Latest Property News on 'Banking and Finance'

Removal of Tax Sops for SEZ’s

The Empowered Group of Ministers (eGoM), under the Chairmanship of the Union External Affairs Minister, Mr. Pranab Mukherjee, is meeting here on February 4 to examine the merit of the Finance Ministry’s plea for removing a slew of tax exemptions provided to the Special Economic Zone (SEZ) and their developers.

Sources in the Government told that the Finance Ministry has drawn the attention of the eGoM on the revenue loss on account of tax exemptions to units in SEZs which has been estimated to be Rs 1,02,621 crore for the period 2006-07 to 2009-10. Out of this, the revenue loss due to direct taxes is reckoned to be Rs 53,740 crore and on account of indirect taxes Rs 48,881 crore. Read More »

RBI’s Decision may hit Real Estate Companies

The Reserve Bank of India’s (RBI) decision not to cut interest rates has spooked real estate companies facing the brunt of a housing industry slowdown caused by the high cost of mortgage financing. RBI, on Tuesday, decided to keep interest rates unchanged in its third-quarter monetary policy review. Real estate companies were expecting a cut, especially in the backdrop of slowing home sales in major cities in the past few months.

Buyer resistance and a series of interest rates hikes last year put the brakes on home sales last year. Middle-class households put off purchases after seeing prices break all records in most major metros. ET’s report, on Tuesday, cited RBI data to show that home loan sales fell 39% in April-November 2007 while loans to developers eased by a fourth to Rs 12,563 crore. Read More »

Strong Prospect ahead for Housing Finance Companies

Housing finance companies have a bright future with strong increase in demand for housing loans and stable real estate prices. Despite the fact that the stocks are not economical, they make good long-term investments.

The US Federal Reserve has slashed rates by 100 basis points in the past three months because of last week’s 25 basis point cut in the interest rate. The cut signifies benign interest rate environment worldwide once again as the US grapples to perk up its drooping economy and prevent the worsening credit crisis. According to industry sources India will also follow the trend of lowering interest rates over the next few months Read More »

RBI Suggests to Cut VC Funds

The Reserve Bank of India (RBI) has extended Finance Ministry the ways and means to cut investment flows from venture funds coming into real estate.

These measures are likely to help check the part of the huge inflows of foreign capital, particularly since the last week of July.

The Apex bank has also recommended putting restrictions on investments by Venture Capital funds in sectors that are already developed. Other suggestions by the RBI include bringing foreign direct investments under the approval route. Read More »

ICICI Plans $2 Billion for Biggest Indian Real Estate Fund

ICICI Venture Funds Management Co Ltd, India’s largest venture capital company, is planning to invest a whopping $2 billion for the country’s biggest realty fund, thereby tapping the potential of a burgeoning market.

The fund will raise the money in India and abroad. The venture will invest in real estate projects, both commercial and residential, and buy land in 12 largest Indian cities. Read More »

Red Fort Cap to invest $425 mn in Indian properties

Red Fort Capital, a private equity firm, will invest $425 million in Indian property market. The company has entered into a joint agreement with the Prestige Group to develop a residential project in Bangalore.

Of total investment, the firm will invest $255 million in five projects including the destinations like Chennai, Bangalore and Hyderabad, says Parry Singh, Managing Director, Red Fort India Real Estate Fund. Read More »

India, a Destination for Continued Investment, says Morgan Stanley

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). Read More »

Wachovia to Join Hands with Vatika Group

Private equity player Wachovia Corporation is in talks with Gurgaon based Vatika Group for a project involving an investment of Rs 500 crore. The amount will be invested into a project floated by Vatika Group and not in the holding company.

Vatika is also in talks with Goldman Sachs, the world’s largest global investment banks for raising capital for a separate project. The group is divesting 50% equity in one of its projects for Rs 100 crore. Read More »

Emaar to raise $1.5bn through an IPO

Emaar MGF Land Private Limited is planning to sell 10% stake through an IPO in India, which is expected of raising around $1.5 billion (depending on the market condition) to make it the country’s biggest listing.

40% of the company is owned by Dubai’s Emaar Properties whereas MGF Development has 60%. Read More »

Yatra to raise capital for realty projects in India

Yatra Capital, a Euronext listed Indian real estate fund, will raise $211 million to make investments in commercial, residential and retail property in the country.

The funds will be raised by selling shares to institutional investors, informs Ajoy Veer Kapoor, Director, Yatra Capital.

Investors are bullish on putting large funds in Indian property market. And their appetite to make investments is growing day by day, adds Kapoor. Read More »