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250 Indian Projects to feature at Dubai Expo

by Paul Joseph June 6, 2011 Uncategorized

Dubai: More than 250 projects worth $2200 million will feature at an upcoming Indian real estate show in Dubai. The eighth edition of the Indian Property show is scheduled from June 16 to 18 at Dubai World Trade Centre. Organised by Sumansa Exhibitions, the show is expected to generate business worth $58 million, a statement said. Seventy per cent of the projects at the exhibition are residential while 30 per cent offer commercial and retail space, it added. Visitors will be able to look at a spectrum of properties available, different investment options, financing sources, Vaastu consultations and sorting out legal queries. “The Indian property show connects buyers and developers at an opportune time, with the Rupee slated to be strong against the dollar and demand for property at a high, we will again witness rise in property prices in India in near future and hence this is a right time for the investors to buy the property,” said Sunil Jaiswal, CEO Sumansa Exhibitions. “Also those keen to expand their financial portfolios with real estate as a hedge against rising inflation and those looking to maximize their ROI should definitely visit Indian Property Show.” “Buoyant with the response we received last time, we decided of making this show biannual this year. Investors, buyers and Developers all have encouraged us to hold the show again after 6 months. The last show saw more than 17000 visitors; we expect a similar response this time as well,” he added. The exhibition also features property and investment seminars by property industry gurus, international fund managers, and legal advisers. This year the seminars aim to guide the buyers on the booming real estate markets within India along with the benefits of investing now. Anuj Malik, sales head, GCC for Unitech , one of the prime exhibitors at Indian Property Show, said: “ The global meltdown, unrest in few parts and job uncertainty may have also prompted the NRI’s in UAE to buy property in India. Catching up on these trends Indian realtors is going that extra mile to make homes that fulfill individual’s aspirations and are still affordable.” “We are participating in the upcoming Indian Property Show with aggressive pricing of INR17 lacs ($38,000) onwards and providing all options such as first time buy, second home, investment option, budget homes & holiday homes.” Ajay Sachdewa, regional head-Dubai & GCC, HDFC, a leading India-based bank, said: “Through this exhibition we plan to meet potential customers and we foresee a strong demand as Indian property market has revived very quickly as compared to other markets in the world.” “This is due to strong RBI policies, Government planning and healthy credit history. HDFC has made it easier for the Gulf based NRI’s to apply for a loan to HDFC – India.” “HDFC through its office in Dubai and all the GCC countries through Service Associates, now offers advisory services in real estate finance to the Middle East based Non-Resident Indians who wish to acquire homes in India. These offices will coordinate the entire loan process in India,” he added.

Tagged as: dubai, financial, government, india-catching, indian, markets, middle-east, real estate, real estate india, time, uae, year

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Investing abroad: Home, risky, home

by Paul Joseph January 10, 2011 Uncategorized

When the world is speculating whether India will become the fastest growing economy in 2001 beating a slowing down China, it sounds heretical to tell Indians to invest abroad. But did anybody tell you that GDP growth and stock market performance are not really correlated? GDP numbers are about the recent past while investing is all about the future. Why else should a small number of seasoned investors build nest eggs outside mother India? As the world’s financial and property markets got beaten up by the impact of the 2008 recession, India recovered quickly and its markets peaked to pre-crisis levels. This created a valuation differential between India and many other markets attracting a handful of HNIs to invest there. The RBI had allowed a foreign investment limit of $200,000 per person each year. But for long, all this money went into real estate. Only recently have HNIs begun taking overseas equity seriously. Outward remittance in equity has grown about 44 percent this year, albeit on a tiny base. Those wanting to take a higher exposure often pool funds with family members, and have built sizable portfolios of as much as $1 million. “It is mostly the new money HNIs that have begun taking the initial steps through mutual funds and ETFs, and then moving on to other asset classes,’’ says Rajesh Saluja, CEO of ASK Wealth. Why Go Global? History has shown that no single stock market can be the world’s best performer for two years in a row. Like a musical chair, the hot destinations keep changing. “Stock market performance need not reflect GDP. That is a myth you and I live with,” says Arindam Ghosh, head of retail sales at J.P. Morgan Asset Management. In fact, India has not been the best performer even once in the last decade. This clearly makes out a case for investing in multiple markets. The idea is to build a portfolio so it has uncorrelated elements in it, says Atul Singh, head of global wealth and investment management at BoA-Merrill Lynch. He says an investor must keep a large chunk of his money still in India , but hedge against the risk that India may falter by putting a small portion in other markets. The other strategy is to invest in asset classes not available or frequently traded in India. Foreign exchange and some base metals come in this category. Investing in equities or commodities abroad is only slightly more cumbersome than investing in local stock exchanges. Indian brokerages have tied up with global partners and opened overseas offices to enable the purchase of stocks directly. This will enable you to build a customised portfolio, but could be a risky affair. Sitting thousands of miles away, an Indian investor will not be able to gauge the ups and downs of foreign markets and may not be nimble enough to get out of a tight situation. That’s where the mutual funds come in. These funds pool in money from local investors and invest in stocks or other assets. Birla Sunlife International Equity Fund and Mirae Global Commodities Fund are examples of such funds. The risk here is that the local fund manager may not be the best person to take calls on foreign markets. A growing number of feeder funds eliminate this risk. They invest their corpus into funds run abroad. In fact, most Indian fund houses have adopted this model. These funds typically get entry load exemption from the underlying fund so that the Indian investor pays a manager’s fee for only the Indian leg of the investment. JP Morgan JF Greater China Equity Offshore Fund is an example of this category. A hedge against dodgy fund managers can be an Index fund. If it is a hybrid fund also investing in India, that is even better. One such fund allowing Indian investors to buy into China is the Hang Seng Benchmark Exchange Traded Fund. This ETF offers a tax-efficient way of investing overseas because the fund invests at least 65 percent of the assets into Indian equities and only the rest is allocated into foreign equities. This ensures there is zero tax on long-term capital gains

