Category — Real Estate
India’s central bank, The Reserve Bank of India, will allow banks which are currently allowed to invest as much as 20% of their net-owned funds in equity-linked mutual funds, venture capital funds and stocks, to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). The central bank will issue detailed guidelines by the end of May.
Markets regulator, Securities and Exchange Board of India has been easing rules to make REITs and InvITs more attractive to investors. In January, the markets regulator permitted mutual funds to invest in REITs and InvITs. In March, India’s insurance regulator also amended guidelines for insurers to invest in these asset classes, reports the Livemint.
Private equity firm Blackstone Group Lp, the largest owner of office real estate in the country, may list two separate REITs for its office assets with developer partners.
April 8, 2017 No Comments
March 29, 2017 No Comments
According to a report from Chicago-based Cushman & Wakefield, India’s real estate sector is expected to record inflow of newly-raised capital amounting to $4.2 billion, including debt and equity in 2017. Global investments are finding routes to India with a long-term horizon on account of strong economic growth and sentiments of the country adds the report.
Investors are acquiring assets in anticipation of the introduction of Real Estate Investment Trusts by the government, and investments in the country’s office sector is expected to more than double this year, reports the Economic Times.
“India’s attractiveness as a global investment destination has strengthened on account of the country’s political will to attract and protect investment growths. India’s inclusion in the top investment destination is a testament of this confidence. The country saw its best year in 2016 with private equity investments the highest in 9 years,” said Anshul Jain, managing director, India, Cushman & Wakefield. “Globally too funds are revising their strategies to concentrate on specific growth circles. India’s office space provides great promise in this direction. Further, the core office markets in India provide stronger rental returns as well as easier exit options as against other sectors.”
March 23, 2017 No Comments
Even as they downsize their retail operations worldwide, Barclays Plc, Credit Suisse Group AG, Standard Chartered Plc and Citigroup Inc., are among global financial firms looking to add office space in India.
Barclay Technologies Center India Ltd, an offshore unit of the London-based financial services firm, is planning to add 100,000 sq. ft in Pune, 90 miles east of Mumbai, where it currently operates. At Panchshil Realty Ltd’s IT parks in Pune, approximately 35% of the total space is occupied by the captive technology businesses of Deutsche Bank AG, MasterCard Inc. and Credit Suisse, while Swiss bank UBS leased around 400,000 sq. ft at K Raheja Corp.’s IT park at Navi Mumbai.
“Captive banking, financial services and insurance clients, which were outsourcing earlier, prefer to do the work themselves, given the cost optimization. Instead of paying third-party operators, it’s better to have your own offshore unit,” said Gautam Saraf, managing director (Mumbai region), of global property consultant Cushman and Wakefield.
Mike Holland, chief executive officer of Embassy Office Parks, Bangalore said, “The BFSI industry is a strong demand driver, especially in Pune and Bangalore. We are also doing transactions in Chennai and Hyderabad in that segment.”
March 22, 2017 No Comments
New York City-based Blackstone Group is in advanced talks to acquire over 360,000 sq ft spread over six floors in the First International Financial Center (FIFC) Tower at Bandra-Kurla Complex, a business district in Mumbai, for over $125 million.
With rising income levels of India’s consumers, Blackstone has started focusing on retail spaces in India. The company has acquired properties across major markets in India in deals that are turning out to be benchmarks in the real estate sector. It owns India’s biggest portfolio of income producing office assets totaling over 30 million sq ft worth over a billion dollars across Noida, Mumbai, Pune and Bangalore says ET Realty.
February 13, 2017 No Comments