Daily Real Estate Newspaper
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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MMRDA secures INR 31,673 crore loan from PFC for key infrastructure projects in MMR
The Mumbai Metropolitan Region Development Authority (MMRDA) has secured a significant loan of INR 31,673.79 crores from Power Finance Corporation (PFC) to finance nine key infrastructure projects. This funding will cover 80% of the total project costs and includes initiatives such as the Thane Coastal Road, the Eastern Freeway extension, and multiple elevated roads and bridges. These developments aim to improve connectivity and enhance the quality of life in MMR, transforming its transportation landscape.
Rising Sun Holdings expands portfolio with INR 395 crore office acquisition in Pune
Rising Sun Holdings, co-owned by Adar Cyrus Poonawalla, has acquired approximately 2.20 lakh sq ft of office space across four floors in Pune’s Cerebrum IT Park for a total of INR 395 crore. The seller, Zawareh Soli Poonawalla, facilitated the sale through four separate transactions. This significant investment aligns with Rising Sun Holdings' strategy to expand its presence in India’s commercial real estate sector. The company has also diversified into hospitality and other high-value real estate segments, reinforcing its role as a major player in the market despite global economic challenges.
Nvidia renews 375,000 sq ft lease in Pune’s Yerwada, strengthening its India operations
Nvidia Corp has renewed its 375,000 sq ft office lease in Pune's Yerwada for a long-term period of 10 years, with a monthly rent set at INR 81 per sq ft. The agreement includes a 5% annual rent escalation, aligning with market standards for premium office spaces. Nvidia’s presence in India, particularly in Pune, underscores the region's significance as a technology hub, driving advancements in AI, cloud computing, and more. As demand for tech solutions rises, Pune’s commercial real estate market is expected to experience further growth in the coming years.
• A residential flat spanning 1,133 square feet sold in Kashish Park Tower C - 1 in Thane's Naupada for INR 1.8 crores
• A residential flat spanning 827 square feet sold in F Neelkanth Greens in Thane's Manpada for INR 1.39 crores
Free Hold land is one which is "free from hold" of any entity besides the owner. The owner owns the building and the land upon which it has been built in perpetuity.
Puravankara acquires 2.3 acres in Hebbal for INR 135 crore for office space expansion
Puravankara, a prominent real estate developer in India, is expanding its commercial portfolio by acquiring 2.3 acres of land in Bengaluru for approximately INR 135 crore. The company aims to develop 3 million square feet of office space over the next four to five years, anticipating rental income growth to INR 500 crore. Recently, they announced plans to acquire 20 million square feet of land by the financial year's end, focusing on both outright purchases and redevelopment to boost residential and commercial project launches in major markets like Mumbai, Bengaluru, and the Delhi-National Capital Region.
NBR Group to develop 9 lakh sq ft luxury housing project in Bengaluru's Sarjapur-Mullur
NBR Group, a Bengaluru-based real estate developer, has acquired a 9.65-acre land parcel in the Sarjapur-Mullur suburb to develop a high-rise residential project covering 9 lakh square feet, projected to generate over INR 1200 crore. This area is rapidly gaining popularity due to its strategic location and ongoing infrastructure improvements, attracting tech professionals and families seeking affordable housing options. Meanwhile, Bengaluru's residential market is booming, with a 30% increase in home sales value in Q2 2024, reflecting sustained demand from buyers and investors alike.
Max Estates and New York Life forge strategic partnership to transform NCR Real Estate landscape
Max Estates Limited has successfully completed a transaction with New York Life Insurance Company, which acquired a 49% stake in Max Towers and Max House (Phase I & II) for INR 391 crore. This marks a significant milestone in their partnership, with New York Life now committing a total of INR 1,200 crore to Max Estates. The capital infusion enhances Max Estates' ability to expedite growth across commercial and residential real estate sectors. With plans to allocate funds towards expanding into the residential market, the company aims to acquire at least 3 million square feet of development opportunities annually in the NCR region.
NMMC initiates demolition of illegal building in Airoli following High Court Order
The Navi Mumbai Municipal Corporation has taken decisive action against unauthorized constructions in the Airoli division, specifically targeting an RCC building at Sagarnath Rama Madhvi in Diva Village. Despite issuing a notice under Section 54 of the Maharashtra Regional Planning and Town Planning Act, 1966, the unauthorized construction continued. Following a High Court order, the demolition of the fifth floor began, utilizing manual tools due to site access limitations. This operation was supported by a team of laborers and officials from the Airoli Division, highlighting the Corporation's commitment to enforcing regulations and addressing illegal constructions effectively.
