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  • Re : Indian Real Estate News

    Brookfield REIT plans $600 million IPO

    The Canadian asset manager is filing the Draft Red Herring Prospectus (DRHP), making it the third REIT to be listed in the country after Embassy Office Parks and Mindspace, they added.
    • PTI
    • September 30, 2020, 08:39 IST

    MUMBAI: Global asset management major Brookfield will file for a USD 600 million (around Rs 4,440 crore) initial public offering for its real estate investment trust (REIT), merchant banking sources said on Thursday.

    The Canadian asset manager is filing the Draft Red Herring Prospectus (DRHP), making it the third REIT to be listed in the country after Embassy Office Parks and Mindspace, they added.

    The REIT is sponsored fully by Brookfield and the company is set to raise up to USD 600 million, the sources told PTI.

    Typically, an asset manager lists assets against which the company keeps getting steady rentals and such a move helps the company get some of the invested capital released.

    The Brookfield REIT is likely to list by mid-December or early January, the sources said.

    At present, the REIT has total assets of 14 million square feet, of which 10 million sq ft is completed.

    Cities, where it has invested, are Mumbai, Gurugram, Noida and Kolkata and includes key properties like Kensington SEZ and Hiranandani Gardens, Powai.

    The global coordinators for the issue include Bank of America, Citi, Morgan Stanley and HSBC, the sources said.










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    • Re : Indian Real Estate News

      PMAY-Gramin hit an all-time low with a mere 0.06% of houses being completed

      A review conducted by rural development ministry, the nodal ministry for implementation of the mission, has revealed that the government has set a target of completing 61.50 lakh houses this year.
      NEW DELHI: The pace of Pradhan Mantri Awas Yojana (Gramin) – the government’s flagship housing mission to provide pucca houses in rural India – has hit an all-time low with a mere 0.06% of houses being completed in the current fiscal.

      A review conducted by rural development ministry, the nodal ministry for implementation of the mission, has revealed that the government has set a target of completing 61.50 lakh houses this year. So far, 2880 houses have been completed.

      The Centre has set the target of completing 2.47 crore houses by March 31, 2022. Of this, 1.21 crore houses have to be completed in Phase II between March 2019 and March 2022. The internal review with states has revealed that so far in Phase II only 64% houses have been sanctioned and 54% beneficiaries have received the first installments.

      In the review, ministry pointed out that states had not even issued targets to districts, which was essential to increase the implementation pace. The states now face the daunting task of releasing the target to districts and sanction houses to eligible beneficiaries by October 31.

      Even though the poor pace of completion in the current fiscal can be attributed to lockdown initiated at the very beginning of the financial year, the rural development ministry has red-flagged the implementation in 2019-20. The progress in 2019-20 has been much less as compared to previous years.

      The performance of Assam, Bihar, Karnataka, Maharashtra, Nagaland, Mizoram, Tamil Nadu, Jammu and Kashmir and Meghalaya in Phase-II was below national average of 39% in completion of houses against the target, the review has revealed.

      The rural development ministry also expressed concern over delayed houses. The review revealed 13 states contribute 99% of delayed houses. Overall there are 6,39,153 delayed houses with election-bound Bihar has the highest number of delayed houses at 1,77,921.

      Of this, 97,362 houses should have been completed four years back in 2016-17 financial year. The states have been asked to finalise a timeline for completion of the delayed houses. After Bihar, Odisha has the highest number at 94,010, followed by Tamil Nadu 68,138, Madhya Pradesh 64,163 and Maharashtra 48,674.











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      • Re : Indian Real Estate News

        India office property market shows resilience, Q3 absorption up 64% on-quarter

        “While we continue to see the impact of the pandemic on various businesses, there is a significant surge in activity across most office markets under consideration. This is seen in gross leasing which more than doubled from the previous quarter at 13.8 million sq ft,” said Ramesh Nair, CEO and Country Head, India, JLL.
        MUMBAI: Indian office property market has shown resilience as indicated by the rising net office take up despite the impact of Covid-19 on the business environment and the emerging challenge of the Work-from-Home model.

        Office property markets across the country have witnessed a net absorption of 5.4 million sq ft in the quarter ending September, a 64% rise against the June quarter that was impacted significantly due to the lockdown, showed data from JLL India.

