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| Venture Capital Funds: End Of An Era |
| Wednesday, October 24, 2007 |
The real estate India sector has attracted investments from numerous quarters, including offshore jurisdictions. Offshore funds have led the pack of investors by utilising tax efficient structures spanning across jurisdictions. However, as a result of certain changes introduced in the Budget 2007, investors have been compelled to revisit their strategies related to structuring of investments in Indian realty sector. This article examines the impact of these fiscal changes in the long term structural strategy of funds.
Offshore funds used Indian venture capital funds ("VCF") as their India-based conduits to channel investments into Indian companies engaged in the business of real estate during the last two years. The choice of VCFs as entities for structuring the Indian end of investments was tax-efficient because of the benefit of a "pass-through" status available to VCFs under the Indian tax laws pre 2007. (Indian VCFs, whether existing or newly organized, who wish to avail of the tax benefits available to venture capital funds under the Indian Income Tax Act, must register with the SEBI under the VCF Regulations and comply with the SEBI Venture Capital Fund (Regulations), 1996. )
Source://mondaq.com |
posted by India Properties @ 4:14 AM  |
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| IHG Lines Up Large Asia/Pac Expansion |
| Friday, October 12, 2007 |
InterContinental Hotels Group today announced record company growth in the Asia/Pacific region this year, with 80 hotels signed in the past 12 months and brands entering several markets in which they previously had no presence.
Of the 80 hotels signed in the last year, more than two-thirds will be in China, Japan and India, according to IHG. About the same percentage will be new construction, while the rest will be conversions of existing properties.
Under the development plan, IHG's upscale brands InterContinental Hotels & Resorts and Crowne Plaza Hotels & Resorts will make their debuts in Melbourne and Adelaide, Australia; Hanoi and Ho Chi Minh City, Vietnam; and Hangzhou and Qingdao, China. Crowne Plaza also will launch six hotels in Japan later this year as part of a joint venture with ANA (BTN, Nov. 6, 2006).
Midprice Holiday Inn Hotels & Resorts, meanwhile, is focusing on its growth in India, and is adding hotels in Maldives, Bangalore and Pattaya, Thailand. The Holiday Inn Express brand launched a franchising program in China this year, and the brand also plans to introduce hotels in Singapore and Bangkok.
IHG also reports growing its offices in the Asia/Pacific region. It has introduced a training academy in Shanghai and has doubled the headcount at its corporate offices in Shanghai, Sydney, Singapore, New Delhi and Tokyo in the past two years.
Source://btnmag.com |
| posted by India Properties @ 12:16 AM |
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| Indians stake claim on prime properties in London |
| Monday, September 10, 2007 |
London is fast becoming a second home to rich Indians. It is no longer a metaphor but literally true - more and more Indians are buying homes in the British capital.
Last year 60 per cent of the £5 million-plus properties sold in Central London were bought by foreigners. While many of these were Russians and Americans, Indians were giving them a run for their money too. "My phone is ringing off the hook with Indians eager to buy property in London," said Jaideep Singh, head of the India desk at Knight Frank, real estate agents that specialise in properties in Central London.
"Two years ago there were hardly any Indians wanting to buy in London, except for those already living here. In the last year and half we have seen a phenomenal rise in interest," Singh told DNA.
Knight Frank's India desk is ten years old, but till now it had dealt mostly with resident NRIs. The interest from Indians has even forced Savill's estate agents, Knight Frank's main competitors, to set up an India desk and hold a roadshow of luxury properties in India.
"They want as prime as it gets," said Sheetell Chantel Halai, head of Savill's India desk. The most popular areas for purchase by Indians are the most exclusive areas of the capital like Belgravia, Mayfair, Knightsbridge, Oxford Street, Marble Arch, St. John's Wood and Kensington. There are also those who wish to buy in Ealing and Southall to be near friends and relatives who live permanently in West London.
Resource://dnaindia.com |
| posted by India Properties @ 11:53 PM |
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| HDIL to buy HMT's Kochi property for Rs 200 cr |
| Monday, September 3, 2007 |
According to sources, HDIL is in talks to buy HMT's 7 million sq-ft property in Kochi. The HDIL-HMT land deal size is likely to be about Rs 200 crore, the sources added. At this amount, it will work out to Rs 5 per share for HMT. The management has not responded on the deal yet.
From the earlier managements of HMT, it is learnt that they were eventually looking out for this kind of a value for most of their properties across India. There is no information on exact deal sizes and exactly how much these properties could be valued at.
HMT has about 100 acres of land in Kerala, around 800 acres in Haryana and around 500 acres in Hyderabad. Haryana being a prime property, it could fish out the maximum value of all the four India properties they have across pan . As of now, there is no word from the management of HMT.
HDIL too has refused to comment on the development. But of late, HDIL has been on a buying spree. They recently signed an MoU to buy Eveready’s 15 acre property in Navi Mumbai for Rs 115 crore. They are also buying Kilburn’s 8.32 acres in Bhandup for Rs 124 crore.
