Latest Property News on 'Foreign Direct Investment in India'

Red Fort to Invest Rs. 3,500 Crore in India’s Real Estate Sector

Red Fort Capital, an international private equity fund, is planning to invest Rs 3,500 crore in the country’s real estate sector during the next one year.

It has also launched a domestic fund few weeks back through which it plans to raise Rs 1,000 crore. The proceeds would be deployed into non-foreign direct investment projects. The first closing of the 6-year domestic fund would be in May, 2008.

From the Rs 3,500 crore raised through the international fund, the company has committed Rs 1,100 crore for several projects. Read More »

Russia’s Sistema to Invest upto $200 mn in Indian Real Estate

Russian conglomerate Sistema, on Tuesday announced plans to invest $100-200 million in developing hotels, offices and residential complexes in major cities of India. The revelation came after the company’s decision to invest $5 billion in the country’s telecom sector earlier in the year.

Sistema has clinched an alliance with India Shyam Group, which has divested 51 percent stake in its telecom venture in favor of Sistema. The Sistema-Shyam joint venture will be developing a 22-acre property in Gurgaon, on the periphery of Delhi. The venture is Sistema’s first undertaking in the construction and real estate market outside Russia and Ukraine.

More FDI expected in Indian Realty

A move is afoot within the government to liberalize the norms for foreign direct investment (FDI) in real estate. The department of industrial policy and promotion (DIPP) has circulated a Cabinet note proposing waiver of two conditions—the three-year lock-in on foreign investment and the minimum investment criteria of $5 million for joint ventures or $10 million for wholly-owned ventures.

The waiver has been sought for real estate projects, including hotels, according to a government official. The proposal has been justified on the ground that it would boost tourism and hospitality, sectors identified by the government as vital job creators. Read More »

Indian Government sets Rules for Foreign Investment in Industrial Parks

The government on Wednesday set out conditions for automatic approval of 100 percent foreign direct investments in industrial parks.

Such parks would have to house a minimum of 10 industrial units and at least 66 percent of their developed area would have to be allocated for industrial activity, a trade ministry note said. Read More »

New Guidelines for FDI Miss Out on the Real Estate Sector

The government on Wednesday issued guidelines on big-ticket changes to the foreign direct investment norms in the country that were approved by the Union Cabinet on January 30. It, however, remained silent on clarifying a change in norms for FDI in real estate, possibly due to fear of greater capital inflows.

Government sources said the clarification was not mentioned in the minutes of the Cabinet meeting sent to the Department of Industrial Policy and Promotion recently. As a consequence, a press note could not be issued. “It is not clear why the Cabinet has not cleared the proposal to de-link FDI and FII norms (in real estate),” said the official. Read More »

India likely to overtake UK as favored investment destination

India may soon overtake Britain as a favored investment destination in the world unless Chancellor Alistair Darling cut taxes in its budget. This is accordingly to a survey by a leading consultant agency.

Businessmen here have demanded a radical overhaul of corporate tax. Thousands of people of Indian origin are keenly awaiting the budget amidst reports that non-domicile residents in Britain are expected to be taxed 30,000 pounds. Read More »

India Requires Enormous Investment in Infrastructure: Chidambaram News

Finance minister P Chidambaram today said that India required enormous investment in infrastructure sector as infrastructure projects have long gestation periods and, in most cases, are not financially viable on their own.

The advantage of long-tenure and low-interest Japanese overseas development assistance (ODA) was beneficial for funding large infrastructure projects in the country, he said at the ‘note exchange’ ceremony, held in New Delhi today for the Japanese ODA package of ¥185.575 billion (approximately Rs7074 crore) for the second batch of FY 2007. Read More »

Rodere Holdings, Cyprus to invest Rs 2 bn in Orbit High city

Rodere Holdings, Cyprus, agreed to make a foreign direct investment of up to Rs 200 crore in Orbit High city, a wholly owned subsidiary of Mumbai based realty player, Orbit Corporation. The said investment would be used to develop township projects in Metropolitan region.

Recently Orbit Corporation announced the acquisition of 100% stake in Orbit High city. Orbit Corporation is into real estate construction and development with primary focus on redevelopment of existing properties. It endeavors to specialize in developing, designing and managing high-end residential and commercial properties.

Malaysian co picks up 60% stake in MAK Group project

Sunway City Berhad, part of the USD 1-billion Malaysian Sunway Group, has picked a 60% equity in a joint venture with the Hyderabad-based MAK Group for a Rs 3.5-billion high-rise realty project.

The Malaysian company will bring USD 5 million as foreign direct investment (FDI) for its equity holding in the joint venture, which a special purpose vehicle (SPV) is called MAK Builders, at present. The venture will develop about two million sq. ft of residential space in the high rise, with sizes of 1,000 to 1,300 sq. ft and price up to Rs 5 million. Read More »

Assocham Predicts $30 bn FDI in Indian Realty Sector within a Decade

Industry body Assocham said that Foreign Direct Investment in the Indian realty sector may jump around six-fold to $30 billion in the next 10 years. According to Assocham the sector is expected to grow more than 30 per cent in the next few years.

presently, the flow of Foreign Direct Invest in Indian Realty Sector is estimated at around 5 to 5.50 billion dollars. The domestic real estate market stands at $14 billion, is expected to be $102 billion in the next 10 years, when the FDI inflows to the sector would be about 30 billion dollars. Read More »