Tag: housing

Maharashtra mulls PPP model to acquire land for low-cost homes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The state government is mulling a public private partnership policy under which it plans to acquire land parcels in the MMR region and develop low-cost homes, giving further impetus to its affordable housing programme.

The policy is likely to be presented in the cabinet in a month’s time, state housing minister Prakash Mehta told reporters on the sidelines of CII event here today.

“There are large land parcels like 100 to 500 acres in the MMR region where the owners want to develop them but don’t have finances. Also, even if they develop on their own they may get an FSI of 1 or maximum 2.5 and will have to pay premium on that FSI. Now, under the new policy, we are proposing that we will acquire these land parcels through Mhada and develop affordable homes and compensate the land owners,” Mehta said.

He said currently discussions on how to compensate these owners, are on.

“It could either be by paying the beneficiary the cost of land as per the ready reckoner rates or build homes for them as compensation. We are yet to come to a conclusion regarding the compensation and are hopeful that we will be able to finalise it in the next 10-15 days. We will then present the policy before of the cabinet for its approval,” Mehta said.

The minister added that nearly 10 lakh affordable homes can be built once this policy is in place.

He further said Mhada would be the overall planning authority for affordable housing development in the state.

“To avoid any confusion between various government agencies and to streamline the process for creating affordable homes in the state, chief minister Devendra Fadnavis has made it clear that Mhada will be the nodal planning authority. The development will happen as per the development control rules of that particular region but to avoid any conflicts, Mhada will be a part of the planning team and oversee the development,” he added.

Currently, Mhada is also the planning authority for projects under the Pradhan Mantri Awas Yojna implemented in the state.

Regarding Dharavi redevelopment, Mehta said the government has decided to separate commercial and residential development on the land.

“Initially we had created five sectors for Dharavi redevelopment, but we did not get any response for it as people thought they were too big to develop. So later we divided it into 12 sectors. This too did not get any response.

So now we have decided to make it one sector and commercial development will be separated from residential,” he said.

He said the government will invite global tenders for this development and a special purpose vehicle (SPV) will be formed where government will be 51% stake holder.

“By taking 51% stake, we take the major responsibility and help mitigate the risk. We are hopeful that in the next two months the proposal will be finalised,” he said.

Mehta further added that the persons affected by the project will be the first to be rehabilitated on the open spaces at Dharavi and only then will redevelopment be taken up.

He further added that the state government is committed to meet its target of building 11 million affordable homes by 2022 and the entire plan will be in place by end of 2018.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Housing sales up 25% during April in top 7 cities, says ANAROCK

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Housing sales increased by 25% in the country’s seven major cities in April to 1,726 units over the previous month, driven by the Delhi-NCR market which saw a sharp rise in demand, according to property consultant ANAROCK.

Total housing sales stood at 1,382 units in March at seven major cities — the National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad and Pune, it said.

Barring Pune and Kolkata, the housing sales increased in all the cities during last month.

“Buoyed by positive consumer sentiments and favourable policies, the Indian real estate sector is coming back on track. 2018 started on a positive note with the first quarter recording a q-o-q (quarter-on-quarter) increase in housing sales, and the momentum seems to be increasing,” ANAROCK Chairman Anuj Puri said.

April alone saw 25% increase in sales across the cities, he added.

ANAROCK said that the NCR market stole the show even on the sales front with a whopping 153% increase in April as against the preceding month. Bengaluru saw a 41% rise in housing sales, while MMR witnessed a 29% increase.

According to the data, housing sales in Bengaluru increased to 278 units in April from 196 units in the previous month. MMR saw sales of 516 units as against 399 units during the period under review.

In NCR, housing sales jumped over two fold to 243 units from 96 units. Sales in Chennai increased to 219 units from 113 units, while demand in Hyderabad rose to 234 units from 141 units.

However, sales dropped in Pune to 155 units from 182 units and also in Kolkata to 83 units from 255 units.

On new supply, ANAROCK said that it increased by 6% during April at 15,155 units from 14,278 units in March.

The new housing supply infusion was highest in NCR, followed closely by Hyderabad, Bengaluru and the MMR. NCR saw a whopping 59% increase in its new housing stock in April as against the previous month.

Of the total new supply in April, nearly 43% was in the affordable housing category (less than Rs 40 lakh), followed by 33% in the mid segment (Rs 40-80 lakh), 11% priced in the range of Rs 80 lakh Rs 1.5 crore and the remaining 13% in the segment priced above Rs 1.5 crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dubai’s Relam Investment to invest $300 million in India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Dubai-based Relam Investment LLC today announced its entry into the Indian market with an initial commitment to invest USD 300 million in the real estate and technology sectors over the next five years.

