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Shriram Properties ropes in Starwood, Walton Street
Shriram Properties Ltd, the real estate arm of Rs 25,000-crore Shriram Group, has roped in Starwood Capital Group, LLC and Walton Street Capital, LLC for the proposed Rs 5,500-crore integrated IT township and auto park project at Uttarpara in West Bengal. Hindustan Motors (HM) is a minority partner in the project, which spreads over 314 acres of land.Starwood Capital Group is a privately held global investment management firm based in Greenwich, USA and specialises in real estate related investments on behalf of select private and institutional investor partners. The company was also the promoter of one of the world�s largest hotel companies, Starwood Hotels and Resorts.Walton Street Capital is a private real estate investment company, which has invested or committed to invest nearly $10 billion of equity in approximately 150 separate transactions in the US and international real estate.

Indian Real Estate Hits New High
Indian real estate is making rapid strides on the back of country�s surging economy. The growing developments are also giving a boost to the Indian job market which has certainly been poised for greater dynamism after a high proliferation of IT companies. According to a quarterly survey conducted by Manpower Inc., a global HR consultancy firm, the employer spectrum including the real estate, retail, and manufacturing has informed to have experienced a rise in their hiring activities. With employers drafting and executing business strategies, hiring activity is projected to get an increased momentum in this quarter. The optimism of Indian employers is a true barometer of the development taking across India, says Mr Soumen Basu, Executive Chairman, Manpower India. The job sector in India has primarily been pushed by factors such as finance, insurance, and the property market. A large number of employers have an increase in hiring plans.�The increased hiring in the services sector is a reflection of the role of this sector in India�s GDP growth. Also, the capital and financial health of the country today is fuelling the demand in the finance, real estate and retail sectors, which assures a plethora of opportunities for job seekers in the next three months,�Mr Basu added.A surge in hiring plans clearly shows an increase in India�s GDP growth. In addition, the financial development of India is fuelling the demand in finance, real estate and retail sectors; and ensures an availability of large pool of jobs in the next three months.

Uppal Housing to invest Rs 1,500 cr in expansion
Uppal Housing Ltd, a reputed organization in Delhi�s real estate market, has recently announced investing a whopping Rs 1,500 crore by March to broaden its horizons outside the Capital and its suburbs. The company is also pondering upon a share sale in future.Uppal plans to expand its property development business into Mumbai, Pune, Hyderabad and tier � II cities including Chandigarh. The company has always kept itself focused on Delhi, says Mr Gian Bansal, Uppal Director and Chief Executive Officer. Builders such as DLF Ltd, Unitech Ltd, and Parsvnath Developers Ltd are all bullish on expanding their businesses outside the Capital and its suburbs such as Gurgaon and Noida. A downslide in the real estate market (of these areas) is the underlying reason for the developers to scout for other prospects. Uppal may raise funds to garner capital for its expansion through internal accruals and project level private equity investments. The company is also considering opting for an initial public offer (IPO).Uppal is also likely to bring its SEZ in Gurgaon. Involving an investment of Rs 5,000 crore, the project will be developed in collaboration with a foreign partner and would come at an area of 263 acres. The company plans to come up with three more SEZs. Land acquisition for the zones has already been completed.

Rents in Nariman Point leave Manhattan behind
Indian firms are bullish on buying or renting office space in Mumbai, a factor which has fuelled the prices of commercial property in the city. Another factor pushing the average rentals in the Commercial business district (CBD) areas is a sharp increase in value of rupee. The rentals are believed to be more than those in New York. The average per sq ft cost in Nariman Point and Bandra Kurla Complex (BKC) stands at 1.5 times higher than Manhattan. According to the market trend, rentals in BKC will rise higher than the existing rates. Rentals in Mumbai are going through the roof. Knight Frank finds it cheaper to lease 1 lakh sq ft of commercial space for $55 per sq ft per annum than to pay $90 for the same in Mumbai. Close on the heels of BKC, Nariman Point is also fetching rentals which are around 1.5 times higher than Manhattan, says Mr. Pranay Vakil, Chairman, Knight Frank India. The weighted average rental in Manhattan hovers around $60, according to the latest survey. It all started a year ago when Lehman Brothers leased a property in BKC for Rs 300- 400 per sq ft per month, adds Mr. Vakil. The cost per sq ft per annum in Mumbai�s CBD was not heard to exceed $30. As compared to it, it has been three times higher in the past 18 months. The overall average rental in Manhattan was $53.43 sq ft, says Cushman & Wakefield. The amount was the highest ever recorded. Rents for class A offices in Manhattan are now $64.54 per square foot. Shortage of Grade �A� supply and increase in demand has caused a sharp increase in Mumbai by 20-30% over the last quarter.

