Dilip Buildcon raises Rs.219 cr from anchor investors
Dilip Buildcon Limited allots 8,958,592 equity shares at Rs. 219 per share aggregating to Rs. 196 Crore (approximately) to 10 Anchor Investors. Some of the major foreign and domestic Anchor Investors are: SmallCap World Fund, Amerian Funds Insurance Series, Abu Dhabi Investment Authority, Nomura Singapore, Grandeur Peak Emerging Markets, DB International (Asia) Limited, HDFC Trustees Company, IDFC Infrastructure Fund etc.
Draft Real Estate Agreement Rules approved by M. Venkaiah Naidu
Timely completion of the project and timely delivery of the apartment or plot to the allottee by the promoter is the essence of the Agreement to be signed between the promoter and allottee under the Real Estate (Development & Regulation) Act, 2016. This has been explicitly incorporated in the Draft Agreement for Sale Rules, 2016 under the Real Estate Act approved by the Minister of Housing & Urban Poverty Alleviation M.Venkaiah Naidu. Allottees on their part would be required to ensure timely payments.
Ministry of Housing & Urban Poverty Alleviation has firmed up the Draft Agreement for Sale Rules, 2016 applicable for the five Union Territories of Chandigarh, Andaman & Nicobar Islands, Daman & Diu, Dadra and Nagar Haveli and Lakshadweep. These Draft Rules will now be placed in public domain for comments and suggestions before final notification.
DHFL NCD issue fully subscribed
Dewan Housing Finance Corporation’s issue of non-convertible debentures worth up to Rs. 4,000 crore was fully subscribed on the first day of the issue itself. The issue was subscribed 18.79 times, according to NSE data. The bidding of the issued will close on August 16. The net proceeds of the issue will be used for onward lending, financing and general corporate purposes, says report.
News Infocus
Tracking the journey of Office Real Estate in India: JLL
The latest JLL research report ‘Indian real estate: Comprehending the varying speeds of growth’ tracks the journey of different asset classes from 2004 to 2015. Let’s discuss the key trends emerging in the office market:
Office sector showing resurgence
After witnessing sub-30 million sq ft of net absorption for three years in a row (2012-14), 2015 saw absorption rise significantly to above 35 million sq ft. An aggressive expansion strategy adopted by many companies, particularly after going through a slow phase in the immediate preceding years, along with rising prominence of newer players in the ecommerce, healthcare and technology space led to the recent jump in occupancy.
Falling vacancies give room for rise in rents
A gradual fall in vacancy, which is currently at its seven year-low level of 15.9%, in tandem with the rise in absorption, was a perfect opportunity for rents to rise faster. The growth of office rents had mostly remained marginal across all markets until recent times. Following that, the rise was particularly fast in lower vacancy markets such as Pune, Bengaluru and Hyderabad, and apparently these markets are more preferred by the leasing giants within IT-ITES sector. Few other sub-markets such as Mumbai suburbs, Gurgaon (in NCR) and Chennai SBDs also witnessed moderately higher increase in rents. Read more
Domestic News
JLL India partners with NMIMS to offer job-ready real estate management program
JLL, India’s largest and leading property consulting firm, announced a strategic partnership with leading private university NMIMS to offer a new field of specialization in ‘Real Estate Consulting & Transaction Services’ to Technology Management students. Delivered through MPSTME, the Technology Management School of NMIMS, the courses in this specialization will be co-designed and integrated into the 5-year MBA (Tech.) program.
Anuj Puri, Chairman & Country Head of JLL India said, “As industry leaders, it has been JLL’s constant endeavor to identify path-breaking solutions to the real estate sector’s evolving demands. It is essential for candidates who intend to work in this sector to possess industry-specific skill sets, which this innovative and highly customized specialization will provide. We are also extending scholarships and placement assistance to meritorious students emerging successfully from this program”.