Tagged as: india, indian, markets, real estate india, stock-market

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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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Enam bets on consumption, real estate sector

by Paul Joseph November 11, 2010 Uncategorized

India Property The Indian markets opened in the green this morning after a modest loss in trade yesterday. How will the markets pan out today? Manish Chokhani, Director and Dharmesh Mehta, MD, Institutional Equity Sales of Enam, in an exclusive interview with CNBC-TV18′s managing editor Udayan Mukherjee, present their views on the road ahead for the markets and talk about the Enam India

Tagged as: director, green, india, india property, indian, markets, sales

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Property in Delhi and NCR

by Paul Joseph September 30, 2010 Uncategorized

The property in delhi and ncr has made it a commercial downtown and delhi has emerged itself as the king of real estate deals of india . From its patronage of sand dunes, stautues, tourist places and political power, it has congealed into a global india property portal. The property here has become a fountainhead of capitalist investments. The cardinal attraction of the properties in delhi is its low prices that are one-third per square meter as compared to the property in the Dubai . Apart from it, one can economize through the tax free income in delhi against the vast revenues in the dubai . The rent prices have inflated to a minimum of 10% to a maximum to 50% in past two years. This progression in rates is drawing in the investors into property and to combat this hike, people are shifting to permanent property from lease. Property in delhi and NCR offers the perfect pedestal for the markets of Central Asia, Middle East, Africa, Asian Subcontinent, and East Mediterranean. A multinational company that wishes to maneuver the 2million people of this area.

Tagged as: investment, investors, markets, property

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Developers Planning to Tap Capital Market

by Paul Joseph September 28, 2010 Uncategorized

After an almost six-month lull, real estate developers like Oberoi Realty and Prestige Estates are planning to tap capital markets next month with Initial Public Offer (IPO) issues, according to media reports. The exuberance in stock markets have prompted the developers, say bankers and analysts tracking realty companies. The last IPO in the real estate sector was in April this year, by Bangalore-based Nitesh Estates. While Mumbai-based Oberoi Realty is planning to raise around Rs 1,100 crore through the IPO by diluting about 12 per cent, Bangalore-based Prestige is planning to raise Rs 1,200 crore and dilute higher equity in the public issue, said bankers involved. At least a dozen real estate IPOs worth over Rs 12,000 crore are in the pipeline, with about half of theses, like those of Emaar MGF, BPTP, Lodha and Kumar Urban having already got the Sebi nod. There was also talk about some of these slashing the IPO size, but nothing has happened yet. With most of these in the ‘wait and watch’ mode, given the earlier volatility in the markets, the success of Oberoi and Prestige could prompt others to hit the markets, said bankers. According to Vikas Oberoi, managing director, Oberoi Realty: “We have zero debt and good cash flows. We are confident of good response for our issue.”

