Latest Property News on 'Foreign Direct Investment in India'

Govt. stakes on FDI for Growth of Hotels

Hospitality sector is all set to hit the next milestone in the wake of fast flourishing real estate. The sector requires $1.5 billion to add three lakh hotel rooms over the next three years. This encouraged the government to bet on FDI to arrange for the same.

Handsome amount of foreign investments are required in this sector, says Ajay Dua, secretary, department of industrial policy and promotion. According to the data showcased by different surveys, the industry has attracted Foreign Direct Investment (FDI) worth $450 million. Read More »

Another Big Deal in Real Estate Sector

RREEF, the real-estate investment arm of Deutsche Asset Management, is planning to invest over $200 million in a joint venture with realty major Emaar-MGF.

If the discussions turn out to be fruitful, it would be the biggest deal in the real estate in India. With a whopping amount of $125million investment in Mumbai based Oberoi Constructions; Morgan Stanley Real Estate Fund is known to have made the largest private equity transaction in property market till date. However, the amount of stake to be diluted by Emaar-MGF is not yet known as the transaction is likely to be a quasi-equity deal. As far as RREF is concerned, it will hold convertible debentures in the company.

EMAAR–MGF, has not finalized anything. The company aims at raising equity in the company and is currently in advanced stages of discussions with several real estate players, including RREF. The next few weeks will decide for the final answer as officials are continuing their due research and analysis. Read More »

FDI Inflows taking Indian Economy to new heights

With different sectors opening up to add to economic growth, India has played up to its image of being one of the most attractive FDI destinations. The country has received upwards of Rs.11, 460 crore of FDI in the first half of this fiscal with top-notch companies including DSP Merrill Lynch, Barclays Bank and Mauritius-based TH Holdings.

Most FDI investments were in the services sector amounting to 8955.88 crore. The total investments of the top six investors falling under this sector amounted to Rs. 7,976 crore, more than half the total of what is labelled FDI from the service sector. Read More »

FDI Flow – to touch $ 8 billion in 2007

The Institute of International Finance (IIF) report on emerging markets tabled earlier this week observed the positive impact of major mergers and acquisitions by corporate giants overseas on FDI in India.

The IIF expects FDI in India to rise to $8 billion in 2007 from $6.5 billion in the last year. Mergers and acquisitions by corporate majors shore up increased investment in growing markets, and India is well poised to avail of their investment plans. Read More »

FDI in India on High Growth Path

Needless to say, Foreign Direct Investment plays a critical role to add to economic growth of the country. India has been rapidly stepping into a liberal mode from a restrictive regime. The country received high FDI in the year 2006, with equity inflows expected to cross $11 bn. The amount is believed to be twice of what has come last year, says data revealed by Commerce and Industry Union Minister Kamal Nath.

Mr. Nath also shed considerable light on India’s industrial policy and trade promotion took place during the year. Read More »

Indian Government gives green signal to FDI Proposals

The government on Thursday gave a nod to the FDI proposals worth Rs. 4,853 crore, a major portion of which (Rs, 4,080 crore) has been allocated for the use in real estate sector.  It is certainly a merry time for both the NRIs and foreign investors who have been eyeing Indian real estate for long.

Finance Minister P. Chidambaram has approved the two sets of investments by a clutch of overseas investors to invest in commercial as well as residential property, IT parks, and special economic zones. Read More »

Citi Being Bullish on Indian Realty Space

Improved transparency of Indian real estate has caught the eyes of the world’s largest financial services group, Citi, which has sewed up property deals of around $400 million in the past few weeks. This prestigious group is also looking forward to enter into a joint venture with HDFC and US based Portman Holdings.

Citigroup enjoys the status of being the single largest foreign direct investor in India’s financial services industry. It is all set to pump in over $1 billion in booming real estate sector of India. Read More »

Peninsula Land to invest 2,500 crore in Indian Realty Sector

The Ashok Piramal Group unveiled plans invest 2,500 crore in booming Indian realty sector over the next two years. The conglomerate is poised to grab potential investment opportunities in commercial as well as residential real estate projects. It has also shown an inclination towards taking up the construction work of IT parks and SEZ zones as these projects have a greater potential for infrastructure development.

The group has floated a special purpose company Peninsula Realty Fund (PRF) to fund the capital required for the projects. However, the company has received a nod from the cabinet committee on economic affairs regarding its request for bringing around Rs 1,500 crore as foreign direct investment in Indian real estate. Read More »

Realty takes FDI to $10 bn

Adding to efficiency and capability of India real estate, realty biggies like K Raheja, Surinder Hiranandani Group, and Tricona are on their way to hold a competent niche at some point of history for contributing to the development of the Indian realty market. They have been brought FDI into the sector which is likely to touch $10-12 billion in the next six months.

Other realty players following in Rahejas footsteps include Unitech, Ansal API, Omaxe and the Nirendra Hiranandani Group that have made a beeline with their big ticket listings at the London’s junior venue stock exchange Alternate Investment Market (AIM). 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 »