Indiabulls Real Estate

Amidst reports that Indiabulls Real Estate in tandem with its group firm Indiabulls Housing Finance is planning to invest an amount of Rs.25,000 crore in Haryana in the ensuing period of 7 years, the share price ended 4% higher at Rs.53

Following a special resolution passed by the shareholders at its 9^th Annual General Meeting held on September 28, 2015, the company intends to issue 3,000 Secured, Redeemable, Non-Convertible Debentures of face value Rs. 10 lakh each aggregating Rs. 300 crores, on a private placement basis as per terms and conditions.

Currently, the company has a market capitalization of Rs.2391.49 crore. Combining the shares of NSE and BSE, the number of shares traded on the counter amounted to 9984129. After opening at Rs.51.85, the company scrip touched a high and low of Rs. 54 and Rs. 51.25 respectively.

With a face value of Rs.2, the BSE group ‘A’ stock touched a 52 week high of Rs.78.35 on March 13, 2015 and a 52 week low of Rs. 41 on June 18, 2015. Over the period of last one week, the scrip touched a high and low of Rs. 53 and Rs. 45.05 respectively.

As on date, the promoters had a majority holding of 42.68 % in the company while Institutions and Non-Institutions held 21.31 % and 35.89 % respectively.

Emergence of Dadar as a real estate hub

Despite the emergence of Lower Parel and Bandra-Kurla Complex (BKC) as prominent commercial real estate locations, Dadar continues to be in a class of its own. This is on account of the favourable geographical location as well the superb connectivity it provides throughout the city.

On account of its historical popularity, the residential market property in Dadar has reached a saturation point. Owing to a lack of plots, there are only a few new projects that are scheduled for construction, leaving a significant number of projects for redevelopment within Dadar and its surrounding areas.

The reason Dadar has emerged as prime real estate has been the accessibility it provides for the city’s working professionals. Dadar railway station has the unique quality of being the only station that is common to both Central and Western Railway lines. Even neighbouring location of Wadala is an easy access point for people to commute from the Harbour line.

Besides railways, Dadar is also easily accessible by road for a large number of professional who are residing in Mumbai or even Pune for that matter. By reaching their journey in a single journey and travelling back in similar ease, the working location of Dadar eliminates the problem of changing of buses and trains for a large number of workers.

With its multinational presence, Lower Parel has become a major business district in Mumbai to such an extent that almost every available plot along the strategic Tulsi Pipe Road is being spoken about. While BKC remains a location of choice for all commercial office space occupiers, the forward linkage brought about by the frantic growth of Grade A office space development in Lower Parel has found its growth extension in Dadar. With the further completion of some more Grade A office projects, Dadar will join the queue for more such office spaces in Mumbai.

With the gradual emergence of Dadar as an advantageous commercial space location in Mumbai, one can anticipate the redevelopment of large number of existing buildings in and around that area. The same will also lead to increased demand for residential properties in Dadar and its surrounding areas.

MORE invests Rs. 114 cr in Pune & Bangaluru

The real estate arm of Motilal Oswal private equity has made investments worth Rs. 114 crore in two projects – one in Pune and the other in Bangaluru. While Pune based Kolte Patil developers received Rs. 58 crore, Skylark Mansions which is based in Bangaluru collected funds worth Rs. 56 crore.

Motilal Oswal Real Estate (MORE) has partnered with Kolte-Patil Developers’ for a mixed-use project located in Wakad with frontage on the Mumbai-Pune express highway. The investment in Skylark Mansions is for their impending residential project being developed in Hennur Road, Bangalore.

“These fundings are aligned with our strategy of investing with established developers for their mid-income housing projects at city centric locations. Within a year of closing, we have committed the entire capital of IREF II to reputable brands pan India,” said Sharad Mittal, Director and Head, Real Estate Fund, Motilal Oswal Real Estate (MORE).

