Bangalore attracts more private equity money investment

The real estate market in Bangalore attracted the maximum private equity (PE) investment in the country in the first half of 2014, beating the national capital Delhi as well as the commercial capital Mumbai, according to property consultancy firm Cushman & Wakefield.

Led by high demand for office spaces as well as steady demand for residential property, the city’s real estate market saw PE investments jump nearly 20 times yearon-year to Rs 2,005 crore. The city had received PE investments worth Rs 103 crore in the first six months of 2013.

While Mumbai received investments worth Rs 1,140 crore, Delhi-NCR got Rs 490 crore and Chennai Rs 200 crore during the same period. “Availability of investible leased office assets and stable yields kept the interest levels high,” said Sanjay Dutt, executive managing director, South Asia, at Cushman & Wakefield.

“The share in overall PE investments is expected to remain significant in the coming years for Bangalore,” he said, adding “Most of these assets have high occupancy rate and provide stable yields of approximately 9 per cent, making them highly attractive to investors.” Piramal Fund Management has just concluded a non-convertible debenture of Rs 100 crore with Century Real Estate Holdings against two projects in Bangalore. The deal was preceded by Tata Capital investing Rs 470 crore for about 15 per cent stake and a board seat in Shriram Properties and Vaswani Group raising Rs 100 crore from J P Morgan.

“It is easier to underwrite projects as the ticket size is reasonable in Bangalore,” said Khushru Jijina, managing director at Piramal Fund Management. “We close almost one or two transaction every month but there is reverse challenge of velocity that one has to be careful about.” Piramal Fund is looking to invest Rs 300-400 crore per deal in Bangalore compared with Rs 100 crore earlier.

Red Fort Capital is targeting midincome projects between Rs 60 lakh and Rs 4 core in Bangalore.

“While Mumbai and NCR is a high value and margin market, Bangalore is the most stable with demand driven by end users. The churn in capital is also faster as compared to other markets,” said Jasmeet Chhabra, managing director, Red Fort Capital.

Other funds looking for transaction opportunities in Bangalore include Milestone Capital Advisors, Motilal Oswal Private Equity, Xander, Shapoorji Pallonji and Blackstone. “We will invest 30-40 per cent of our total fund outlay in Bangalore market and are evaluating multiple transaction for our new Rs 500-crore fund that will be launched in coming months,” said Navin Kumar, ED, fund raising & investor relations, at Milestone Capital Advisors.
Source: The Economic Times

Tata Housing buys 20 acres land in Bangalore for new projects

Tata Group realty firm Tata Housing has entered into an agreement with Alstom T&D India to buy its manufacturing unit spread across 20 acres in Bangalore for 120 crores.

“The agreement with Alstom T&D India was a part of the expansion strategy of the company,” the company said in a statement.

Tata Housing is a subsidiary of Tata Sons, which holds 99.86 per cent stake in the realty firm. It has 70 million sq ft of area under various stages of planning and execution and an additional 19 million sq ft in the pipeline.

Commenting on the agreement, Tata Housing spokesperson said, “As part of our long term strategy, we are looking at expanding our presence in the fast growing city of Bangalore.

“We are witnessing phenomenal growth in North Bangalore as its commercial and residential market is growing exponentially. With Bangalore, being credited as the 10th most favoured prop investment destination by Asia Pacific, we are planning to launch an ultra-luxury project on this land to cater to the increasing aspiration of ‘higher living’ in the city,” said the spokesperson.

Bangalore, known as the Silicon Valley of India has emerged to be one of the fastest-growing cities. The presence of IT and BPO companies in the city has created an active demand for commercial and residential properties in Bangalore. The city with good social infrastructure, close vicinity to international airport, increasing metro lines, excellent educational institutes and constantly upgrading physical infrastructure is attracting lot of investment from HNIs and NRIs.

Tata Housing has presence in Mumbai, Lonavala, Talegaon, Pune, Ahmedabad, Goa, Gurgaon, Chandigarh, Bengaluru, Chennai, Kolkata and Bhubaneswar.

