JM Financial to fund realty projects through AIF 

JM Financial Group has decide to fund real estate projects through the alternative investment fund (AIF) route and syndications, moving away from its on-balance business model. JM Financial non-executive vice chairman Vishal Kampani said in an investors call that the group wil set up a strategic AIF for land and approval financing, using its clients realtionship to provide funding through it. The group will transition towards an investment banking-led distribution and syndication business, he said, adding that real estate developers are also finding it easier to obtain early-stage financing from AIFs rather than non-banking financial companies (NBFCs).
The group is looking to realign its wholesale credit businesses, which include real estate, bespoke, distressed credit and financial institutions financing. The wholesale lending book fell to Rs 4,917 crore at the end of March 31, down 42% from ?8,445 crore a year ago. The company said several factors led to this decision. Competitive pressures from banks have pushed down yields in key client segments, and regulatory ambiguities around land financing have created additional challenges. The recent draft regulations could see provisioning requirements for real estate and infrastructure finance go up to 5% from 0.4%, affecting the return on assets for new and existing loans. 
 

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Lenskarts Dhanuka family buy luxury apartments in DLF in Gurugram 

Conveyance deeds of four separate properties that are cumulatively worth Rs 106.4 crore have been registered separately in DLF’s super-luxury project ‘The Camellias’ in Gurugram. The buyers of these luxury apartments are Lenskart’s founder Peyush Bansal. The documents showed that these apartments ranging between 7,361 sqft and 9,419 sqft that were booked and purchased between 2015 and 2022, but the conveyance deeds for these properties were executed in April 2024. Properties were purchased by Bansal and the Dhanuka family seperately. According to documents, Bansal purchased a 7,461-sq. ft luxury apartment in The Camellias in August 2022. The flat with four car parking slots was bought for Rs 27.02 crore. The conveyance deed of the property was executed on April 29, 2024. Bansal paid a stamp duty of Rs 1.89 crore for the transaction. Group Chairman of Dhanuka Agritech Limited Ram Gopal Agarwal and his wife Urmila Dhanuka entered into an agreement with DLF on June 24, 2019, to purchase a 7361 sq. ft apartment at The Camellias. He bought the property for Rs 22.55 crore and the final payment was made in March 2021. The conveyance deed for the property was executed on April 26, 2024, where stamp duty of Rs 1.35 crore was paid. 

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India Home prices to rise steadily, affordable housing supply to lag demand

Average home prices in India are expected to rise steadily over the next few years as the country's rich drive up demand for luxury housing, according to property experts polled by Reuters who also said there would be a shortage of affordable homes.  Home purchases are increasingly driven by a select few in a country of more than 1.4 billion people, mostly those unaffected by higher interest rates. Economic growth in Asia's third-largest economy is expected to continue outpacing its major peers, driving demand for housing, even though economists argue the benefits of that growth are being skewed more towards the upper classes. Average home prices are forecast to rise around 6% this year and next, slightly below the 7% expected in a March poll, according to the median forecast from a May 10-29 survey of 15 property market experts. House prices rose 4.3% in 2023, according to Reuters calculations based on the Reserve Bank of India's House Price Index. The RBI https://www.india.gov.in/official-website-reserve-bank-india, which raised interest rates by 250 basis points between May 2022 and February 2023 to cool inflation, is broadly expected to cut them next quarter, although a stable rupee and a strong economy leaves the central bank with little incentive to act.  Despite government initiatives to build affordable homes, a strong majority of respondents, 12 of 15, said demand would not be met over the next two to three years. The other three forecast excess supply.

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BSNL and MTNL prioritise governmnent Organsiations fpr Land worth rs 1 lakh crore 

State-run telcos Bharat Sanchar Nigam Ltd (BSNL) https://www.bsnl.co.in/ and Mahanagar Telephone Nigam Ltd (MTNL) https://mtnlmumbai.in/index.php/enterprise/data-solutions/msits-data-center-chennai have decided to give preferences to government organisations, both in states and at the Centre, in selling their land assests worth over Rs 1 lakh crore. The sale to government organisations is clean and smooth and does not have unncessary litigation. BSNL has raised Rs 1600 crore through sale of properties to government department as well as private entiies. The company plans to raise Rs 20,000 crore in 4-5 years through land monetisation. Property consultants view the monetization of BSNL and MTNL land and properties in key cities of India as a strategic opportunity in the current realty market. Post-pandemic, all major commercial and residential property markets including Mumabi, Bengaluru,Delhi and Hyderabad have witnessing. BSNL and MTNL properties are located in prime areas with significant commercial and residential potential. The strategic location of these properties add considerable value, making them highly sought after. Land monetisation is one key area for reviving the ailing telecom firms. The government is making all efforts to improve the loss-making telcos’ operations. In 2019, a revival package worth around Rs 69,021 crore was provided to BSNL and MTNL that brought down their operating costs. In addition, the union cabinet in June 2023 approved the allotment of 4G/5G spectrum to BSNL with the total outlay of around Rs 89,047 crore through equity infusion.
 