The company will make India as it’s hub for investments in Southeast Asian markets, its chairman and managing director Sultan Ali Rashed Lootah said.

“We have allocated an investment portfolio of USD 50 million to fund emerging technology companies and another USD 250 million into the real estate sector,” Lootah said, adding the investment will be done over a period of next five years.

The company is investing in three technology companies – Oya, Bricx and T-Hub, according to him.

“In the real estate sector, we would be looking at investment in commercial as well as affordable, energy-efficient and sustainable housing projects,” he said.

The company is open to either invest directly in a real estate project or partner with any domestic company to invest, Lootah added.

Relam Investment LLC, a joint venture between UAE-based Vault Investment and Vietnamese MIG Holding, today also signed a co-operation agreement with Mumbai-based RRP S4E Innovation to set up renewable energy plants in the country.

Besides real estate and technology sectors, the firm will also focus on investments into energy, oil and gas, trading, healthcare, retail and agriculture sectors.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dewan Housing seeks Sebi’s nod to raise up to Rs 15,000-crore via Non Convertible Debentures

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Dewan Housing Finance has sought markets regulator Sebi’s approval to raise up to Rs 15,000 crore through debentures to support its lending activities.

This NCD issuance will be in one or more tranches, according to the draft paper filed with Securities and Exchange Board of India (Sebi).

NCDs are loan-linked bonds that cannot be converted into stocks and usually offer higher interest rates than convertible debentures.

In the draft papers, Dewan Housing said it has proposed public issue of “up to 15 crore secured redeemable non-convertible debentures (NCDs) of face value of Rs 1,000 each aggregating up to Rs 15,000 crore”.

Proceeds of the issue will be utilised towards onward lending, financing, and for payment of existing borrowings of the company and for other general corporate purposes.

Edelweiss Financial Services, A K Capital Services, Axis Bank, Green Bridge Capital Advisory, ICICI Bank, ICICI Securities, IIFL Holdings, IndusInd Bank, SBI Capital Markets, Yes Securities and Trust Investment Advisors will mange the public issue.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jaypee promoters submit over Rs 10,000 crore revival plan for Jaypee Infra

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jaypee group promoter Manoj Gaur today made a Rs 10,000 crore offer to pay off bank loans and complete the stuck housing projects as part of plans to bring Jaypee Infratech out of bankruptcy, sources said.

The offer, which includes paying part of Rs 9,800 crore debt, giving lenders an equity stake in the company and completing unfinished housing projects, is over 25% higher than the best bid made for Jaypee Infratech at the bankruptcy proceedings.

Sources said Gaur, who had previously sold interest in hydroelectric and cement projects to keep the real estate-to-hospital group alive, made a presentation before the committee of Japyee Infratech lenders here.

They said it is not clear whether the Committee of Creditors (CoC) has accepted the offer as also if the panel would weigh it against the rival offer made by Lakshadweep Pvt Ltd.

Lakshadweep, a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, had made a Rs 7,350 crore bid few weeks back.

Sources said the CoC is likely to deliberate over the bid at its meeting over the next two days.

Gaur in his presentation offered a combination of cash, land parcels and equity to lenders through instruments, totalling more than Jaypee Infra’s outstanding debt of Rs 9,800 crore.

Crisis-hit Jaypee group firm Jaypee Infratech is facing insolvency proceedings after it defaulted on loan repayments. The National Company Law Tribunal (NCLT) had last year admitted the application by an IDBI Bank-led consortium, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.

The NCLT had appointed Anuj Jain as Interim Resolution Professional (IRP) to mange the company’s business. The IRP had invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.

Jaypee Infratech is developing about 32,000 flats, of which it has delivered 9,500 apartments. For giving possession of another 4,500 flats, it has applied for occupancy certificates.

The realty and infrastructure firm plans to deliver the remaining 18,000 flats by 2021. It needs Rs 6,500 crore to construct these flats, while Rs 4,000 crore is receivables from customers, leaving a shortfall of Rs 2,500 crore.

Jaypee Infratech currently has about Rs 24,000 crore worth assets, including land parcels, Yamuna Expressway and a hospital, that can be monetised to protect the interest of creditors, about 30,000 home buyers and a large number of minority shareholders, sources had earlier said.

Jaypee group has already submitted Rs 650 crore in the registry of the Supreme Court and it has been asked to deposit Rs 100 crore more by May 10. The amount will be used to refund home buyers.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expert advice for first time home buyers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Samir Jasuja, Founder of PropEquity, advised first time home buyers on whether this is the right time to buy property, which is the best project to buy into in a given budget, and what is the best price to expect for one’s apartment.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Lodha Developers’ sales bookings up 37% at Rs 5,482 crore in Apr-Dec 2017

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Realty firm Lodha Developers’ sales bookings for its India business increased 37% to nearly Rs 5,500 crore during April-December, 2017-18 despite subdued demand in the property market.

