Piramal Capitaland Housing Finance raises rs 835 crore through social loan

Piramal Capital & Housing Finance raised its maiden dollar syndicated social loan of $100 million (?835 crore). The entire loan is pre-funded by Standard Chartered Bank and the foreign lender is expected to syndicate the loan in the next few months. The loan has a three-year maturity, and it is benchmarked to the three-month secured overnight financing rate (SOFR) plus 200 basis points. The prevailing SOFR is 5.3%. "Through this loan, we are trying to tap the overseas market and since a large part of our financing gels well with the social theme, this loan is the first of many to come," a Standard Chartered Bank official said on condition of anonymity. "All highly-rated NBFCs have to start looking at some amount of financing from the international markets and this route is expected to pick up pace. In fact, there is a lot of global investor appetite for ESG space." Standard Chartered Bank is the social loan coordinator for this transaction and the sole mandated lead arranger, underwriter and book-runner. Social loans are used to fund projects that have a social cause, like a welfare project, affordable homes or environmentally sustainable projects among others. Last month, Shriram Finance raised more than $450 million through a Last month, Shriram Finance raised more than $450 million through a syndicated term loan. Mortgage loans, comprising home and small business loans, account for 68% of the overall retail AUM Such loans grew at a robust 38% in FY24. The lender expects 15% AUM growth in FY25 to around ?80,000 crore. 
 

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Tata Realty secures rs 825 crore from IFC to refinance IT park in Chennai

Tata Realty, a subsidiary of Tata Sons, has secured an Rs 825 crore loan from the International Finance Corporation (IFC) to refinance Ramanujan Intellion Park situated in Taramani, Chennai. Ramanujan Intellion Park has achieved a complete reduction of emissions through renewables or carbon off-sets, saving more than 20 percent on water and embodied energy in materials while attaining over 42% percent energy savings on-site. The financing from IFC is a strategic investment in advancing our efforts enhance the sustainability and climate resilience of Ramanujan Intellion Park." The 25.27-acre IT park encompasses both a special economic zone (SEZ) processing area and a non-processing zone. It has a total leasable area of approximately 4.67 million sq ft of IT/ITES commercial office spaces. 
 

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HDFC Capital to invest $2 billion in affordable housing segment by 2025 end

HDFC Capital Advisors is betting big on affordable and mid-income housing withs plans to invest more than $2 billion in this segment across India's top property markets by the end of 2025 to support easing od supply side constraints, said a top company executive. The world's largest affordable housing platform that counts Abu Dhabi Investment Authority (ADIA) as its key investor is in the process of achieving its medium-term goal of financing 1 million affordable homes in India through existing platforms set up with leading developers. The government has just announced support for 3 crore affordable houses including 1 crore homes in urbans areas. This is a $500 billion business opportunity and would need investment of at least $100 billion The fund is looking to deploy at least $1 billion annually over the next two years in affordable and mid-income housing across top 15 indian cities including Mumbai region, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad, he said. India has entered a period of demographic dividend which is expected to continue for the next 30 years. The purchasing power of India is going to lead to a consumption boom as more than 200 million households will form part of the upper middle class and above category by 2030. In HDFC Capital’s portfolio, unit ticket prices start from Rs 12.50 lakh and around 40% of its portfolio comprises units priced at less than Rs 42 lakh. It has so far invested across over 175 projects, helping develop over 250,000 units. HDFC Capital’s target is to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships, and technology, whilst focusing on sustainability.
 

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Global capability centres drive office leasing in Jan June 2024 

Total ofice leasing by Global Capability Centres  (GCCs) in the first half of 2024 accounted for ~37% of the overall office easing in India, according to a recent report by CBRE. GCCs leased 11.9 million sq ft office space in Jan-Jun 2024 period. BFSI firms and technology companies contributed to about 45% of the total leasing by GCCs during the same period. Bengaluru had the highest share of GCC leasing, at 39%, followed by Pune at 20%, while Hyderabad and Chennai at 17% and 11%, respectively, during Jan-Jun 2024. On a pan-India basis, overall office leasing remained strong, with gross office leasing touching 32.8 mn. sq. ft. during Jan-Jun 2024, recording an increase of 14% year-on-year across nine cities, the second-highest H1 leasing. The nine cities include Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad. According to the report, total supply of 22.1 million sq. ft. was recorded during Jan-Jun 2024 period.  Bengaluru led office space absorption, accounting for about one-fourth of the total leasing during Jan-Jun 2024 period, followed by Delhi-NCR at 16%, Chennai at 14%, Pune and Hyderabad each contributing 13%. Bengaluru, Hyderabad, and Mumbai led supply additions, collectively accounting for 69% of the total in the same period. The report indicates technology companies saw the highest share and accounted for 28% of the total office leasing, followed by flexible space operators at 16%, BFSI firms at 15%, engineering and manufacturing (E&M) at 9% and research, consulting & analytics firms (RCA) at 8% during Jan-Jun 2024. On a quarterly basis, office leasing in Apr-Jun 2024 stood at 18 million sq ft, a 27% increase compared to Apr-Jun 2023. Bengaluru, followed by Pune and Chennai led the absorption in Apr-Jun 2024, together accounting for about 57% of the leasing activity. Development completions of about 13.2 million sq ft was witnessed in Apr-June 2024, up by 49% quarter-on-quarter, and 11% year-on-year. Technology companies held a share of 29% in leasing activity in Apr-June 2024, up from 26% witnessed in Jan-Mar 2024. This was followed by Life sciences firms accounted for a 9% share in leasing. During Apr-Jun 2024 period, American firms led the absorption, accounting for a share of ~39%.
 

