Daily Real Estate brief from PNT
Welcome to the latest edition of?PNT Real Estate Daily! Through our digital only newspaper, we aim to provide a 360 degree coverage of the latest events, stories, updates and occurrences from the real estate industry from around the world.
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Stock market investors Halan family has secured eight luxury apartments totalling 15,996 sq ft in Mumbai's Worli for Rs 103.98 crore. Purchased from K Raheja Corp's Raheja Modern Vivarea, the deal includes 16 parking spaces. The Halan family, with diverse holdings, paid over Rs 6 crore in stamp duty for the properties. Raheja Modern Vivarea is an under-construction project and offers unobstructed views of Mahalaxmi Racecourse and the Arabian Sea, drawing high-profile buyers in a vibrant real estate market. This transaction adds to the vibrant real estate landscape of Mumbai, and Raheja Modern Vivarea continues to be a sought-after address for high-profile buyers.
? A residential flat spanning 438 square feet sold in Shapoorji Pallonji Joyville Virar Phase 3 in Virar West for INR 35 lakhs
? A residential flat spanning 276 square feet sold in Mahavir Villa in Kamothe for INR 30 lakhs
Joint tenancy occurs when two or more people hold title to real estate jointly, with equal rights to enjoy the property during their lives. If one of the partners dies, their rights of ownership pass to the surviving tenant(s) through a legal relationship known as a right of survivorship. Tenants can enter into a joint tenancy at the same time. This usually occurs through a deed.
Macrotech Developers, anticipates Palava City, to become an annual revenue powerhouse surpassing $1 billion. Established in 2010, the 5,000-acre Palava City has evolved into a self-sustaining ecosystem, showcasing urban progress. With Phase 1's success and ongoing Phase 2 expansion, it accommodates residential and commercial spaces, including offices, life sciences hubs, and industrial areas. Palava's strategic location has attracted diverse businesses, joint ventures with Morgan Stanley Real Estate Investing and partnerships with Bain Capital and Ivanhoe Cambridge. The development's economic vibrancy is set to contribute 15% to Lodha's sales exceeding Rs 14,500 crore in the current fiscal year. Beyond being a residential hub, Palava City stands as a testament to sustainable growth and economic vitality, with smart technology ensuring efficiency and green practices.
Suraksha Group, a leading Mumbai-based real estate firm, proudly unveils Suraksha Smart City, a highly anticipated township initiative in Vasai. Recently honoured by the Maharashtra Chamber of Housing Industry for the Best Affordable Project, this sprawling 300-acre integrated township is positioned as one of the largest greenfield developments in Vasai-Virar. Offering well-designed apartments with a focus on natural light and ventilation, the mega township is strategically located just a short walk from Vasai Station. Suraksha Smart City offers lifestyle amenities and essential social infrastructure, including schools, colleges, hospitals, playgrounds, markets, and community centres.
In a recent development, the Enforcement Directorate (ED) has seized 62 immovable properties linked to Heera Construction Company, its managing director Abdul Rasheed, Heera Educational and Charitable Trust, and sister company Hera Summer Holiday Homes. The assets, valued under the Prevention of Money Laundering Act (PMLA), include properties owned by Rasheed's trust and associated businesses. The central agency confirmed the attachment in a statement, marking a significant move in their efforts to curb financial irregularities and money laundering activities associated with Heera Construction and its affiliated entities.
Omaxe Group has successfully closed a Rs 440 crore loan from Varde Partners, originally secured in 2022 for the Omaxe Chowk project. The company, expressing financial discipline, fully repaid the loan along with accrued interest. Simultaneously, Omaxe secured a new Rs 450 crore financial assistance from Kotak Mahindra Bank. Out of this, Rs 290 crore was used to settle the Varde Partners loan, with the remaining Rs 160 crore allocated for project development. Omaxe aims for sustained growth, emphasizing its commitment to financial resilience. The company continues its successful real estate ventures, with several ongoing projects and expansion plans across Tier II and III cities.
