Piramal Fund Management forays in Ahmedabad with Rs 225-crore investment

Ajay Piramal-led Piramal Fund Management has invested total Rs 225 crore in a realty project of developer Ganesh HousingBSE 6.92 % Corporation. The real estate investment platform of Piramal Enterprises has invested in the project spread over 10 acres in Ahmedabad through debt. 

The transaction marks Piramal Fund Management's foray into Ahmedabad and any tier II city. The fund has so far been focusing on top five property markets including Mumbai, Pune, Bangalore, National Capital Region and Chennai. 

Apart from our investment focus in on top five cities, we will also be looking at tier II cities with prominent markets like Ahmedabad, Kolkata, Nagpur, Nashik, Coimbatore and Jaipur," Khushru Jijina, MD, Piramal Fund Management told ET. "Our decision to expand our target geographies was based on a great deal of research in potential target locations and we found Ahmedabad to be a viable destination for investment and look forward to expanding our presence over time." 

The fund has invested around Rs 200 crore in the project to support Ganesh Housing's acquisition of the land parcel situated close to Surdhara Circle in Thaltej, Ahmedabad, while Rs 25 crore have been sanctioned as working capital for the project. 

The project is estimated to have total development potential of 1.8 million sq ft of saleable area. It will be developed as a mixed use project with a combination of 12 residential towers coupled with both commercial as well as a high street retail component. 

The deal has been structured as a fixed return investment of over 18% with appropriate security and control mechanisms in place. The project is expected to be completed in the next five years, which is also the tenure of the debt. 

Piramal Fund Management's structured investments division invests in various sectors including infrastructure and total funds under management under these businesses are around $2 billion. Piramal Fund also has strategic alliances with pension funds like CPPIB Credit Investment and APG Asset Management. 

Source: EconomicTimes

At 30,000 crore, Indians, the biggest foreign investors in real estate sector of Dubai

The Dubai land department released the figures last week, stating that Indians were the highest value foreign investors, making 7,353 transactions of 18.123 billion AED (Arab Emirates Dirham) worth of property deals. The investment also exceeds annual budgets of many small states of India, including Goa, Sikkim and Meghalaya.

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Indians were the biggest foreign investors in real estate sector of Dubai last year, having invested more than Rs 30,042 crore. The amount is almost equal to the annual budget of Bombay Municipal Corporation, which is around Rs 31,000 crore and comes close to Rs 35,000-crore plus annual budget of the national capital.

On the contrary, the total investment of United Arab Emirates in India in last 14 years is less than half of what Indians invest in real estate of Dubai every year.

The Dubai land department released the figures last week, stating that Indians were the highest value foreign investors, making 7,353 transactions of 18.123 billion AED (Arab Emirates Dirham) worth of property deals. The investment also exceeds annual budgets of many small states of India, including Goa, Sikkim and Meghalaya.

The lure of Dubai’s real estate market has resulted in many cash-rich Indians finding investments in that country more easy and profitable than in India.

“Most of the real estate developers in India are struggling with their projects, both residential and commercial. Naturally investors will go to places that promise huge returns,” Director General of National Real Estate Development Council, Brigadier (retd) R R Singh, told Zee Media. Even though the sector has shown a little improvement in last few months as per Singh, he reiterates that India continues to be ‘suppressed and economically subdued market as far as real estate is concerned.’

“We have attracted very less foreign investment in real estate sector. It would be just a few thousand crores in last financial quarter,” he added.

According to Indian government statistics, the country has received foreign investment of Rs 1.12 lakh crore in last 14 years from April 2000 to November 2014 in construction and development sector. And United Arab Emirates has invested just Rs 14,000 crore in India in last 14 years, across all sectors.

However, the other side of the story is that Dubai is also considered a tax haven, where huge amount of black money from India is allegedly parked or is routed through. According to sources, a few high profile and retired bureaucrats from India have also invested in the real estate sector of Dubai in 2014. However, individual transaction details could not be accessed yet.

In 2014, Dubai has received a total foreign investment of AED 109 billion from more than 41,000 investors in real estate sector.

One of the reasons for the resurgence of development in Dubai in last few years could also be World Expo 2020, the city is hosting. UAE has won the right to host the World Expo in Dubai in 2020 and it will be the first time that the world expo is staged in the Middle East, North Africa and South Asia.

“Dubai is an ideal investment location in Middle East and is competing with top investment cities in Asia and Europe. The report (on investments) clearly shows the sustainable growth of the upcoming years towards the launch of Expo2022″, said Director General of Dubai Land Department, Sultan Butti Bin Merjen.


The other big non-Arab foreign investors in Dubai include Pakistan, Britian, Iran and Canada.