The Glam boy of India�s realty makes it to the real estate OSCARS
The Hiranandanis have recently added yet another feather to their cap. At the country�s Top Builders and Architects, Mr Hiranandani was presented the �Best Builder� Award. The Governor, Mr S M Krishna was the Chief Guest for the Award Function to Honour the country�s top builders and Architects. Also, at the �Real Estate Awards� organized by ICICI Bank Home Loans and CNBC Awaaz that were held on August 17th, Hiranandani Construction was presented the Best Commercial Property Award. Mr. Niranjan Hiranandani who accepted the awards for the Hiranandani Group says, �We at Hiranandani have always believed in excellence and insisted on international quality in all our projects along with afforestation and wholesome amenities.� Hiranandani Constructions is recognized today as a producer of the best quality of housing and commercial premises in the country. The Group�s emphasis has always been on constructing buildings and infrastructure of sound quality, which would ensure a long life and low maintenance. They have developed an architectural style to suite the Indian climate and methods of construction. Hiranandani Construction projects are known for their excellence not only in their spectacular elevations, but also for their master plans of communities. The major construction projects of the group include the illustrious Hiranandani Gardens at Powai, another complete township, the Hiranandani Estate at Thane and the upcoming Hiranandani Meadows, also at Thane. The Hiranandani Group is distinctively known for developing mix-user townships to meet both residential and commercial needs. The Hiranandani Business Park at Hiranandani Gardens, Powai is a tribute to the true spirit of Indian Industry, notwithstanding, the host of traffic problems created in the bargain. It has become a major hub with more than 85 top corporates parked there, including over 75 MNCs, while the business park at Thane, is becoming a major attraction, especially for ITES companies. Hiranandani Group has also launched 23 Marina, the world�s tallest residential towers in Dubai.

Banks Prune Home Loan Rates
Interested home loan buyers do not need to be afraid of interest rates anymore and can pick their dream house soon. Since banks are seeing large investments, rates are finally falling after nearly three years. HDFC Ltd. has already cut its floating interest rates by a quarter of a percentage point to 11% under its special monsoon offer. The bank has also lowered its processing fee. Following in footsteps is Bank of Baroda. It has recently trimmed its rate by 50 basis points to 11% for loans up to Rs 20 lakh and 11.25% on home loans above Rs 20 lakh. Then, it is Allahabad Bank which has reduced its rate by 1%t point cut to 12 pct to 25-year loans. However, the banks have made offers valid for new borrowers only. Existing home loan customers require waiting for some more time to enjoy a reduction. Other banks such as the State Bank of India (SBI) are likely to join the race in near future. As the festival season is approaching, these offers will be pitched as a bonanza. Well! The good news is that the reduction on interest rates will continue even later as they plan to pass on the decline in the cost of funds. The deposit rates have already come down. Existing borrowers will have to wait for the reference rate to lower down. However, they need not worry as continued high liquidity in the system will result in lowering of benchmark rates soon, say bankers. High liquidity is the only underlying reason for bankers to search for potential customers. Bad loans account for less than 1% of the home loan portfolio. With this, the segment is once again coming up as a nice option for bankers (and hopefully borrowers).

Developments of fast growing Faridabad at a glance
With real estate in NCR touching new highs, Faridabad tightens its grip at its position of being a growing satellite town especially if residential investments are taken into view .Faridabad properties possess great potential which has been tapped mainly because of real estate developments in surrounding areas of NCR. Builders have made a beeline to make a killing as the city is now a major focus area for HUDA.Two years ago, builders used to keep themselves at bay from Faridabad real estate and the area was indeed not marketed by anyone. But if seen today, Faridabad has undergone a makeover. A major part of the city�s prominence owes more to its proximity to the Capital. The overall development of Faridabad realty comes on the back of the regional potential combined with the distribution of real estate activity. HUDA is to also share the credit for being supportive of the private mode of development.Staying in step with new concepts and upgradations in Indian real estate, Faridabad is seeing new developments especially in residential segment. The first Township to develop was Charmwood Village, a residential project built under the banner of Eros. Other projects are Lakewood City and Greenfield Colony. They all are located in the vicinity of South Delhi. Of all the sectors in Faridabad, Sector 43 is coming up as a center for fast and sustainable growth. It is situated in a green belt in proximity to reserved forest area and the famous Surajkund complex.Sector-86 in Faridabad is commonly known as Naharpaar Area and is set to undergo a paradigm shift in near future. The area has everything which can make any place a favorable destination as far as investments is concerned. Enjoying a strategic location, the area is well linked to Delhi on one hand and the twin cities of Noida and Greater Noida on the other.

