Hereby I will prove how the realty boomers arguments are false.

What are the boomers arguments?

1.) Buy today, houses always increase in value in the long run.
WRONG. House prices cannot increase more than incomes in the long run. This is obvious if you think about it. If house prices go up more than people can afford to pay, buying stops, like it has stopped now.
Even Warren Buffett have pointed out that houses don't increase in intrinsic value. Unless there's a bubble or a crash, house prices simply reflect current salaries and interest rates. If a house is 100 years old, it's value in sheltering you is exactly the same as it was 100 years ago. Then came the maintenance as the house didn't renovate itself. It also has taxes, and insurance - costs that always increase and never go away. The price of the house went up about as much as salaries went up.
To put this is simple perspective, vegetable were costing Rs.5-6/kg when 5 digit salary was a rarity.
Today, the prices have gone up by about 4 times but so have the salaries. So, sounds very much like the reasoning people use now when they talk about how much their father's house appreciated "in the long run" without considering that salaries rose a proportional amount.

2.) Renting is just wastage of money.
WRONG. As said before renting is now much cheaper per month than owning. If you don't rent, you either:

* Have a mortgage, in which case you are throwing away money on interest, tax, insurance, maintenance, costs that increase forever.
* Own outright, in which case you are throwing away the extra income you could get by converting your house to cash, investing in bonds, and renting a similar place to live for much less money. This extra income is sufficient for emergency expenses,retirement etc.

Either way, owners lose much more money every month than renters and that's assuming prices don't correct to very high level & everything is smooth in the economy.

3.) As a renter, you won't have any money left as you will spend them on vacations,cars & hence won't have equity/savings etc.
WRONG. Equity is just money. Renters are actually in a better position to build equity/savings through investing in anything but housing. Renters can get rich much faster than owners, just by investing in conservative stocks & bonds.

* Owners are losing every month by paying much more for interest than they would pay for rent. The tax deduction does not come close to making owing competitive with renting.
* Owners must pay taxes simply to own a house. That is not true of stocks, bonds, or any other asset that can build equity/savings. Only houses are such a guaranteed drain on cash.
* Owners must insure a house, but not most other investments.
* Owners must pay to repair a house, but not a stock or a bond.
* Owners lose their money as house prices reduce. The EMI's remain constant in spite of reduction in rates. At the end of loan tenure, they would have paid almost twice than that of current renters who will buy at logical rates. Keep interest rates in mind. Most of the EMI is not principal amount but interest.

4.) There are great tax advantages to owning a house.
WRONG. Many people believe you can just reduce your income tax by the amount you pay in interest, but they are wrong. Buyers may not deduct interest from income tax; they deduct interest from taxable income. And even then, the tax advantage is not significant compared to the large monthly loss from owning.

If you don't own a house but want to live in one, your choice is to rent a house or rent money to buy a house. To rent money is to take out a loan. A mortgage is a money-rental agreement. House renters take no risk at all, but money-renting owners take on the huge risk of falling house prices, as well as all the costs of repairs, insurance, property taxes, etc.

5.) RE is based on local factors, it's not a national phenomenon. RE of Delhi-NCR,Bangalore & rest of the cities has nothing to do with Pune RE.
WRONG. Lending rates remain the same throughout the country. ALL loans are harder to get. This will drive prices down everywhere.

6.) A rental house provides good income. So, you can rent if you have purchased as investment.
WRONG. Rental houses provide very poor income in hyped areas and certainly cannot cover mortgage payments. Remember there is almost 300% difference between EMIs & rent for the same house.

It's pointless to do the work of being a landlord if you can make more money with no risk, no work, and no state income tax by investing in assured good returns bond.

7.) If owning is a loss in monthly cash flow, but appreciation will make up for it.
WRONG. Appreciation is negative. Prices are going down. It only adds to the injury of already high EMI's.

