US-based Bear Growth Capital (one of the largest global investment banks, securities trading and brokerage firms in the world) plans to invest around $150-200 million (Rs 600-800 crore) to pick a 8-10% stake in Gurgaon-based real estate company Vatika Group (one of the leading groups in real estate, hospitality, Resorts, Farmlands and Luxurious Commercial complexes such as First India Place vatika triangle & Vatika world).

Bear Growth Capital Partners (BGCP), an affiliate of BSMB (Bear Stearns Merchant Banking (BSMB) is a leading institutional private equity firm focused on making equity investments in middle-market companies). BGCP looks for opportunities to work directly with experienced management teams and provide capital and investment expertise to help companies grow. With target investments between $20 million to $100 million in enterprise value, BGCP provides a complementary capital pool to BSMB.

The Vatika Group holds a vast experience in construction business, hospitality, and facilities management and has a portfolio of resorts, restaurants, hotels, farmland, and shopping malls. The group is taking up the projects worth Rs 3,200 crore, across real estate and hospitality sector.

The Vatika Group proposes to use the funds to meet its working capital requirements. A senior representative from Bear Capital, however, declined to comment on the deal. If the deal goes through, it would mark a case of a global PE firm investing directly in a parent company instead of investing in a FDI-compliant project.

Many global PEs prefer the second option as it minimizes their risks. In fact, Delhi-based Vatika Group is in talks with Goldman Sachs and US-based Wachovia Corporation, besides US-based Bear Growth Capital.

In the words of a senior officail of Vatika Group, “We are in talks with Bear Growth Capital, Goldman Sachs and Wachovia Bank to raise funds. Goldman Sachs and Wachovia are likely to invest in projects. If the deal with Bear Growth Capital goes through, the money will be used to meet the company’s resource needs.”

Anil Bhalla is the promoter and chairman of the Vatika Group. Currently, the group is executing projects valued at over Rs 7,900 crore and is expected to bag more contracts in the future. Money will be required to fund these projects, which has prompted the group to look at PE investments for the first time.

Courtesy: Indiarealestateblog

It’s a known fact that India Real Estate sector is booming and it has provided innumerable opportunities for investment throughout the country. All throughout the country, whether it is the metropolitans or the two or three tier cities are exploding with commercial high rises, residential townships, industrial parks and shopping malls. It is estimated that Indian real estate is presently growing at 30 % per annum and the property industry boasts of a wide range of products that includes property prices which would suit even the people of the low-income group.

With the property prices shooting up in most of the Indian metros, buyers are looking towards investing in two and three tier towns where real estate development is growing at a rapid pace. Chandigarh in North India ranks high in the list of potential cities for a vibrant Indian property market. With rapid development taking place in its outskirts areas such as Panchkula, Mohali, Dera Bassi and Zirakpur, Chandigarh is certainly one of the booming real estate cities of India.

It wouldn’t be unfair to say the NCR in the north has dominated the Indian Real Estate industry as there is tremendous demand for Delhi properties, Gurgaon properties and Noida and Greater Noida properties. The property prices of Delhi properties have seen an appreciation in their values in its upcoming areas such as Dwarka, Mayur Vihar and Patparganj. Greater Noida is following close on the heels of Noida where the property rates have increased in a short span of time due to the upcoming international airport, metro network and the upcoming Commonwealth Games.

The property prices in Mumbai are at an all time high as there has been a considerable increase of around 40 per cent in many of its locations. Increased property rates in Mumbai have made real estate developers and buyers look for more affordable options in the suburbs like Navi Mumbai. Areas beyond Vasai, Virar, Dombival, Thane and Panvel are being touted as the upcoming townships for real estate development in western part of India. India real estate in the South are rapidly developing in Chennai, which has seen a large emergence of IT companies in the recent past thereby bringing in a demand for both commercial and residential properties. Bangalore the IT hub of India already enjoys a high rate of real estate development and to meet the growing demand, even the suburbs of Bangalore are being developed by India real estate developers.

Primarily India properties are concentrated around the metros and the suburbs along with some of the two tier cities such as Chandigarh, Pune, Kochi and Jaipur. Investing in a property in any one of the emerging cities and towns are going to appreciate in value as properties across India are experiencing property price rise. For best and transparent deals in Indian real estate, please visit our website http://www.zameen-zaidad.com

  The term “Real estate” refers to immovable property or real property such as a building or land. Commonly said real estate is the legal term provided to the immovable property. With the development of the real estate and the emergence of the private or public sector in the real estate, it has become a major area of business.

Purchasing and selling a real estate property means high amount transaction and a significant investment hence reliability, trust and faith plays a major role in this field. Depending upon the hour of the need the real estate business required specialization in fields like real estate marketing, appraisal or valuation service, brokerages, property management etc

Within each field, a business may specialize in a particular type of real estate, such as residential real estate, commercial properties, or industrial property. In addition, almost all construction business effectively has a connection to real estate or commercial properties. Zameen-Zaidad.com is perfect place in all fields. You will find all services for real estate marketing, investment property, real estate for sale and commercial property for sale in India.

