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Indiabulls’ PE unit looking to raise Rs 1,500 crore in realty fund

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Indiabulls' PE unit looking to raise Rs 1,500 crore in realty fund

This is Indiabulls Asset Management’s maiden commercial property fund after raising two residential real estate funds totalling Rs 1,500 crore over the past two years.

MUMBAI: Indiabulls Asset Management Company’s private equity arm is looking to raise Rs 1,500 crore through its new real estate fund Dual Advantage Commercial Asset fund (DACA), said a top company official.

This is Indiabulls Asset Management’s maiden commercial property fund after raising two residential real estate funds totalling Rs 1,500 crore over the past two years. The new fund will have a tenure of five years with an option of two extensions of one year each. The company is looking to raise the total corpus, including co-investments of Rs 500 crore, through institutional investors, HNIs and family offices.

“We believe this is a good time to enter the commercial property market, given that most office markets are in the rental growth phase and the next 3-5 years will see robust rental and capital value appreciation through cap rate compression. Indiabulls Dual Advantage Commercial Asset Fund is a lo gical extension of our successful residential investment strategy and compliments the overall expertise enjoyed by the Indiabulls Group across real estate development, banking and financial services sectors,“ said Akshay Gupta, Group executive head & CEO -Indiabulls Asset Management Co.

The Dual Advantage Commercial Asset fund will be looking to invest in pre-leased office assets. It will seek investment opportunities in top seven commercial markets in the country , including Mumbai, DelhiNational Capital Region, Bengaluru, Pune, Chennai and Hyderabad.

“Our commercial investment strategy intends to provide downside protection through recourse to completed asset, returns through existing rental yields and capital appreciation on exit. The fund will target to achieve higher returns by implementing various strategies like the opportunity to bring rentals to market parity, repositioning asset to achieve higher rentals and innovative leverage and tax structures to plug leakages.“ said Ambar Maheshwari, CEO -Private Equity, Indiabulls Asset Management Company.

The fund will be targeting gross pre-tax internal rate of returns in the region of 1617%. The average ticket size for investments through this fund will be in the range of Rs 100 crore to Rs 200 crore. The fund will look at commencing its exits from investments from the fourth year following the conclusion of fund raising.

Indiabulls AIF is registered as a category II Alternative Investment Fund under the provisions of Securities & Exchange Board of India (Alternative Investment Funds) Regulations, 2012, and has been set up as a trust. The AIF platform has so far raised Rs 1,500 crore and has deployed Rs 1,000 crore across residential strategies.

The fund will also be raised through this platform. Indiabulls Group will be the sponsor of the fund and Indiabulls AMC will be the investment manager of the fund.

Indiabulls Asset Management Company, the investment manager of the proposed fund, is also managing Indiabulls Mutual Fund since October 2011. As on 31st December 2016, IAMC had 10 mutual fund schemes (Debt – 7; Equity – 3) with assets under management (AUM) of Rs 10,226 crore.

AIF category II funds allow retail investors to participate in funds such as these with minimum contribution of Rs 1 crore. However, Indiabulls Asset Management Company is targeting investors who would make larger investments.

Demand momentum in office absorption, witnessed over the past two years, is expected to continue this year as well. India’s top 8 property markets are likely to witness stable office space net absorption in 2017 at around 30-31 million sq ft, said a recent Cushman & Wakefield report.

Despite concerns on the impact of any adverse impact of the US President’s policies on outsourcing, strengthening business confidence, stabilizing global concerns and an optimistic economic outlook for India are likely to infuse confidence into occupiers, steering net office absorption across property markets. Net absorption will gather pace in the second half of this year and is expected to continue to gain momentum for the next four years. These property markets include Mumbai, Delhi-NCR, Bengaluru, Pune, Ahmedabad, Hyderabad and Chennai, the Cushman & Wakefield report added.

http://realty.economictimes.

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

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A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

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Rajasthan Government May Hike The Affordable Housing Prices

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Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

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