        The jump in office absorption is an encouraging trend especially after it dipped almost at a similar rate in the second quarter.

        “While we continue to see the impact of the pandemic on various businesses, there is a significant surge in activity across most office markets under consideration. This is seen in gross leasing which more than doubled from the previous quarter at 13.8 million sq ft,” said Ramesh Nair, CEO and Country Head, India, JLL.

        At the same time, Nair also highlighted that large and mid-sized occupiers across major markets continue to review their real estate portfolios in a bid to optimize cost and higher emphasis is being given to sustainability and employee well-being as well as adoption of flexible working practices.

        While the share of occupiers from information technology (IT) and IT-enabled services segment in gross leasing dipped to 43% in the quarter from 61% in previous quarter, e-commerce and manufacturing sectors gained significant share and supported the market.

        Owing to surging demand of e-commerce during the pandemic, occupiers from this sector formed 16% of leasing in July-September as against almost negligible proportion the previous quarter, while share of manufacturing occupiers also rose to 17% from 5% previous quarter.

        The third quarter office rebound growth was led by Bengaluru and Hyderabad, which together accounted for nearly 80% of the net absorption. The heightened activity in Bengaluru indicates a gradual resurgence in take up of spaces coupled with the translation of pent up demand from the previous quarter.

        New completions during the period increased 59% on-quarter with 9.2 million sq ft of new stock coming to market indicating confidence.

        “With lockdown restrictions being relaxed in the third quarter in most of the markets under review, office projects in the final stages of construction or pending receipt of occupancy certificates came onboard. This resulted in an increase in the supply of office space, even surpassing 8.6 million sq ft witnessed in Q1 2020,” said Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.

        In sync with net absorption, Bengaluru and Hyderabad led the increase in new completions accounting for 87% of the total new completions during the period. Interestingly, new completions in both these markets even went past the average new completion levels witnessed in the four quarters of 2019.

        Increased office space consolidation and optimization strategies of corporate occupiers resulted in subdued net absorption levels, which could not keep pace with new completions. This resulted in overall vacancy increasing marginally to 13.5% from 13.1% in the previous quarter.

        Despite the rise in vacancy levels in southern markets, Bengaluru, Chennai and Pune continued to hover in single digits, which augurs well for a robust rebound in these markets when economic and business conditions improve in the coming quarters.

        Rentals across key cities remained stable except for Bengaluru that witnessed a marginal increase in rents. Stable rental values and low vacancy levels, the office market in India continues to be landlord favorable. However, owners have also become more flexible in providing increased rent free periods, reduced rental escalation and fully furnished deals to prominent occupiers lowering their net outgo.










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        • Re : Indian Real Estate News

          Homebuyers prefer ready projects; southern cities lead completions

          The Southern markets including Bengaluru and Hyderabad have seen the completed projects sell faster as mere 5% and 6% of completed projects in these cities, respectively are yet to be sold.
          MUMBAI | BENGALURU: The rising preference for ready and completed projects in the backdrop of concern over deliveries is getting underscored further during the current Covid19 induced uncertainty. Completed projects are emerging as the other segment apart from affordable and mid-segment projects that is clicking with homebuyers.

          The low proportion of completed projects in total unsold inventory is indicating this preference. Out of total 792,490 completed projects that were launched between 2013 and the recently concluded September quarter across India, around 90% have already been sold, showed data from ANAROCK Property Consultants.

          The Southern markets including Bengaluru and Hyderabad have seen the completed projects sell faster as mere 5% and 6% of completed projects in these cities, respectively are yet to be sold. Chennai also has sold over 90% of completed projects during this period.

          In Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) too, nearly 90% of the completed projects during this period have already been sold.

          “Predominantly driven by end-users from the IT/ITeS sector, the conservative housing markets of the Southern cities also benefit from the proactive project completion focus of developers active there,” Anuj Puri, Chairman, ANAROCK Property Consultants.

          Altogether more than 23 lakh units were launched between 2013 and third quarter of 2020 across the top 7 cities, of which 34% are completed. Another 19% is scheduled to complete within the next 12 months, and another 19% between one to two years.

          The ongoing pandemic has pushed the already growing preference for ready projects further and this will continue even after the current health crisis gets over.

