IIFL and Edelweiss Group planning to buy bengluru projects

In the very first transaction, IIFL is planning to lend Rs.500 crore to Ariisto Realtors in the form of structured debt. IIFL Group, which is one of the largest financial services firm has made two big investments one by one in the different real estate projects which are located at the Mumbai and Bengaluru and it is expected that this investment will help the real estate developers to start he projects and refinance the existing the loan, as per the statement of the executive of company.

Investment with Ariisto Realtors:

In the very first  transaction, IIFL Group lends Rs. 500 to Ariisto Realtors in the form of structured debt for the residential project which is coming up at Kandivali, a western suburb of Mumbai. Apart from that it is expected that real estate developer will use some of the working capital to partially refinance loans of HDFC Portfolio Management Services, a part of HDFC Asset Management Co. Ltd. and Piramal Fund Management Pvt. Ltd, who are existing investors. Till now out of Rs.500 crore, IIFL has already disbursed the amount of about Rs.370 crore. It was the second deal of IIFL with Ariisto, however; the first deal of IIFL was very small with the amount of Rs.80 crore in 2014.

According to Balaji Raghavan, Director of IIFL Realty Ltd, which is a subsidiary of IIFL Group, “It is an early-stage transaction and the project is about to take off”. However; Hiren Patel, the Executive Director of Ariisto Realtors stated that “Our Company has more than 19 residential projects in various parts of Mumbai”. The more he added that the Kandivali project has two and three bedroom apartments and currently project is in the process of procuring approvals. We are planning to use that money for the project development and it will help us to repay the Piramal and HDFC Portfolio Management Services”.

Investment with Manyata Promoters:

In the second transaction, Edelweiss Group, which is also financial services company and IIFL jointly lend around Rs.725 crore to Manyata Promoters, which is Bengaluru based real estate developer and landowner. As senior lender Edelweiss will about Rs.450 crore and rest Rs. 275 crore will be given by IIFL. In September, the IIFL Group and some of its wealthy clients have invested Rs.300 crore in the real estate projects which are located at the western Mumbai suburb of Borivali is under construction by Radius Developers in partnership with Deserve Builders and Developers Ltd. IIFL Group and its non-banking financial arm as well as its private equity arm is actively investing in the real estate projects.

The partnership between IIFL and Edelweiss is another instance of investors such as; non-banking financial companies (NBFCs) and private equity (PE) funds have join the hands for big-ticket transactions while hedging risk in a sluggish market. While confirming the transaction, Sanjeev Rastogi, Executive Vice-President of ECL Finance Ltd, the NBFC arm of Edelweiss Group stated that the debt has been given for working capital and refinancing purposes. Manyata Promoters, which is also the shareholder in Embassy Manyata Tech Park, a prominent information technology (IT) special economic zone (SEZ) located at Bengaluru with investor Blackstone Group Lp and realty firm Embassy Group will use the money for two of its new plotted development projects.

According to Raghavan¸ it was best deal in which both IIFL as well as Edelweiss were interested, but requirement was larger than what we would have individually been able to do., so both firm decided to share a comfort level with joint effort. According to Shashank Jain, Partner in transaction services of PricewaterhouseCoopers India, “In collaboration may not be the norm because we are likely to see more such associations between different kinds of capital and different risk appetites.

Image Credits : DNA

We all know that online shopping trend in India is getting viral and we Indians are not only buying TVs, Smartphone and Shoes online, but we all also doing some great things online such as; comparing and buying policies and home loans in online mode. After consumer shopped for worth Rs. 6 crore house on Snapdeal.com in the first half of the years, now Paisa Bazaar is grabbing the attention as this online destination for loans and credit cards has closed with record of Rs 5.68 crore home loan disbursal and till now its country’s largest online home loan disbursal.

However; the home loan disbursed by Housing Finance Development Corp for a 4 BHK flat in Mumbai, BKCRustomjee region. In our country its largest disbursal online till date as a Rs 5-crore disbursal for a mortgage loan made earlier. However; the total price of apartment was around Rs 9 crore. According to Naveen Kukreja, MD of Paisa Bazaar, “We are seeing a spike in high-ticket loan cases on our platform”.

About Paisa Bazaar:

The online portal, owned by Policy Bazaar has the backend support of investors such as; Temasek, Tiger Capital and Infoedge and they all has made disbursals of around Rs 250 crore in last one and half month, which is equal to Paytm’s Diwali sales from its e-tail business.

High-ticket cases currently constitute more than 15 percent on the overall home loan cases at the online portal of Paisa Bazaar. According to Kukreja, “Now we are realizing that high-net-worth individuals (HNIs) are becoming more valuable and comfortable while shopping online for loans. And in our conversations with them, they have communicated that we want to go deeper into the products and understand them first-hand. But at this point of time we are doing great with stage one, since they want  minimum intrusion while making their most important financial decisions, we expect more of them to turn online for all their personal finance needs”.

