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  • Property PE funds fall short of desired returns

    Sachin Dave, Hindustan Times

    June 21, 2011

    Private equity funds with real estate focus, many of which are nearing maturity, are in a dilemma: while investment valuations in the sector look good, they are not generating the returns promised to investors. Most of these funds promised 25 percent returns post-tax, but have been ticking at an average 15 percent. "This is the right time to invest in real estate for PE funds if they are willing to take risk and think outside metros as the valuations are attractive - but it is the wrong time to raise funds," said the CEO of one of the top RE funds headquartered in Mumbai.

  • Realty firms slash margins to cut inventory

    Timsy Jaipuria, The Financial Express

    June 21, 2011

    With home sales slowing down in the wake of rising interest rates, developers are lowering inventories by selling at lower margins ranging between 3 percent and 10 percent. Out of every 10 unsolicited commercial message a mobile subscriber gets a day, almost nine are from real estate developers or property brokers. Real estate analysts said developers, particularly the smaller ones, are easing their huge inventories by selling at a thin margin of 3 percent and the only way they can make up for their losses is by a higher volume of sales.

  • ICICI, Kotak, Yes Bank swell up realty exposure

    Manju AB, Financial Chronicle

    June 19, 2011

    The cash-starved realty companies are agreeing to cough up higher rates of interest to repay old debts or raise fresh debt as they struggle to finish off incomplete projects. The option of equity financing is nearly dead in property market. Commercial real estate exposure in banking parlance means credit given to property developers for developing a project.

  • ICICI Venture may invest R1,000 cr in residential properties

    Timsy Jaipuria, The Financial Express

    June 18, 2011

    Leading private equity firm ICICI Venture today said it plans to raise up to Rs 1,000 crore from high net worth individuals in the next 6-9 months to invest in the residential real estate. "We are planning to raise Rs 750-1,000 crore in next 6-9 months," ICICI venture president (Real Estate) Sanjeev Dasgupta said.

  • Bill to protect home buyers from fly-by-night developers soon

    Press Trust of India, New Delhi, Business Standard

    June 10, 2011

    The much-awaited Real Estate Regulation Bill, 2011, which seeks to protect home buyers from fly-by-night developers, is under process of consultation by various ministries. "The draft Bill is almost being finalised. We have sent the Bill to Law Ministry for their approval and subsequently we will sending it to other ministries for approval," Ministry of Housing and Urban Poverty Alleviation joint secretary SK Singh said today.

  • Smaller realty players manage a quicker comeback from slump

    Vidya Bala, The Hindu Business Line

    June 05, 2011

    Size is an advantage in many sectors, but not, it appears, in real estate development. Smaller realty players have fared better than the national giants in pushing their sales numbers back to pre-slump levels, in the latest fiscal. Players such as DLF, Unitech or HDIL may boast of massive land bank or assets but it is the mid-sized ones such as Oberoi Realty, Mahindra Lifespace Developers or Prestige Estates Projects that have reported higher sales in fiscal 2010-11 compared to the boom year of 2007-08. It is now three years since the realty downturn and only a half of the sample of 30 listed stocks analysed managed to move past the sales they posted in 2007-08.

  • Govt amends guidelines, allows tax relief for infrastructure funding companies

    New Delhi, The Economic Times

    June 03, 2011

    The government today amended guidelines for Public Financial Institutions (PFIs) permitting private companies, primarily engaged in infrastructure funding, to attain the status of a PFI and, seek tax and other benefits. Under the new norms notified by the Ministry of Corporate Affairs, any company which has been in existence for more than three years and earns more than 50 percent income from industrial and infrastructural financing can opt to be a PFI.

  • New FSI norms fail to cheer Mumbai real estate firms

    Shubhra Tandon, Mumbai, Financial Express

    June 03, 2011

    The real estate industry remains wary of the euphoria surrounding the increase in floor space index (FSI) from 2.5 to 3 for cessed buildings (old and dilapidated buildings, built at least 40 years ago) in Mumbai. Though this decision of the Maharashtra government will result in additional supply of houses to a constrained Mumbai market, developers say some conditions would be difficult to fulfill in all projects.


    Financial Express

    June 02, 2011

    Clearly there is an expectation from the government that the private sector will play a significant part in actually putting money into the space. So unlike in most other economies where the government has spent the lion’s share of what has gone into the infrastructure sector, I think in India we are looking at anywhere between 40-50 percent actually coming from the private sector.