“Real estate has become an important vertical within our overall private equity business,” said Vishal Tulsyan, MD & CEO, Motilal Oswal Private Equity Investment Advisors  adding that “Motilal Oswal Private Equity now manages more than Rs 3,000 crore across five funds in growth, capital and real estate.”

MORE has recently announced its first complete exit from Mahaveer Developers in Bengaluru at an internal rate of return of around 30%. IREF II had invested Rs 40 crore for their two projects in March 2014.

Real Estate Market in India

In past few years, real estate market of India has evolved from residential units at great location to luxury and vibrant concept of branded homes. These branded residential units or houses have make up this emerging luxury housing projects where the price of luxury houses are about $ 300,000 for 2000 square feet for the starter size for apartments and into bigger and larger sizes depending on the category of the residential projects. In last 10 years, our country has under gone rapid globalization and urbanization which paved the way for employment opportunities with high income trends. However; these high earning individuals are looking for the world-class amenities to reflect their lifestyle on how they want their homes to look like.

According to real estate experts, currently it is one of the fastest growing clusters in residential housing segment as it would take 1.5 million luxury residential units to cater the demand in the next 10 to 12 years, as per the reports of Business World. In present, most of the real estate developers are taking the advantage from the opportunity which needs to cater the housing needs while also getting high incentives. Now most of the real estate developers are targeting the uber rich of the city, who are willing to pay for property which is luxurious enough to reflect their social as well as financial place in the hierarchy. Apart from that there is also sudden influx for investments on bespoke properties because of the emerging trend of owning luxury as well as more than one property in same or different city in the upper segment of the society.

While making an investment in the premium properties, there are few uber rich individuals who prefer to diversify their assets that can be fueled by several reasons ranging from passionate and practicality inclination to investment opportunities. In present, the fastest growing real estate market of India, its common trend to own more than one property and it’s also the  aspiration for the higher class as more than 80 percent of them are investing in at least two properties while the balance 55 percent stake on three or even more. In Indian real estate market there are also few international developers who are ready to invest in the customized possessions to cater the luxury housing demand for the wealthy who want to be at par with their peers’ or surpass their luxury lifestyle.

Rising aspirations of the wealthy professionals are also in the target market of real estate developers for their premium constructions. Luxury residential units are definitely looking for promising trend in Indian real estate market to gain the momentum, which could even surpass the traditions of real estate market.

Ghodbunder Road – upcoming destination

From a small suburban town on the outskirts of Mumbai to a self-sustaining metropolis, Thane has progressed leaps and bounds over the last decade. It is a modern city with expansive flyovers, seamless highways and broad roads that contribute to its burgeoning social infrastructure.

With a property price boom that was seen in areas in and around Mumbai between 2010 and 2012, Ghodbunder Road segment in Thane emerged as an ideal residential destination for price-sensitive home buyers owing to the relatively lower rates in comparison to the central Thane city. Today, Ghodbunder Road is witnessing rapid appreciation in terms of real estate.

Ghodbunder Road is approximately 20 km long and links the two main arterial roads of Mumbai, the Eastern Express Highway which starts at Sion and terminates at Thane and the Western Express Highway, that starts at Bandra (East) which becomes the National Highway leading to Gujarat. Many rail and road infrastructural projects on the Ghodbunder Road are in the pipeline giving the area an upper edge.

The MMRDA has given a nod to a monorail network which will serve as a feeder system to the Metro corridor extending from Wadala to Kasarvadavali on Ghodbunder Road. Besides, the road also provides quick accessibility to Mira Road from Thane, and to other micro-markets like Mulund, Bhandup and Ghatkopar.

From affordable apartments to premium properties, the area offers an extensive mixture of housing options. Capital values of newly launched multi-storey apartments vary between Rs 40 lakh to Rs 2.5 crore and the average prices of this region range between Rs 8,000 and Rs 10,000 per sq ft with annual appreciation of nearly 7-10 per cent, based on the project specifications and amenities.

Ghodbunder Road is attractive to developers primarily due to the easy availability of large land parcels. Some of the reputed developers present on this stretch are Runwal Group, Puraniks Builder, Harmony Lifestyles Group, Vijay Group, Rosa Group and DS Group.

