Godrej Properties to develop residential project in Bengaluru
Godrej Properties , the real estate development arm of the Godrej Group, has entered into a new deal to develop a residential project at Whitefield, in Bengaluru. The proposed project will offer approximately 79,000 square metres (0.85 million sq. ft.) of saleable area and will be developed as a modern residential development.
Whitefield is emerging into a self-sustaining commercial and residential locality with many educational institutions, hospitals, malls and convenience stores in close proximity. The plot has high visibility and is well connected to EPIP Zone and ITPL Business Parks. As with most Godrej Properties' projects, this project will be developed under a profit sharing model.
irojsha Godrej, Managing Director & CEO, Godrej Properties said, “We are very happy to add a new residential project in Bengaluru. This is our eighth project in Bengaluru and second project in Whitefield. This development fits well with our strategy to strengthen our portfolio in the country's leading real estate markets."
Housing for all by 2022 - Far-Fetched Or Feasible?
Viewed dispassionately, the current government's 'Housing for all by 2022' promise seems a bit unrealistic at the moment, as the modalities and concrete steps needed to be undertaken to achieve this goal have not been spelled out. Making 2 crore urban houses and 4 crore rural houses available is a huge undertaking in itself, and will require not only sustained government interest and investment but also substantial private sector investment and involvement.
In the previous budget, the announcement of Housing for All was accompanied by increased allotment to the National Housing Bank for both rural housing and for extending credit to the urban poor/EWS/LIG segment. There was also talk of setting up a Mission on Low Cost Affordable Housing, which was to be anchored in the National Housing Bank. However, the track record of government-built housing in terms of quantum and delivery timelines has been as abysmal as that of the private sector. The last budget did not indicate any further steps on the 'Housing for All by 2022' initiative.
If this very ambitious goal is indeed to be met, there needs to be a clear, well-thought out policy document outlining the exact deliverables and accompanied by methods/initiatives to streamline the development process. This entails reducing approval times while providing specific incentives to build such houses on time. Considering that the government has seven years in all to achieve this target, it fundamentally involves construction of 30 billion square feet of housing stock, or approximately 4 billion square feet per year if we assume an average of 500 square feet per house (this is in line with creating smaller houses for the rural population and urban poor).
To state that this is an ambitious objective is perhaps an understatement. Without a clear roadmap in place, it is likely to remain unachievable. The roadblocks remain in ensuring land availability, easy credit and involving construction experts, town planners and the private sector to expedite this target.
The author is Anuj Puri, Chairman & Country Head, JLL India.
Piramal Fund Management sanctions Rs 1,200 Cr to Omkar Realtors for Omkar 1973 Worli
Piramal Fund Management (“PFM”) has committed Rs 1,200cr to Omkar Group’s luxury residential development in Worli, Mumbai as project specific debt, in one of the largest single project financing transactions in India. Rs 400cr of this amount is being used to part refinance existing senior lenders against pari passu senior charge on the cash flows and development rights. The balance Rs 800cr is innovatively secured against a 20:80 scheme and is intended to be drawn as a line towards construction progress over the next two years.
Omkar 1973 is the flagship property of Omkar with three high-rise towers spread over an area of 9 acres in the heart of the city off Annie Besant Road. The project, designed by Foster + Partners has received all approvals with construction progressing in full swing. Of the three towers, two are midway to completion and are expected to be delivered and handed over by the end of 2017.
The developer has received a tremendous response to a recently launched 20:80 scheme with over 4 lakh sq ft being sold in just under three months in a market that has otherwise witnessed slow velocity for high ticket unit purchases. The construction finance component of our transaction will be utilized towards funding interim construction costs under this scheme and is further secured by both the 80% receivables from the area sold as well as a substantial portion of additional area retained as security on a senior and exclusive basis.
Indiabulls Housing raises $150mn from Qatar National Bank
Indiabulls Housing Finance has raised $150 million from Qatar National Bank Group under the external commercial borrowings route for affordable housing, according to a media report. This is consistent with Indiabulls’ thrust on home loans of up to Rs. 25 lakh for affordable housing, the company said in a statement.
Indiabulls Housing Finance has a long-term credit rating of AAA and has a balance sheet size of over Rs. 53,402 crore as of December 31, 2014 with a nine month profit after tax of Rs. 1,350 crore.
Bharti Realty to develop high-end smart homes in Faridabad: Reports
Bharti Realty has signed an agreement with Delhi-based builder to jointly develop high-end smart homes in Faridabad, says report.
According to reports, the 50 acre project will allocate 5.2 million sq ft space for building smart homes.
The company is planning to invest Rs 2,500 crore in the project, says report.
The company is currently managing 2 million sq ft of office space across the country.
Parsvnath Developers plans to raise Rs 355 crore
Parsvnath Developers Ltd has announced that in terms of the provisions of Section 42 and 71 of Companies Act, 2013 read with rules notified thereunder, the Company has issued and allotted 7,100 - 13% Unlisted, Secured, Redeemable, Non Convertible Debentures having Face Value of Rs. 5,00,000/- (Rupees Five Lac only) each aggregating to Rs. 355,00,00,000 (Rupees Three Hundred Fifty FIve Crores only), on private placement basis on March 30, 2015
Nitesh Estates launches Nitesh Hunter Valley in Bangalore
Nitesh Estates Ltd has announcd the launch of Nitesh Hunter Valley in Hennur Road, Bangalore.
The project will add significant top line revenue to the company.
The company announced that Shobha Patil was appointed as an Independent Women Director at the Board Meeting of the Company held on March 31, 2015.
Housing.com in talks to buy 2 more startups: Reports
According to reports, Real estate portal Housing.com is in talks to acquire two more startups.
The company is negotiating terms with Realty Business Intelligence, an information portal focused on the realty industry and Nestaway Technologies.
The company is planning to pay upwards of Rs 18 crore to acquire Realty Business, says report.
Housing.com has acquired online discussion site Indian Real Estate Forum
Moody's: Easing of mortgage terms and housing taxes credit positive for Chinese property developers
Moody's Investors Service says that new measures that ease mortgage lending conditions and relax tax rules are credit positive for China's property sector, as they will support demand and alleviate pressure on property sales.
The measures—announced on 30 March by the People's Bank of China (PBOC), Ministry of Finance and State Administration of Taxation —include permitting commercial banks to lower their minimum down payment requirement to 40% from 60%-70% for buyers of second homes who have outstanding mortgages on their first homes, and relaxing tax rules on property transactions.
"These changes will make it easier for home buyers to obtain mortgages and lowers the cost of property transactions for borrowers who meet certain criteria," says Franco Leung, a Moody's Vice President -- Senior Analyst. "We believe the relaxed mortgage terms and housing taxes will encourage more prospective buyers to buy homes for their own use and as an investment, and therefore support home sales."