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How Technology Can Offer Real Time Solutions In Commercial Real Estate



How Technology Can Offer Real Time Solutions In Commercial Real Estate

New Technology is being adopted by some industries that are keen to reap the benefit as compared to other who still operate the old fashioned way. Commercial Real Estate (CRE), has been at the forefront to embrace new technological innovations with open arms, breaking the age old pen and paper based business module. Most of the available tech solutions are not multi-purpose, they serve specific areas. For example – you might find one solution helps in searching properties, while another one might help you with financial analysis or even getting electronic signatures on leasing documents. These multiple options, at times, could be confusing so it requires complete understanding of Technology.

Thankfully, today we have more holistic and smarter tools available that simplifies the lives of real estate companies, brokers, agents, landlords and tenants. A large number of tech solutions, these days, are developed by industry professional rather than third parties, who understand the hurdles faced by the industry and how to overcome them with one-stop solutions.

One of the biggest constraints that real estate agents face is time. Agents are extremely busy as they spent a lot of time and energy in answering common questions, price negotiations and meetings. Efficiency is another challenging area. Usually there are tons of texts, emails and phone calls, when it comes to giving property tours and negotiating prices. There is a need to streamline these processes for better efficiency.

Over the years, we are becoming more and more self-sufficient, thanks to all the apps and tech solutions, all relevant information is now available at our fingertips. CRE needs to get on-board with the latest tech solutions as well, in order to have easier access to data that can help in quick decision making. Still, experts feel that almost one-third of professionals still rely on spreadsheets and other traditional methods for conducting business. The industry is lagging behind but the introduction of simple and complete solutions that consolidate data will help it to grow further.

It is important that tech solution enhances and compliments the existing experience, in a relationship driven industry like CRE. The technology should be user-friendly and must improve the experience for every user. Today we are accustomed to apps and have the ability to accomplish a task by a simple tap on our smart phone; hence the same can be implemented in CRE by developing advanced UI, which are compatible with multiple devices and can access up-to-date data.

Virtual Reality (VR) and Artificial Intelligence (AI) can also help push CRE to higher level. VR enables people to take 3D tour of properties without physically visiting the place. The realistic 3D tours help home-buyers/tenants to make quick decisions about the property without wasting time driving from place to place. AI on the other hand, can analyse tenants preferences and predict what they really want, which helps property owner to offer the best price and minimising the negotiation process.

So, what happens after the deal is made and buyer is ready to move into the property? The buyer/tenant has to arrange for furniture, movers, contractors, architects, utility companies, etc. Until now, this entire process was disjointed, resulting in lot of time wastage. It is expected that there will be more collaborative tools which will improve and streamline all the tasks that tenants face while moving into a new place. This will not only improve their experience but will also mean more business, uplifting the CRE.

It is very important that while adapting to new tech solutions, the personal touch should not get diminished. Every buyer has their specific needs that need to be addressed through personal conversation. Since buyers also have easy access to various apps, they would rely on personal advice and expertise from real estate agents who can advise them beyond what they know already.

According to CB Insights, 2016 is considered to be the best year yet for real estate tech funding, with a respectable $6.4B raised since 2012. In 2017, the CRE industry can expect some key technological innovation that will enable companies to save more time, generate more revenue and operate efficiently.


Blackstone In Process To Buy L&T’s Commercial Property Portfolio For Rs. 2300 Crores



Blackstone In Process To Buy L&T’s Commercial Property

Being one of the world’s leading investment firms, Blackstone has emerged as the most aggressive institutional investor in India’s real estate sector. Now this US-based private equity player is in advanced talks with L&T Realty, to acquire two commercial properties covering a total of 1.7 million sq ft., in a deal valued at Rs. 2,300 crores. Blackstone leads the market with its highest

Blackstone has been picking up properties across major cities in deals that are turning out to be benchmarks in the sector. Owning the India’s biggest portfolio of income producing office assets, this company holds a total of over 31 million sq ft. across key property markets of Noida, Mumbai, Pune and Bengaluru.

This portfolio of the real estate arm of engineering major Larsen & Toubro includes a 9 lakh sq ft. office block at the company’s commercial project at Seawoods, in Navi Mumbai. And there is another 8 lakh sq ft. of fully-leased commercial tower at the L&T premise in Powai suburb. This Seawoods office tower will be acquired in phases as the leasing process is yet to complete.

L&T Realty will assist in further leasing at Seawoods commercial block, as the deal is expected to be inked by late February as the process is currently in its final stages. Earlier in 2016, Blackstone made a deal in Navi Mumbai, a 1-million sq ft. retail mall was bought adjacent to the office tower in Seawoods, from L&T Realty for over Rs. 1,400 crores.

Being the part of the India’s largest Transit Oriented Development, Seawoods Grand Central, is L&T Realty’s office block in Navi Mumbai. This project is a mixed-use development area across 40 acres that includes the mall and other commercial spaces.

Blackstone is said to be directly acquiring these assets, without including its existing joint ventures with Bengaluru-based Embassy Group and Pune’s Panchshil Realty. This is not the first time that the New York based institutional investor has acquired assets and stake in portfolios independently.