Source : //moneycontrol.com |
| posted by India Properties @ 2:30 AM |
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| US realty firm Hines to invest $300 m here |
| Tuesday, August 28, 2007 |
The US-based real estate developer Hines has drawn up plans to invest up to $300 million in Real Estate India over the next two-three years to develop real estate projects worth over $1 billion. Using a multiple partner strategy, Hines plans to have at least a 50% equity stake in each project it undertakes, senior company executives told ET.
The realty major has identified FDI-compliant projects in high-end office and residential spaces, mixed-use townships, IT SEZs and large format mixed-use retail, commercial and hospitality projects.
“We are currently involved in projects in the National Capital Region, Mumbai, and Bangalore, we also exploring opportunities in Kolkata and Hyderabad,” Hines India Real Estate joint MD Yash Gupta told ET.
Hines India on Friday announced its first project in the country through a 50-50 JV with real estate major DLF for co-developing a high-rise office complex, high-end retail space, hotels, service apartments, and an entertainment centre in Gurgaon, spread over 15 acres, near DLF Golf and Country Club.
The first phase of the project will include a 30-storey office tower, with retail space in the ground floor and a large parking garage, with plans for a second office tower. In all the mixed-use complex will involve construction of around 2.5 million sq ft.
Mr Gupta said the company has been involved in development of several large format mixed-use complexes globally, including those in Barcelona, Paris, Milan and Washington DC. Hines is a privately owned real estate firm engaged in real estate development, investment, and property management worldwide.
It has presence in 16 countries, with offices in 96 cities with total assets currently under its management valued at around $16 billion. In all projects it is currently involved in, Hines will work in association with a local partner, Mr Gupta said.
Resource://indiatimes.com |
| posted by India Properties @ 9:55 PM |
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| ITC draws up nearly US$ 2 billion investment plan |
| Friday, August 24, 2007 |
ITC Hotels is looking to accelerate its growth in the luxury segment as the group's chairman, YC Deveshwar, announced an investment of approximately US$ 2 billion, spread over a period of seven years.
Three properties will come up in Bangalore with one hotel each in Chennai, Ahmedabad and Kolkata. While the one in Chennai is claimed to be the country's largest luxury hotel, the properties in Bangalore will be in the super-deluxe category. The other two cities will get seven-star hotels.
The hotels business maintained its upward momentum in the current quarter with segment revenues growing by 11 per cent to touch Rs 221 crore, driven by improved RevPAR in most properties and higher F&B sales. ITC had recently entered into a new phase of its franchise agreement with Starwood Hotels & Resorts for bringing in its premium brand 'Luxury Collection' to India through seven of its properties: ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar Bangla in Kolkata, ITC Grand Central in Mumbai, ITC Windsor in Bengaluru, ITC Kakatiya in Hyderabad and ITC Mughal in Agra. The agreement included the rebranding of WelcomHotel New Delhi as a Sheraton, while the Chola and the Park in Chennai and the Rajputana in Jaipur continued to retain their Sheraton connections
Source://expresshospitality.com |
| posted by India Properties @ 4:03 AM |
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| Maharashtra govt tables ULCRA repeal Bill |
| Wednesday, August 1, 2007 |
Buckling under pressure from the Centre, the Maharashtra government finally tabled the Bill to repeal the Urban Land Ceiling and Regulation Act (ULCRA) in the state legislature today. The matter will come up for discussion tomorrow.
Though Maharashtra is set to be the 10th state to rescind the Act, the impact of the repeal on Mumbai’s realty market is going to be minimal. A major chunk of surplus land is covered by the Coastal Regulatory Zone (CRZ), No Development Zone (NDZ), forests and slums.
Introduced in 1976 with an aim to provide affordable housing to lower- and middle-income groups in urban areas, the Act prohibits any individual from holding more than 500 sq mt of land.
However, companies and trusts were exempted from this provision with a catch that they could use the land only for the purpose for which they had been set up. They were barred from trading these lands or developing housing schemes on these lands.
The Assembly has merely three days in the current session to take up the Bill and it is unlikely that both the Houses of the state legislature would give their nod converting it into a law.
After the Act was repealed by the Centre in 1999, each state had to repeal the respective Act by passing separate Bills since land is a state subject. Taking advantage of this fact, Maharashtra government, along with nine other state governments including Tamil Nadu, West Bengal and Jharkhand chose not to repeal the Act.
However, Jawaharlal Nehru Urban Renewal Mission (JNURM), under which states get funds from the Union government for urban infrastructure projects, made it mandatory to repeal land ceiling Acts to get the aid.
In the absence of repeal of ULCRA, the Maharashtra government, which has planned infrastructure projects worth Rs 40,000 crore for Mumbai’s makeover, stands to lose nearly Rs 10,000 crore as central aid under JNURM.
Source://business-standard.com |
| posted by India Properties @ 4:23 AM |
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