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"All Eyes on Rafah" 

Israel shelling and airstrikes, over the weekend, killed at least 45 people  most of them sheltering in tents, in the southern Gaza City of Rafah. The strike, which Gaza medics said also left hundreds of civilians with shrapnel and burn wounds, was launched late on Sunday and drew condemnation from world leaders. Israeli forces pressed their assault on the border town despite an order last week from the top UN court to halt its operation there. "All Eyes on Rafah” is a phrase that refers to the ongoing genocide in Rafah, Gaza, with over 1.4 million Palestinians seeking shelter, Iran's Embassy. The phrase is meant as a request for bystanders to not look away from what’s happening in the city of Rafah—where as many as 1.4 million people are sheltering after fleeing from violent fighting elsewhere in Gaza—as Israel continues its offensive. 

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Leasing by Global Capability Centres in India 

Global Capability Centres (GCC) https://www.ey.com/en_in/consulting/global-capability-centers are making huge strides in india with office space leasing by such offshore units of multinational firms increasing by 17 percent year-on-year to 22.5 million square feet in 2023-2024. The growth during April 2023-March 2024 was primarily driven by key sectors such as Engineering and Manufacturing, BFSI (Banking, Financial Services, and Insurance) and Technology sectors https://www.rsm.global/india/service/banking-financial-services-and-insurance-bfsi . In January-March 2024, GCCs had a 29 percent share of the total office space leased in India.  

Around 60 percent of the total GCC leasing in January-March 2024 was in Bengaluru followed by Hyderabad (26 percent) and Delhi NCR (9 percent). Mumbai and Pune contributed 4 percent and 1 percent each during the quarter.

GCC sector saw a 30-35 percent share of total office leasing in India in the 2017-2019 period with over 1,250 operational GCCs. Between 2020 and 2022, GCCs accounted for 38–43 percent of the total office space leasing, housing over 1,580 operating GCCs with a talent pool of 1.66 million as of 2022. India is expected to host over 1,900 GCCs by 2025 with a professional talent pool that exceeds 2 million.

The report stated that major global players in sectors like BFSI, technology, and engineering and manufacturing (E&M) are anticipated to grow their GCC presence in India. 

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360 ONE's founder buys two apartments in Mumbai's  Worli for rs 170 crore

Managing Director and Cheif Eexcutive officer of wealth and alternatives focused assest firm 360 ONEm brought two sea-view luxury apartments in a super preimum residential tower in Mumbai’s plush Worli locality for a total Rs 170 crore. The apartments cover 12,900 sq ft built up area on the 45th and 46th floors of Three Sixty West project on Dr. Annie Besant Road. The deal was struck at about Rs 1.31 lakh per sq ft, pushing it higher in the tally of most expensive deals on per sq ft basis anywhere in the country.  Bhagat purchased the apartments directly from Oberoi Realty, the developer of the project. Both the apartments have been sold by Oberoi Realty within three years of acquiring it from joint venture partner Sahana Group. Bhagat declined to comment, while Oberoi Realty did not reply to an email query. Three Sixty West is a mixed-use development comprising two towers, one of which houses The Ritz-Carlton Hotel and the other will have luxury residences managed by The Ritz-Carlton. The apartments bought by Bhagat are part of over 60 acquired by Oberoi Realty in the project from its developer Oasis Realty. The company had paid a total of Rs 4000crore.  Welspun Group’s BK Goenka too bought a penthouse of a similar size in Oberoi Three Sixty West for Rs 230.55 crore. 
 

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Puravankara posta net loss of Rs 6.71 crore in Q4 FY24

Puravankarahttps://www.puravankara.com/about-us/  has reported net consolidated loss after tax of Rs 6.71 crore during the quarter ended March 31, 2024. I t had registered profit after tax of rs 26.75 core in the corresponding quarter of the previous fiscal, the company said in a BSE filing. The company's net consolidated total income tood at rs 946.84 crore, a growth of 116.97 prcent from rs 436.39 last year. Ashish Puravankar, managing dircetor of the company said for FY24,we achieved pre-sale of rs5,914 crores, upby 90% yer on year. We launched 12 projects with a saleable area of 9.47 millions sqft. We are happy to announce that we ahve succeddfullu returned investments of IFC and ASK amounting to Rs 410 crores. We have deployed rs 300 crores of land advances from internal accruals and debt. The board of directors have reappointed Anup Sanmukh Shah as a non-executive independent director of the company for a second term of five consecutive years. The board has declared interim dividend of rs 6.30 per equity share and paid during the quarter ended March 31, 2024. Its sales soarded to rs 1,947 crore in Q4 FY24, registering 93 percent year on year growth. Sales volume for the quarter stood at 2.35 millions sqft with a collection of rs 1,094 crore.  Puravankara's net debt stood at rs 2,151 crore, an the net debt-to-equity ratio stood at 1.14 for Q4 FY24. The weighted average cost of debt stood at 11.59% as of March 31, 2024.  