Tata Capital Housing Finance launches ‘Prapti’ – A Home Loan scheme for low-cost housing
Tata Capital Housing Finance Limited (TCHFL), the wholly owned subsidiary of Tata Capital Limited, today announced the launch of ‘Prapti’ – a Home Loan Scheme to cater to the low income segment in the affordable housing space. By providing home loans at subsidized interest rates from 4%, TCHFL will help individuals to realize their dream of buying their own home.
HDIL issues share warrants worth Rs. 150 crore
Housing Development and Infrastructure Ltd has announed that pursuant to the special Resolution passed through postal ballot by the Members of the Company, under Chapter VII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“SEBI ICDR Regulations”) and Sections 62 and 42 of the Companies Act, 2013 read with relevant rules framed thereunder, the Finance Committee of the Board at its Meeting held on July 29, 2016, approved the allotment of 150,00,000 (One Crore and Fifty Lac) share warrants at an ‘Issue Price’ of Rs. 100.00 (Rupees One Hundred only) each, to Mr. Sarang Wadhawan, Promoter of the Company, upon receipt of minimum subscription amount as prescribed under Regulation 77 of SEBI ICDR Regulations.
GST structure will have a progressive and streamlined approach for Real Estate
The Goods and Services Tax (GST), is a kind of a comprehensive indirect tax on sale, manufacture and consumption of different kinds of goods and services throughout India, with all other Central and State taxes intended to be subsumed under it. If this happens, it has far-reaching implications, including on real estate.
Taxation and Real Estate industry
If we take a look at the real estate industry in India today, we find that there have been major tax changes in the last few years. However, these taxes are not uniform all over the country – different practices and regulations are followed in different states in India. It was the 46th Amendment to the Constitution that brought massive changes towards taxation in the real estate sector. Later in the following years, special powers were given to the State Government for implementing Value-Added Tax (VAT) on some specific kinds of transactions. Read more
REIT as percentage of market size higher in India than APAC countries: JLL
As the market awaits the first listing of a real estate investment trust (REIT) in India, we look at the potential market size of REITs expected to get listed in India versus the percentage of REIT-compliant market size of some leading countries in Asia Pacific. The study revealed that the percentage is way higher in India than what prevails in countries across APAC.
India’s Grade-A office space universe is in excess of 464 mn sq ft of which about 25% – valuing approximately USD 18 billion – is expected to get listed by 2019. While industry expects anywhere between 25% and 100% of the Grade-A office space in India to get listed under REITs, we believe expecting anything above 25% is more optimistic than realistic.Read more
Hiranandani plans to enter industrial real estate business
Hiranandani Communities, a real estate firm owned by Niranjan Hiranandani, is planning to enter building industrial parks by the end of the year. The company is planning to set up its first industrial park over a land parcel of 250 acres in Pune, followed by Chennai, as per reports. This move comes at a time when the government is hoping to pass GST bill in the ongoing monsoon session of Parliament. The company is also open to bringing global investors as financial partners for industrial parks, according to reports.
GST will be a game-changer for Indian industry: Aman Agarwal
“There is no doubt GST will be a game-changer for Indian industry, including the real estate sector, since it will subsume more than 16 major taxes and levies into a single consolidated tax. Additionally, the unified tax regime will stop the unwanted practice of double taxation, which hurt real estate and other sectors, given their cascading effect that inflated prices for end users. Though unorganised players are wary of GST’s impact, it will create a level-playing field for organised entities because the former will now come under the tax ambit. With GST enforcing transparent transactions across all domains, this will be a blessing in disguise for real estate developers”,says Aman Agarwal, Director, KV Developers & Governing Council Member NAREDCO.
Brigade Enterprises Q1 cons revenue at Rs.466.4 crore
Brigade Enterprises Ltd consolidated revenue for the first quarter ended 30th June, 2016 were Rs.466.4 crores. The consolidated EBITDA increased by 11% to Rs.124.7 crore, up from Rs. 112.1 crore for the first quarter of the previous fiscal.
[Source:- IIFL]
