Category — Construction
According to data from Mumbai, India-based investment bank Equirus Capital, India’s infrastructure sector raised a total of $3.49 billion across 33 transactions in Fiscal Year 2017 compared with $2.98 billion raised in 31 transactions in 2016, an increase of over 17 percent.
The data also showed that the majority of private market transactions in the fiscal ending March 31 were led by the power, roads and renewables sectors and, within those, about 88% of the transactions were through mergers and acquisitions; the remaining 12% were through private equity investments.
Livemint reports that funds such as U.S.-based I Squared Capital, Indian asset manager IDFC Alternatives’ infrastructure fund, Canada’s Brookfield Asset Management, Australia’s Macquarie Group, and the Canada Pension Plan Investment Board (CPPIB) and Caisse de Depot et Placement du Quebec (CDPQ) have committed large investments in the sector and are looking to buy assets across roads, thermal power, and renewable energy to build their own portfolio in India.
April 8, 2017 No Comments
Introducing a multi-modal program to reduce logistics costs and make the economy competitive, India has abandoned its previous “point-to-point” logistics model in favor of a “hub-and-spoke” one, where railways, highways, inland waterways and airports will in tandem to form an effective transportation grid.
Nitin Gadkari, minister for road transport and highways, shipping and ports said in an interview, “It is for the first time that we have taken an integrated approach for the country’s transportation. This will increase India’s exports, provide employment opportunities, will be cost effective, and will make goods cheaper in the country.”
The plan envisages setting up 35 multi-modal logistics parks at an investment of $10 billion for the development of 50 economic corridors. An investment template for the states and the private sector will be prepared. The infrastructure will include installation of cooling plants, cold storage facilities, warehouses, gas stations as also facilities for truck maintenance. These logistics parks will serve as hubs for freight movement enabling freight aggregation and distribution with modern mechanized warehousing space, reports Mint.
March 15, 2017 No Comments
Word on the street was that India’s November 2016 demonetization of high value currency notes would have a significant impact on the real estate price; here is what the experts say:
Forbes reports that 2017 will be a bumper year for India’s real estate market as well as for its economy. The country tops the list of preferred destinations for investment in property by institutional investors.
The middle class in India, the driver of the surge in domestic consumption, has very little household debt and is looking for suitable housing. The finance industry is supportive and India’s central bank has repeatedly cut interest rates. All these factors are promising trends for investors in the realty market, and for 2017 Bangalore and Mumbai are the top-ranked cities for both investment and development, according to the 2017 version of Emerging Trends in Real Estate Asia Pacific, put out by Washington D.C.-based Urban Land Institute.
India is seeing a boom in business-park development, and suburban development is creating new business and residential neighborhoods. Blackstone of New York City, the Toronto-based Brookfield Asset Management, privately-held Chinese conglomerate Dalian Wanda are seriously interested in property assets in India.
Anuj Puri, chairman and country head of Jones Lang LaSalle India says: 2016 saw the biggest changes in decades, especially on the policy front – the Goods and Services Tax and the Real Estate Regulatory Authority bill cleared hurdles, and are on their way to implementation. REITs will help smaller investors to invest in Grade-A commercial real estate across India. India’s first REIT listing will happen in 2017.
India’s Tier-I cities moved up to the 36th rank in JLL’s biannual Global Real Estate Transparency Index in 2016 due to improvements in structural reforms and liberalization of the foreign direct investment policy. India came 4th in developing Asia in terms of Foreign Direct Investment inflows per the World Investment Report 2016 by the United Nations Conference for Trade and Development. Thanks to a proactive government keen on improving India’s ranking on different indices and strengthening public institutions, the country is poised to become a modern economy.
As the real estate market achieves higher transparency, the mismatch of demand/supply can offer opportunities for developers and investors alike. Indian real estate is on its way to becoming a consolidated and moderately efficient sector over the next few years.
December 30, 2016 No Comments
With the prospect of U.S. Government duties being levied on Canadian lumber, Mike de Jong, British Columbia‘s minister of finance, is looking to sell softwood lumber to customers in India and China, reports Canada Business.
De Jong said, “We are amplifying our efforts to do something we did around (the last) softwood negotiations and that is diversify our markets. We have redoubled our efforts in India and are beginning to see results. We are in China now to further encourage efforts at reducing our dependence on a U.S. market that may become somewhat unpredictable.”
December 18, 2016 No Comments
The Trump Organization has more active projects underway in India — at least five — than anywhere else outside North America, reports NPR. And even if Donald Trump goes through with his declaration that he will exit his businesses to avoid any conflict of interest arising from his global enterprises, the entity in charge of his business will likely reap benefits from the Trump name.
In India, Trump’s partners in real estate (where the Trump name — in gold — graces projects) pay the Trump Organization for use of the Trump name, which to many, is synonymous with quality. So though he has not invested in these properties, the Indian brand-licensing agreements have the potential to earn the Trump Organization at least several million dollars says Ramesh Jogani a Mumbai-based real estate developer. Priced at $2 million for each unit, construction is underway at the 75-story, gold-facade Mumbai Trump Tower, with half of the 412 units already sold.
However, Mumbai property consultant Gulam Zia predicts, “Any permission, any license, any favor that this product attracts because of the brand will be noted, magnified, spoken about, debated and fought over in the media.”
December 18, 2016 No Comments