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Bandra police file FIR against ex employees for data theft impacting real estate firm

The Bandra police registered an FIR on Tuesday against three former employees of a real estate service company for abruptly resigning from their positions in May and allegedly hacking into the company's system to steal valuable client data. The stolen information, worth over Rs 80 lakhs, has significantly impacted the firm, causing them to lose clients. The police are investigating the matter based on the complaint, which states that the three suspects have joined a Powai-based real estate company after stealing the data. the company claims that before their departure, the employees accessed and copied the firm's confidential client database, containing essential information about the company's customers and their preferences. In the FIR, Kadilal stated that the theft of the client database has severely affected the company's business operations, as it heavily depends on this information to maintain client relationships and generate revenue. The loss of this data has left the company struggling to retain existing customers and attract new ones, resulting in substantial financial losses. The Bandra police have registered a case against the three former employees under the Indian Penal Code sections for criminal conspiracy and theft by servants. However, no arrests have been made yet, and the investigation is ongoing. 
 

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Leasing of workspace in January to June up 29 percent to 33 54 million 

Office demand across seven major cities hit an all-time high in the first half of this calendar year with gross leasing of 33.54 million square feet, according to JLL India https://www.jll.co.in/ . Real estate consultant JLL India https://www.jll.co.in/ on Wednesday released the data of office demand for the January-June period of this year which saw 29 per cent annual growth in gross leasing to 33.54 million square feet across these seven cities -- Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad and Pune.

"H1 2024 (January to June) marked the best-ever first half, with leasing volumes at 33.5 million sq ft, surpassing the previous highest H1 performance seen in 2019," the consultant highlighted. Gross leasing of office space stood at 26.01 million square feet in the January-June period of 2023. In January-June 2019, the gross leasing of office space stood at 30.71 million square feet, but the numbers fell to 21.10 million square feet in January-June 2020 and 12.55 million square feet in January-June 2021 due to a slowdown in demand because of the COVID pandemic. The office demand bounced back post-COVID. In January-June 2022, the gross office leasing stood at 24.68 million square feet. Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments, but does not include term renewals. Deals in the discussion stage are not included. 2024 projected to mark record-breaking gross leasing of 65-70 million sq. ft, setting the stage for a historic milestone in the country's commercial real estate market," JLL India https://www.jll.co.in/ projected.
 

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Capgemini to invest rs 1000 crore to set up six lakh sqft  space in Chennai

Global IT service provider, Capgemini https://www.capgemini.com/ would set up a new state of the art facility in the city and the committed investment of Rs 1,000 crore spread over the next 3 years. The construction for the 5,000-seat facility, spread across six lakh sq ft is scheduled to be completed by April 2027. It would promote a collaborative and engaging work environment featuring advanced engineering labs, dedicated pods for customer experience centers among others. The campus would integrate advanced energy and water-efficient technologies, utilise recycled materials and implement rainwater harvesting during construction. The company would foster local talent and pledges Rs 3 crore investment for the development of neighbouring schools run by the government. I congratulate Capgemini https://www.capgemini.com/ on launching the construction of this state-of-the-art facility and look forward to collaborating with them on their future endeavours," Raja was quoted as saying in a press release on Tuesday. The campus would be equipped with wellness centres, town halls, gymnasiums and cafeteria designed to enhance employee wellbeing and create a conducive work environment.  As a leader that is shaping the future of industry, we are investing in local talent and enhancing the well-being of our communities. This expansion demonstrates our strategic vision and commitment to collaborating with local government efforts to drive the country's economic growth. 