An important term used among the terminology of the real estate is the market value and price. The market value is similar to price of a commodity but has some difference too. The definition of market value it is that Market Value is an estimated amount at which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein both the parties have acted knowledgably, prudently, and without compulsion.

Market value is the fluid concept, ever changing, while price is a historical fact at a time of transaction. A price obtained for a specific property under a specific transaction may or may not represent that property's market value: special considerations may have been present, such as a family relationship between the buyer and seller, or else the transaction may have been part of a larger set of transactions in which the parties had engaged.

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Real estate services firm Cushman & Wakefield has partnered with MIPIM Asia to bring out the 2007 Asia Pacific Investment Report. According to the report, India’s hospitality sector is expected to emerge as a key area for investors over the next few years, due to a demand-supply imbalance and a lack of quality infrastructure.

Covering Australia, China, Hong Kong, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam, the report provides a broad overview of the key factors, risk assessment, regulatory changes, economic prospects, return expectations and market trends that play a major part in property investment decision-making.

The report says that the Australian office, industrial and retail markets are all expected to perform strongly over the next 12 months. Overseas property investors in China will start looking at a broader range of product types and investment scenarios and a much wider range of geographical locations.

Other highlights of the report: a re­surgent Japanese economy and strong demand from investment funds, particularly foreign funds, is driving commercial land prices upwards there is a new sense of optimism in Singapore brought on by an improving economy, emerging high-impact tourism and iconic real estate projects.

Courtesy: The Hindu Business Line

RedHawk Investments Group today announced plans to set up a $350 million (Rs 1,400 crore) techno-township near Hyderabad in partnership with Dreamland Infrastructures.

The Colorado-based Red­Hawk plans to develop about 30 million sq ft of built-up area on a 600-acre site, which the company’s local partner Dreamland has already acquired with an investment of about $50 million (about Rs 200 crore).

FUNDING

Addressing a press conference, the Chief Executive Officer of RedHawk, Mr Bipin Agarwal, said that the company plans to raise funds through private equity and through debt to fund this project, which is to be completed in a phased manner.

“Unlike some of the speculative real estate projects in Hyderabad, who have pegged each square feet of built-up space ranging between Rs 2,500 and Rs 5,000, which is unaffordable to most of the sections of society, we are looking at benchmarking prices ranging from Rs 1,500 to Rs 5,000 per sq ft, with the higher priced ones targeted at the office space,” he explained.

Of the 30 million sq ft of built-up space, 26 million will be for residential accommodation of all types, flats and villas, three million square feet for four-five major companies for their office space and the rest three million sq ft for common infrastructure including retail, hospital and educational institutions.

The idea is to create a township that would host not just work space but living accommodation and serve as a self-contained township. “We have signed up with a company and expect to freeze four more within three months,” Mr Agarwal said. “This project is to be located off the Vijayawada high­way along the Outer Ring Road project,” he said.

Courtesy: The Hindu Business Line

Morgan Stanley, a global financial service firm, has re-entered investment banking after parting ways with JM Financial, its former Indian partner.

The firm has got a merchant banking license from the real estate regulator SEBI for its arm in India. It is also looking forward to expand its asset management and proprietary business.

Morgan Stanley has appointed Narayan Ramchandaran as CEO and country head for the company in India. Mr. Ramchandaran is currently working as the head of investment management in India (MSIM).

Four senior officials from DSP Merrill Lynch will be working with Morgan Stanly to establish its wealth management business in India. The names are Amitava Neogi, Partha Basu, Himangshu Bhagat and Himangshu Jain. The company has plans to recruit 100 more private bankers for the same.

A multitude of investment banks is considering to kick off their operations in India. The list includes the prominent names such as Goldman Sachs, Lehman Brothers, and Credit Suisse. The merchant banking license will help these firms to offer on-shore investment banking, advisory, and underwriting services.

India is a main priority for the firm and the most preferred area of continued investment. Morgan Stanley has been running its real estate advisory business in India lately and is trying to take it to new high.

Courtesy: Indianrealtynews.com

Indian real estate majors including the prominent names of DLF, Reliance Group, Emaar MGF, Indiabulls, Bengal Ambuja Realty, and Paharpur Cooling Towers will soon be seen competing for a prime 5-acre plot on the edge of EM Bypass Expressway. The project will be put to auction by Kolkata Municipal Corporation (KMC).

 

The property is located opposite to the Science City Infotainment Complex and a stone throw distance from the ITC Sonar. It has been offered by KMC on a 99-year long term lease through an auction. The land is likely to be used for development of an exclusive commercial-cum-residential complex.

 

There is a huge demand for commercials in the region. Amidst such a scenario, the plot is on the edge of a prime expressway that passes through fast flourishing New Kolkata on the eastern fringes of the city.

 

The request for proposal (RFP) document containing the terms and conditions of the auction have been purchased by 57 corporates. Potential buyers were required to buy the RFP by 5 October whereas October 15 is the last date for submission of bids.