Crompton Greaves board approves selling Mumbai land for Rs 496 crore

The board of directors, Crompton Greaves, has approved the sale of a portion of the company’s land parcel admeasuring approximately 53,000 square meters situated at Kanjurmarg, Mumbai to Evie Real Estate for an aggregate sum of Rs 496.48 crore. This definitive step has been taken as a part of the company’s continuous asset optimization initiatives.

Crompton Greaves is a pioneer in the management and application of electrical energy along with providing electrical products, systems and services for utilities, power generation, industries, and consumers. The company operates in around 85 countries, with employee strength of more than 15,000.

Suraj-Parmar

CREDAI Bangaluru  and its affiliates, in a move to make an urgent appeal to the administration, had shut down all operations across all member companies on October 13 as a mark of respect and solidarity to Late Mr. Suraj Parmar of the Cosmos Group, who tragically ended his life recently.

Suraj Parmar was a well-known name in the field of real estate across Thane – Mumbai region of Maharashtra. His company maintained an extraordinary record in terms of the quality of work, timely deliveries of homes for over 15 years. His demise is an enormous loss for the industry.

Parmar’s suicide note highlighted ways in which the government has been apathetic to the needs of the industry like endemic delays in granting approvals, rejection of plans with retrospective effect, political interference, endless delays in implementation of governmental policies, unusual regulatory changes during an ongoing project, retrospective application of new regulations and so on.

Commenting on the subject, Nagaraj Reddy, President CREDAI-Karnataka said, “It is tragic that a member of our fraternity had to take such a drastic step due to difficulties posed by governmental apathy towards real estate. The objective of this protest is to draw attention of the government to the obstacles that exist and create an enabling ecosystem that fosters ease of doing business in the sector.”

LEDs will light up the Marine Drive

Soon you will experience the pleasant look in Queen’s Necklace while driving in night because this place will be brightly lit up by LED’s by the end of this month. State government has been decided to implement the LEDs in place of streetlights. The same will be implemented in the other parts of city and its suburbs by the end of October 2015. On January 2, 2015 the decision was made after the meeting between senior officials of the state, centre and civic body. Devendra Fadnavis, Chief Minister of Maharashtra, will inaugurate the pilot project on January 31, 2015 at Marine Drive. The same day he will also visit the Mulund in the central suburbs and Bandra in the western suburbs to see the installed LEDs.

In present, there are more than 1.32 lakh electricity poles in all over the Mumbai and there are more than 2.5 lakh high-pressure sodium lamps are working on these poles, in which some poles have single lamps and others have two or three at per pole. It is expected that the conversion of sodium lamps to LEDs on in the light-emitting diodes will emit more light in night for the comfort of drivers and on the same time it will save at least 30 per cent of electricity. It is expected that the total cost of conversion will be approx. Rs 250 crore, which will be paid by BMC (Brihanmumbai Municipal Corporation) in a phased manner. This decision was made after the meeting between Piyush Goyal, Union Power Minister; Chandrashekhar Bawankule, State Power Minister, Ashish Shelar and Amit Satam, Legislators; Sitaram Kunte, Municipal Commissioner; SVR Srinivas, Additional Municipal Commissioner; OP Gupta, General Manager of BEST and other officials from the Energy Efficiency Services Limited, which is a a subsidiary of the Central government.

Ashish Shelar, a Legislator, stated that, “These LEDs will the annual electricity cost of Municipal Corporation. According to records currently, BMC is paying Rs 164 crore to various agencies that maintain the sodium lamps, but after the implementation of LEDs the annual electricity cost will reduce by Rs 80 crore, which is 50 per cent of annual electricity cost. The more he added that the Centre’s subsidiary will put up these lighting systems, operate and maintain the lights for seven years.

According to anonymous sources of BEST, who did not want to disclose their names, “There are plans to cut the costs at bus depots and government offices with the help of LEDs as it can help to save money.