8.) As soon as prices drop a little, the number of buyers on the sidelines willing to jump back in increases.
WRONG. There are very few buyers left, and those who do want to buy will be limited by increasing difficulty of borrowing now that many house owners are near bankrupt as they don't save anything at the end of the month due to high EMI's.
No one has to buy, but there will be more and more people who have no choice but to sell as their payments rise. That will keep driving prices downward for a long time.

9.) House prices never fall atleast in Pune.
WRONG. If you see the RE scenario of 1996, prices crashed by 50% & took a whole 7+ years to recover.
Exact 1996 scenario may not be there today but strong correction is inevitable across the city.

10.) House prices don't fall to zero like stock prices, so it's safer to invest in real estate.
WRONG. House prices won't be zero, but the equity or the principal amount you paid can be zero or even negative. What you will pay as EMIs later in actual terms is not for the principal amount but only the interest as house prices dip. So, you will be only serving the bank.

11.) Prices will soften gradually, won't crash immediately.
WRONG. Prices are falling off a cliff. No one knows exactly what will happen, but it looks like prices will continue to fall for long time. These are just more manipulation of buyer emotions, to get them to buy even while prices are falling.

12.) The bubble prices were driven by supply and demand alone.
WRONG. Prices were driven by low interest rates and risky loans & good returns for investors in initial phases of boom in 2004-05.
Prices went up, interest rates went up & buyers savings went down. So prices are violating the most basic assumptions about supply and demand.

13.) There is lack of land.
WRONG. Ample of land is available & continue to be even in future in Pune. Sales volume are down. Even in Japan (small country with less land), prices went down. Current prices here are the same as that of 23 years ago. If we really had a housing shortage, there would not be so many vacant rentals.

14.) If you don't own, you'll live in a cheap neighborhood later.
WRONG. For the any given monthly payment, you can rent a much better house than you can buy. Renters live better, not worse. There are downsides to renting, such as being told to move at the end of your lease, or having your rent raised, but since there are thousands of vacant rentals, you can take your pick and be quite happy renting during the crash. There are similar but worse problems for owners anyway, such as being fired and losing your house, or having your interest rate and property taxes adjust upward. Remember, property taxes are forever.

15.) There's always someone predicting a real estate crash.
TRUE, yet irrelevant. There are very real crashes every decade or so. Even a broken clock is right twice a day.

16.) Local incomes justify the high prices.
WRONG. The mortgage should be more than your 3 years earning. It is much higher today. Most are already in danger/red zone.

17.) You have to live somewhere.
CORRECT. But that doesn't mean you should waste your life savings on a bad investment. You can live in a better house for much less money by renting during the down slide in RE.

18.) It's not a house, it's a home.
WRONG. Wherever one lives in it is home, be it apartment, condo, bungalow , mansion or house. Calling a house a "home" is a manipulation of your emotions for profit.

19.) If you don't buy now, you'll never get another chance.
WRONG. History proves otherwise.
Here's a beautiful quote from a analyst:-
"The real issue isn't whether you will be stuck being a renter all your life, she says. Its whether you'll get so scared about being shut out that you'll buy at the market's peak and be stuck in a property you can't afford or sell."

20.) It would take major economic recession or a major earthquake that wipes out this area in order for the price to fall by over 50%.
WRONG. Even today, if the prices fall by 50%, there will still be very few people who can buy at this levels due to uncertainty in jobs & most importantly high EMIs. Also, look at the rental rates for equivalent houses. Which loss per month is larger? EMI or rent?

contd....
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  • Originally Posted by mamol
    hi real,
    can you please give details how much cash discount he is offering, i saw 3 bhk flat in mirchandani and he is quoting rate of 4700 psft

    Forget this rate of the past. As of now, they are having some Anniversary schemes going on (just an excuse to offer freebies) which is official. The discounts can be availed based on the mode of payment, flat selection & also the cash component if any. Just check these out & see what you get.
    Also, don't disclose all your cards in first meeting itself.
    CommentQuote
  • Govt to scrap existing MOFA Act

    New Act In State To Protect Interests Of Home Buyers
    Dec 15, 2011

    Nagpur: The state government has decided to replace an existing act with a new one to bring in more transparency in the housing sector. The Maharashtra Ownership Flats (Regulations of promotion of construction, sale, management, and transfer) Act, 1963, which was meant to provide relief to flat purchasers against sundry abuses and malpractices in construction, sale and transfer of flats, will be scrapped.

