Hiranandani’s Powai retail space to be acquired for $1 billion

Developed over a decade, the Hiranandani Group, a partnership between brothers Niranjan and Surendra Hiranandani, which owns 4.5 million square feet of office and retail space in Powai, a suburb of Mumbai, will soon be acquired by Canada-based Brookfield Asset Management. This is said to be Mumbai’s largest property transaction in the commercial space which is worth $1 billion or Rs. 6700 crore.

“The process to restructure Hiranandani brothers’ partnership firm is already at an advanced stage and this will clear the way for the transaction. The deal is scheduled to conclude very soon,” a source familiar with the development said.

The developer group which holds the Powai assets is presently a corporate entity and this move may be a precursor to either listing of a Real Estate Investment Trust that would hold the office assets or stake sale.

Hiranandani’s Powai offices are fully leased to giants like Tata Consultancy Services, Nomura Group and Deloitte Consulting India.

Brookfield Asset Management is a global alternative asset manager which has been very active in India off late. The company acquired 100% stake in four special economic zones owned by Unitech Corporate Parks (UCP) and 60% stake in its two other assets in the country for Rs 3,500 crore in 2014.

Best real estate destinations in India

Today, we look into five cities that are emerging as few of India’s best real estate destination.

1) Hyderabad

The creation of Telangana as the latest state in the country has led to the emergence of Hyderabad as a top real estate market in the country. With its increasing developments in the residential and commercial projects, complimented further by the moderate prices, the city of Hyderabad is soon going to be the prime investment location for real estate.

Hyderabad Commercial Area

2)  Bangalore

Bangalore has become an important player in the real estate arena of the country. With leading technological companies finding a place in the city, Bangalore is witnessing a large number of people from all across the globe relocating to the Garden City in search of better opportunities. The city offers an eclectic mix of affordable and high-end housing as well as rented accommodation which are cheaper in comparison to cities such as Mumbai and Delhi. Also, with its emergence as a start up hub in the country, office space is also available at competitive rates. So if one plans to initiate a business in the country or is keen on investing in real estate, there is no better place than Bangalore.

Bangalore Commercial City

3) Bhiwadi

In the outskirts of Delhi, a not so widely known place named Bhiwadi is fast becoming the favoured destination for real estate investment as prices skyrocket in Delhi.

With a spate of real estate construction projects under progress alongwith the construction of schools, roads and hospitals, the place is looking to accommodate the increasing number of prospective residents. With prices highly affordable in comparison to Delhi, it looks the perfect time to invest in a property in this location bordering the capital.

Bhiwandi Commercial

4) Thane

Thane might not be Mumbai for a large number of the city dwellers but the city is really becoming a promising investment destination. With residential and commercial properties available for a lower rate in comparison to Mumbai, the city is seeing an increase in number of constructions and investment in real estate. Further, the city also has fair share of basic amenities for anyone looking to invest in real estate.

Thane Commercial area

5) Bhopal

Bhopal has come a far way from being defined as the city of the gas tragedy to being one of the most wanted cities in the real estate sector. With residential flats, villas and luxury apartments on offer at much lower prices in comparison to other cities on the list, Bhopal is emerging as an underdog in the race to be the most sough real estate destinations in the country.

Bhopal commercial area

That’s all folks, if you still have some good amount of spare money left, real estate properties in these five cities look good value for money.

Indians – 3rd biggest investing community in US realty market

With an $8 billion investment in the US realty market, Indians have become the third biggest international investor community after Canadians and Chinese as per brokerage firm Sotheby’s International Realty.

I think and I believe Indians that live in the US are one of the largest group of millionaires in the America… they are already there and therefore they are investing in real estate,” US-based Sotheby’s International Realty President and CEO Philip A White told PTI.

According to US-based National Association of Realtors data Indians had spent $5.8 billion in fiscal 2014 to purchase real estate in that country. China topped the list of foreign nationals with $22 billion in in realty for the one year period ended March 2014.

The spate of investments in the international real estate market is not only limited to US markets but also to London and Dubai where Indians have invested 1 billion pounds and $2 billion respectively in the first half of 2015.

In August 2014, Sotheby’s International Realty signed an agreement with Indian firm RealPro Infra Pvt Ltd towards establishing its Indian arm under the name North India Sotheby’s International Realty, aimed towards catering the increasing luxury real estate demands of resident and non-resident Indians.
Informing the details about the investments made by the Indian community in the US, North India Sotheby’s International Realty Founder and President Ashwin Chadha said: “After Canadians and Chinese, Indians are third largest international community in US in terms of real estate investment and had invested around $8 billion last year.”

Speaking about their optimistic expectations of the Indian luxury real estate market, White said, “India as a country has huge potential to be the top nation in terms of business for us. It may take few years to get there.

“Indians searching property globally, I think we all know Indians put big premium on real estate as a tangible asset to protect from inflation or number of things so I think they keep on looking at the opportunities,” White added.

Elaborating about their domestic arms operation so far, North India Sotheby’s International Realty Founder and CEO Amit Goyal said they have already tied up with some established players in the sector including Tata Housing, Sobha and Max Group’s Antara Housing.