Tagged as: bangalore, markets, mumbai, noida, real estate

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Real Estate Developer Kalpataru to raise Rs 1,000-cr via IPO

by Paul Joseph September 27, 2010 Uncategorized

Realty firm Kalpataru has joined the bandwagon of property developers that are planning to cash in the rising stock market and has filed the draft papers with the market regulator Sebi for the Rs 1,008-crore initial public offer. Kalpataru, the flagship real estate company of the Kalpataru Group, has filed the draft red herring prospectus with the Securities and Exchange Board of India, merchant banking sources told media. The Mumbai-based realtor would be raising Rs 1,008 crore through its initial public offering, sources said. The company is considering to raise about Rs 200 crore as pre-IPO placement, a source said. The entity may offer some discount to retail investors and its employees over the IPO issue price, he said. The IPO is based on a 100 per cent book building process. Kalpataru is the latest entity in realty sector that is approaching capital market to meet its money requirement. A host of property developers such as infra major HCC-promoted Lavasa Corporation, Oberoi Realty and Sahara Prime City are in queue to enter the market. Recently DB Realty and Godrej Properties hit the primary market. “Indian stock market is upbeat and no one wants to miss the opportunity. A host of companies are lined up to come out with their public issues,” an investment banker said. Kalpataru is focused on development of premium residential, commercial, retail, integrated townships and redevelopment projects primarily in Mumbai and Pune. It has also undertaking projects in other cities such as Hyderabad, Surat, Nagpur, Jaipur and Udaipur. Kalpataru Group has interests in real estate development, property and project management, engineering, procurement and construction contracting for the power transmission and infra projects. Morgan Stanley, Citigroup Global Markets India, Collins Stewart Inga, ICICI Securities, IDFC Capital Ltd and Nomura Financial Advisory and Securities India are managing the IPO.

Tagged as: delhi, india, markets, morgan-stanley, real estate, real estate developers, real estate india, securities, stock-market

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Ackruti to launch 14 new projects in 3-6 months

by Paul Joseph September 16, 2010 Uncategorized

(Reuters) – Real estate developer Ackruti City Ltd plans to launch 14 new projects in the next 3-6 months totalling 7-8 million square feet, and expects the commercial launch of its 125-storey project in April 2011, a top official said on Wednesday. “We are on an execution mode right now, we are not on purchase mode. We are launching many of the our projects in the next 3-6 months… These would be both in commercial and residential sectors,” Managing Director Vyomesh M. Shah told Reuters in an interview. The projects would come up across Mumbai, Pune, Thane and in cities across the western state of Gujarat, including Surat, Ahmedabad, Baroda and Mehsana, he said. The Mumbai-based developer has tied up funds required for projects that it has undertaken and those slated for launch in next six months. The company is not immediately looking at raising any funds, even though it would scout for private equity investments in special purpose vehicles formed to undertake projects, he said. Ackruti is building a 125-storey residential tower in Mumbai jointly with DLF Ltd and Shapoorji Pallonji, and expects the commercial launch by April, he said. REDUCTION OF DEBT The developer, which has a current net debt of 9.5 billion rupees, is looking at reducing the amount of corporate loans through internal accruals. “Construction loans will remain, we are planning to bring down the corporate loans,” of 3 billion rupees, he said, adding the company expects a “healthy” debt-equity ratio of 0.7 or 0.8. It has also launched a 4-billion-rupee venture capital fund, jointly with Pacifica Fund and Beekman Helix, which will invest in real estate firms or projects. “The committments are being made, and once we reach the pre-decided level, then we will close the fund.” The demand in the real estate sector, for both residential and commercial sectors, continues to be “strong”. “I don’t expect any price correction from the present levels in the markets where we operate.” Shares of the company closed 1.19 percent lower at 518.90 rupees in a strong Mumbai market that closed up 0.80 percent. Source: http://in.reuters.com/article/idINIndia-51510420100915 Filed under: Ahmedabad , Baroda , Builders/ Developers , Mumbai , Pune Tagged: Ackruti City Ltd , Ahmedabad , Baroda , Mumbai , pune , Surat

Tagged as: ahmedabad, city-trends, markets, mumbai, pune, real estate, the-commercial

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Amidst Global Uncertainty JP Morgan Positive on India

