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Bitcoin Finds Its Market In The Commercial Real Estate




In Dubai, a commercial real estate development company became the first of its kind to accept the digital currency Bitcoin.

Developed by The Knox Group, Aston Plaza and Residences is a 2.4M SF property consisting of two residential towers and a shopping mall.

Knox’s chairman, Doug Barrowman, told Reuters, “This is a great opportunity for the crypto-currency community to offload some of its significant gains, especially the early adopters, and actually deploy them in hard-core assets which I’m building”.

Bitcoin makes its way to the commercial real estate mainstream after making its presence felt in the retail and restaurant industries.

Ben Shaoul, president of Magnum Real Estate Group told CNBC “Our buyer has evolved, they’ve moved from mom and pops to young people who want to pay with various forms of payment. Crypto currency is something that has been asked of us — ‘Can you take crypto currency? Can we pay that way?’ — and of course, when somebody wants to pay you with a different form of payment, you’re going to try to work with them and give them what they want, especially in a very busy real estate market.”

What was once dismissed as science fiction is now valid as the confidence in Bitcoin is increasing with usage and endorsements by big players like Mark Cuban. In September, Fortune reported that the cryptocurrency reached another all-time high of $4,890, capping a surge in the value of about 80% over the course of a month.

Bitcoin’s larger definition, “blockchain,” is a network made up of a distributed ledger and a crypto currency. The need for a middleman is completely eliminated as Blockchain gives every property a digital address that will allow for financial transactions that can happen in just minutes and seconds, immediately available online. Its progress and status can be followed by all the members involved in the transaction.

Jason Ray, principal at White Nautilus said, “The blockchain, ultimately, will usher in a new era where we can transact real estate deals in a much quicker fashion.”

He further added, “At the end of the day, being able to transact quickly comes down to your certainty that everything has been buttoned up. You understand what property you’re purchasing, you understand the legacy of that property, you know who the previous owners are, how efficient is the property, and are there any liens that would preclude you from being able to do a clean transaction. So if you can have all of those attributes stored in a fashion that is extremely difficult, if not impossible, to tamper with, and it conveys perpetually, then that has a profound impact on your ability to transact quickly.”

Dubai, New York, Miami, Lake Tahoe and Bali are the five cities that allow bitcoin for purchasing real estate informs The Coin Telegraph.


TCS Olympus Centre Awarded The ‘Best Commercial Project of 2016-17’ At The 32nd National Real Estate Annual Awards By Accommodation Times



TCS Olympus Centre Awarded The ‘Best Commercial Project of 2016-17’ At The 32nd National Real Estate Annual Awards By Accommodation Times

Timely completion and handover of a project – a 16 storey commercial building made to global standards in 18 months – while ensuring the highest level of quality. This is how Dr Niranjan Hiranandani, Co-Founder & MD – Hiranandani Group, described TCS Olympus Centre, which is situated in Hiranandani Estate, Thane, on the day it was inaugurated. Spanning over 14.5 acres and comprising 2 million square feet of space, the commercial structure, TCS Olympus Centre, scored another accolade: it was awarded the ‘Best Commercial Project of 2016-17’ at the 32nd National Real Estate Annual Awards by Accommodation Times in Mumbai on 14 March 2018.

Murari Chaturvedi, Editor in Chief, Accommodation Times presented the Award to Dr Niranjan Hiranandani. A visibly elated Dr Niranjan Hiranandani, after accepting the award, said the project was a landmark in commercial real estate in India. “India’s software giant Tata Consultancy Services signed a deal of ‘built to suit’ commercial office space in the up-market Hiranandani Estate, Ghodbunder Road, Thane. Delivering this much awaited commercial building in the record time of 18 months stands testimony to Hiranandani’s commitment to timely delivery with uncompromised quality. Also, following global best practices, it is not just about Glass and Chrome – developed as a Green campus, it leverages Rainwater Harvesting and a Sewage Treatment Plant, with eco-friendly, low-emission systems and fixtures,” he added.

TCS Olympus Centre is a state of art technology centre and can accommodate more than 30,000 employees. Beyond winning awards, the project will create further employment opportunities. Describing the project as a ‘new next-gen workplace’, Dr Niranjan Hiranandani said the state of the art facility provided a contemporary and holistic work culture. “The relocation of corporate offices spread over different locations in Mumbai city and suburbs to Thane’s Ghodbunder Road reflects on the increasing attractiveness of its commercial real estate. Excellent connectivity through road and rail corridors in the Mumbai Region makes Thane ideal for corporates to follow the TCS lead, to relocate and expand in Thane,” he pointed out.

The award winning project, said Dr Niranjan Hiranandani, also shifts the spotlight on Thane as a residential destination for those who work in the fast-growing IT and ITeS sectors. Home seekers opting for a home in Thane, in locations close to their workspaces, will experience the ‘walk to work and walk back home’ option multiplied with well-developed infrastructure, he added. “While it is a pleasure to have the project get this award, completion of this commercial building within a record time-frame encapsulates our efforts, with the right synergy between various teams – be it Architecture, Engineering or Contracts – each has shown exemplary spirit in creating and delivering TCS Olympus Centre, a commercial tower, fully functional with no compromises on the structural stability or safety aspects,” he concluded.