Indian real estate developers, including Bagmane Developers, DLF, and Prestige Estates Projects, are delaying or abandoning their Real Estate Investment Trusts (REITs) plans due to market challenges and regulatory hurdles. Despite existing REITs showing modest returns, factors such as high interest rates, slow office uptake, and regulatory norms have deterred developers. Nuvama Research indicates office REITs yielded 5.9% to 8.9% last year, with limited improvement expected. Existing REITs, largely subscribed to by institutional investors, underperformed until recently, impacting some investors. Vacancy rates in the office sector, at 18%, and regulatory changes, like sponsors' perpetual involvement, contribute to developers' cautious approach, waiting for favourable conditions.
Edelweiss Special Opportunities Fund has reportedly provided a Rs 350 crore debt facility to Shreshta Infra Projects Pvt Ltd, an entity associated with Bengaluru's Adarsh Developers. The financial support will be utilized to repay ongoing loans and complete two under-construction projects. The debt facility comprises listed, secured, and rated non-convertible bonds, featuring a 41-month and 24-day tenor with a 20.5% annual interest rate. Shreshta Infra, a special purpose vehicle of Adarsh Developers, plans to infuse Rs 200 crore through convertible debentures into affiliate companies for debt settlement and allocate the remaining Rs 150 crore for specific projects and general corporate purposes. Acuite Ratings assigned a 'Acuite B Stable' rating to the bonds on December 29, 2023. As of December 31, 2023, Adarsh Group had total sales receivables of Rs 1,034 crore and a cash balance of Rs 54.8 crore.
The Shriram Group is in discussions with Warburg Pincus and Bain Capital for the sale of its housing subsidiary, Shriram Housing Finance Ltd., at an estimated value of Rs 5,000 crore. This move, part of a Chennai-based growth strategy restructuring, involves Shriram Finance holding an 85% stake and engaging reputable investment banks like Barclays, JM Financial, and Avendus Capital. Talks suggest potential deal closure by the end of the upcoming June quarter. The market has responded positively, with bids in the Rs 5,000–5,500 crore range, indicating high valuation and credibility of potential acquirers. Proceeds from the sale will fortify the group's financial services portfolio and support new ventures.
Boeing, the prominent US aircraft manufacturer, has unveiled its cutting-edge warehousing facility, the India Distribution Centre, in Khurja, Uttar Pradesh. Spanning 36,000 square feet and operated in collaboration with DB Schenker, the centre is a key hub among Boeing's global distribution network, focused on shipping spare parts for its commercial clients. This strategic move aims to enhance support for regional aviation customers, optimizing fleet utilization and providing swift responses to emergent spare parts requirements in India. Positioned strategically along the Eastern Freight Corridor, near Delhi and the upcoming Jewar airport, the facility symbolizes Boeing's commitment to efficient customer service and marks a significant advancement in its global logistics strategy.
Juniper Hotels, set for a late January or early February IPO, is strategically shifting towards developing large-scale luxury hotels in key metros like Delhi, Mumbai, and Bengaluru, departing from the mid-market segment. The CMD, Arun K. Saraf, anticipates robust growth in the luxury category due to a limited projected increase in supply over the next five years. The company aims to leverage its strong partnership with Hyatt and maintain brand agnosticism. The IPO, contributing Rs 1,800 crore, seeks to deleverage and fuel future expansion while maintaining ownership structures.
KKR's Highways Infrastructure Trust (HIT) has revealed its acquisition of 12 road projects from PNC Infratech and PNC Infra Holdings, constituting one of India's most substantial transactions in the road and highways sector, valued at Rs 9,005.7 crore. Pending approval from regulatory authorities and banks, the portfolio includes 11 hybrid annuity concessions from the National Highways Authority of India and one toll road concession from the Uttar Pradesh State Highways Authority. Encompassing around 3,800 lane kilometres across multiple states, this move significantly expands HIT's infrastructure footprint, emphasizing a strategic commitment to India's growing infrastructure sector and fostering expectations of improved connectivity and economic growth in the regions involved.
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