Tag Archives: Indian real estate

Sobha Sells 40% In Bangalore Project

July 3, 2008 – 7:06 am

Sobha Developers Ltd leading real estate company said on 02nd July it has sold forty percent stake in an forthcoming Bangalore project to Dubai’s Pan Atlantic LLC for ten million dollar.
Sobha plans to develop a 1.7-million-sq ft residential township at the plot in south Bangalore. A senior company official said the present value of the land is estimated at 1.05 billion rupees. Read More »

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Thirty Billion FDI Likely In Real Estate In Next Decade

June 27, 2008 – 6:06 am

According to estimate made by ASSOCHAM, the FDI component in the domestic real estate market is expected to be thirty billion US dollar as against its total amount of one hundred two billion US dollars in next decade as the real estate sector escalation will raise up by more than 30%.
Additionally, ASSOCHAM report stated that, the domestic real estate market is expected to be of fifteen billion US dollars in which the FDI contribution is estimated around six billion US dollars. The bank credit to this sector in 2006-07 has been estimated around three lakhs crore rupees, which will multiple substantially in the future years considering the growth that the sector has been registering.
Mr S. Jindal president of ASSOCHAM said that presently the foreign developers can take on construction actions on a minimum space of fifty thousand square feet in consequence of which Indian real estate sector could achieve FDI’s component around six billion US dollars.
Mr. Jindal further said, “The upper limit of fifty thousand square feet would be lifted by the government as it is under continuous pressure for increased FDI’s which as per ASSOCHAM estimate will increase to two lakh square feet in subsequent decade in a gradual manner and result for much higher foreign capital absorptions”.

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EIB’s 2nd Fund To Focus On Indian realty

June 4, 2008 – 2:59 am

Emirates Islamic Bank (EIB), a leading Islamic financial institution in the region, plans to launch a 2nd fund focused on the Indian real estate market following the doing well closing of its Danat India RIA Fund, the bank said on 3rd june.
The bank said the new fund will add to a growing portfolio of funds aimed at producing wealth for investors in the UAE.
EIB has successfully closed the Dh270 million Danat India RIA fund, which invests in the Indian real estate sector. The bank has paid up to Dh60m and collected Dh210m through subscriptions in the UAE and other GCC countries.
The bank, through the fund, will acquire 77.78 % equity in the Danat RIA Company, which has been established with the principle purpose of acquiring 500 acres of land to develop an integrated middle-income township within the boundaries of New Delhi. Indian investors own the residual stake in the company.
Faisal Aqil, general manager of retail banking at EIB, said the fund – the first EIB fund committed for investment in the Indian real estate sector – could achieve its targeted subscription.
“Construction of the project has already started and the mandate is for three years. However, the EIB has the right to extend the fund’s mandate to four years according to developments in the project.
“The target market of the township will be New Delhi’s growing middle-income population who are seeking more affordable housing opportunities,” he said.

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IBM sees strong growth in India as IT spend grows

March 5, 2008 – 1:43 am

BANGALORE - IBM Corp plans to make better growth in India as part of its strategy to improve focus on promising markets and as local companies spend more on technology to cut costs and improve efficiency, an official said on Tuesday.

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Fitch Prediction-Indian real estate sector 2008 outlook stable with a little negative bias

February 14, 2008 – 12:18 pm

MUMBAI - Fitch Ratings said its outlook for the Indian real estate sector in 2008 continues to remain generally stable with a minor negative bias.

It is told by ratings agency that growth over the preceding 3 years has been supported by great economic fundamentals, with better demand on the one hand and increasing supply supported by equity raising on the other.

While Fitch believes these fundamentals should remain sound in 2008, property prices are estimated to moderate though the extent will vary from area to area.

Fitch also expects geographical diversification to continue through 2008 after real estate companies have extended to cities outside their main area of business. However, real estate markets will remain reasonably regional with some superior players establishing a panIndia presence.

According to Fitch revenue growth will continue in 2008 as companies persist to launch a number of new projects and created strong top line growth in 2007. Yet, the execution risk will become more marked as the area under development would be significantly larger than in the past, Fitch said.

Earnings margins in the real estate industry may be affected by rising land prices and lower selling prices in 2008. Whereas companies with historical land reserves would continue to record strong profit margins, companies that have purchased land in the last three years (at higher prices) may encounter a decline in margins from the levels of 2006 and 2007.

Fitch expects the overall debt level of real estate companies to increase in 2008.

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Rreef Enters Indian Real Estate

January 28, 2008 – 8:49 am

Rreef has entered into the Indian real-estate sector with initial investment of $70 million. Rreef is known as global alternative investment manager business of Deutsche Bank. Rreef would be taking an undisclosed stake in Bangalore and Hyderabad based Golden Gate Properties Ltd. Rreef has no specially India dedicated fund, it has invested from its global fund. The reason behind such strategy is that Rreef looks forward to be a part of coming boom of real estate market. It currently owns $97.3 billion in assets under management worldwide.

Mr Kishore Gotety, Head, real-estate advisory services, Deutsche Asset Management, said, “Rreef has not taken a majority stake in Golden Gate”.

Mr Kurt Roeloffs, CEO of Asia Pacific, Rreef said, “India is a particularly attractive emerging real-estate market for our high return-oriented clients and in time will mature into an important investment destination for Rreefs broader base of institutional and retail clients. Golden Gate Properties can provide us with an important cornerstone for further investment in India.”

Golden Gate primarily deals with residential apartment projects in India. It has a collection of 10 completed projects, out of which eight are residential apartment and two are commercial projects within Bangalore and Hyderabad.

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