Apart from that the Rs 5 crore mortgage loan, which was closed on Paisa Bazaar at the first half in the years was also disbursed by HDFC to Murli Gnanavel, Chennai based individual against his commercial property in Coimbatore. According to Ajay Sachdewa, National head of Marketing at HDFC, “We are in the strategic tie-up with Paisa Bazaar and we are committed to help them while making online presence and leveraging the digital channel more effectively”.

HDFC Property Fund Invests Rs 100 Crore In Chennai Realty Firm

HDFC Group has announced an investment of Rs 100 crore in Chennai-based realty firm TVH for its impending project in the city. HDFC Property Fund, an arm of HDFC Group, has picked up a 26 per cent stake in the special purpose vehicle – Tharendra Infrastructure Private Ltd which has been particularly formed for the project.

HDFC Property Fund managing director and CEO K G Krishnamurthy told reporters “this project is being developed in association with TVH. The investment is one of the top-ranked exposures for HDFC Property. The company’s biggest exposure was about Rs 500 crore in a project in Mumbai.”

Speaking on the occasion, N Ravichandran, Chairman, TVH, said that the funds from HDFC Property Fund will be employed for the development of a township on 100 acres of land at Manivakkam, West Tambaram.

“The project will be developed in phases where the first phase will be development on plots.  In the next three phases, we plan to launch row houses, villas and high rise apartments. The plots will be sold in 600 square feet, 1,200 square feet and 2,400 square feet at the rate of Rs 2,400 per square feet,” he added.

HDFC cuts its Home Loan Rate

HDFC, which is one of the largest home loan provider and private sector bank in India, it cuts home loan rate by 0.20 per cent to 9.9 per cent, as per the reports of Press Trust of India. However the revised rate are applicable for new as well as old or existing both customers. It is expected hat in near future more banks will follow the same path and in result the EMI (equated monthly installments) will come down, where as this is the time of joy for the home loan customers of HDFC.

The home loan rate cut is the wakeup call for several other big banks such as; SBI, ICICI Bank, Axis, and other banks who are major player in home loan industry as they are cutting their minimum lending rate or base rates for the comfort of customers. However, Raghuram Rajan, Governor of RBI urged to all banks to pass the benefits of its repo rate cut to customers.

Whereas; the central bank keep its rate unchanged.

CREDAI-BANM 15th Property exhibition

Event Venue: - CIDCO Exhibition Centre, Vashi.

Date: - Dec. 12, 2014 to Dec. 15, 2014

CREDAI and BANM is going to organize the 15th Property Exhibition for the duration of Dec 12 to Dec 15 in the city Navi Mumbai. CREDAI stands for “The Confederation of Real Estate Developers’ Associations of India” and BANM stands for “Builders Association of Navi Mumbai”, which is the apex body of the organized real estate developers in Navi Mumbai. Whereas; CREDAI is the apex body for private real estate developers in India, which represents 8,800 developers through 20 states and 114 cities.
In present Mumbai is one stop destination for international standards real estate properties for commercial to residential properties. Mumbai is one of the global hot spot for foreign real estate developers and as well as national developers. As we all know that, property investors and buyers have become price and quality conscious and because of that they are searching for affordable property with good quality. In past few decades Indian real estate market is seen to be more investor-friendly as it is attracting the NRIs and foreign investors, which is the main reason for the boost in real estate market that drive demand to greater heights.
As the real estate sector witnessing a positive trend in Mumbai, so it is expected that record number of properties will be exhibit and sold in exhibition, as last year more than 350 properties were sold by the developers under the code of conduct adopted by the members of the CREDAI-BANM. The expo will feature the presence of real estate developers from across Mumbai Metropolitan Region (MMR) and country with the presence of housing finance segment with the organization like; LIC Housing Finance, Tata Capital Housing Finance Limited, HDFC, ICICI Bank, Kotak Mahindra Bank, L&T Finance, Bank of Baroda, Bank of India, Axis Bank, Union Bank of India, Reliance Capital and Canara Bank.
This expo is expected the presence of Bollywood and sports celebrities as in 2013 the same expo has witnessed presence of celebrities like Actor Sunil Shetty and Shilpa Shetty. In property expo there will be plethora of offers housing options for customers to take spot decisions. With the strong membership of more than 1800 leading Developers in Mumbai it is expected that expo will witness the huge success. This year it is expected that participation will be twice as compared to last year.
Life is all about taking the right decision at right time and this time the 15th Property Exhibition 2014 will kicks off at CIDCO Exhibition Centre, Vashi, so it’s great opportunity as it promises something more to everyone who is interested in real estate.