RREEF lures ICICI veteran to head India business
RREEF, Deutsche Bank�s property fund management company, has appointed ICICI Venture veteran Mr. Kishore Gotety as country head.RREEF is one of the largest real estate investment managers in the world. It is widely expected that Mr. Gotety will spearhead the firm�s expansion in India, using his past experience to help the firm deploy funds in both real estate and infrastructure investments. Mr. Gotety is expected to join RREEF shortly. RREEF is jointly owned by Deutsche Bank and DB RREEF Trust. It has a strategic partnership with Deutsche Bank�s global real estate investment division, RREEF, which globally manages over $73 billion worth of assets. RREEF comprises four businesses; real estate, infrastructure, private equity and hedge funds. RREEF real estate invests in commercial and residential property and real estate securities on behalf of institutional and private clients worldwide. It has more than �56.9 billion ($77 billion) in assets under management as of June 30 2007 and is part of the global alternative investment management business of Deutsche Bank�s asset management division. Mr. Gotety is currently with the ICICI group�s private equity firm, ICICI Venture, which manages in excess of $2 billion across private equity, buyouts, real estate and mezzanine financing. He is an old hand at ICICI and has worked with companies across the group since 1993. Mr. Gotety�s experience specifically in structuring real estate investments, conducting due diligence and negotiating shareholder agreements at ICICI Venture where he closed more than 10 investments for the firm and reviewed many more than that is expected to stand RREEF in good stead as it seeks to expand in India. Real estate investing in India has taken off in leaps and bounds as foreign investors have been attracted to the opportunity that the country�s 9% GDP growth rate and its favourable demographics provide.

The Redevelopment Plan
The redevelopment of Dharavi slums includes rehabilitation of 57,000 slum families and businesses, and development of 30 million sq ft of facilities such as educational institutions and hospitals besides space for housing the families, and development of 40 million sq ft for commercial sale. �The aim is to integrate slum dwellers with the mainstream. Instead of treating them as liabilities, we want to treat them as important human resources,� Mr Mukesh Mehta said.On the health front, �we have tied up with the All-India Association of Day Surgeons for operating from Dharavi. They will attend to slum dwellers free-of-cost, and also cater to fee-paying patients, which would help cross-subsidise,� he said.To help income generation, the Gem and Jewellery Export Promotion Council has agreed to set up factories in the area that will generate exports worth Rs 4,500 crore annually and also provide employment to 75,000 people at an average salary of Rs 1 lakh per year, he said.The National Institute for Design, Ahmedabad, has agreed to set up a campus in Dharavi to upgrade the skills of labourers in leather crafting, ceramic, toy-making, and readymade garments, Mr Mehta added.

FSI deals catch realtors� fancy
Recall the landmark DLF deal in July which fetched the Delhi Development Authority a handsome Rs 901 crore for 35 acres in the capital�s Dwarka area.The deal was a bit different from the other big-ticket realty transactions. The deal took into account the FSI (floor space index) criterion. And the high value it commanded was owing to the fact that the seller has already acquired an approval for a 2 million sq ft FSI. The finer details are still awaited. DLF wants to build India�s largest convention and exhibition centre, hotels and allied commercial facilities at a project cost of Rs 6,000 crore. Now, the Mumbai Metropolitan Region Development Authority too is planning to sell properties in Bandra-Kurla Complex on the basis of 3 FSI. However, the deal between DLF and Ganesh Housing Corporation for land in Ahmedabad did not materialise as the seller, Ganesh Housing, could not get the necessary FSI, sources dose to the development said. Land deals equipped with FSI approvals, is the latest trend in the booming Indian real estate market and instead of talking per acre rates, deals are struck keeping the vertical development in mind. The premium of land gets raised in FSI deals depending on the available height and the buyer is made aware of the advantage of the property�s vertical growth. The trend, very popular in the West, is catching up with big corporates, especially those entering a new city or destination, allowing them to begin the spadework from day one of possession. �It is very important for us to know what product can be built on a certain piece of land and what will be the cost of leasing it out.Most of the land bought for hotel projects is on FSI basis. It allows us to know the building cost and we also take into account the holding cost for a period of two years,� said group executive director of DLF Mr. Rajeev Talwar. The FSI is the ratio of the total floor area of buildings on a certain location to the size of the land of that location. FSI is a state subject and can be traded just like stocks under Transferable Development Rights, said Cushman & Wakefield executive director Mr. Sanjay Dutt.

Bangalore to welcome Mega townships soon
Bangalore is to see a large investment worth Rs 25,000 crore for the development of 11 integrated townships for IT, BT, and ITes sectors. Stepping up efforts to take IT and Karnataka real estate on high, the state government has given a nod to 11 local, national, and international developers to set up mega townships in the city.The state high level committee has recently approved 59 construction projects worth over Rs 60,000 crore. The committee has also agreed to IT related real estate projects, each involving an investment of around Rs 2,000-3,000 crore. The projects will come up at Sarajpur Road, Whitefield, Magadi, and Bidadi. Bangalore has become the apple of eye of all project promoters, who are bullish on constructing self contained integrated townships. The high level committee has sanctioned the projects. A complete list of these companies with project details will be sent to the government for final approval from the cabinet. Of these companies, some have already joined hands with the US and Singapore based companies to develop Townships. Till date, Bangalore has just seen the construction of massive IT campuses. Undoubtedly, it will put the property market of the state on the way of growth. However, lack of infrastructure facilities in Bangalore led a number of the IT companies to move to cities such as Hyderabad and Chennai for setting up their operation centers. According to the Karnataka Land Act, the companies can acquire only dry lands. But, all dry land in Bangalore has been exhausted because of industrial use. This is why companies may acquire wetlands and ask for land conversion. Also, it would be an easier way to negotiate with landowners, say KIADB officials.

Buyers may transfer property within five days
Now, property buyers may not have to go through cumbersome procedures to transfer a property title and can get it done within five days. This will be made possible with the help of a new property transaction model to be prepared by the government soon. The move is planned to cut on documentation for fast tracking the property transfer process. Presently, it takes the buyer two months to get the property transferred in his name. The model will also grab the attention of foreign investors to invest in India properties. The new model for property transactions is to be finalized by the department of industrial policy & promotion (DIPP) and urban development ministry. It is likely to be announced within a month. The new model will eliminate need for the land to be surveyed by the tehsildar. And, the property can easily be transferred in five days along with all the formalities such as the stamp duty payment and registration done if the title is clear and free from impediments, says a senior government official. States have been given a time period of four years to computerize the system of land titles through the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). There will be a bank of marketable land titles with all major cities. Also, the database will be updated regularly. The states are advised to join hands with IT companies for maintenance of title records. Linking of land record computerization with registries in the states should be done properly. Fresh and effective ways are required to be explored to bring down the time taken for property transfer, says a DIPP note. National Institute of Urban Affairs (NIUA) has been given the responsibility of working out the ways to cut procedural delays in mutation and property registration.

IL&FS, Milestone open door for realty investment
IL&FS Investment Managers and Milestone Capital Advisors have launched a real estate fund where investors can enter with as low as Rs 10 lakh. IL&FS Milestone Fund-I is an yield-driven real estate investment fund based on a structure similar to the real estate investment trusts (REIT).Worldwide it is the most popular investment route for corporates and individuals to invest in real estate. The close-ended scheme will have a term of four years, with an option to extend the term by a year and if required by one more year. The fund is targeting a corpus of Rs 1,000 crore, which includes a greenshoe option of Rs 500 crore. The fund will remain open for subscription till October 30,2007.IL&FS-Milestone Fund-I will be the first real estate investment fund in India to offer a low minimum investment commitment of Rs 10 lakh for individuals (in multiples of Rs 5 lakh thereafter) and Rs 1 crore for corporates, with the convenience of draw-down spread over 12 months. .IL&FS-Milestone Fund-I will offer a quarterly yield distribution to investors and property appreciation benefits in the long term. The fund is targeting an annual yield of 11 % (pre-tax) and an internal rate of return of 18-20% (pre-tax) with property appreciation.�With an investment focus on completed properties that are leased for a long-term period to high-quality tenants, the fund does not carry any development risk,� said IL&FS-Milestone Fund managing partner Ved Prakash Arya. He also added that the fund will target greater geographical and sectoral diversification through investing in offices, IT & ITES buildings, hospitals, hotels, warehouses and shopping malls across India.