          “The Covid19 pandemic has added to the importance of ready possession homes, but the reasons are different. From savings in form of GST to the advantage of being able to move in once payment and formalities were completed, the biggest plus point is that COVID-19 has brought in the factor of urgency in being able to move in the new home,” said Niranjan Hiranandani is President (National) NAREDCO and Assocham.

          According to him, either the previous home was rented; or smaller in size – families need ready to move in homes which can also offer ‘work from home’ as also ‘study from home’ – and, both at the same time. The safety and ‘secure from the pandemic’ aspect is what drives most home seekers in the post-COVID-19 world to opt for ready possession homes.

          Out of all the projects launched and completed between 2013-till date, the average time to complete projects in Chennai, Bengaluru and Hyderabad was between 4.1 and 4.3 years for smaller projects with 100-500 units each and between 5.5 - 5.9 years for large projects with over 500 units each. This is significantly less than the average completion time in NCR, where it is 6 years and 7.2 years, respectively.

          In MMR, new launches were nearly 6.26 lakh units during the period and of this, 28% have already been completed. Average completion time for projects in the country’s financial capital stood at 5.4 years for small projects and 6.5 years for large ones.











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          • Re : Indian Real Estate News

            Finish time for housing projects longest in Delhi-NCR, south metros do much better: Survey

            Rao Jaswant Singh | TNN | Updated: Oct 10, 2020, 14:36 IST



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            • Re : Indian Real Estate News

              SVAMITVA to bring in 'historical change' in villages across country: PM

              SVAMITVA is a Central Sector Scheme of the Ministry of Panchayati Raj, which was launched by the Prime Minister on National Panchayati Raj Day, April 24, 2020.
              • ANI
              • Updated: October 12, 2020, 09:44 IST

              NEW DELHI: The 'Survey of Villages and Mapping with Improvised Technology in Village Areas' (SVAMITVA) scheme will bring "historical changes" in the villages across the country, said Prime Minister Narendra Modi on Sunday at the launch of the yojana which aims to provide the 'record of rights' to village household owners in rural areas and issue Property Cards.

              "The scheme is going to bring "historical change" in the villages of the country. Today, one lakh people have got ownership letters for their houses. Many congratulations to those who have downloaded their ownership card. I am delighted that such great work is being done on a day that has historic importance. Today, is the birth anniversary of Lok Nayak Jayaprakash Narayan and Nanaji Deshmukh," the Prime Minister said during the event.

              During an interaction with the Prime Minister, the beneficiaries of the SVAMITVA scheme expressed their gratitude towards the Central government, stating that the scheme would help in reducing disputes over property and make it easier for them to avail of bank loans.Prime Minister Modi congratulated people residing in rural areas of various states including Madhya Pradesh, Uttarakhand and Uttar Pradesh.

              Ramamilan, a native of Barabanki in Uttar Pradesh told the Prime Minister that the scheme would make it easier to get a bank loan, while Suresh Chand from Uttarakhand said that getting the right to property would provide them relief.

              Ramrati from Barabanki, while speaking to the Prime Minister said that they feel very safe as they have received the documents for the property.

              Mumtaz Ali from Yamunanagar in Haryana also thanked Prime Minister over the launch of the scheme and said that he is received a loan of Rs 3 lakhs on the basis of a property card.

              SVAMITVA is a Central Sector Scheme of the Ministry of Panchayati Raj, which was launched by the Prime Minister on National Panchayati Raj Day, April 24, 2020.

              The beneficiaries of the scheme are from 763 villages across six states including 346 from Uttar Pradesh, 221 from Haryana, 100 from Maharashtra, 44 from Madhya Pradesh, 50 from Uttarakhand and two from Karnataka. The move will pave the way for using the property as a financial asset by villagers for taking loans and other financial benefits.

              The scheme is being implemented across the country in a phased manner over a period of four years (2020-2024) and would eventually cover around 6.62 lakh villages of the country.












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              • Re : Indian Real Estate News

                Oil ministry wants PSUs to build 50,000 houses for renting to migrant workers

                The ministry wants IOC and other public sector undertakings (PSUs) under its administrative control such as Hindustan Petroleum Corp Ltd (HPCL), Bharat Petroleum Corp Ltd (BPCL), GAIL India Ltd and Oil and Natural Gas Corp (ONGC) to build the housing units on the land they have, three officials who attended a meeting on the subject said.
                • PTI
                • October 12, 2020, 18:00 IST

                NEW DELHI: The petroleum ministry has asked oil PSUs such as Indian Oil Corp (IOC) to build 50,000 houses for renting to migrant workers as part of government plan to develop affordable rental housing after millions of labourers fled cities for villages amidst coronavirus lockdown.