    The state government has plans to replace it with the the Maharashtra Housing (Regulation and Promotion of Construction, Sale, Management and Transfer) Act, 2011. The state housing department, which has initiated the proposal, has claimed that the new Act will be more effective in protecting interests of buyers.

    It will contain provisions for formation of a regulatory authority for the housing sector. To be applicable for construction projects across the state, the new Act will also contain new provisions to facilitate deemed conveyance in layouts that involve two or more buildings.

    Keen to table the proposal during the ongoing winter session, the proposal is likely to be put up for an approval before the state cabinet in the next few days. The government had initially planned to introduce changes in the existing Act to enable these provisions. This was however ruled out as it would have requried introduction of a large number of amendments.

    Developers will need to register themselves before the regualtory authority. Complete details regarding any project undertaken by a developer will have to be provided on the authority's website (which will be made available for public viewing) before issuing advertisements for sale or transfer of flats. The "full disclosure" will include details regarding the title of the land, approved plans, common areas and amenities, including recreation grounds and playgrounds, among others.

    Flat buyers could approach the authority in the event of non compliance of these disclosures. The authority, which will involve three members who are experts in the field of housing, urban planning and administration, will have powers to deregister developers and bar them from taking up any new projects in the event of a default. To be headed by a retired government official of the rank of prinicipal secretary, the regulatory will also be empowered to slap up to Rs 10 lakh in fine and prosecute habitual offenders. The authority will also have powers to judge matters involving default by flat buyers.
    CommentQuote
  • Originally Posted by realacres
    New Act In State To Protect Interests Of Home Buyers
    Dec 15, 2011

    Nagpur: The state government has decided to replace an existing act with a new one to bring in more transparency in the housing sector. The Maharashtra Ownership Flats (Regulations of promotion of construction, sale, management, and transfer) Act, 1963, which was meant to provide relief to flat purchasers against sundry abuses and malpractices in construction, sale and transfer of flats, will be scrapped.

    The state government has plans to replace it with the the Maharashtra Housing (Regulation and Promotion of Construction, Sale, Management and Transfer) Act, 2011. The state housing department, which has initiated the proposal, has claimed that the new Act will be more effective in protecting interests of buyers.

    It will contain provisions for formation of a regulatory authority for the housing sector. To be applicable for construction projects across the state, the new Act will also contain new provisions to facilitate deemed conveyance in layouts that involve two or more buildings.

    Keen to table the proposal during the ongoing winter session, the proposal is likely to be put up for an approval before the state cabinet in the next few days. The government had initially planned to introduce changes in the existing Act to enable these provisions. This was however ruled out as it would have requried introduction of a large number of amendments.

    Developers will need to register themselves before the regualtory authority. Complete details regarding any project undertaken by a developer will have to be provided on the authority's website (which will be made available for public viewing) before issuing advertisements for sale or transfer of flats. The "full disclosure" will include details regarding the title of the land, approved plans, common areas and amenities, including recreation grounds and playgrounds, among others.

    Flat buyers could approach the authority in the event of non compliance of these disclosures. The authority, which will involve three members who are experts in the field of housing, urban planning and administration, will have powers to deregister developers and bar them from taking up any new projects in the event of a default. To be headed by a retired government official of the rank of prinicipal secretary, the regulatory will also be empowered to slap up to Rs 10 lakh in fine and prosecute habitual offenders. The authority will also have powers to judge matters involving default by flat buyers.


    Good move by govt. but not sure whether it will be successful as political boosses are main benificieries of mess in the RE sector.
    Look at current builder lobby in Pune, mostly associated with NCP, lot of these builders were not in picture 10/15 years back... but since 1999, there is rapid rise of NCP led builders who are controlling all infrastructare realated decisions of PMC, and their projects near by. I heard half of land of nanded city doesn't have legal permissions but still project is going on...
    CommentQuote
  • Originally Posted by plan2011
    Good move by govt. but not sure whether it will be successful as political boosses are main benificieries of mess in the RE sector.
    Look at current builder lobby in Pune, mostly associated with NCP, lot of these builders were not in picture 10/15 years back... but since 1999, there is rapid rise of NCP led builders who are controlling all infrastructare realated decisions of PMC, and their projects near by. I heard half of land of nanded city doesn't have legal permissions but still project is going on...


    I am not how true it is but I heard that every builder of Pune gives some commission to Sharad Pawar, otherwise builders don't get permission to build flats. That is why poor builders have no other options to take more money from poor buyers. Poor buyers have no options other than working hard in US to get the dollars in India.
    CommentQuote
  • Originally Posted by BlotJab
    I am not how true it is but I heard that every builder of Pune gives some commission to Sharad Pawar, otherwise builders don't get permission to build flats. That is why poor builders have no other options to take more money from poor buyers. Poor buyers have no options other than working hard in US to get the dollars in India.


    If they (working hard in US) are poor buyers then what about people like I? Probably we wont exists even :). And yes we are not lazy either. :D
    CommentQuote
  • Investment Banks Layoffs in India

    Layoffs & restructuring grapple investment banks like UBS, Nomura, Credit Suisse & Goldman Sachs - The Economic Times

    Ankush Sharma (name changed) was sacked in the usual style of his profession. An investment banker in a global bank, he reported to work like every other day, during the course of which he was asked to report to the boardroom for what he thought was a routine meeting. He was handed his severance cheque, and while he was away from his desk, his computer was locked so as to disable any transfer of data. He left in the next half an hour.

    Sharma is a part of what's building up to be a wave of layoffs and restructuring in investment banking in India. The trend picked up in the second half of 2011. And this may be the first time such a major culling is happening in I-banking in India.

    The 2008 subprime crisis didn't result in too many layoffs in Indian operations of global investment banks and they were largely driven by closures at large US banks. Sonal Agrawal, CEO of executive search firm Accord India, says, "In 2009, the domestic economy was not affected as much. Given slowdown in India, it's structurally different now and more severe."

    200 Ex-I Bankers

    How bad is the situation in I-banking now? Industry sources say across all major banks and at all levels, the total number of investment bankers laid off in India would be considerably more than 200. Of the majors, UBS, Nomura, Credit Suisse and Goldman Sachs are implementing restructuring plans. More layoffs are expected soon.

    "The restructuring has been 90% at the junior and 10% at senior levels. Bonuses this year are also predicted by markets to be 25-30% lower," says Puneet Pratap Singh, partner, financial services at global executive search firm Heidrick and Struggles.

    Kotak Mahindra promoter Uday Kotak said in a recent interview to Bloomberg that the money that I-banks are making now no longer justifies the number of employees or their salaries. The industry has 20-40% excess capacity and there is correction underway, Kotak had observed.

    After poor second-quarter results in 2011, banks like Nomura and Credit Suisse announced plans to restructure costs and cut staff across operations. According to a Nomura spokesperson, "at the time of its second quarter results, Nomura announced its intention to reduce its cost run rate by $1.2 billion, and we are in the process of executing that plan as quickly as possible".

    People familiar with Nomura's internal operations said around 100 people have been laid off in the wholesale banking division in the bank's backend Powai, Mumbai office. Nomura denied this figure. The bank said job losses amount to only around 2% of its employees in India.

