In a move that could help curb hotel room crunch ahead of Commonwealth Games 2010, the government is considering relaxing entry restriction for foreign players in construction of hotels and resorts. It is looking at a proposal to bring down minimum development norm of real estate from existing 50,000 square feet to 20,000 square feet for hotels included in mixed real estate projects. This would set the ground for players with lesser net worth to invest in Indian hospitality sector.
With Commonwealth Games just two years away, the Capital needs 30,000 additional rooms to accommodate an estimated 1.5 lakh tourists. Similarly, other states also require additional rooms to tackle the influx of tourists in India in 2010. According to sources, the department of industrial policy and promotion (Dipp), at present, is considering relaxing entry norms in case of hotels only. However, the Investment Commission had suggested to the government to relax the entry restriction in the entire sector, which includes housing and shopping arcades as well.
Apart from boosting tourism in a major way, the move would also lead to aggressive job creation in the hospitality sector, a highly-placed source in the government said.
More : economictimes.indiatimes.com
EmaarMGF to showcase Indian real estate developments in Dubai
EmaarMGF Land Ltd, a joint venture between Emaar Properties and MGF Developments, will organize a 3-day event in Dubai featuring the lifestyle real estate projects across its integrated master-planned communities in India starting from June 30, 2008.
The showcase in Dubai will provide the growing number of Indian expatriates in the UAE an opportunity to buy best in class residential developments in India. India is witnessing a remarkable change in the real estate sector as the country becomes a favored business and investment destination. The Indian real estate space has emerged as the preferred sector for foreign investors in 2007-08, clinching FDI equity inflows of approximately Rs 8,749 crores.
EmaarMGFs focus is on developing integrated master-planned communities in the mid to luxury segment in which the company designs and builds independent villas, townhouses and apartments. The integrated master-planned real estate developments will have one or more community facilities, including hospitals, schools, retail and commercial buildings.
More : gowealthy.com
Asia property on a roll, but is easy money elsewhere?
In the property world, the momentum appears to be with Asia. Funds designed to buy offices in Tokyo or build homes in China and India are sucking up money from Western investors eager to enter a region so far only grazed by the global credit crunch.
But is the easy money to be made elsewhere?
Maybe in the ravaged London market, in the United States in a few months if price declines slow, or even in undervalued Asian property stocks rather than in bricks and mortar?
At this weeks Reuters Global Real Estate Summit, fund managers ING Real Estate and LaSalle Investment Managers, the property arm of British insurer Prudential and Dubais ETA Star Property Developers all said they were raising new funds this year to invest in Asia.
More : guardian.co.uk
Nakheel chief Chris O’Donnell says US real estate yet to hit the bottom
The head of Nakheel, the $80 billion Dubai property business, gave warning yesterday that the real-estate recession in America is far from over and will deteriorate rapidly should the price of oil reach $200 a barrel.
Chris ODonnell, chief executive of Nakheel, said that the US property market had never had to cope with the combined impact of a sub-prime mortgage crisis and a surging oil price. We have not hit the bottom yet, he said.
Mr ODonnell, whose Dubai Golden Mile development of flats and offices has begun selling for record prices, also said that while commodity prices had risen sharply, the cost of labour across the United Arab Emirates had also increased about 25 per cent. Companies such as Nakheel had benefited from a cheap Indian labour force, but over the past few years the booming economy in India has pushed wages up, making these immigrant workers more difficult to attract.
More : business.timesonline.co.uk
SVP signs deal with Bharti Retail to lease space
Real estate firm SVP Group today said it has inked a deal with Bharti Retail to lease out space at its shopping mall at Ghaziabad.
As part of the agreement, 32,000 sqft of space at the Opulent Mall would be rented to Bharti Retail, where it would set up its retail store.
This is in line with our long-term plan of being a leading retailer in the region. Opulent would offer the best variety and value across product segments and services, SVP Chairman and Managing Director V K Jindal said.
More : economictimes.indiatimes.com
Lehman invests $175m in Unitech
Lehman Brothers Real Estate Partners will invest $175 million (Rs 740 crore) in Unitechs realty project in Mumbai. Lehman will acquire a 50% stake in the domestic realty firms project.
The special purpose vehicle, in which the foreign fund would invest, will develop one million sq ft. on the Western Expressway of Mumbai, Unitech said. The construction cost for the initial phase would be borne by Lehman Brothers Real Estate and the Western Expressway JV, a joint venture of Unitech and its local partners, the company added.
The total area being undertaken by the company in the area is about 18 million square feet. The value of the developed area at which Lehman Brothers has invested in the special purpose vehicle (SPV) is around Rs 14,750 crore. At this rate, the total value of the project with 18 million sq. ft is Rs 26,000 crore. As Unitech owns 50% of the total project and the rest by its local partners, the entire project would contibute Rs 13,500 crore in the company.
The project would be designed by Skidmore, Owings & Merrill. The JV aims to create one of the most high profile realty developments in state, it said. Both the companies intend to expand the relationship in the future.
Source : timesofindia.indiatimes.com
Lehman Bros to invest USD 175 mn in Unitech’s realty project
Mumbai, June 16 (PTI) Unitech today said Lehman Brothers Real Estate Partners will acquire a 50 per cent stake in the domestic realty firms project here for USD 175 million (about Rs 740 crore).
Lehman Brothers Real Estate Partners has agreed to invest USD 175 million to acquire a 50 per cent stake in the initial phase of a project on the Western Expressway of Mumbai, Unitech said in a filing to the Bombay Stock Exchange.
The initial phase involves the development of one million square feet of office space out of the total developable area of about 18 million square feet.
More : ptinews.com
Unitech eyes more funding from Lehman
Close on the heels of announcing a Rs 750 crore deal with Lehman Brothers Real Estate Partners for its Mumbai project, Indias second largest listed realty company Unitech today said that it is in talks with Lehman for raising funds for other commercial projects in the country.
The deals are set to be finalised in the next 5-6 months. Unitech is developing nearly 25 million sqft of commercial space in cities including Delhi, Gurgaon, Noida and Kolkota and the company could dilute the stake in the specific projects, the company
The company is also in talks with other private equity players to raise nearly Rs 1260 crore to fund its mall and hotel projects across the country, according to company sources. The company is setting up nearly 26 hotels in the next couple of years and 15 malls with an investment of Rs 20,000 crore.
More : business-standard.com
India’s real estate to clock 30% growth in 10 yrs
The realty sector is projected to grow at the rate of 30 per cent annually over the next decade, attracting foreign investments worth $30 billion, with a number of IT parks and residential townships being constructed across-India, industry body Assocham said.
Currently, the domestic real estate market is expected to be worth $15 billion in which the FDI is estimated to about $6 billion, it said.
At present, the foreign developers can undertake construction activities on a minimum space of 50,000 sq ft, Assocham President Sajjan Jindal said in a statement.
MAN Industries to diversify into real estate sector
MAN Industries India Limited, part of the well-diversified UK-based USD 1bn MAN Group and Indias leading manufacturer of large diameter line pipes and coating systems, has announced its plans to diversify into the real estate sector.
The companys subsidiary, MAN Infraprojects Limited plans to develop seven projects in Mumbai, Navi Mumbai and Indore with an investment of Rs 1000 crore in the next three years. With a total built-up area of 10 million sq ft., the projects would be worth over Rs 4000 crore.
Our Group has vast experience in the real estate sector, says Mr. R C Mansukhani, Chairman, MAN Infraprojects Ltd. We would like leverage our expertise in the sector to create landmarks of excellence in every project we undertake. We plan to partner with the best of brands to create outstanding value for our esteemed customers
More : indiainfoline.com
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