Debt financing for commercial real estate property firm

kiranchaugule · 05-04-2008

Hello everyone,

I'm doing a little research for a firm that is looking to enter the commercial property management space in India. I'm looking for information on the financing avenues that are available and specifically on debt financing avenues. I understand from reports that are available on the Web that bank loans are the most popular form of debt financing currently available but none of the banks' websites give any real detail on the terms and conditions of the deal.

Would anybody be able to shed some light on -
1. Debt financing opportunities for commercial real estate in India
2. Bank interest rates
3. Repayment tenures
4. Non-bank debt instruments

Thank you for your help in advance.

Regards,
Kiran

realtyrider · 05-13-2008

Although, the residential property segment may not be performing well but the commercial property is certainly hitting the sky, says a report. Due to the corporate demand, the rentals have witnessed a rise of another 20% in the last three months. Indeed, the report claims the rentals to see a jump of 10-20% in very near future. This is because of the ongoing demand that continues to outstrip supply. Usually individual investors, given the budget constraint, look for strategically placed bargain corners so that eventually they can attract good tenant or can even sell or lease to a brand looking for more space. The current trend sees individuals preferring mid and small-sized properties over the bigger ones as these are easier to rent out and always in demand. Developers feel that investing in such commercial retail properties, which started a couple of years ago, has now gained momentum due to a number of reasons. The advent of malls started off this trend which has now picked up as a few banks have started disbursing loans for these properties. This coupled with a boom in organized retailing, entry of foreign brands and rapid expansion of Indian brands has given it a further impetus.There are various advantages that accrue to commercial investments vis-a-vis residential, which makes such investments a profitable deal. Capital appreciation as well as a steady income source via monthly rentals with yields of 12-14% stands in its favour. Moreover, the various options that have sprung up in retail have also played an integral role in generating high awareness levels.Individuals are no longer eyeing only residential properties as a lucrative investment opportunity. Rather, it is commercial retail space that has now become hot property. We hear this often: “What’s the smarter move? Residential or commercial investment property?” It should come as no surprise that there isn’t a one-word answer to this question. You’ll arrive at your best choice – the one that maximizes your chances for success – by working through a decision process that includes some “global” issues, some local and some that are entirely personal.

**madhav Reddy** · 4 Weeks Ago

hi im looking private property financier please help me +919902817655 Thanking you madhav777@gmail.com

Yuvaraj · 4 Weeks Ago

I think you should look at various companies in the real Estate space (DLF, Unitech, Sobha etc) that are publicly listed and go through their Balance sheets and schedules. You will find some details. There are still large Real estate players like eg. Olympia, Prestige whose funding sources are still a mystery as they arent publicly traded you can try to contact their management to understand about their funding patterns..

05-04-2008	#1
kiranchaugule Junior Member Join Date: May 2008 Posts: 1	Debt financing for commercial real estate property firm Hello everyone, I'm doing a little research for a firm that is looking to enter the commercial property management space in India. I'm looking for information on the financing avenues that are available and specifically on debt financing avenues. I understand from reports that are available on the Web that bank loans are the most popular form of debt financing currently available but none of the banks' websites give any real detail on the terms and conditions of the deal. Would anybody be able to shed some light on - 1. Debt financing opportunities for commercial real estate in India 2. Bank interest rates 3. Repayment tenures 4. Non-bank debt instruments Thank you for your help in advance. Regards, Kiran

4 Weeks Ago	#3
madhav Reddy Banned Join Date: Jun 2008 Posts: 1	hi im looking private property financier please help me +919902817655 Thanking you hi im looking private property financier please help me +919902817655 Thanking you madhav777@gmail.com

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05-13-2008	#2
realtyrider Senior Member Join Date: Apr 2008 Posts: 101	Although, the residential property segment may not be performing well but the commercial property is certainly hitting the sky, says a report. Due to the corporate demand, the rentals have witnessed a rise of another 20% in the last three months. Indeed, the report claims the rentals to see a jump of 10-20% in very near future. This is because of the ongoing demand that continues to outstrip supply. Usually individual investors, given the budget constraint, look for strategically placed bargain corners so that eventually they can attract good tenant or can even sell or lease to a brand looking for more space. The current trend sees individuals preferring mid and small-sized properties over the bigger ones as these are easier to rent out and always in demand. Developers feel that investing in such commercial retail properties, which started a couple of years ago, has now gained momentum due to a number of reasons. The advent of malls started off this trend which has now picked up as a few banks have started disbursing loans for these properties. This coupled with a boom in organized retailing, entry of foreign brands and rapid expansion of Indian brands has given it a further impetus.There are various advantages that accrue to commercial investments vis-a-vis residential, which makes such investments a profitable deal. Capital appreciation as well as a steady income source via monthly rentals with yields of 12-14% stands in its favour. Moreover, the various options that have sprung up in retail have also played an integral role in generating high awareness levels.Individuals are no longer eyeing only residential properties as a lucrative investment opportunity. Rather, it is commercial retail space that has now become hot property. We hear this often: “What’s the smarter move? Residential or commercial investment property?” It should come as no surprise that there isn’t a one-word answer to this question. You’ll arrive at your best choice – the one that maximizes your chances for success – by working through a decision process that includes some “global” issues, some local and some that are entirely personal.

4 Weeks Ago	#4
Yuvaraj Member Join Date: Jun 2008 Posts: 11	I think you should look at various companies in the real Estate space (DLF, Unitech, Sobha etc) that are publicly listed and go through their Balance sheets and schedules. You will find some details. There are still large Real estate players like eg. Olympia, Prestige whose funding sources are still a mystery as they arent publicly traded you can try to contact their management to understand about their funding patterns..