HSVP blacklists 18 architects over illegal OCs, tightens controls on building approvals
The Haryana Shahari Vikas Pradhikaran (HSVP) has blacklisted several architects for illegally certifying four-storey residential buildings in violation of government regulations. These architects issued Occupation Certificates (OCs) for buildings with stilt parking, bypassing the 2023 restrictions set by HSVP. They used the Self-Certification Rules to approve these structures without adhering to proper norms, including failing to pay required fees like Floor Area Ratio (FAR) and External Development Charges (EDC). Legal action was initiated after 58 homes were found violating the rules, and the architects' IDs have been removed from the online building approval system pending further investigation.
Indore District begins process to grant land ownership rights to 29 villages
The Indore district administration has launched an initiative to grant land ownership rights to residents of 29 villages incorporated into the municipal corporation in 2014. This move addresses long-standing challenges faced by residents without formal land ownership documents, which hindered property sales and access to loans. Under guidelines from the Revenue Department, eligible residents can apply for a 30-year lease, simplifying property transactions and development. Camps will be set up at tehsil offices to collect applications on September 29, 2024. Required documents include utility bills, census records, and voter lists. This initiative aims to formalize land rights and boost economic development in the area.
Greater Noida Authority approves registration of 800 apartments after 27-year delay
After a 27-year legal impasse, the Greater Noida Authority has approved the registration of 800 apartments in the Senior Citizen Home Complex Welfare Society, providing relief to homebuyers who have lived without formal ownership. The delay stemmed from internal disputes within the society, preventing the issuance of a completion certificate essential for property registration. Following intervention by Uttar Pradesh Chief Minister Yogi Adityanath in December 2023, the authority resolved the issues and issued the certificate. The process will allow homeowners to officially transfer ownership titles, marking a major milestone for residents awaiting legal ownership since 1997.
Piyush Goyal pledges to advocate for easier financing and faster approvals for real estate sector
Union Commerce and Industry Minister Piyush Goyal has pledged to support easier financing for the real estate sector, advocating with the Reserve Bank of India and local governments for faster project approvals, contingent on transparency and zero corruption. Highlighting the benefits of the Real Estate (Regulation and Development) Act (RERA), he emphasized the improved trust in the sector and banks' renewed confidence in financing. Addressing concerns raised by CREDAI President Boman Irani, Goyal committed to tackling financing challenges with the RBI and finance ministry, while calling for a pledge against shortcuts in the industry.
India's real estate poised for USD10 trillion transformation by 2047
The Indian real estate market is poised to grow exponentially over the next 25 years, potentially reaching USD 10 trillion and accounting for 14-20% of the country's GDP. This growth will be driven by six key levers: urbanisation, infrastructure, digitalisation, demographics, sustainability, and investment diversification. Real estate will expand beyond major cities into tier 2/3 markets, with increased consolidation and institutionalisation. Alternate asset classes like data centres and senior living will see rapid development. Digitalisation through PropTech and the metaverse will improve transparency and efficiency. Sustainability will be a top priority, with green certifications becoming ubiquitous. Overall, India's real estate sector is set to be transformed into a USD10 trillion powerhouse.
Mt K Kapital raises over INR 500 crore for real estate investments in Mumbai Metropolitan Region
Mt K Kapital has raised over INR 500 crore for its maiden real estate fund, targeting projects in the Mumbai Metropolitan Region (MMR). The fund focuses on quick turnaround residential developments with low equity investments, aiming for an internal rate of returns (IRRs) exceeding 25%. In collaboration with Keystone Realtors, it plans to invest in 10 to 12 redevelopment projects. The firm’s founder, Binitha Dalal, highlights their commitment to channeling capital effectively in the real estate sector, backed by a SEBI-approved Category II Alternative Investment Fund license.
HomeLane acquires DesignCafe in INR 3,000 crore deal, eyes IPO and profitability in 2025
HomeLane has acquired DesignCafe in a share-swap deal valued at INR 3,000 crore, aiming to enhance growth and profitability. Following the merger, the combined entity reports an annual recurring revenue of INR 900 crore and plans to maintain independent brand identities while targeting distinct market segments. With a significant investment from new and existing investors, including Hero Enterprise, HomeLane is preparing for an IPO within the next 9 to 15 months. The merger is seen as a strategic move to fill gaps in each company's offerings and foster innovation in the growing real estate market.
