Daily Real Estate Newspaper
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Deepak Builders and Engineers, a leading construction company in India, has filed paperwork with market regulator SEBI to raise funds through an initial public offering. The company aims to issue 1.44 crore shares to strengthen its balance sheet and meet working capital needs. Funds raised will repay debt, support operations and explore opportunities. Deepak Builders specializes in various project types like buildings, hospitals and facilities. It has a proven track record of executing turnkey projects. Through the IPO, the company wants to enhance capabilities to sustain growth in the competitive engineering sector.
Multi-Modal Logistics Park (MMLP) refers to a freight-handling facility encompassing a minimum area of 100 acres (40.5 hectares), with various modes of transport access. It comprises mechanized warehouses, specialized storage solutions such as cold storage, facilities for mechanized material handling and inter-modal transfer container terminals, and bulk and break-bulk cargo terminals. It is a type of Logistics Park where various value-added services are rendered in addition to rail/road-based transportation. The purpose of MMLP is to reduce coordination among different parties during transfer of cargo from one mode to another.
Premium real estate developer Ashiana Housing sold out 224 luxury flats worth INR 440 crores within 15 minutes of launch. The project 'Ashiana Amarah Phase 3' located in Gurugram sector 93 saw registration begin at 11 am, with 800 cheques received by 11:15 am for the 224 units. Company JMD Ankur Gupta attributed the incredible response to their quality offerings and strong brand value over the years, as well as the kid-centric amenities appealing to buyers seeking better quality of life for their children. Going forward, Ashiana Housing aims to continue expanding its premium portfolio across India.
Kolte-Patil Developers' annual sales in FY24 reached 3.92 million square feet, marking a significant 20% increase compared to the previous fiscal year's 3.27 million square feet. This surge underscores the company's robust performance and growing market presence. The uptick reflects strong demand for their real estate offerings. In Q4 FY24 alone, the company recorded quarterly pre-sales of INR 743 crore, indicating a 6% YoY growth. Kolte-Patil also launched projects worth INR 3,800 crore across Pune and Bengaluru during the fiscal year.
The National Company Law Tribunal (NCLT) bench in Mumbai resolved the corporate insolvency proceedings against Mumbai Metro One Private Limited, which operates Mumbai's busiest metro line. This resolution followed a one-time debt settlement between the company and its lenders led by State Bank of India and IDBI Bank. The resolution could enable the Maharashtra government to acquire Reliance Infrastructure's majority stake in MMOPL. The Maharashtra cabinet had recently cleared a sum of INR 4000 crore for purchasing this majority stake.
The Supreme Court will examine the validity of the Income Tax department's assessment of INR 33,000 crore in disputed taxes on Jaypee Infratech Ltd. (JIL). JIL has been going through insolvency proceedings since 2017 over its stalled housing projects that have left over 22,000 homebuyers without homes. In 2023, the National Company Law Tribunal approved a resolution plan by Suraksha Group to acquire JIL assets and complete projects. However, the Tax department notified the tax claim in August 2023, jeopardizing the resolution process. The Court will review the assessment order to help resolve issues stalling project completion for homebuyers even after years of litigation.
Century Real Estate Holdings has secured INR 450 crores in debt financing from Edelweiss Alternative Asset Advisors. Around 40% of the funds will be used to acquire a 72-acre land parcel near Devanahalli airport in Bengaluru to develop a plotted residential project. The rest will be used to repay existing debt and provide working capital for new and existing projects. Managing Director Ravindra Pai said Bengaluru's residential market has been robust, with Century achieving INR 1,000 crores in sales in FY24 and aiming for INR 2,000 crores in FY25. Property consultants note debt transactions in housing have increased due to sales momentum and need for working capital.
PNB Housing Finance is transitioning to offer a wider range of mortgage solutions, focusing on affordable home loans and emerging markets. With a strategic shift towards retail lending, the company has improved its credit ratings and aims to reduce corporate loans. Despite potential short-term challenges in net interest margins, the company's focus on affordable housing and digital enhancements is expected to drive growth. Projections indicate strong growth in assets under management and profits, positioning the company for positive performance and potential re-rating in valuation.
IndiaLand, the Dubai-based arm of Americorp Group, led by COO Salai Kumaran, is poised to inject over INR 1,500 crore into India's real estate sector in the next three years. With an aim to increase its asset valuation to INR 7,000 crore within five years, the company plans extensive expansions in key cities like Chennai, Pune, and Coimbatore. Primarily focusing on office spaces and industrial estates, IndiaLand eyes Bengaluru for Grade A standalone office complexes while actively pursuing land acquisitions. Currently managing 6 million sq. ft. of office parks and industrial spaces, the company envisions adding 2.2 million sq. ft. in Pune's Hinjawadi and expanding its footprint in Coimbatore. Expansion plans also include doubling leased industrial space in Pune and initiating an industrial park near Chennai.
Wyndham Hotels is expanding aggressively into India's booming branded residences sector. By 2025, the hospitality giant aims to have at least five branded residential projects operational across major Indian cities like Bengaluru, Mumbai, and Delhi. According to Dimitris Manikis, President of Wyndham for Europe, Middle East and Africa, the company sees strong potential given rising demand from consumers who prioritize security, health, and unique experiences from trusted brands. With a robust pipeline, Wyndham is well-positioned to capitalize on the growing demand in the residential and hospitality market in India.
Reliance MET City in Haryana's Jhajjar district exemplifies India's prowess in creating futuristic urban centers. Led by Reliance Industries Limited (RIL), the project boasts over 540 companies across diverse sectors, with a surge in plot bookings to INR 1913 crore in the past financial year. Featuring essential amenities like hospitals and schools, MET City aims to accommodate a diverse workforce while promoting a vibrant social environment and work-life balance. With a focus on sustainability, community development, and collaboration with Reliance Foundation, MET City emerges as a model for integrated, eco-friendly urban development, poised to drive economic growth and innovation in North India.
Canada plans to extend the mortgage payment period to 30 years for first-time home buyers of newly built homes, aiming to aid younger consumers and stimulate the housing supply. Finance Minister Chrystia Freeland announced the move, part of the upcoming federal budget, to make monthly payments more manageable. However, experts warn of potential consequences, including driving up home prices and wealth transfer implications. Despite intentions to address affordability, concerns remain regarding the policy's broader impact on the housing market.
Canada aims to address its housing shortage by leasing public land for affordable housing construction, with plans to build 3.9 million homes by 2031. However, this falls short of the 1.2 million units needed between 2023 and 2030. Prime Minister Justin Trudeau announced measures to tackle the crisis, including changes to tax structures and combating mortgage fraud. Critics emphasize the substantial investment required, estimated at CAD 2 trillion. Housing responsibilities in Canada primarily rest with provinces and major municipalities, with Ottawa relying on policy measures and funding despite lacking direct involvement in construction.
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