Kshitij�s malls to debut in Gujarat next year
Future Group-promoted Kshitij Venture Capital Fund (KVCF), a Rs 350-crore real estate asset management fund piloting the group�s retail-focussed realty development business in the tier II cities and mini metros, will launch its first two malls at Ahmedabad and Vadodara in January next year.The development of the malls, all in the sub-5 lakh square feet category, will extend KVCF�s retail footprint to mini metros such as Mysore and Thiruvananthapuram in southern India.A hitherto subdued retail market such as Cochin will climb higher up the consumer ladder when a 4.22 lakh square feet mall becomes operational in that city by March 2009.�We see an opportunity to tap the huge potential held by tier 2 cities where the consumer population has evolved in tastes and buyer preferences have become more variegated,� Shishir Baijal, chief executive officer, KVCF, said.Indore, Lucknow, Mysore, Jaipur and Kolkata are other cities on KVCF�s realty radar. The non-FDI compliant KVCF has fully committed its Rs 350-crore corpus.Future Capital Holdings, the financial arm of the Future Group, has 18 properties under development in India totalling 21 million sq ft, of which seven will be �market cities�, comprising hypermarkets, multiplexes and residential complexes.Horizon International Fund has committed about $230 million (Rs 940 crore) in these market cities so far. The fund is a FDI-compliant asset management arm of the group and invests in developing areas of 5.38 lakh sq ft and above. Horizon has a corpus of $350 million.The market cities are are under development in Mumbai, Chennai, Bangalore, Pune Secunderabad and Hyderabad and are expected to be fully operational by 2010.Cyberabad Market City, located at Hi-Tech City in Hyderabad, will be the biggest of the lot. Spread on a built-up area of 50 lakh square feet, it is set to start operations in December 2010.Market cities are being planned as self-sustainable ecosystems which will exploit consumer synergies emerging from the symbiosis of entertainment spaces, multiplexes, star hotels, apartment clusters and shopping spaces placed in close proximity to each other. Real estate developers such as DLF Universal, Suncity, Marg Constructions, Omaxe, the Aerens Group and Ansal are adopting a similar 360 degree approach while designing their upcoming shopping spaces.

Pune�s closed factories become a real estate play
Rise in prices is tempting cos to convert factory land into realty projects.Pune�s factories may go the Mumbai mill-land way. The rise in real estate prices is tempting companies to convert their factory premises into real estate projects in the Pimpri-Chinchwad area, 20-odd km west of Pune, one of the country�s largest automobile hubs and a big centre for the IT industry.Driven by an eight-to ten-fold increase in land prices in the area in the last two to three years, companies like Raccold Appliances, Greaves Cotton, Elpro International, Garware Nylon and Formica India are converting their factory premises into commercial or residential projects.Greaves Cotton, for instance, has converted half its holding into commercial real estate (a multiplex) while Elpro plans to follow suit by developing half its 37-acre land at Chinchwad.Elpro has set up a real estate division and plans to develop 700,000 square feet of commercial space and 300,000 square feet of residential towers in nine high-rise buildings. There�s nothing official about it, but sources say that Reliance Retail could take up about half the commercial space and the rest will go to exhibitor Adlabs. The project is likely to be completed in three years.The 20-acre plot of Garware Nylon, which turned sick, is being developed by four players, who bought it through an auction but Garware�s workers have brought an injunction against construction till their dues are cleared.Formica India, which shifted its unit to Uttarakhand, plans to develop its factory land. There are rumours in Pune that Bajaj Auto could develop the 165-acre Akurdi complex. Managing Director Rajiv Bajaj did not respond to an emailed questionnaire.

Rents in Nariman Point leave manhattan behind
Indian firms are being bullish on to buy or rent office space in Mumbai, a factor which has fuelled the prices of commercial property in the city.Another factor pushing the average rentals in the Commercial business district (CBD) areas is a sharp increase in value of rupee. The rentals are believed to be more than those in New York.The average per sq ft cost in Nariman Point and Bandra Kurla Complex (BKC) stands at 1.5 times higher than Manhattan. According to the market trend, the rentals in BKC will rise higher than the existing rates.Rentals in Mumbai are going through the roof. Knight Frank finds it cheaper to lease 1 lakh sq ft of commercial space for $55 per sq ft per annum than to pay $90 for the same in Mumbai.Close on the heels of BKC, Nariman Point is also fetching rentals which are around 1.5 times higher than Manhattan, says Pranay Vakil, Chairman, Knight Frank India.The weighted average rental in Manhattan hovers around $60, according to the latest survey. It all started a year ago when Lehman Brothers leased a property in BKC for Rs 300- 400 per sq ft per month, adds Mr. Vakil.The cost per sq ft per annum in Mumbai�s CBD was never heard to exceed $30. As compared to it, it has been three times higher in the past 18 months.The overall average rental in Manhattan was $53.43 sq ft, says Cushman & Wakefield. The amount was the highest ever recorded. Rents for class A offices in Manhattan are now $64.54 per square foot. Shortage of Grade �A� supply and increase in demand has caused a sharp increase in Mumbai by 20-30% over the last quarter.