Source: PropertyBlogs

Be alert while investing your money in real estate

In Today's world everybody is concern about its future and  hence invests its hard earned money in Gold, Real Estate, LIC, and other insurance companies. One of the major investment is being done in real estate because it is the fastest growing and safest investment in the world . But sometimes people are confused for Investment in real estate because of lack of information regarding property they buy, sell or for lease. One thing is most important for investment in real estate is gathering information such as their market value at that time and the future scope of the development in that area.

There are many top private as well as government real estate companies and one of them is HUDCO ltd. It is one of the well known real estate company in the world managed by Indian Government. At the time of crisis it played an important contribution in rehabilitation. It deals with Housing Projects, Infrastructure management Project and also Provide Housing loan.

In my opinion the policy of this Organization is well suited for rich as well as poor person of our country. One of my friend had an investment in a real Estate Company and was not satisfied with their services. Later, he switched to Hudco ltd. and now he is very happy and satisfied with their services. It is an organization recognized by Indian government. Their customers are satisfied with the services provided to them. The most important thing that everyone need is security that has been provided by Hudco. They pay attention on the benefits of their customers rather than on the money. They provide better services at lower cost rate. And such companies directly reflects the economy of the country. Its just a real estate war going on between many organisations/companies/investor so be alert and hence be safe.

REITs will get investments, no need for more sops: Officials

Real Estate Investment Trusts will help attract more funds into the realty sector and there is no need to provide more tax concessions for it, a senior government official said on Thursday.

REITs and Infrastructure Investment Trusts (InvITs) are expected to bring in more global investment and bring transparency into the real estate and infrastructure sectors, respectively.

Capital market watchdog Sebi, whose board last month approved regulations for REITs, is expected to soon notify the new norms.

Additional Secretary, Department of Economic Affairs, Dinesh Sharma said that such trusts would help in attracting more funds.

Read More: http://zeenews.india.com/business/realestate/latest-news/reits-will-get-investments-no-need-for-more-sops-officials_108984.html

Where to invest your hard earned money?

In the present scenario, money is the golden key which enables an entrepreneur or an individual to unlock the door that leads him to the zenith of success but on the other hand money is not everything. The success or progress of individual or business personnel entirely depends on its management skills i.e. what to do with the available money, where to invest, and how to invest, etc. If the person lacks such management skills and fails to understand such concept, his growth will become static and he will be far apart from the line of success.
One of the major sectors that have become very popular in terms of investment is real estate. With the aim of obtaining fruitful return after a certain period of time, looks to be a new place for individuals. It’s important to invest money in some profitable schemes like LIC, medical insurance, etc but on the other hand it is also important to have a healthy life and own property to have one less thing to be tensed about. This can be done by investing in real estate sector because of the large and long term profit. And specially, it gives the livelihood to the person that is the major issue in today's world.
It has been seen many times that people fear investing their money in real estate because many builders never fulfill what they promise to their investor; but it will be unfair to say that it is same for all the builders. We just need to be aware and alert of such frauds. It’s nothing really, just a real estate war going on between various builders. Most of the people invest in real estate to earn profit that sometimes creates a lot of problem for those who are in real need of the house. This gives the negative impact on our Economy also. The richer get rich day by day and the poor people never are able to uplift themselves in life and own a decent house.
But yes there are very few builders or real estate companies who actually fulfill and give livelihood to the genuine people. Also what they say fulfill that on time. It is really very difficult to search for such a builder/real estate company because all of them are not bonafide and doing business with the sole aim of working and fulfilling what they say to their customers. Companies like DLF, Imperia Structures, Nitesh Estates Ltd., Emaar MGF embrace the faith of the investors thus turning real estate sector to be a profitable and trustable pact for the patrons.
Now, one more thing I would like tell everyone is learn about real estate. Real estate provides the highest returns, the greatest values and the least risk but the condition is that the people should only invest in the companies that are authenticated. Real estate investing, even on a very small scale, remains a tried and true means of building an individual's cash flow and wealth.

How can you buy property for Rs 2 lakh? REITs to help investors

If you have Rs 2 lakh to invest, your bank may roll out a red carpet, your stock broker may inundate you with hot tips and the friendly neighbourhood jeweller may even offer a discount on making charges. However, you will probably get laughed out of the estate agent’s office. Not anymore. With Sebi issuing final guidelines for real estate investment trusts (REITs), you will soon be able to get a piece of the action in the property market with as little as Rs 2 lakh.
REITs are just like mutual funds, but instead of using the money collected from investors to buy stocks and bonds, they invest in property. After more than a decade of discussions, this unique form of mutual fund is finally taking shape in India. Last month, the Union Budget removed an important hurdle by giving pass-through taxation status to REITs.
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