                The ministry wants IOC and other public sector undertakings (PSUs) under its administrative control such as Hindustan Petroleum Corp Ltd (HPCL), Bharat Petroleum Corp Ltd (BPCL), GAIL India Ltd and Oil and Natural Gas Corp (ONGC) to build the housing units on the land they have, three officials who attended a meeting on the subject said.

                The meeting, they said, was chaired by Oil Minister Dharmendra Pradhan who asked the PSUs to come up with plans to build the housing units at the earliest.

                The ministry had on October 5 tweeted about the meeting saying Pradhan "held a meeting with officials of MoPNG and PSUs to review the efforts made by PSUs in providing houses on rent to migrants and urban poor working on oil & gas projects under the affordable rental housing scheme of @MoHUA_India."

                MoPNG is the Ministry of Petroleum and Natural Gas, while MoHUA is the Ministry of Housing and Urban Affairs.

                "The Affordable Rental Housing Complexes, a sub-scheme of #PMAY aims to provide ease-of-living to urban poor and migrant workers in need of affordable housing near their work sites as a result of the #Covid19 induced reverse migration," the ministry had tweeted without giving details.

                Under diktat from the ministry, the PSUs have started looking for scarce land within or near their installations for the housing project, the officials said.

                However, some of the PSUs officials found little merit in the move.

                They said operating units such as refineries rarely have spare land and they often struggle to house new units or staff. Also, the new projects such as pipelines are in remote areas where migrant workers may not be willing to go and rent.

                Those working on oil and gas projects are often housed in temporary housing units near the project sites and it may be difficult to get them into rented units, they said.

                The government had in July approved a plan to develop affordable rental housing for migrant workers after millions of labourers fled cities for villages as the lockdown left many of them without jobs and homes.

                The scheme, part of a housing project aimed at providing housing for all by 2022, was aimed at converting existing vacant government housing into affordable rental housing complexes (ARHC). Private developers could also participate.

                The programme will benefit about 3,00,000 workers initially, according to the Ministry of Housing and Urban Affairs statement issued after the Cabinet approval of July.

                The plan, announced initially in May as part of a coronavirus stimulus package and approved by the Cabinet in July, will offer subsidised loans, tax incentives and additional floor space allowances to developers.

                No government agency has a database of the total number of migrant workers in India. The government had recently informed the Supreme Court that approximately 1 crore migrant workers had returned home in Shramik Special trains, buses and on foot since the lockdown began on March 25.









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                • Re : Indian Real Estate News

                  Government to offer incentives for ARHCs development: Housing Minister

                  A total of 24 states and union territories have already signed Memorandum of Understanding (MoA) with the central government to implement this scheme in their respective regions.
                  MUMBAI: The government is extending several incentives including free Floor Space Index (FSI), concessional project finance and free of cost trunk infrastructure facilities to push participation in the Affordable Rental Housing Complexes (ARHCs) scheme for urban poor and migrants, said Hardeep Singh Puri, Minister of State, Housing and Urban Affairs.

                  A total of 24 states and union territories have already signed Memorandum of Understanding (MoA) with the central government to implement this scheme in their respective regions.

                  “Am 100% confident that other states will also come on board soon as they are also facing a similar issue of affordable rental housing shortage for migrants and urban poor. I will personally write to chief ministers of states that are yet to sign the agreement,” Puri said while launching a dedicated portal for ARHCs scheme. “We are witnessing good interest among private entities too for the scheme.”

                  Three private entities have already offered their commitment to build a total of around 2,800 such houses in Jaipur, Baroda, Bahadurgarh and Bengaluru.

                  He also released the model Request for Proposal (RFP) for selection of Concessionaire by states and union territories under model I, and Draft Expression of Interest (EOI) for short-listing of entities under inviting the expression of interests for the scheme under model II.

                  These complexes will be implemented by utilizing existing government funded vacant houses to convert into ARHCs under the first model, while under the second model construction, operation and maintenance will be by public or private entities on their own available vacant land.

