Indian market offers the best returns to global hedge funds

India’s real estate market is attracting global hedge funds as it offers the best returns compared to other global markets. Mumbai is witnessing hectic real estate activity as more land is released for commercial use by Indian Railways. Cushman and Wakefield has identified 17 promising real estate investment corridors across India. Some realtors believe that real estate prices will fall soon if loans are not made easily available.

The Chillibreeze Business Research Team

Paper says Citigroup buys stake in Indian developer

The Economic Times, quoting unidentified sources, reported that Citigroup Property Investors was investing around $250 million in Nitesh Estates, a Bangalore based real estate firm.

On the other hand, Reuters reports that Citigroup has not invested in Nitesh Estates.
October 9, 2007
Source: Reuters

Hedge funds make a beeline for real estate sector

Global hedge funds are entering the booming real estate sector. The interest by PEs into realty is because of the 20-25 per cent returns, which no market can give anywhere in the world.

Major hedge funds operating in the Indian property markets include Och-Ziff Capital, New Vernon Capital, Farallon Capital Management, Marathon Realty, DE Shaw and Tiger Global.

According to industry estimates, about $1.6 billion private equity/hedge funds investments have been made in the real estate sector last year (Jan-Dec). It is expected to cross $2 billion this year.
October 8, 2007
Source: Business Standard

Exclusive ERP application for real estate industry

The real estate market in India is booming.

Bangalore-based In4velocity Systems has launched In4Suite RE, the only integrated end-to-end solution for property development firms in India.

In4Suite RE enables data analytics and data mining. Through In4Suite RE, one can automate the business processes - right from land acquisition to engineering, from purchase to sales, and from rental to property management.

Key features of the In4Suite RE application include milestone-based project planning, online integration with major accounting systems, reporting and analysis, integrated knowledge management application, online certification and generation of bills, material and inventory management, integrated construction management, etc. It incorporates interactive messaging through its unique In4Messenger service, he adds.

The product was launched in 2004, and presently the company has 40 customers in India.
October 8, 2007
Source: CIOL

Property rates in south of Delhi, Mumbai move up

Suave residential areas in the south of many cities reflect a style that is rare and distinct

According to Cushman & Wakefield, south Delhi locations such as Shanti Niketan command approximately Rs 30,000/sq ft followed closely by Vasant Vihar and Anand Niketan at Rs 26,000/sq ft, average capital values in Greater Kailash I&II, South Extension, Hauz Khas and New Friends Colony start at Rs 14,000/sq ft.

In south Mumbai, the average capital values in areas such as Colaba, Cuffe Parade and Nariman Point is Rs 24,000/sq ft; Rs 29,000/ sq ft in Malabar Hill, Napean Sea Road, Breach Candy and Peddar Road. The capital and rental values have increased here by almost 20-26% over the last 12 months.
October 7, 2007
Source: Economic Times

Cushman & Wakefield spots 17 realty hot picks

Cushman & Wakefield has identified 17 new corridors in India as strong investment destinations.

The real estate investment report 2007 prepared by Cushman & Wakefield along with Global Real Estate Institute (GRI) has identified the following high investment corridors in India:
Hinjewadi, Manesar, GST near Chennai airport, Sriperembudur, Shamshabad, Devanahalli, Greater Noida, Panvel and Virar, Rajarhat, Thane, Kokapet (Hyderabad), Bidadi (Karnataka), Chakan, Kharadi (Pune) Bantala and Tumkur Road.

These corridors will have limited exposure to risk and will bring assured returns due to demand dynamics and readiness of infrastructure.
October 5, 2007
Source: Economic Times

Real Estate in India: A Survival Guide

The IT boom has created a huge demand for quality office space that was nonexistent a few short years ago. Several prominent Indian developers have emerged, and more and more international investors and developers are plunging into the country.

In terms of establishing office locations, most companies consider three types of cities:
 
Tier I cities are the hubs of business. The top ones being Mumbai, Delhi, Bangalore. These cities face significant infrastructure issues, particularly road congestion, and the capital markets environment is somewhat stymied due to the prominence of strata title and opaque ownership history, specifically on older, more established assets in downtown locations.

Tier II cities such as Chennai, Hyderabad and Pune are experiencing strong demand for and have inflated land prices. Many markets are predicting an oversupply of new office supply in the next ten to eighteen months.

Tier III cities are those that have yet to see the formation of a formal real estate market, but to varying degrees have the right ingredients to attract multi-national tenants. These cities are Kolkata, Chandigarh, Kochi, Coimbatore and Vishakapatnam.
October 5, 2007
Source: BostonSF

Lehman Bros, Morgan Stanley eye 40% of Parsvnath SEZs

Delhi-based real estate developer Parsvnath Developers (PDL) is learnt to be in talks with US-based global financial investors Lehman Brothers and Morgan Stanley for divesting equity in the company’s Special Economic Zones (SEZ) projects

Two of PDL’s SEZ projects (17 million sq ft) in Indore and Gurgaon have already been notified. Sources say the company is looking to divest about 30-40% equity stake in both the SEZ projects to financial institutions. The deal size is expected to be in the excess of Rs 2,000 crore for both the SEZ projects put together.
October 5, 2007
Source: Economic Times

Bangalore-based real estate consultant forays into Chennai

Propmart, a Bangalore-based real estate consultant, is developing a 50 acre layout near Chennai.

500 plots with area ranging from 1,200 sq ft to 2,600 sq ft would be available under the project named 'Star Enclave.' Propmart, promoted by real estate major Puravankara, had operations in major cities like Delhi, Mumbai, Pune, Kochi, Mysore and Coimbatore.
October 4, 2007
Source: Hindustan Times

Real estate (residential and commercial) can fall more than 20% in one year

According to realtors and economists, market prices can fall approximately 20% from here. If loans are not available, the markets will fall very sharply.

It can be similar to what happened during the great depression 1930-36. All on a sudden homeowners realized they lost half the value of their properties. That created real panic and a zillion properties were put for sell. That depressed prices even further.
October 4, 2007
Source: India Daily

Sobha led JV to built township project worth Rs 2000 cr

Sobha developers will develop a township project in Haryana with an investment of Rs 2,000 crore along with real estate firm QVC Realty and Chintels India
October 3, 2007
Source: PTI via Economic Times

Mumbai to soon emerge as hub of realty deals

Mumbai could soon emerge as a hub of hectic realty deals, with the Railways planning to unlock value of its commercial real estate in three prime locations - Bandra (250 acres); Mumbai CST (250 acres); and Mumbai Central (250 acres) - in a phased manner.

In the first phase, the Railways will develop nearly 200,000 sq ft of space in Bandra.
October 3, 2007
Source: Economic Times