J.K.Patil and associates

F.D.I . SCENARIO IN INDIA

India’s real estate sector is undoubtedly on a high growth path and recognised as global investors’ choice. India is holding ninth position among retail markets in the world with organized retailing and growing at the rate of 30 percent per annum. India has played up to its image of being one of the most attractive FDI destinations. The positive outlook of Indian government is the key factor behind the sudden rise of the Indian real estate sector
The The Institute of International Finance (IIF)expects FDI in India to rise to $8 billion in 2007 from $6.5 billion in the last year.

Following FDI groups have already spread their wings in Indian real estate sector.

1.Emaar MGF has brought in the largest FDI of over US$1 billion in the Indian real estate sector. In addition, the company is focusing on pan-India projects in residential, commercial, infrastructure and hospitality sectors in integrated master plans and SEZ
2.Keppel land , a singapore based group has aleady signed JV agreement with M/S Purvankara group, banglore based group for residential and commercial project
3.DSP Merrill Lynch, Barclays Bank and Mauritius-based TH Holdings and groups have do far invested Rs.11, 460 crore in the first half of this The collective investment that got parked in real estate and construction sector was to the tune of Rs. 1,252.79 crore
4.AEA Holdings is searching for the efficient partners to expand its business horizons and wants to grab the deals and opportunities aggressively and quickly, says industry source.
6.RREEF, the real-estate investment arm of Deutsche Asset Management, is planning to invest over $200 million in a joint venture with realty major Emaar-MGF
8.Capital Land, Hong kong based group is also planning to invest in India.
7.Royal RaJ Indian, A candian group has laready has aleady signed JV agreement for residential and commercial
9.Morgan Stanley Real Estate Fund is known to have made the largest private equity transaction in property market till date and invested $125million Mumbai based Oberoi Constructions;.
10. Mauritius-based IREO Investment Holding grabs the honor of making the highest FDI in the secto With the whopping investment of Rs. 321.70 crore.The company also has plans for related projects and heavier inflows.
11.Emaar MGF Land Private Limited is India’s pioneering joint venture in real estate with projects being implemented on a pan-India basis across top 30 cities. .
12.DSP Merrill Lynch Limited, India’s leading investment bank and broking firm that pump in more than Rs 2,230 crore between April 2006 and October 2006.
13.Barclays Bank made an investment totaling Rs 1,711.23 crore pitching itself to the second investor slot.
14.Mauritius-based TH Holdings has invested of Rs.1697.35 crore.
15.French firm Carrefour has been showing interest in entering Indian retail industry
16.world’s largest financial services group, Citi, which has sewed up property deals of around $400 million in the past few weeks. This prestigious group is also looking forward to enter into a joint venture with HDFC and US based Portman Holdings.
17.Citigroup is all set to enter in the red hot property market through Citigroup Property Investors (CPI) India;
18.A Mauritus based company financed by a fund in Cayman Islands, was recently in the news to have raised $500 million through an India-dedicated fund. The conglomerate is likely to raise more money to invest in realty.
19.Hong Kong based AEA Holdings announced that it plans to invest more than $2 billion over the coming years in Indian realty projects.
20.Walt Disney a entertainment major, is investing Rs 141-crore
21.Italian firm Rino Greggio’s plan to set up a joint venture for selling silverware and UK-based Alpha Airport Group’s proposal to establish a wholly-owned subsidiary for setting up duty-free shops, flight kitchens and food and beverage outlets at airports in the country at an investment of Rs 22.5 crore was also approvedother allied products.
22.A proposal by the Netherlands-based Diageo Highlands Holdings to set up a joint venture has received clearance as well from Indian Government.
.23.Solitaire Capital Investments Pte and Solitaire Ventures Pte, a Singapore-based group are investing Rs 511-crore of in India’s booming real estate sector.
24.Mauritius-based power producer Bijlee Bharat Holdings’ plan to set up a subsidiary in India with an initial investment of Rs 308 crore,
25.NSK Limited of Japan which has committed Rs 41.25 crore to set up a new JV in Chennai
26.Spain-based Lladro Commercials S.A. will pump in Rs 5.85 crore for increasing its equity in Spa Agencies (India) from 26 per cent to 49 per cent
27.Sri Lanka-based Damro Exports Pvt Ltd’s proposal to sell furniture under the single brand name ‘DAMRO’ and Italian firm Rino Greggio’s plan to set up a joint venture
28.UK-based Alpha Airport Group’s proposal to establish a wholly-owned subsidiary for setting up duty-free shops, flight kitchens and food and beverage outlets at airports in the country at an investment of Rs 22.5 crore was also approved
29.Hong Kong based AEA Holdings announced that it plans to invest more than $2 billion over the coming years in Indian realty projects.