                  In July, the Union cabinet approved the Affordable Rental Housing Complexes (ARHCs) scheme under Pradhan Mantri Awas Yojana - Urban (PMAY- U) to provide budget rental accommodation to poor and migrant workers in urban areas. This is estimated to benefit more than 350,000 people.

                  As per this sub-scheme under the Pradhan Mantri Awas Yojna (PMAY), existing vacant government-funded housing complexes across key cities will be converted into ARHCs, and offered to concessionaires for 25 years to rent out the units to urban poor and migrant workers. State and civic bodies will select concessionaires through bidding, according to guidelines issued by the housing and urban development ministry.












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                  • Re : Indian Real Estate News

                    DHFL: 63 Moons asserts Wadhwan cannot offer properties to banks for settlement

                    It had invested Rs 218 crore in non-convertible debentures issued by DHFL on an assurance of a high rate of interest of over 9 per cent per annum, but the troubled firm allegedly failed to make any payment after 2016-17.
                    • PTI
                    • Updated: October 22, 2020, 20:22 IST

                    MUMBAI: Countering DHFL promoter Kapil Wadhwan's settlement offer to an RBI administrator by transferring his rights in properties worth over Rs 43,000 crore, 63 Moons Technologies has served a cease and desist notice against any such move citing Madras High Court's injunction order barring the NBFC from selling, alienating or encumbering any asset.

                    63 Moons had filed civil and criminal cases against DHFL and Wadhawans, accusing them of fraud and siphoning off money. It had invested Rs 218 crore in non-convertible debentures issued by DHFL on an assurance of a high rate of interest of over 9 per cent per annum, but the troubled firm allegedly failed to make any payment after 2016-17.

                    In its plea before the courts, 63 moons had alleged that DHFL and Wadhwans "have siphoned off the public money and invested in Shell companies and tried to default the investors".

                    The Jailed promoter of crisis-hit DHFL, Kapil Wadhawan had offered his personal and family properties, which he claims are worth Rs 43,000 crore, for repayment of outstanding loans of lenders to the company. He wrote to RBI-appointed administrator R Subramaniakumar on October 17 saying his offer would ensure maximum value for the assets that have been put on the block to repay loans.

                    In a press release issued on Thursday, 63 Moons said it has sent a cease and desist notice to Kapil Wadhwan on Wednesday after coming to know of the "shocking" offer made by him despite a June 24 interim order which has been extended till November 23, the Madras High Court has said that Wadhwans cannot sell or encumber or deal with any of their assets.

                    Wadhwan's offer is "shocking" because there is an injunction regarding the same passed by the Madras High Court, the release said, asking for a probe on the assets in the settlement offer made to the RBI's administrator.

                    "The very fact that Kapil Wadhwan has now declared such huge assets when, in fact, he has never disclosed previously any of this personal wealth, points to the fact that he has, in all probability, siphoned off this huge amount from DHFL and laundered it by projecting it as his or his family's property," 63 Moons said.

                    It said every investor, creditor and lender of DHFL has a right to know if the Wadhwans have moved attached DHFL properties into their personal names or if they have earlier refrained from disclosing certain high value assets to the law enforcement agencies and the judiciary.

                    It sought attachment of all assets of Kapil and Dheeraj Wadhawan and their family members and also of entities owned and controlled by them and their family members.

                    Citing a report by Grant Thornton which was commissioned by the resolution professional, which had found siphoning off of Rs 20,000 crore of lenders' money to promoters of DHFL or entities controlled by them, it said a custodial interrogation of the Wadhwans is necessary for understanding the same.

                    Currently under judicial custody, Wadhawan has proposed to the transfer of the right, title and interest in various projects which form part of the real estate portfolio of his family to enable proper and complete resolution of DHFL and to maximise the value of the properties.

                    The valuation of these projects, including Juhu Galli project and Irla project, is about Rs 43,879 crore that to at a 15 per cent lesser market value, the letter dated October 17 said.

                    Last week, Adani Group, Piramal Enterprises and two other entities placed bids for DHFL, the first financial services player undergoing insolvency process, according to sources.

                    The US-based Oaktree and Hong Kong-based SC Lowy submitted bids for DHFL on October 17, the last date to submit final bids, the sources said.

                    In November, the Reserve Bank referred DHFL, the third largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.













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