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Government increase guideline value by upto 10 percent in Chennai

Owning a home in the city will get pricier. Governmnet has increased guideline values for land by upto 10% in the city and a few old corporations, effective July 1, reverting to March 2023, values, but with a slight increase is some areas. The guideline value per square foot on Alandur Road, Rs 5,500 until June 30, is now Rs 6,100. In Okkiyam-Thuraipakkam, it rose from Rs 6,000/sqft to Rs 6,600/sqft and on Abhiramapuram 3rd Street from Rs 16,000/sqft to Rs 17,600/sqft. The revision, covers 2.19 lakh streets and 4.46 crore survey numbers and subdivision numbers. While values in core Chennai and old corporations such as Coimbatore, Trichy, Salem, and Vellore rose significantly, those in other areas remain unchanged. Some builders said this will raise premium FSI (floor space index) charges that will have to be passed on to buyers. The revision, covers 2.19 lakh streets and 4.46 crore survey numbers and subdivision numbers. While values in core Chennai and old corporations such as Coimbatore, Trichy, Salem, and Vellore rose significantly, those in other areas remain unchanged. Registration department offcicials say TN Stamp Rules of 2010 formed sub-committees for each district to revise guideline values. This was implemented in 2012 and in 2017, when guideline values were cut by 33%. A March 30, 2023, circular increased value by 33%, effective April 1, 2023, while reducing registration fee and other charges.

 

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Government to reconstruction 28643 dilapidated flats Tamil Nadu CM

The state government will reconstruct 28,643 dilapidated flats of the Tamil Nadu Urban Habitat Development Board in the next three years and 6,746 apartment will be reconstructed in the first place, Cheif Minister MK Stalin told the Assembly on Friday. The first phase work will be taken up at a cost rs 1,146 crore. The board currently maintains 1.94 lakh flats across Tamil Nadu and among them, 28,643 dwellings have been found to be dailpaidated, the cheif minister. In the first phase during 2024-2025 finacncial year, East Cemetery Road, Kodungaiyur, and VOC area in Chennai, besides the project area in Thanjavur and Tiruchirapalli will be reconstruction at a cost of rs 1,146 crore. After the DMK took up the resins, the government accoded prioprity to the works of the Board and expedited the construction of 29,439 flats and 1.70lakh individual houses in three years, Stalin informed. The construction of 79,094 apartments and 89,429 individuals houses was under variours stages of completion and a total of rs 6,685 crore has been spent on these projects. 

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India Cement in talk with Bank of America and Nomura to raise rs 500 crore

India Cements is in advanced talks with Bank of America (BofA) and Nomura to raise up to ?500 crore in bonds, with each investing ?250 crore. The bonds, which could be raised at more than a 15% coupon, will be used to fund both working capital and capital expenditure, said two sources aware of the development. India Cements had mandated ICICI Bank and EY to arrange for the debt from lenders including private credit funds, as reported earlier and they have been in talks with lenders including private credit funds. India Cements could not be reached for a comment. Nomura and BofA did not respond to requests for comment. On Thursday, UltraTech Cements announced its plans to acquire more than 70 million shares in India Cements. The deal was struck at a price of up to ?267 per share. This non-controlling investment constitutes around 23% of the equity share capital of India Cements.
 

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Smartworks secures Rs 168 crore in funding round led by Keppel 

Smartworks has successfully raised rs 168 crore in its lastest funding round this year. According to a press release, the investment comes from a consortium of investors including Keppel Ltd., Ananta Capital Ventures Fund I, Plutus Capital, family trusts, and high-net-worth individuals. The promoters of Smartworks retain a majority shareholding in the company following this funding infusion. Keppel Ltd., Mahima Stocks Private Limited, and Deutsche Bank A.G. London Branch are among the notable investors supporting Smartworks, underscoring their confidence in the company's growth and leadership in the managed office and campus space sector. Louis Lim, CEO, Real Estate of Keppel Ltd., remarked on the strategic partnership, noting that since Keppel's initial investment in 2019, Smartworks has evolved into India's foremost managed workspace platform. In the fiscal year 2024, Smartworks expanded its footprint with new centres, including Golf View Corporate Towers in Gurgaon, Logix Cyber Park in Noida, Amar Tech Centre and 43EQ in Pune, and Olympia Pinnacle in Chennai. 
 

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Land record management digitised in Tamil Nadu

Residental need not longer run from pillar to post for land boundary measurements, and  village maps. Now they are just a click away as the survey and settlement directorate has digitsed land record managemengt. Earlier the process was cumbersome for the buyers and seller, and requried a compulsory visit to the taluk office for patta transfer, requesting  a campulsory visit to the taluk office for patta transfer, requesting measurement of land and for all land record based services. Now the entire process is online cuts short the time required to get the documents and weeds out corruption to an extent. The automatic mutation or transfer of patta that does not involve subdivisions is one of the key outcomes of the integration. The title change in the patta is made within a minute after the buyer registers the the property he purchased without any subdivision.

This is called fulfilled patta and can be downloade from https://eservices(dot)tn(dot)gov(dot)in by entering the relevant details. one person is subdividing his land parcel and selling it to many, the application will land in the login of the village administrative officer or surveyor. The patta will be issued within 30 days. 

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