FACT SHEET ON FOREIGN DIRECT INVESTMENT

A. CUMULATIVE FDI EQUITY INFLOWS

1. Cumulative amount of FDI inflows (from August 1991 to March
2006) Rs. 1,61,411 crore US$ 38,902 million
2. Amount of FDI inflows during 2006-2007 (from April 2006 – January
2007) Rs.50,652 crore US$ 11,194 million
3. Cumulative amount of FDI inflows (updated up to January 2007) Rs. 2,12,063 crore US$ 50,096 million

B. FDI EQUITY INFLOWS DURING CURRENT FINANCIAL
YEAR 2006-2007

Financial Year 2006-2007 (April-March) Amount of FDI inflows
(In Rs. Crore) (In US$ mn)
1. April 2006 2,972 661
2. May 2006 2,443 538
3. June 2006 2,405 523
4. July 2006 5,235 1,127
5. August 2006 2,878 619
6. September 2006 4,222 916
7. October 2006 7,718 1,698
8. November 2006 5,157 1,151
9. December 2006 9,108 2,040
10. January 2007 8,514 1,921
2006-2007 up to January 2007 50,652 11,194
2005-2006 (up to January 2006) 18,535 4,179
%Age growth over last year (+) 173 % (+) 168 %

FDI EQUITY INFLOWS DURING CALENDAR YEAR 2007:

Calendar Year 2007 (January-December) Amount of FDI inflows
(In Rs. Crore) (In US$ mn)
1. January 2007 8,514 1,921
Calendar Year 2006 (upto January 2006) 2,141 482
%age growth over last year (+) 298 % (+) 299 %

Foreign Direct Investment is encouraged and permitted, in the following real estate sectors in India:

· Hotel Development
· Tourism
· Hospitality
· Township development
· Developing Commercial Real Estate
· Built-up infrastructure
· Housing and construction projects
· Building Resorts
· Building Hospitals
· Building Educational institutions
· Building Recreational facilities
· Infrastructure projects: regional and local level
· Special Economic Zones (SEZ)

J.K.Patil and associates,Pune /Mumnai

Rajita

It is an encouraging to get a peek at the FDI projects in pipeline. Let me also add here that asian markets are set to get realty equity deals worth $30 billion in the current fiscal 2007-2008. And Indian real estate can expect to get around $6 billion, a billion or two less than what Japan and China shall garner.

And almost 94% of it shall find its way to the Tier I cities like Delhi, Mumbai, Bangalore. This doesn't mean that Tier II cities are lagging behind. They are very much in the scene with FDIs pouring in from all over. Most recent tie-ups include a deal worth $10 billion between Nakheel Group of Dubai and DLF for residential complexes.
SO the FDI scene is hot as of now. Thanks to the growing and lucrative Indian economy!!

Manoj Misra

great info!!! Do you have any more info on IREO activities/investments?

Thanks in advance,

__________________
Manoj Misra

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manpreet

hmmm ...... knowledgeble information.

Thanks

J.K.Patil and associates

I have not understood your exact interest? what exactly you want to know about IREO activities/investment? On hearing from you, probably , i may provide you some useful data.
J.K.Patil and associates.

ianaam

Can anyone provide some NOI yield figures for recent retail property transactions? If not, any estimates for what approximate yields might be?

swishtrism

Is it really true that people have a greater chance of dying while going in a car to the airport than actually on the flight itself? I will be flying from New York to Seattle and I am afraid I will die?