demand managing to halt the value decline. Gurgaon Over 8.5 million sq ft of Grade A office space was ready for fit-outs in Gurgaon in 2Q 2010. Most of this supply was concentrated at National Highway 8/Udhyog Vihar, followed by Golf Course Road/Extension, Sohna Road and Manesar Approximately 60% of this available supply was in the form of IT/ ITeS office space Projects or parts of projects completed in this quarter in Gurgaon include Unitech Business Zone; a non-IT office space at Golf Course Extension Road and Bestech Orient Business Tower; an IT building on NH 8. Both these projects contributed approximately 0.8 million sq ft to the city’s Grade A office space Capital values for non-IT office space witnessed an increase in the range of 2-4% quarter-on-quarter in most of the micro markets in Gurgaon. However, capital values for IT/ITeS office space remained stable across all the micro markets Following the capital value trends, rentals for non-IT Grade A office space in areas like MG Road, Golf Course Road/Extension, Sohna Road and NH 8/Udhyog Vihar observed an increase in the range of 3-5% quarter-on-quarter. However, rentals for IT/ITeS office buildings remained stable over the previous quarter, due to large available supply Noida More than 5.5 million sq ft of Grade A and Grade B office space was available for fit-outs in Noida during 2Q 2010. Over 70% of this supply was IT/ITeS office space. Approximately 85% of this total available stock was contributed by Institutional sectors like Sector 16-A, 62, 125 and 142. The remainder was primarily Grade B IT/ITeS office supply concentrated in industrial sectors Projects or parts of projects witnessing completion this quarter include Tower C and D of Express Trade Tower building at Sector 132 along Noida Expressway. This contributed approximately 0.4 million sq ft to city’s Grade A IT/ITeS office space Two new projects were launched in Noida this quarter: Capital City at Sector 94 on Expressway, and World Trade Tower at Sector 16 on Delhi-Noida-Delhi Toll Bridge, by BPTP and Electrotherm Developers, respectively Rental for IT/ITeS office space remained stable QoQ in most of the micro markets. However, rentals for Grade A non-IT office space in institutional sectors like Sectors 62, 125, 142 and 16A, increased marginally in the range of 2-4% QoQ Vacancy for both IT/ITeS and non-IT/ITeS office space decreased marginally [Source: Colliers International] operate and transfer basis. Source:http://content.magicbricks.com/office-space-back-in-demand?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+india-real-estate+%28Magicbricks+Property+Pulse%29 Filed under: Delhi , New projects , Noida , Serviced apartments/offices Tagged: Noida , Office Space

Tagged as: business, malaysia, noida, office-space, supply

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Real Estate Invesment Trusts In Asia To Rise

by Paul Joseph July 2, 2010

The number of Real Estate Investment Trusts (REITs) in the Asian Continent is going to swell over the coming 3 to 4 yrs according to HSBC. It will be because of increasing call for investments in more risk disinclined properties. REITs invest in commercial properties mainly and pay rent collected from their properties to shareholders as dividend. This is why some investors see them as safer investments than property stocks.Another advantage is that they usually offer returns that are higher than yields of government bonds. The increased activity in the REIT IPO market this year especially in the Asian continent is due to successful listing of Cache Logistics Trust in Singapore. Also Sunway City plans to list its REIT in Malaysia come July. Kern anticipates Singapore to witness most of the activity with more than 20 to be listed there in the coming years from companies all across it’s continent. It already has more than 20 listed REITs such as Fortune, Saizen from Hong Kong and Ascends from India. This Trend is only to bring fortune to our Country as well.

Tagged as: coming, investments, malaysia, singapore

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Further interest rate hike could push realty prices up: DLF

by Paul Joseph March 29, 2010

The largest real estate company DLF said any further increase in interest rates by the Reserve Bank in the forthcoming annual monetary policy review could put upward pressure on prices. “The Reserve Bank increased the rates to ensure that a bubble does not get created in the market. There is no bubble today. It was a precautionary step by the RBI. But, I do hope there is no more surprises from the RBI,” DLF chairman KP Singh said when sought his reaction on the recent hikes in the short-term lending and borrowing rates by 25 basis points to rein in runaway inflation. The RBI will announce its annual monetary policy on April 20. Singh pointed out that the property demand is still restricted and the sector needs continuous support to recover from the slowdown. Though the rate hike was on expected lines, Singh said any further hike would put upward pressure on the prices. “The more you tweak, the more the market will get disturbed and the more price will go up,” said Singh. Pointing out that the mortgage loan to GDP ratio in the country is very low at 6-7 per cent as against 45 per cent in Thailand and Malaysia, the DLF chairman said interest rates should be kept low to encourage more people to buy homes. “The monetary policy, in my view, should facilitate growth of this important sector of the economy and not stifle it,” Singh said, and observed that with hike in interest rates, it would become difficult for homeowners to service their loans. Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=8086&cat_id=1 Filed under: Builders/ Developers Tagged: DLF Ltd , Realty Price in India