    Bad Second Half

    In the first half of 2011, many deals in the capital market and the mergers and acquisitions field were concluded. Around 80% of the total Rs 25,000-crore capital market fund mobilisation was raised in the first half. In both business activities, deals in India were far fewer in the second half of 2011.

    "While there were many inbound and outbound deals in the first half of 2011, the second half of 2011 was tough for M&As because valuations came down and there was significant market volatility," says Raj Balakrishnan, head of Mergers and Acquisitions, Bank of America Merrill Lynch.
    CommentQuote
  • How severe will be the RE bust in emerging markets ?

    Foreclosure after real estate bubbles burst in EMs - Moneylife Personal Finance site and magazine

    excerpt from the article.

    A burst real estate bubble in emerging markets would be far more severe and would last much longer. The reason is simple. The legal plumbing in these countries, including foreclosures and bankruptcy laws, is either deficient at best or nonexistent at worst

    It took some time, but they are finally beginning to get it. Leading financial analysts, money managers and economists have commenced to comprehend that real estate bubbles in many emerging markets could crash. The Nobel Laureate economist Paul Krugman wrote in his New York Times column that China was another emerging danger as its credit fuelled real estate bubble burst. The same concept has at last dawned on hedge funds A hedge fund owned by the famous private equity firm Carlyle sent an elite strike team to do a “deep-dive research trip” to China. It won’t help. They might find what is, but they have no idea of what is to be.



    Today the US has a similar problem. Almost 30% of houses sold in the US in 2011 were the result of foreclosures. Over 3 million homes have been foreclosed since the real estate market collapsed. But the market still has not cleared. Although many of the foreclosed homes do get sold, they make up less than one-third of the houses that the banks actually repossess. The banks are slowly leaking these properties on to the market, because they are terrified that too much distressed inventory would depress prices further. The result is that the recovery has been slow. But at least the process is going forward, which is a lot better than nothing at all.
    The US is not the only country that has experienced a real estate bubble. The easy credit sloshing around emerging markets has had a dramatic effect on property. Luxury homes in Mumbai and Singapore have increased by 138% and 144% respectively over the past five years. Real estate in India grew 400% from 2003 to 2008 before the crash and now in some places it is 30% higher than its 2008 peaks.


    Then there is China. Home prices in Beijing have risen by about 150% in the past four years. Like India, they have increased 400% since 2001. Beijing theoretically began to tighten lending especially to real estate two years ago, but their efforts have not been rewarded until the last few months when property prices started to decline.
    Contrary to some true believers, all markets go down as well as up, even emerging markets. Prices are beginning to fall and the falling prices have begun to accelerate.


    The consequences of a real estate bust in emerging markets would create quite a different situation than the real estate bust in developed markets. The rules are much different and so would the outcome. A burst real estate bubble in emerging markets would be far more severe and would last much longer.


    The reason is simple. The legal plumbing in these countries, including foreclosures and bankruptcy laws, is either deficient at best or nonexistent at worst. There isn’t even information on it. Despite diligent search in all financial news sources and general internet search, I have found few if any references to emerging market foreclosures.
    Many economists like to point out that mortgage lending in these countries is still quite small and often requires large down payments. True, but it has been growing at 20% a year in places like India. In China bank-financed construction makes up twice the percentage of the gross domestic product (GDP) as it does in developed countries.


    For a country to grow after the crash of a real estate bubble, the market has to reach equilibrium. To do so requires that over priced homes with delinquent mortgages have to be foreclosed and sold. If the procedure for foreclosure doesn’t exist, then the entire economy gets stuck with massive dud loans and zombie banks as occurred for over a decade in Japan. So when the emerging markets collapse, the recovery will take years.
    CommentQuote
  • Originally Posted by realpune
    Foreclosure after real estate bubbles burst in EMs - Moneylife Personal Finance site and magazine

    excerpt from the article.