by Paul Joseph August 27, 2010 Uncategorized

JP Morgan is positive on India despite the global environment being quite uncertain, JP Morgan Asset Management’s Investment Manager and India Country Specialist, Rukhshad Shroff, told reporters here. JP Morgan Asset Management is a leading global asset management company providing world-class investment solutions to clients. “We are positive on emerging markets. We remain very positive on India and if you take a slightly medium-term view, there are ample reasons to be cheerful and optimistic on the Indian market,” Shroff said. India has achieved an eight per cent GDP growth despite the global economic uncertainty. The country also attracted FIIs inflow this calendar year of around $11-12-billion till date, in an extreme risk-averse global environment, he said. In the short-term, there may be volatility and hiccups but, generally speaking, “we have got all the ingredients for a reasonable market in place,” he said. Shroff pointed out that the BSE Sensex remained positive in 23 out of 31-years and gave 60 per cent returns in five-year period. It has given 30-60 per cent returns in 7- years and registered a 50 per cent decline in only one-year. Indian corporates’ fundamentals and earnings are good, though valuations may be slightly on the higher side of long- term averages but that was the case even six-months ago and the markets held up, which means the markets digesting these valuations allowing earnings to come through, he said. Accelerating investment in infrastructure, industrial and real estate sectors are expected to drive growth in FY 10 and the EPS could double in next 3-4-years period, Shroff said. In fact, JP Morgan expects equities to provide better returns than other asset classes over the medium-term. “We expect equities to provide better returns than other asset classes over the medium-term, but are tactically cautious near-term, waiting for a better entry point,” JP Morgan’s Vice-President, Head of Investment Services, Geoff Lewis, said. The global stock markets retreated in May and June, but bounced back strongly in July. The emerging market economies have recovered quickly from the global recession, showing a surprising degree of resilience and economic decoupling, he said. Commenting on the outlook, Lewis said, the US growth will moderate towards sub-par but positive levels, rather than dip back into recession. Disinflation not deflation in the US economy is the most likely outcome in 2011, he said. Global equities offer sizeable risk premia over Government bonds. Investors should be overweight with a strong bias towards emerging markets, Lewis said

Tagged as: global, government, india, indian, investment, management, markets, real estate

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Signs of a glut as developers line up luxury apartments in Mumbai

by Paul Joseph August 13, 2010

At least 30 luxury residential projects are lined up for launch this year in areas such as Worli, Mahalaxmi and Lower Parel in south and central Mumbai, each apartment generously priced at `4-6 crore on average, according to research done by Mint. While developers are in a rush to capitalize on an apparent rebound in luxury real estate, analysts point out that sales are dipping in Mumbai mainly because of the rise in prices. The slew of launches could saturate and depress the market further. The luxury real estate push began in October-December, as sales resumed after a year’s lull. Indiabulls Real Estate Ltd, for instance, sold about 100 apartments in its Sky project in Lower Parel within a few months. Realty firms took this as a cue to firm up new plans. But as luxury realty prices shot up 20-25%, sales began falling post-March. With fresh supply on the way, there will be pressure on prices now, say analysts. “With about 10,000 premium apartments of serious supply coming in from these project launches, absorption would be a huge task since sales of luxury properties have been largely investor-driven so far,” said Ghulam Zia, national director, research and advisory services, Knight Frank India, a property advisory. “What will follow is an obvious relooking at prices where developers will be under pressure to correct average apartment rates and bring them down to `2-4 crore,” he added. A 9 August report by Religare Capital Markets Ltd says that between 2010 and 2014, 9.55 million sq. ft of premium housing space will be on offer in south and central Mumbai, of which 5.1 million sq. ft will likely get absorbed. In south Mumbai, the most coveted residential area in India’s commercial capital, unsold inventory levels are at 12 months compared with eight months for the rest of the city. Orbit Corp. Ltd, a developer with a focus on luxury housing in south and central Mumbai, has seen a consistent drop in sales in the past few quarters. From selling 170,000-200,000 sq. ft of premium residences in October-December, sales fell to 125,000 sq. ft in the March quarter. In the June quarter, Orbit sold just 54,000 sq. ft of space. The firm has three luxury project launches planned for the next three months in south Mumbai, priced at `40,000-70,000 per sq. ft, said managing director Pujit Agarwal. The impending oversupply and investor-driven sales are leading to concerns over how long the market can be sustained, say analysts. S.G. Maheshwari, a property consultant in south Mumbai, said he hasn’t seen any big-ticket sales in the past couple of months in the area though several negotiations were on. Some developers, of course, believe the market has an appetite for niche projects that are priced well. Kumar Urban Development Ltd, which has postponed its plan for an initial public offering, is launching Kumar Couture in Worli with luxury homes of 7,500 sq. ft and 14,000 sq. ft. The bigger apartments will have three floors, including one for parking. The price, tentatively, is `30,000 per sq.ft. “There is lot of interest from high networth individuals and we are confident because ours is a niche product,” said Sumesh Mishra, general manager (finance), Kumar Urban Development. If sales don’t pick up, Knight Frank’s Zia says some developers would be forced to change plans, as was commonly observed during the downturn of 2008-2009, when many realty firms switched from luxury to affordable residences. “Most realty firms will launch these projects in phases and if the appetite isn’t good, they can change the plan for the later phases,” said Zia. Source:http://www.livemint.com/2010/08/12205440/Signs-of-a-glut-as-developers.html?atype=tp Filed under: Builders/ Developers , Mumbai , New projects Tagged: luxury Apartments , Mumbai

Tagged as: apartments, builders/ developers, city, india, knight-frank, market, markets, new-projects, urban

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