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ICICI Launches Real Estate Security Fund
2007-12-13 13:28:00
 ICICI Prudential Mutual Fund recently launched its real estate securities fund, which is the first real estate mutual fund in India . The new fund offer is open for subscription from November 15 to December 14, 2007. The fund will invest 51 per cent of its portfolio in high-yielding debt securities issued by real estate companies. The scheme will not directly own or hold real estate. It will invest up to 49 per cent in the shares of companies that will benefit from the real estate sector or have substantial investments in property. Debt securities issued by real estate companies have relatively low liquidity. Hence, in order to manage the liquidity risk, the fund has been designed as a 3-year close-ended fund. It will invest in real estate and related sectors such as cement, construction, metals, hotels, retail, banks and finance companies. According to National Housing Bank, India will have a shortage of over 20 million housing units and an incremental demand of 8-10 million e...
More About: Security , Estate , Real Estate , Property

US $ 250 million. India Focussed Realty Fund by Knight Frank
2007-12-13 13:27:00
 In the first of its kind among property consultants, the UK-headquartered Knight Frank Group will launch a $250 million India -focused real estate fund. According to sources the offshore fund will raise investments from high net worth individuals and other investors from the UK and will have an investment threshold of $0.5 million and above. However, employees of the consultancy can invest smaller limits and the fund will invest in FDI-complaint projects in the country, according to sources. The fund-raising is expected to begin by January 2008 and will close in a couple of months. Rutley Capital Partners (RCP), Knight Frank's real estate private equity and investment management arm, is expected to spearhead the launch of the India fund. However, an e-mailed questionnaire to Robert Hannington, managing partner, RCP, did not elicit any response. RCP has two property funds, Rutley European Property Fund , a Europe-focused fund and Rutley Russia Property Fund. Knight Frank also...
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IT Companies Trickle to Tier III Cities
2007-12-13 13:25:00
 In view of the appreciating rupee, high wages and increasing real estate prices, big, medium and small IT firms have made a successful entry into tier-II cities. Encouraged by their progress, many small IT firms are now exploring tier-III cities such as Udupi, Manipal, Hubli and Belgaum in Karnataka, Kozhikode in Kerala, Tirunelveli in Tamil Nadu, Jaipur in Rajasthan, and Durgapur and Kharagpur in West Bengal. The reasons are manifold. These cities have a good number of engineering colleges, and the firms do not find it difficult to meet their modest requirements of staffing, usually in the low hundreds, at affordable costs and without being plagued by high attrition. Smaller IT companies cannot compete with large brands in software services across domains. They have to specialise in niche areas and require a smaller workforce. It is easier for them to recruit in smaller towns where the big players are not competing. Consequently, they can bring down their operating costs, als...
More About: News , Companies , Property , Cities , Nagpur

Knowledge City to be set up in Visakhapatnam
2007-12-13 13:22:00
 Unitech Ltd has come to an agreement with the Andhra Pradesh government to set up the Vizag Knowledge City on 1,750 acres of land near Vishakapatnam, for which it will pay Rs 3,328 crore over a ten-year period. At Rs 52 lakh per acre, it may not be the most expensive deal in the country, but it is among the largest in terms of the acreage from a single source in a single deal. The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) had invited bids to develop the land for the Integrated Vizag Knowledge City. Dubai-based Al Hamra Real Estate Development LLC had also qualified for the bid, but dropped out in the final stage. Unitech executives said that the company will invest more than Rs 20,000 crore (which includes the cost of the land) to develop a total 10 million square feet of built-up space Into an infotech park. There will be villas, high-rise apartments, shopping centres and hotels as well as school and hospitals, an entertainment park and a 250-acre golf cour...
More About: Property , Hyderabad , Visakhapatnam

Piramal Group Enters the Real Estate Market
2007-12-13 13:16:00
Piramal Enterprises, part of the Ajay Piramal Group, is planning to develop properties in Mumbai's central and northern regions. The company has set up a joint venture (JV) with Sunteck Realty, Mumbai-based real estate developers. The move comes close on the heels of Ashok Piramal Group-formed after a formal family settlement with the Ajay Piramal group-- to develop areas near Lower Parel in Central Mumbai as an IT park. The new projects would be both commercial as well as ultra-luxury residential. Mumbai's central areas, in and around Grant Road, Parel and Tardeo are in for major development, according to recent reports. The JV, called Piramal Sunteck Realty Pvt. Ltd. will focus on realty projects in locations in metros and select tier-II cities across the country, according to a release from the company. The names of the cities were not specified. The JV will have a corpus of Rs 1000 crore. The first project would a commercial-***-Information Technology (IT) park of over t...
More About: News , Estate , Real Estate , Real Estate Market , Market

Top bids worth Rs 2,790 crore for BKC plot in Mumbai
2007-11-29 15:09:00
Mukesh Ambani promoted Reliance Industries Limited, Wadhwa Builders, TCG Infrastructure and Hiranandani Constructions have emerged as the leading bidders for the three Bandra-Kurla Complex (BKC) plots in Mumbai measuring 75,350 square metres. The total value of the top bids is Rs 2,790 crore.Milind Mhaiskar, joint metropolitan commissioner and project director (Mumbai), MUTP, told The Indian Express: “The highest bid per square metre this time is somewhere over Rs 5 lakh, which is easily three times our base price of Rs 1.56 lakh, the amount which was the per square metre bid by Reliance last year when they bagged the convention centre.In that sense, we are happy with the bids as it reflects a steep upward trend in prices.” According to Mumbai Metropolitan Region Development Authority (MMRDA) Commissioner Ratnakar Gaikwad, MMRDA would lease out its properties for 80 years for the development, operation and maintenance of the commercial complex and car park. “Plots ...
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ADAG, Sobha team to build India's tallest building
2007-11-29 14:58:00
A consortium lead by ADAG Group company Reliance Energy and Bangalore-based Sobha Developers has succeeded in their bid to build India’s tallest building ever built.Sources said, APIIC Towers, will be developed on 78 acres of land in Manchervelu on the Express Highway to the upcoming Hyderabad International Airport. Reliance Energy will hold 66% while Sobha Developers will hold 23%. The balance stake of 11% will be held by APIIC (the AP Government’s investment arm).It is learnt that the first phase of the project will consist of a 100-storey twin tower complex on 30 acres of land. The total project cost is pegged at Rs 6,000 crore. Work on the project will commence next year and is to be completed in three years. The project itself is coining up with certain conditions like milestone achievements.“In two years, the company has to show signs of progress. If the state government is satisfied with the progress, then land for the second and third (final) phases will be...
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