Tagged as: builders/ developers, dlf ltd, india, interest-rates, loans, malaysia, market, reserve-bank

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Marriott International Announces the Launch of Courtyard by Marriott, Gurgaon

by Paul Joseph March 10, 2010

Marriott International Inc., the leading world-wide lodging company, announced the launch of the Courtyard by Marriott, Gurgaon. The launch marks the foray of the ‘Courtyard by Marriott’ brand into the National Capital Region. Located in the heart of the Cyber City, Gurgaon, the hotel near Indira Gandhi Airport will offer its guests 198 rooms and suites along with warm and personalized service, unique dining options and best-in-class amenities. Speaking for the launch, Mr. Rajeev Menon, Area Vice President, India, Malaysia, Maldives and Pakistan, Marriott International said, “Gurgaon has rapidly emerged as one of the most important corporate hubs in India over the past decade. We are delighted to announce the launch of the Courtyard by Marriott Gurgaon, the first Courtyard by Marriott in the National Capital Region. The launch reaffirms our long term commitment to India and our determination to bring the best of our brands to the country.” He further added, “Courtyard by Marriott, Gurgaon is one of our premium offerings and the brand has grown from strength to strength since it was first launched in India with the opening of the Courtyard by Marriott, Chennai, three years ago. Each Courtyard by Marriott property in India has been customized to the needs of the business traveller to ensure that every convenience is provided for and every comfort catered to during their stay.” Speaking about the property, Mr. Matthew Cooper, General Manager, Courtyard by Marriott, Gurgaon, said, “This hotel provides a happy blend of a sophisticated decor with a casual environment which enables guests to work, socialize, eat, drink and relax all at their own pace. Every aspect of the hotel from the warm service to state-of-the-art facilities will ensure a memorable stay for both business and leisure travelers alike.” The hotel in Gurgaon offers 198 spacious rooms including 6 exquisite luxury suites fusing contemporary decor with all traditional comforts to meet the needs of both the business and leisure travellers. The hotel provides an array of facilities and the focus is on functionality as much as comfort to ensure that the discerning business traveler can transact his work with ease. The hotel has 6 meeting rooms offering state-of-the-art amenities including the latest audio and visual equipment with high speed, wireless internet access and video conferencing facilities. To help guests unwind, the hotel also offers a well equipped fitness centre with outdoor swimming pool, a relaxation centre and great access to restaurants in Gurgaon. The Gurgaon hotel also offers various fine dining options to appeal to the palates of the discerning business traveler. These include the multi-cuisine MoMo Cafe which offers all day dining, MoMo 2 Go the bakery and retail outlet, Bar Zen a chic contemporary bar and Red Zen, a specialty Pan Asian restaurant & noodle bar. The brand Courtyard by Marriott, launched in 1983, has grown into one of Marriott’s largest brands and the world’s 12th largest lodging chain with more than 800 hotels worldwide. Courtyard by Marriott Hotels aspires to be the global leader in lodging for travellers who seek freedom and opportunity to disconnect from routine. About Marriott International Inc. /quotes/comstock/13*!mar/quotes/nls/mar (MAR 28.10, +0.20, +0.72%) : is a leading lodging company with more than 3,100 lodging properties in the United States and 66 other countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club, Horizons by Marriott Vacation Club, The Ritz-Carlton Club and Grand Residences by Marriott brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. The company is headquartered in Bethesda, Md., and had approximately 151,000 employees at 2007 year-end. It is ranked as the lodging industry’s most admired company and one of the best companies to work for by FORTUNE(R), and has been recognized by the U.S. Environmental Protection Agency (EPA) with the 2007 Sustained Excellence Award and Partner of the Year since 2004. In fiscal year 2007, Marriott International reported sales from continuing operations of $13 billion. Source:http://www.marketwatch.com/story/marriott-international-announces-the-launch-of-courtyard-by-marriott-gurgaon-2010-03-09?reflink=MW_news_stmp Filed under: Builders/ Developers , Delhi , Hotels/ resorts Tagged: Gurgaon , hotels , Marriott International Inc.

Tagged as: builders/ developers, countries, delhi, gurgaon, hotels, india, malaysia, president, work

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