    A burst real estate bubble in emerging markets would be far more severe and would last much longer. The reason is simple. The legal plumbing in these countries, including foreclosures and bankruptcy laws, is either deficient at best or nonexistent at worst

    It took some time, but they are finally beginning to get it. Leading financial analysts, money managers and economists have commenced to comprehend that real estate bubbles in many emerging markets could crash. The Nobel Laureate economist Paul Krugman wrote in his New York Times column that China was another emerging danger as its credit fuelled real estate bubble burst. The same concept has at last dawned on hedge funds A hedge fund owned by the famous private equity firm Carlyle sent an elite strike team to do a “deep-dive research trip” to China. It won’t help. They might find what is, but they have no idea of what is to be.



    Today the US has a similar problem. Almost 30% of houses sold in the US in 2011 were the result of foreclosures. Over 3 million homes have been foreclosed since the real estate market collapsed. But the market still has not cleared. Although many of the foreclosed homes do get sold, they make up less than one-third of the houses that the banks actually repossess. The banks are slowly leaking these properties on to the market, because they are terrified that too much distressed inventory would depress prices further. The result is that the recovery has been slow. But at least the process is going forward, which is a lot better than nothing at all.
    The US is not the only country that has experienced a real estate bubble. The easy credit sloshing around emerging markets has had a dramatic effect on property. Luxury homes in Mumbai and Singapore have increased by 138% and 144% respectively over the past five years. Real estate in India grew 400% from 2003 to 2008 before the crash and now in some places it is 30% higher than its 2008 peaks.


    Then there is China. Home prices in Beijing have risen by about 150% in the past four years. Like India, they have increased 400% since 2001. Beijing theoretically began to tighten lending especially to real estate two years ago, but their efforts have not been rewarded until the last few months when property prices started to decline.
    Contrary to some true believers, all markets go down as well as up, even emerging markets. Prices are beginning to fall and the falling prices have begun to accelerate.


    The consequences of a real estate bust in emerging markets would create quite a different situation than the real estate bust in developed markets. The rules are much different and so would the outcome. A burst real estate bubble in emerging markets would be far more severe and would last much longer.


    The reason is simple. The legal plumbing in these countries, including foreclosures and bankruptcy laws, is either deficient at best or nonexistent at worst. There isn’t even information on it. Despite diligent search in all financial news sources and general internet search, I have found few if any references to emerging market foreclosures.
    Many economists like to point out that mortgage lending in these countries is still quite small and often requires large down payments. True, but it has been growing at 20% a year in places like India. In China bank-financed construction makes up twice the percentage of the gross domestic product (GDP) as it does in developed countries.


    For a country to grow after the crash of a real estate bubble, the market has to reach equilibrium. To do so requires that over priced homes with delinquent mortgages have to be foreclosed and sold. If the procedure for foreclosure doesn’t exist, then the entire economy gets stuck with massive dud loans and zombie banks as occurred for over a decade in Japan. So when the emerging markets collapse, the recovery will take years.


    In India, if a person defaults on the loan, there is no foreclosure or bank sale.

    Property is blocked in litigation for AVERAGE 7 years. It is impossible to sell such property.

    Effectively, it goes out of the market and is not available in the supply.

    This reduces the supply and so prices of remaining flats go up and not down.
    CommentQuote
  • Jittery investors selling flats below "market" rate

    Prices have started going down!
    Investors have started selling at discounted rates already! It makes sense to book some profit for the investors and enjoy 10% returns on the FD or even investing in equity at attractive prices now for 4-5 years time frame.

    Jittery investors selling flats below market rate - The Economic Times
    CommentQuote
  • Originally Posted by Venkytalks
    In India, if a person defaults on the loan, there is no foreclosure or bank sale.

    Property is blocked in litigation for AVERAGE 7 years. It is impossible to sell such property.

    Effectively, it goes out of the market and is not available in the supply.

    This reduces the supply and so prices of remaining flats go up and not down.


    I have seen many such properties on sale by Banks for default loans and these were even within one year of the default. Where this 7 years litigation comes from ?