With Colgate-Palmolive, JP Morgan Chase and L&T Infotech as the prime tenants, the commercial tower in Powai is completely leased out. This leasing factor together with all the long-term contracts, makes the Powai asset valued at Rs. 1,500 crores with a capitalization rate of about 8.5%.

Establishing its first Indian office in 2005, the leading private equity player has committed over $6 billion to the Indian companies till date. Total 19 companies owning 31 million sq ft. across 18 operating office parks, with an investment of $2.7 billion, comes under Blackstone.

An additional 11 million sq ft. of commercial space under development across the country, adds to this large portfolio. Over the past few years, the Indian real estate assets have been seeing aggressive pattern of investments, by the major global institutional investors such as Blackstone Group, GIC, Goldman Sachs, Qatar Investment Authority, Canada Pension Plan Investment Board and Brookfield Asset Management.

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Indiabulls Real Estate Acquires A Commercial Building With Leasable Area Of 2.5 Lakh Sq Ft. In Gurgaon



Indiabulls Real Estate

Indiabulls Real Estate has earned a distinct reputation for building projects that turn spaces into inspiring places, since its inception. Indiabulls Real Estate went on to expand its projects portfolio, with its prime focus on construction and development of residential, commercial & SEZ projects, across major Indian Metro cities. Today Indiabulls Real Estate is ranked amongst the top Real Estate companies with a total Gross Development value of INR 32,189 crores and net worth of INR 5,480 crores as of 2017.

Indiabulls Real Estate has commercial development with a leasable area of 3.15 million sq.ft. under construction. Further, it has a land bank of 1,046 acres and also possesses 2,588 acres of SEZ land at Nasik, Maharashtra. In 2014, the company acquired the prime property, 22 Hanover Square in Central London for Rs.1630 Cr. The group has also been conferred the status of a Business Super brand by the brand council Superbrands, India. Indiabulls Real Estate is known for its successful delivering of superior products, services to its customers, partners and shareholders.

Indiabulls Real Estate is planning to acquire a large commercial building with a leasable area of 2.5 lakh sq ft in Gurgaon.

To acquire this large area of prime and newly constructed commercial building, Indiabulls Real Estate’s wholly-owned subsidiary has entered into a definitive and a binding agreement. A BSE filing by the Indiabulls reveals that, the deal has an expectancy period of four months, mainly after receiving the Occupation Certificate of the building. Although the name of the seller and deal value was not disclosed.

With many leading multi-nationals operating in the vicinity, makes it a developed prime commercial location. Equipped with an additional leasable area, the company expects to enhance its annuity revenue to Rs 1,450 crore in FY 20-21 from the rental properties portfolio of Indiabulls Real Estate.

With its expansion spree, Indiabulls Real Estate, is counting on the revival in the real estate market in Gurgaon for making its project a success. The commercial realty market is witnessing a strong demand in Gurgaon. So Indiabulls Real Estate is looking forward to set up a state of the art business park in Gurgaon, which would be able to draw reputed corporates and MNCs. As some big-ticket commercial space rentals and deals are expected to be finalized in this space.

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Adani’s Bandra-Kurla Complex Project To Be Taken Over By Shapoorji Arm For Rs 2,000 Crore



Adani’s Bandra-Kurla Complex Project To Be Taken Over By Shapoorji Arm

Shapoorji Pallonji Investment Advisors which is an investment arm of conglomerate Shapoorji Pallonji Group is set to acquire a commercial project Inspire BKC from Adani Realty in a nearly Rs. 2,000-crore transaction. The project is located in Mumbai’s business district Bandra-Kurla Complex (BKC), informed two persons familiar with the development.

Shapoorji Pallonji Investment Advisors has emerged as the frontrunner from a total seven shortlisted interested entities including US-based private equity major Blackstone Group and an alliance between Qatar Investment Advisors (QIA) and Bengaluru based realty developer RMZ.  For this over 8 lakh sq ft project Shapoorji Pallonji Investment Advisors has already completed the due diligence process.

One of the people mentioned above said, “The due diligence process for the asset has been concluded recently, and currently the final documentation is going on. The deal is expected to be concluded soon as both the parties have frozen the structure of the transaction.”

The project has recently been completed and the developer is in the process of receiving few civic approvals, following which it will be concluded. Adani Realty is also one of the companies that is working on closing few leasing transactions here.

In one such lease deals, Swiss multinational pharmaceutical major Novartis’ India arm has entered into an agreement to pick up over 1lakh sq ft office space in this commercial project. This was one of the largest front office commercial transactions in terms of space in the Mumbai in 2017.

Shapoorji Pallonji Investment Advisor is also kept in the loop on the progress of space leasing transactions in this commercial project.

In its first-ever real estate related engagement in India in October the global insurance and asset management major Allianz Group teamed up with Shapoorji Pallonji Group to create an investment platform for office properties.

The platform, SPREF II, will be a Singapore-domiciled, rupee-denominated and close-ended fund planning to raise $500 million in equity.

After partnering with the Canada Pension Plan Investment Board (CPPIB) in 2013 for a platform with an initial target corpus of $200 million this is Shapoorji Pallonji Investment Advisors’ second such tie-up.

The commercial real estate has been registering a healthy growth across prime office markets in past three years.

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