Life Insurance Corporation Housing Finance (LICHF) is set to launch a new venture capital fund for realty projects.

The size of the fund, which is awaiting regulator approval, is likely to be Rs 3-3.5 billion. LICHF`s new realty fund is expected to invest in residential projects. LICHF had taken a 5% stake valued at Rs 75 million in the new Rs 1.5-billion credit card arm of LIC, which is likely to begin operations in six months.

As part of its overseas expansion plans, LICHF will open a new office in Singapore. Currently, it has branches in Dubai and Kuwait. Meanwhile, LICHF Care Homes, a subsidiary of LICHF, is planning to open residential units for senior citizens in Punjab, Orissa, Kerala and West Bengal. The first project was unveiled in Bangalore.

During April 2007-February 2008, the company sanctioned Rs 73.85 billion against Rs 48.88 billion in the same period last financial year. Disbursements stood at Rs 59.41 billion compared to Rs 41.99 billion.

Wednesday, May 10, 2006

New Delhi, the national capital of India is one of the prime cities in the country which has witnessed the economic development plans being drafted in the Parliament house to the effects that economic growth has spurred on the real estate and other service sectors in Delhi. Incorporated as one of top three investors’ choices for real estate investment in Asia, New Delhi continues to be one of the most competent and healthy competitor amongst the property markets across the region. And as investors and buyers make a beeline for acquiring the best chunk of real estate market, the finance sector in India has evolved as the possible gainers.

The banks in India which initially did brisk business with their saving schemes has now opted for the housing finance section as a more profitable business, since the real estate scenario in Delhi shows an upswing. The demand for properties in New Delhi touches new heights arising mainly due to the requirement for a large number of residential and commercial spaces as a large number of investors are seeking investments in the Delhi region or the nearby NCR areas. Delhi evolving as a popular investment destination for investors in the residential and the retail sector has lead to escalation of property prices many-fold and are still on the rise thereby making investment in the capital city of India a deal worth to be clinched.

But the bulk of disposable income generated by the employees in the corporate sector along with easy funding by every finance company in India has of late made property investments a not so formidable task. Easy loan facilities and a horde of finance companies offering some of the best deals and dipping interest rates have also been responsible for increase in Delhi real estate investments. Almost all the major financial institutions like ICICI, HDFC, IDBI and HSBC, to name a few have successful operational bases in the city making housing loans a competitive business. This competitive market has in some ways being beneficial to the consumers and if the trend continues, the real estate scenario in Delhi is bound to offer investment opportunities for buyers and developers who would want to capitalize on this growing opportunity. And if industry experts are to be believed, New Delhi is yet to see major transformation in the real estate market as the city gears up to remodel itself for the 2010 Commonwealth Games shedding its reputation of being a ‘walled city’ to a ‘World City’ of the future. 

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John, http://www.zameen-zaidad.com

India has been ranked as the 16th most expensive retail ‘high street destination’ in the world by a latest report. According to the report ‘Main Streets Across the World (MSATW) 2007? by real estate consultants firm Cushman & Wakefield, Khan Market in New Delhi is the most expensive retail destination in the country with rentals of Rs 950 per sq ft per month in the second quarter. It witnessed an annual growth of 35.7 per cent over the same period last year.

“Khan Market is the biggest riser in the ranking of the world’s most expensive shopping locations in terms of retail rents, moving up eight places from last years 24th position,” the report said.

New York’s Fifth Avenue retained its title as the world’s most expensive shopping destination followed by Hong Kong’s Causeway Bay and Avenue des Champs Elysees in Paris.

“Retail is going through a revolution in India, although a part of the increase in rents is due to lack of high-quality space in the right location,” Cushman & Wakefield India national head (retail) Rajneesh Mahajan said.

The report said India also figured among the world’s top 10 locations that witnessed highest rental increase in local currency terms.

Connaught Place in Delhi is the highest gainer in Asia and second only to Chicago’s East Oak Street across the world, with an annual growth of 87.5 per cent.

Kemp’s Corner in Mumbai has also witnessed high rental growth of 78.2 per cent, making it the fourth highest riser of rental growth.

Greater Kailash in Delhi and Fort/Fountain and Colaba in Mumbai were also among the highest rent rises recorded with increase of 57.1 per cent, 55.2 per cent and 51.1 per cent respectively.

In the period, the rental in the Connaught Place was Rs 750 per sq ft a month, while the same for Kemps Corner was Rs 490 per sq ft per month, the report added.

Source: http://inhome.rediff.com

The blend of modern and traditional cultures, Pune was also a pensioner’s paradise for long. The city has expanded rapidly over the past few years and has become a preferred destination for several engineering, IT, BPO and software companies that have set up facilities there.

Driven by this positive growth in the local economy, real estate in Pune is booming. A large community of the middle and upper middle class is opting to buy stylish apartments in townships that have everything from swimming pools, gyms, squash courts to recreation centres. Some of the more sought-after addresses today are Hinjewadi, Kharadi or Hadapsar.

Seeing the potential of this manufacturing and growing IT hub of India, Bangalore-based Sobha Developers Limited (SDL), this week announced the launch of its first residential project Sobha Carnation in Pune. Apart from its prime location, it has picturesque hills in the background. The project site is located in fully-developed NIBM Khondwa area serviced by a 24 mX 18 m wide road.

The first phase of the project would be spread across 5.7 acres of land consisting of 116 luxurious three to four bedroom high-rise apartments and few duplex apartments and penthouses. A 17-acre, sprawling Sobha Carnation will have a range of world-class facilities translating into global living standards.

Located on the south-east, the project cost is estimated to be approximately Rs 120 crore and Sobha aims to complete this project by December 2009.

Speaking at the public launch later, Ravi Menon, vice chairman, Sobha group said, “Tier II cities offer tremendous potential for real state development. We aim to capitalise on this huge opportunity by offering the best of facilities to the consumers. Sobha Carnation is our effort to fulfill the aspirations of the people of Pune, known for its esteemed colleges, educational institutes and technological infrastructure”.

With prices starting at approximately Rs 3,500 per sq ft, the township is targeted at the upper-end consumer. “Being a virgin territory with a huge land base, Pune is the right choice for developers today.

Further, with a huge demand-supply gap in this city coupled with the fact that real estate rates in the city have not seen a downslide as is the case with the other cities, Pune continues to be an attractive option for developers and consumers alike,” says S Baaskaran, regional director, Sobha Developers.

Some of the project highlights are:

• A total area covering 17 acres with dedicated green cover.

• Development in phase I will be spread across 5.7 acres of land consisting of four penthouses with state-of-art architecture, 16 four-bedroom duplex houses, high-rise residential blocks with sprawling 64 three-bed room / 32 four-bed room apartments measuring from 2,220 sq ft to 3,935 sq ft.

• State-of-art clubhouse measuring 1,000 sq mt offering gymnasium with steam, sauna and Jacuzzi, Multipurpose party hall, Table Tennis room, Reading, card and carom room, Creche.

• Other amenities include swimming pool, amphitheatre, tennis court, children’s play area, jogging track and CCTV for security.

Source: The Financial Express

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.

Commercial property India is committed to providing exceptional commercial real estate services across all commercial property types and service lines. Whether you are looking to acquire, sell, lease, or develop commercial property, or your interest is in real estate agent, real estate marketing, real estate investment, real estate companies, rental property, real estate sales, commercial property for sale or whatever related to commercial property we have solution for your requirement.

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