    Also, when multiple people default bank can't survive without selling such property immediately :D.

    Buddy, where is the demand ? Everywhere sales is down. You are also missing the affordability factor which is very important. If people can't afford something, they can't buy. That's the reason people can't buy even if they need it for end use.

    Talking about the supply, well the inventory is piling up across all the cities. Add to it, the investors flats coming at discounted rates now.

    To conclude, prices can't keep on going up indefinitely and inflated prices without any meaningful sale can't be sustained, crash is inevitable!
    CommentQuote
  • Builders sell distressed assets

    Companies go bottom fishing; buy out distressed assets to aid ailing realty sector - The Economic Times

    The heading is a bit misleading. If you see the content, Foreign AMCs are setting up funds to buy distressed assets from builders at a discount of 30% or even more. They expect more distressed asset sale next year!
    CommentQuote
  • Originally Posted by realpune
    Companies go bottom fishing; buy out distressed assets to aid ailing realty sector - The Economic Times

    The heading is a bit misleading. If you see the content, Foreign AMCs are setting up funds to buy distressed assets from builders at a discount of 30% or even more. They expect more distressed asset sale next year!



    Thumbs Up!!!
    CommentQuote
  • According to property research firm PropEquity, nearly half of the 930,000 under-construction residential units in the country, scheduled for delivery between 2011 and 2013, are likely to be delayed by up to 18 months. In recent months, secondary market property sales have been higher than primary sales by developers.

    "This is especially true for projects where a considerable portion of construction work is already complete," says Prashant Kaura, director, GenReal Property Advisers. There has been a rise in secondary sales because many investors are looking at cashing out of projects. The reasons for wanting to exit might differ- while some are facing a cash crunch themselves, others are unsure about the developer they are invested with.
    CommentQuote
  • DLF, partner sell Pune SEZ to Blackstone

    Realty giant DLF today announced that the company and its partner has sold an IT SEZ in Pune to private equity firm Blackstone for Rs 810 crore. DLF, the country's largest realty firm, is selling its non-core assets to reduce debt, which stood at Rs 22,519 crore as on September 30, 2011.
    In a filing to the BSE, DLF said that "the company along with its joint venture partner Hubtown have sold 100 per cent of their respective shareholding in DLF Ackruti Info Parks (Pune) for an aggregate consideration of Rs 810 crore to an entity controlled by realty fund affiliated with Blackstone Group, BRE/Mauritius Investments II".
    DLF and Hubtown held 67 per cent and 33 per cent equity shares in DLF Ackruti SEZ, respectively.
    "The above transaction is in line with the DLF's objective of divesting its non-strategic assets," the filing added.
    DLF has so far raised Rs 3,480 crore from sale of non-cor...
    DLF, partner sell Pune SEZ to Blackstone
    CommentQuote
  • isnt that a shell company

    isnt that a shell company , cause almost all companies in Mauritius are shell companies/fronts for Black money

    Originally Posted by Saurabh01
    Realty giant DLF today announced that the company and its partner has sold an IT SEZ in Pune to private equity firm Blackstone for Rs 810 crore. DLF, the country's largest realty firm, is selling its non-core assets to reduce debt, which stood at Rs 22,519 crore as on September 30, 2011.
    In a filing to the BSE, DLF said that "the company along with its joint venture partner Hubtown have sold 100 per cent of their respective shareholding in DLF Ackruti Info Parks (Pune) for an aggregate consideration of Rs 810 crore to an entity controlled by realty fund affiliated with Blackstone Group, BRE/Mauritius Investments II".
    DLF and Hubtown held 67 per cent and 33 per cent equity shares in DLF Ackruti SEZ, respectively.
    "The above transaction is in line with the DLF's objective of divesting its non-strategic assets," the filing added.
    DLF has so far raised Rs 3,480 crore from sale of non-cor...
    DLF, partner sell Pune SEZ to Blackstone
    CommentQuote