GR Infraprojects secures INR 1,670 crore for greenfield power transmission expansion
GR Infra projects has partnered with Standard Chartered Bank to raise INR 1,670 crore (approximately USD 200 million) for greenfield power transmission projects. Traditionally focused on roads, the company is diversifying as India targets 500 GW of renewable energy by 2090. With a market cap of INR 16,147 crore, GR Infra projects have seen its stock rise by 33% in the past year. Recent acquisitions include Tumkur-II REZ Power Transmission Ltd., aimed at enhancing Karnataka's renewable energy capacity.
Bengaluru based proptech startup Flent secures INR 6.5 crore in pre-seed funding led by WEH Ventures
Flent, a Bengaluru-based proptech startup, has raised INR 6.5 crore in a pre-seed funding round led by WEH Ventures, with participation from notable investors such as 2 AM Ventures and various angel investors, including former Airbnb GM Sanchan S Saxena. The startup plans to use the funds to expand its core team and develop a full-stack renting platform aimed at addressing the fragmented urban rental market, valued at USD 10 billion. With strong backing and a clear vision, Flent aims to revolutionise the rental experience for both landlords and tenants.
Noida Authority offers six prime hotel plots in e-auction to strengthen tourism and commerce
The Noida Authority has launched a comprehensive scheme to establish six new hotels across the city, catering to the growing market demand. This initiative aims to bolster the city's hospitality infrastructure and strengthen its position as a thriving commercial and tourist destination. The scheme includes plots for three budget hotels and three star-category hotels, located in strategic sectors. The allotment process will be conducted through an e-auction, and the Authority expects to generate over INR 1,000 crore in revenue from this initiative. Additionally, the Greater Noida Industrial Development Authority has introduced a scheme for BPO and ITES plots, further enhancing the city's business ecosystem.
MPSEDC to issue new tenders for Sinhasa IT Park as investment exceeds INR 100 crore
MPSEDC is preparing to issue tenders for the remaining 12 plots in Sinhasa IT Park by year-end. So far, the corporation has allocated 33 plots to IT and ITES firms, despite eight plots facing encroachment issues. These companies have committed to investing over INR 100 crore and aim to generate employment for approximately 1,500 people. Seven of the allotted companies have already begun operations, while the others are still developing their facilities. MPSEDC has also sold 30,000 square feet of space in the park’s building and plans to lease additional sections to various technology-focused enterprises.
Adani Ports reports 7% growth in cargo volumes, pursues ambitious expansion plans
Adani Ports and SEZ (APSEZ) handled 183 million metric tonnes (mmt) of cargo from April to August 2024, with a 7% year-on-year growth in Q1 of FY25. However, operations were disrupted by a worker strike at the Gangavaram Port and severe weather issues in Kutch. Despite this, APSEZ maintains its volume target of 460-480 mmt for FY25. APSEZ is focused on expansion, signing an agreement to develop a 5.7 mmt berth at Kandla and acquiring an 80% stake in Astro. The company aims for significant growth, aiming to become one of the world’s largest private port companies by 2030.
RLDA invites bids for the commercial development of land parcel in Miraj
The Rail Land Development Authority (RLDA) has invited bids for the commercial development of a prime land parcel located north of the Miraj Railway Station in Maharashtra. The strategic location, proximity to the Sangli-Miraj highway, and the area's reputation as a medical hub offer immense potential for the site's development. With a reserve price of INR 8.60 crore and a lease period of 99 years, the plot presents an attractive investment opportunity for businesses and developers seeking to capitalize on Miraj's growing prominence as an emerging medical and commercial hub.
L&G and Schroders set to invest in U.S. commercial real estate amid falling interest rates
Legal & General and Schroders are set to invest hundreds of millions of dollars in U.S. commercial real estate, focusing on rental properties and real estate debt, while largely avoiding the struggling office sector. Both companies are expanding their U.S. real estate teams, anticipating a recovery in property prices due to falling interest rates. Schroders recently invested in a pan-American data centre portfolio and sees significant opportunities in real estate debt as banks retreat. Phoenix Group also plans to invest in U.S. real estate but has not disclosed specific details on the scale of its investments.
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