Lodha had last week revived its IPO plans after eight years by filing draft red herring prospectus (DRHP) with markets regulator SEBI. It plans to raise an estimated Rs 5,500 crore through an initial public offer (IPO), which includes sale of new shares as well as promoters selling shares via Offer For Sale (OFS) route.

According to the DRHP, the company’s sales bookings stood at Rs 5,482.5 crore during the first nine months of 2017-18 financial year as against Rs 3,995.9 crore in the year-ago period.

In terms of volumes, sales rose to 5.1 million sq ft as against 3.7 million sq ft, during the period under review. It sold 4,668 units during April-December 2017-18 as against 3,381 units during the corresponding period of the previous year.

“We are the largest real estate developer in India by residential sales for the nine months ended December 31, 2017 and 2016-17.

“Our sales from India operations by value for April-December and for 2016-17 and 2015-16 were Rs 54,825 million, Rs 69,664 million, and Rs 65,364 million, respectively,” the DRHP said.

“Our track record in execution and continued construction spend has been instrumental in our consistent sales and performance, despite challenging market conditions over the last three years,” it added.

Besides India, Lodha Group had forayed into the London realty market in 2013 and acquired two prime sites in central London for an investment of about 400 million pounds.

“Our overseas projects consist of projects in London, including Lincoln Square on Carey Street and 1 Grosvenor Square in Mayfair. These projects have achieved financial closure with development finance facilities tied up to meet future construction expenses. As of December 31, 2017, we have sold 114 units and achieved total sales of GBP 277.65 million,” the DRHP said.

Mumbai-based Lodha Developers, founded in 1995 by Mangal Prabhat Lodha, had completed projects with developable area of 50.49 million sq ft till December last year.

It has 37 ongoing projects – 35 in India and 2 in London- with developable area of 33.80 million sq ft, bulk of it in the Mumbai Metropolitan Region (MMR).

Lodha had filed its DRHP in September 2009 to raise about Rs 2,800 crore. It had received Sebi’s nod in January 2010, but later shelved its plan to launch the IPO due to bad market conditions post the global financial crisis.

This will be second largest IPO in the real estate sector after DLF’s Rs 9,000-crore public issue in 2007.

According to the DRHP, Lodha will issue fresh shares worth up to Rs 3,750 crore. The promoters will sell up to 1.8 crore shares through the Offer For Sale (OFS) route.

Sources had earlier said the total proceeds are estimated at about Rs 5,500 crore through the fresh issue as well as OFS.

The company is also considering a pre-IPO placement of up to 95 lakh equity shares for cash consideration aggregating up to Rs 750 crore, the document said.

From the net proceeds of fresh issue of shares, Lodha would utilise Rs 3,300 crore to retire its debt. The company had an outstanding debt of nearly Rs 18,000 crore as of January-end this year.

The global coordinators of the IPO are Kotak Mahindra Capital, CLSA India, JM Financial and Morgan Stanley India.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

‘74% home buyers unaware of RERA compliance check process’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Around 74% home buyers in India are unaware of the online process to check a realty project’s compliance status under the Real Estate Regulatory Act, a Magicbricks report said here on Monday.

“Seventy four percent of respondents do not know that it is mandatory to check if the project is registered with the state Real Estate Regulatory Authority (RERA) and how to go about checking it on the RERA website,” said the Magicbricks Consumer Choice Poll.

“For a law which is aimed at protecting consumer interest and promote fair play in real estate transactions, this is a poor number,” the report said.

“States where the governments have been proactive and got the website and the machinery going have also seen a large number of consumers using it to check the legality of their project. However, since a large number of states are yet to get their act together, consumer awareness too is low,” said E. Jayashree Kurup, Head, Editorial and Advice, Magicbricks.

According to the report, Maharashtra and Madhya Pradesh were the first states to set up the RERA authority and concerned websites on May 1, 2017, when the law was completely enacted.

“Maharashtra’s real estate developers are registering their projects with RERA authority websites and mentioning the registration number in their advertisements. Where it is not followed, the RERA regulators have been penalising them and publishing the same,” it said.

On the other hand, in Gurugram, more than 150 projects are registered but due to unavailability of an operational website to verify the projects’ compliance claims, consumers cannot check approvals or completion status, as per the report.

“However, the authorities are now set up and consumers can either mail or physically visit the offices in Gurugram and Panchkula and get their problems and doubts cleared,” it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow