Indian Property News on 'November, 2006'

Unitech Plans £360-m LSE listing

After the Rahejas and Hiranandani, it’s now the turn of the Unitech, one of India’s leading real estate development companies, to tap the overseas markets to seek new capital for growth and expansion.

Unitech plans to raise as much as Rs. 3100 crore (£360 million) on the Alternative Investment Market (AIM) which is created by London Stock Exchange to enable small companies to raise capital with relaxed policies. The Unitech scrip dropped 0.05% on the BSE to close at Rs 491.90 on Wednesday. Read More »

PE players to create wealth through Indian Real Estate

Private equity (PE) players are showing keen interest in including Indian real estate investment in their overall investment portfolio. Morgan Stanley and CVC are two of the big fishes among PE companies that are all set to take a dip into booming “silver” real estate sector through the single project route. Industry analysts believe these deals to roll out in between the range of $20-50 million.

Real estate is probably the hottest market in India. With a majority of real estate companies having poor corporate governance, single project ventures ensure PE investors regarding their being playing it safe with their investments from the beginning, says head of a global private equity firm. PE players are all set to Read More »

Hong Kong’s AEA to invest in Indian Real Estate

Hong Kong based AEA Holdings announced that it plans to invest more than $2 billion over the coming years in Indian realty projects.

India’s realty sector is undoubtedly on a high growth path and emerging as global investors’ choice. In this climate, AEA Holdings can serve as a catalyst to bring about a change within the industry, say Bill Owens, Chief executive and chairman of AEA Holdings Asia.

AEA Holdings Asia, a private equity fund formed after the merger of New York-based AEA Investors and Hong Kong’s Aetos Capital. The firm deals with investments in commercial real estate and hedge funds. Read More »

NOIDA plot fetches higher than the one in Hong Kong and Thailand

A 136 sq metre plot in Sector 18, NOIDA has fetched a record price of Rs. 6.11 lakh per sq metre at an auction held on 27th November’2006. The plot is bought by Manoj Kumar Punjabi at a whopping price of Rs. 8 crore 31 lakh. The reserve price of the plot was only Rs. 4 lakh per sq metre.

Busting the previous record of commercial space in the township, this prohibitive plot is believed to have made the biggest leap that would come as an eye opener for the prices of property in the Delhi and other close by areas. Another plot that succeeded in attracting the second-highest bid was also a 136 sq metre plot at N-16, which was sold at the price of Rs 4.51 lakh per sq metre. Read More »

Goldman Sachs to invest $1 billion in Indian Real Estate

Goldman Sachs, one of the world’s most prestigious global investment banks, will invest as much as $1 billion in the Peninsula Realty Fund (PRF) promoted by Ashok Piramal in next couple of years as it oversees unparallel growth prospects for Indian real estate.

The company is planning to launch the PRF soon. However as a part of the policy, the company is not yet ready to disclose any speculative news to media. The proceedings are in fairly advanced stages of development and the two conglomerates are expected to sign a deal early next month, say industry sources. Read More »

Ansal properties gets shareholders nod to raise Rs 2,500 cr

Ansal Properties & Infrastructure Ltd (APIL), promoted by the Delhi Based Ansal group, today said that its shareholders have given their nod enabling the firm to raise up to Rs. 2500 crore through the issue of securities.

The company told the BSE that its shareholders have approved to raise the amount through the issue of various securities on public issue, rights, Qualified Institutions Placement (QIP) or any other basis. Read More »

Bangalore Realty Market Prone to Price Drops

The ongoing realty boom in Bangalore seems finally to have ended now. The growth in prices in the commercial property market, which has experienced boom since between 2003 and 2006, has dropped precipitously. Data showcased by various property surveys show that the average price rise in the apartment costs is no more than 5% to 10% whereas it was 40% to 50% before. Bangalore had faced short-term drop that were followed by quick recoveries but not an across-the-board drop.

As for downturns, the most dramatic slide occurred in some known locations like Whitefield that had experienced fair hike in prices of the commercial property whereas those in other locations are climbing at a constant clip. However, the North Bangalore is able to maintain its price run ups that are believed to be propelled by the end users buying and investors’ sentiments. Read More »

Tier-III cities to witness next realty boom

So far, it has been the metros that have undergone a paradigm shift in terms of growth in the real estate sector with investors considering them good place for the future business prospects. The boom soon may extend to Tier-III cities, making them one of the preferred investment destinations for overseas realty players.

Opportunities triggering action will knock at the door of locations including Jaipur, Coimbatore, Ahmedabad, and Lucknow.
The property sector surveys predict that growth of Tier III cities is also expected to grab the attention of technology sector players who have been waiting so long to expand their operations into these previously untapped areas and markets. Read More »

Bangalore builders expect to mine profits soon

With Bangalore realty sector rising by leaps and bounds, it is soon to witness next realty boom. Nearly 1.4 lakh apartment units are under construction and likely to get ready within two years. Of this total unit, the budget segment and mid-segments encompass 30 per cent each and the left out share makes up for the high-end segment.

For the past two years, real estate sector in the garden city has been growing at around 30 percent and is likely to grow at the same pace in the next year as well. Read More »

Starwood to invest $300m in Indian Real Estate

Leading US based global real estate fund, Starwood Capital will invest as much as $300 million in Indian real estate in the next 18 months, seeking to tap demand for the property in top 20 cities of the country which happens to represent Asia’s fourth largest economy. Of that target, a major portion is likely to be invested in the tier-2 and tier-3 cities.

Wishing to bring its realty world expertise in India, the company is initially geared to fund mid-sized projects ranging between 1-3 million sq ft of space. The first investment will be made in development of the projects that are certain to witness high growth rate including IT parks and residential projects, says the company’s source. Read More »