Dr Niranjan Hiranandani is Founder & MD, Hiranandani Group. He is President (Nation), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India. 

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Co-Working Space In Indian Real Estate May Be The Next Big Thing



Co-Working Spaces

Growing demand from corporate and a thriving start-up ecosystem is driving India’s freelancers and consultants, among others, to co-working spaces like never before. As per industry estimates by the end of 2018, India’s co-working space is likely to receive $400 million in investments and by 2020. The branded co-working spaces across the country are estimated to grow to 400 centers from less than 100 in 2017.

A trend that has both real-time and long-term impact on the real estate industry in the country is Co-working opine the industry experts. At present entrepreneurship is being strongly supported by the government and startups are booming. Thus, generating a huge demand for flexible office spaces which meet the specific needs of start-ups; which are maturing from a low manpower and capital base.

At the same time the bigger corporate are also preferring co-working spaces in some cities. This can be either to serve to definite clients or as incubation centers in new cities which will later turn into formal office spaces.

Anuj Puri, Chairman, ANAROCK Property Consultants states that it comes as no news that co-working office spaces are now cropping up all over the country, right from Tier 1 through to Tier 2 and Tier 3 cities and becoming incredibly popular. These upcoming spaces add a lot of convenience in terms of locations, facilities and costs to the startups. He informs, “There are about 110 formal co-working office space players in the Indian market now.”

“Co-working spaces will continue to prosper ceaselessly, for long. The number of seats in licensed commercial setup will grow by four fold by 2020. The growth is favored by rapid urbanization in India, start-ups culture, arrival of MNCs, positive signs by investors and of course, boundless client advantages offered by business centers or co-working spaces. Co-working spaces are just the extension of business centers which are in use since 1995. Business profitability will be commanded by extra services offered via successful integration of business requirements and hospitality services,” states Vineet Taing, President, Vatika Business Center, one of the largest Indian business center providers.

A presence in the central and suburban districts of main cities in India is expected to be established by both international and domestic co-working operators. Owing to the availability of opportunities for start-ups and adequate infrastructure the number is most probable to go up in cities like Mumbai, Bengaluru and Gurgaon.

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Blackstone To Spend $650 Million To Own 49% Of Indiabulls Office Rental Business



Blackstone Group

The world’s largest equity firm, Blackstone Group is all set to buy a 49% stake in the office rental business of Indiabulls Real Estate. Talks are said to be the final stages of this $600-650 million deal, valuing the entire portfolio at around $1.2 billion.

As per the overseas trend, investors are picking up select commercial properties in India. This deal would include Mumbai’s Lower Parel such as One Indiabulls Centre, One Indiabulls Park in Chennai and Indiabulls Finance Centre beside the One 09 building in Gurgaon.

Blackstone which is India’s one of the largest owners of commercial real estate properties is looking to add more assets to its portfolio ahead of a planned real estate investment trust listing. In 2014 it acquired the Express Towers building at Nariman Point.

In 2017, DLF sold a 33.34% stake in commercial rental arm DLF Cyber City Developers to GIC for Rs 8,900 crore. DLF Cyber City has rent-yielding assets of 26.9 million square feet with annual rental income of over Rs 2,500 crore.

According to FY17 annual report at present annual rental income of Indiabulls Real Estate stands at Rs 720 crore with a leasable area of 5 million sq ft. It has more than 200 marquee clients including Morgan Stanley, HSBC, Mondelez, WPP Group, Aditya Birla Financial Services and others.

Indiabulls Real Estate has four other under construction office projects. These will take their annual income to Rs 1,357 crore. Indiabulls is the third-largest real estate company in India by net worth and assets and was founded in 2006.

As per their website on June 30, 2017, the company’s gross development value stands at Rs 32,189 crore and net worth at Rs 5,480 crore. A total saleable area of 33.91 million sq. ft with 15 ongoing projects.

Harish Sharma, CEO, Centrum Real Estate Management Advisory said, “The deal will be positive for Indiabulls as an entry of large institutional investor like Blackstone will definitely add a fillip to its future plans. The deal, if successful, will add further investment interest in Indian commercial assets as large pension and sovereign funds are looking for income generating quality properties.”

From Rs 58.53 crore net profit in the year-ago period, Indiabulls reported a 45.82% rise in consolidated net profit to Rs 85.35 crore in the third quarter ended December. Total revenue from sales rose to Rs 2,164.44 crore from Rs 492.90 crore. Net debt was Rs 4,205 crore at the end of the third quarter.

The world’s biggest alternate asset manager, Blackstone is the largest institutional investor in Indian property worth $2.7 billion. Across 18 operating office parks it owns 31million sq ft through about 20 companies in the key markets of Mumbai, Noida, Bengaluru, and Pune. It also has 11 million sq ft of commercial space under development across the country. These investments are separate from its $6 billion private equity portfolio.

JPMorgan analysts Saurabh Kumar and Deepika Mundra said in a note, “Indiabulls has marquee assets on its balance sheet and pre-sales have been impressive, with the approval issues now largely behind it for key projects.” Shares in Indiabulls Real Estate surged 181% in the past year compared with a 17.6% rise in the benchmark Sensex. It ended at s Rs 217.55, up 1.59%, on Tuesday.

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