Category — Real Estate

Blackstone Puts Big Money in Indian Real Estate

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.

Real Estate

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

India’s Property Market May Flourish in 2017

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.

High Rise Apartments

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

Trump Has More Active International Projects in India Than Anywhere

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.

The Trump Brand on Realtor Lodha's Website

The Trump Brand on Realtor Lodha’s Website

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

Blackstone to Offer India’s First REIT

Real Estate Investment Trusts (REITs) are expected to make their debut in India next year,  when New York-based Blackstone Group is expected to offer its first issuance of these securities enabling global  investors to invest in real estate and infrastructure in India.

REITs offer investors special tax considerations and typically provide steady dividend yields, and the gains they could bring to India will be unique in the way of adding credibility to the country’s real estate investment market.  Further, these will enhance the transparency and governance of the property market reports Fortune. Foreign funds have increasingly invested into class A office, retail and logistics properties at attractive entry price points.

Real Estate

India will introduce legislation for infrastructure investment trusts (InvITs) where the securities focus investments on infrastructure assets, such as toll roads and airports. A functioning InvIT market is complementary to a successful REIT market.

 

December 17, 2016   No Comments

WeWork Expands Services to India

New York-based WeWork, the world’s largest co-working  office company, has formed a partnership with Embassy Group, a Bangalore-based real estate firm, and is planning to open locations in Mumbai, New Delhi and Bangalore in the first half of next year, the Wall Street Journal reported.

WeWork CEO Adam Neumann visited India earlier and said, “Now that we saw the energy, we cannot ignore it.” While declining to give specifics on locations, pricing and long-term plans, company executives disclosed that the country’s young population, increasing number of startups and pro-business government policies make India a key location in the company’s global strategy, reports The Real Deal.

WeWork

Embassy Group director Karan Virwani said the partnership will pay special attention to customize spaces to Indian culture, such as recognizing that Indian food is “aromatic” and may not be enjoyed by everyone in nearby work spaces.

December 8, 2016   No Comments