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L&T realty inks pact for joint development of 12.2-acre land in Thane 

L&T Realty https://www.lntrealty.com/about-us/ , the rel estate development arm g engineering major Larsen & Toubro has entered into a an agreemnet to jointly develop a 12.2-acre land parcel in Thane's Panchpakhadi locality. The projct involving rehabilitation of a large layout of slums has a total development potential of over 3.12 millions sqft. The current developer Jagdale Infrastructure has received a letter of intent from the Slum Rehabilitation Authority in 2002 and is now bringing in L&T Realty https://www.lntrealty.com/about-us/ as its partner in the project. As per the agreement, L&T Realty, as the lead developer, will get 69% share of profits from the projects and the balance 31% will go to Jagdale Infrastructure.the project involving over 20 slums pockets is expected t be completed in five years. L&T Realty has executed the joint development agreement through one of its subsidiary duty of over Rs 34.88 crore for the registraion of the transaction that took place on May 7. As per a notification in October 2016, the plot was declared as slum rehabilitation area under the provisions of the Maharashtra Slum Area (Improvement, Clearance & Development) Act, 1971. Project invloving joint development and redevelopment play a crucical role in the functionality of most property markets. This importance is heightened in the content of rising land prices and the decreasing availability of vacant land parcels in major urban centres. 

By addressing these challenges, joint development and redevelopment initiatives significantly contribute to sustaining the growth and vibrancy of urban property markets, making them indispansable in the current real estate landscape.  

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Columbia Pacific to invest rs 200 crore, add senior  living projects 4 new cities 

Columbia Pacific Communities, a US senior living community operator, plans to invest more than Rs 200 crore to widen its presence in India by entering Pune, Hyderabad, Kottayam and Kochi. Each project will require an equity investment of Rs 50 crore. The company is currently not looking at fundraising. The company plans to start renting out senior living apartments for the first time in India. CPC plans to add 800-1,000 senior living homes every year, with a potential revenue of Rs 150 crore-200 crore per project. The company is also looking at land in Mumbai and tier-II cities such as Hosur near Bengaluru. The company plans to deliver 300 senior living units in FY25 and launch an additional 1,200 units. Senior living projects are apartments built for older people, with special facilities such as wheelchair-friendly doors, anti-skid flooring, and assistive care to deal with age-related issues. Such projects have come up across Bengaluru, Hyderabad, Chennai, and Coimbatore. While most properties have been via joint ventures with developers, CPC is exploring a new avenue - a fee-based model. The company said it has identified a plot in Bengaluru for its first rental project and an announcement is to be made after the general elections.

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NERA bars auditors of Reliances Home Finances & Reliance Commerical Finance

National Fiancial Reporting Authority https://nfra.gov.in/ (NFRA) has banned auditors of Reliance Home Finance and Reliances Commerical Finances https://www.reliancemoney.co.in/, including the firms, and also levied a penalty for irregularities in the accounts of two Anil Ambani group of companies in 2018-2019. In both cases , new auditors had been appointed after Price Waterhouse has resigned. Auditor of Reliance Capital https://www.reliancecapital.co.in/About-Reliance-Capital.aspx, another group company, had faced similar action lasst month. Reliance Home Finance https://www.reliancecapital.co.in/Reliance-Home-Finance.aspx auditor Dhiraj & Dheeraj has been fined Rs 1 crore and chartered accountants and partners at the firm Piyush Patni and Pawan Kumar Gupta have been slapped with a monetary penalty and barred for three-five years from taking up aduit assignments. 
 

Reliance Commercial Finance https://www.reliancecapital.co.in/Reliance-Home-Finance.aspx auditor Shridhar & Associates has been handed a Rs 2 crore penalty, while engagement partner Ajay Vastani has been barred for five years and slapped for Rs 50 lakh fine. Suspecting fraud, Price Waterhouse had resigned as the auditor of the company with assets of over Rs 13,000 crore and liabilities, including debt, of Rs 12,623 crore. In the case of Reliance Home Finance, which is a listed entity, PW had resigned, suspecting fraud at the company. Sebi had noted that the new auditor Dhiraj & Dheeraj had issued a qualified opinion for 2018-19 without making adequate disclousres. The audit firm issued a qualified report while it was required to issue a disclaimer or adverese opinion, had the aduit been concluded as per standards of accounting. 

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Signatureglobal subsidiary buys 14.65 acres land in Gurugram 

Signatureglobal Homes, a wholly-owned subsidiary of Signatureglobal (India), has executed a sale deed to purchase the land admeasuring approximately 14.65 acres situated at Gadauli Kalan, Sector -37D Gurugram. The land has an overall potential developable area of approximate 2.7 million sqft. Pradeeo Kumar Aggrawal, chairman and whole time director of the company said, we aim to launch a residental project on this land in FY25-26.

The company sold over 4,600 units at an average ticket size of Rs 16 milion during FY24. Its sales stood at Rs 72.7 billion in FY24, a growth of 112% from Rs 34.3 billion. Collections stood at Rs 31.1 billion in FY24, a growth of 62% from Rs 19.2 billion in FY23. During FY24, the company has added about 17 million sq ft in Sector 71, on Southern Peripheral Road. Its ongoing projects are expected to be completed by FY26. The company estimates revenue recongnition of about Rs 120 billion over FY24-FY26. 
 

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