The company is now in the process of expanding footprints to other parts of India across tier I and II cities. It has ventured into foreign markets such as Maldives and is actively exploring other markets, including Sri Lanka and other South Asian countries. (With PTI inputs)

Source: The Financial Express

Real Estate Biggies To Compete For Prime Plot near Kolkata

A prime 5-acre plot on the edge of EM Bypass Expressway has caught fancy of Indian real estate giants. Soon, big names including DLF, Reliance Group, Emaar MGF, Indiabulls, Bengal Ambuja Realty, and Paharpur Cooling Towers will be seen competing for it. Kolkata Municipal Corporation (KMC) will put the project to auction. The location of the property is its biggest plus. It is located opposite the Science City Infotainment Complex. Also, it is at a stone throw distance from the ITC Sonar. KMC will offer it on a 99-year long term lease through an auction. Most probably, the land will be used for development of an exclusive commercial-***-residential complex. This region is buzzing with developing commercials and there is huge demand. To add to this, the plot is on the edge of a prime expressway that passes through fast flourishing New Kolkata on the eastern border of the city. 57 corporates have bought the request for proposal (RFP) document containing the terms and conditions! of the auction. The last date to buy the RFP was 5 October whereas the last date for submission of bids is October 15. Reportedly, KMC will use 50% of the proceedings from the auction to set up an art gallery in Rajarhat.

A High Rise in demand in residential and commercial properties in Bangalore

The demand for commercial property in Koramangala is high despite the sluggish demand for real estate in Bangalore and other major metros. Many residential buildings are being replaced with commercial towers with small offices, businesses and restaurants.

From Retail to Restaurants, this place is on a commercial high. Statistics reveal that the price rise is between 10 to 15 percent the last year and the trend is expected this year too. The average price for a commercial property is approximately ₹ 12000 to 14000 per sq.ft. The advantage of being located close to ORR and CBD is luring crowds.

Bangalore witnessed approximately 1.6 million sq.ft of grade A office supply in the last quarter of 2012. The supply was primarily focussed on peripheral locations of outer ring road due to excellent connectivity and growing residential catchments. The IT sector was dominant with over 60 percent of net leasing activity, followed by banking and financial institutions at around 9 percent of the total.

The demand for office space is likely to spike the rentals on outer ring road and whitefield. With more businesses moving to Koramangala, ORR and Whitefield, prices of residential housing is expected to spike. The tremendous growth of IT companies have revolutionised the real estate market of Bangalore and triggered massive infrastructure development. Among various developed localities in Bangalore, a lot of interest is generated about Infantry Road. So, let’s delve into this locality and learn what makes the area perfect for investment.

All the major localities like Commercial Street, Church Street, Shivaji Nagar and Lady Curzon Road are in the vicinity of Infantry Road. It is just half a kilometer away from the MG Road Metro Station. The area is even close to the Bangalore Cantonment Railway Station which is at a distance of 3 km and Shivaji Bus terminal about a kilometer away.

According to Jamal Ahmed, Mansions Real Estate connectivity of the area through buses has largely contributed to the locality’s real estate prospects. The area has seen four per cent appreciation in rental values as it is preferred by people working in the nearby areas.

Additionally, there are many industrial areas and business parks in and around Infantry Road, which makes it a brimming commercial hub. Companies like Sony Ericson and Cisco have their offices in the vicinity.

There is an array of housing options with many renowned developers holding a presence here. Prestige Group, Embassy Group, Nandini Builders and Hoysala Projects Private Limited these developers have targeted mainly the working professionals in the city thereby, offering housing options for different income groups.


Bangalore Real Estate Award 2013- Winners Announced

Today’s real estate market is driven by Quality, Design, Architecture, Environment Balancing, Amenities and Technology that the builders are using. Builders and developers are creating a differential mark through proper project management and quality construction.

SiliconIndia in association with Axis Bank & Quadra Software Solutions presents to you Bangalore Real Estate Awards 2013, which is an initiative to identify and recognize the leading real estate industry professionals, who have played a vital role in the growth of real estate sector in Bangalore.

Alexander (Sandy) Moore, CEO of L J Hooker (India), Australia’s largest real estate company, spoke about Bangalore’s current Real Estate scenario while giving the inaugural keynote and felicitated the winners.

These awards are instituted under 12 categories that are intended to encourage infrastructure development, foreign investments in the local bodies and real estate growth and companies especially in terms of innovation, quality, reliability, technology and continuous improvement.

The jury comprised of Siva Kyasa, Regional Director, RE/MAX, Bangalore; Christo Jacob, Managing Editor, SiliconIndia; Dr B. C. Udayashankar, Head of Civil Engineering, R.V.College of Engineering and Harsha Babu KV, the Principal Architect, M/S Harsha Design Associates.

The Real Estate Year Book 2013’ was also launched during the ceremony. Jairam Sridharan, President of Consumer Lending & Payments businesses at Axis Bank did the honour of launching the Year Book. It is a yearly publication and will act as a buyers’ guide and will help them get all the information on the current Real estate industry.

Source: siliconindia Real Estate