According to sources, 50% of the proceedings from KMC auction will be used for setting up an art gallery in Rajarhat.

 

Courtesy: Indianrealtynews.com

Bangalore: Seventeen new corridors have emerged as strong investment destinations for investors with different risk appetites, according to the Cushman & Wakefield - GRI India Real Estate Investment Report 2007: ‘India Gaining Momentum’, which was released on Thursday.

 

Hinjewadi (Pune), Manesar (NCR), GST and Sriperumbudur (Chennai), Shamshabad (Hyderabad), Devanahalli (Bangalore), Greater Noida, Panvel and Virar, Rajarhat Thane (Mumbai), Kokapet (Hyderabad), Bidadi (Karnataka), Chakan, Kharadi (Pune), Bantala and Tumkur Road are the corridors that reflect high investment potential.

The exploration of suburban and peripheral developments of major cities as cost-saving and risk-diversification measures is emerging as a vital initiator for analysing the potential investment opportunity within these emerging corridors.

 

Mr Sanjay Dutt and Mr Anurag Mathur, Deputy Managing Directors, Cushman & Wakefield India, say that overburdened infrastructure, rising real estate and operational costs and limited availability of large land parcels have driven corporate and developers to seek alternate locations within their periphery.

 

“These emerging corridors are extensions of tier-I and -II cities that stand to gain from the existing talent pool and benefits from pre-planned infrastructure,” they add. The corridors are rated according to three parameters: sustainability, momentum and economic environment, on the basis of a multi-variable analysis.

 

Courtesy: The Hindu Business Line

RPS Group, one of the fastest growing real estate developers in Faridabad is coming up with a new project, Savana. This residential housing is yet another well designed and developed project for a large section of the society.

Savana group housing is spread over an area of 49.018 acres which is situated in upcoming new Faridabad (Nahar Par). This housing project is strategically developed in terms of convenience and comfort for its inhabitants. The total worth of the project is over Rs 600 crores.

It is just 13 kms away from Kalindi Kunj. The location of this residential complex is absolutely perfect with 85% greenery all around these apartments. Thus, Savana is an upmarket residential project that incorporates an elegant blend of serene environment and the most contemporary building design offering a choice of apartments and pent houses.

The project primarily targets end users who plan to live in this peaceful dwelling and also look forward to buying a property of their own but never dreamt of some years back. Thus, Savana Apartments offer value for money.

Some of the highlights of the project are:

The project has 85%greenery and is 15% concrete. Apart from this, Savana Apartments have a 100% power back up and it is well equipped with the modern facilities of clubs, swimming pool and sports complexes. An additional feature of this residential complex is that it provides both open and covered parking to its residents.

But adding to the glory of these apartments is undoubtedly its soothing landscape and water bodies. Also, the residential complex has roof top solar water heaters attached to it. Savana also has meditation halls, schools and other commercial complexes which proves to advantageous for the families.

Rakesh Gupta, Managing Director- RPS Group, elatedly shared, “Savana Group Housing has been preferred by the masses as a result of its geographical and infrastructural benefits. Both commercial and residential scenario in Faridabad has developed at a rapid pace.

The locational advantage of Savana Apartments has made it a most sought after destination having well connected roads and proximity to schools of international repute, hospitals and many professional colleges. It envisages providing quality lifestyle to its people in the form of luxury apartments and penthouses. This mammoth project is no less a township that will provide about 2500 flats and 56 pent houses and it of course has landscaped greens.”

The size of the apartments flats would vary from 1250 sq feet to 2360 sq feet and the costing is Rs.1900 & 2500 per sq feet. Whereas, in case of pent houses which are 56 in number and is spread over an area ranging from 2360 sq feet to 4950 sq feet.

With the mounting interest of the new families and rise of new job opportunities in Faridabad, the company is bound to develop more townships in the years to come.

Gurgaon will see 10,000 new luxury flats over the next two years. This is regarding new residential projects which are scheduled to come up in the city soon.

Starting with Indian real estate giant DLF, it is all set to develop another residential project ‘Belaire’. According to Rs 7,500 a square foot, an apartment in the complex will cost around Rs 3 crore.

Close on heels is Emaar MGF which has planned to come up with its mega residential project ‘Palm Spring’ next to the DLF project. It is priced at Rs 7,200 a square foot and Parsvnath ‘Exotica’ is under construction on its adjacent plot, priced at Rs 6,500 per square foot.

Such luxury apartments, which cost Rs 1.5 crore or more, will include around 30% of residential space in Gurgaon by 2010.

With things planned in such a way, the city will see 10,000 luxury homes, up from 1500 units in 2006. That’s 300 units added each month.

The average absorption will not go over 200 units. Of these, the demand for high end homes over Rs 1 crore is less than 50, says Ankur Srivastava, MD, DTZ.

Gurgaon will see an oversupply of 300% in the next two years. The scenario is likely to push the property prices in the city. There has already been a price correction of up to 25% in the luxury homes segment.

Courtesy: Indianrealtynews