Friday, 23 February 2018

Japan’s Sumitomo Enters Indian Realty Sector with $2 billion Gurgaon Projects


Japanese conglomerate Sumitomo Corp today announced USD 2 billion township project in Gurgaon as it forayed into Indian real estate sector in collaboration with local partner Krishna Group.

The 50:50 joint venture, Krisumi Corporation Pvt Ltd will build 5,000 flats, shopping mall, office space and educational institution at 65-acre land in Sector 36-A, Gurgaon abutting the Delhi-Mumbai industrial corridor's Global City.

The project, which will have a total built-up area of 18-18.5 million square feet, will be developed in phases, the two partners announced at a media round table today.

"I want to create a Japanese city here...The first phase will comprise 1.2 million square feet of
 built-up, consisting of 430-450 apartments and will be completed in 4-5 years," said Ashok                 Kapur,      Chairman, Krisumi Corp.

Krishna Group, a diversified business house with interests in auto components, media, travel, and entertainment seating, owns the 65-acre land parcel where the mini-township will be built, said Kapur, who is also the head of the Group.
"Idea is to create a niche which Indian market had not seen," Kapur said adding the apartment that may cost Rs 1-2.5 crore will have quality and facilities equivalent to those costing Rs 15-20 crore at present. Sumitomo Corp, which has done 300 real estate projects globally, will bring in the expertise and technology for Krisumi City. 
"India's real estate sector is going through an interesting phase. While consumer's expectations have evolved manifold, most of the traditional developers are finding it difficult to effectively cater to all their requirements," said Masahiro Narikiyo, Chairman and MD,
Sumitomo Corp India. Narikiyo said the Tokyo-based group has done projects in Japan, the US, China, Singapore, Indonesia and Vietnam. The company was attracted to India because it "is politically very stable among emerging markets," he said. "It is governed by democracy, the value we can share." Sumitomo Corp has sold over 50,000 (rpt) 50,000 condominiums in Kansai and in the Tokyo metropolitan area over the past 50 (rpt) 50 years. In the office building business, it operates about 3,30,000 square metres of office space in Tokyo and Osaka.
Kapur said the biggest challenge facing the Indian real estate industry today is quality, efficiency, and commitment to timelines, all of which is exactly what Japan is known for.
"Japan is already beyond RERA," he said .. adding that Sumitomo may enter into more such alliances in India later on. The project spread over 65 acres will be developed in 7-8 phases over 10 years. While the first phase with 1.2 million sq ft development will have over 450 apartments, the entire project will offer around 5,000 apartments.
“The biggest challenge facing the Indian real estate industry today is with regard to quality, efficiency and commitment to timelines, all of which are exactly what Japan is known for. We are certain that our partner, Sumitomo Corporation, part of the 400-year-old Sumitomo Group, with their extensive global experience in real estate development shall contribute tremendously in creating projects with endearing value for our clients as well as the local communities around it,” said Ashok Kapur, chairman, Krishna Group.
The joint venture company has got most of the approvals for the first phase, which will be launched later this year. The construction of the first phase of the project is also expected to commence this year.
Source :

Wednesday, 21 February 2018

Investing in Real Estate? These Micro Markets can Give Good Returns

There is an uncanny similarity between the stock market and the real estate market today. Though the overall equity market is looking weak, there are several stocks worth investing right now. Similarly, though the broader real estate market is flat, action is happening at the micro level. There are several pockets across metros and large cities where property prices are reasonable and investors can
expect Good Returns.


However, don’t expect prices to shoot up like they were between 2005 and 2008. “Rental yield can be a good yardstick for residential real estate. Investors should get in only when the rental yield is more than 3%,” says Pankaj Kapoor, MD, Liases Foras.

The introduction of the Real Estate Regulation Act helps buyers but has removed the information asymmetry that helped generate High Returns from property. “Real estate, especially New Launches, used to double in value in 3-4 years; that phase is n .. Second, the focus has shifted from premium properties to the affordable and mid-priced segments.

Due diligence by home buyers has also improved. “Home buyers are taking time and doing indepth research like visiting property sites several times before buying,” says Jayashree Kurup, Head – Content & Research, MagicBricks. “Three main factors to check is the credible developer, right-sized house and good price. Unlike earlier, home buyers now insist that all three are in place,” says Sharad Mit .. This week’s cover story looks at micro markets that are doing well and could offer value to buyers. We examine the factors that have worked for these pockets and tell you why you should consider buying property in these hotspots. Improving connectivity and quality of space are plus points.

Gurugram Strong Showing

Improving connectivity and quality of space are plus points.

Office-Space small

Availability of high quality office space at reasonable rates has helped Gurugram score over more expensive Delhi. “Gurugram remained the preferred office destination in NCR with about 57% share in overall leasing in 2017,” says Sachdev of Colliers International India. In addition to the cost advantage, proximity to the airport is another attraction.

The price performance in Gurugram has been unlike other cities. A similar trend is expected in the coming year as well. “Premium office occupiers will continue to prefer Cyber City, Golf Course Road and NH 8 owing to their enhanced connectivity,” says Sachdev. Similarly, the state government’s efforts to decongest the Gurugram-Alwar highway should make commuting easier from Sector 48.

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Wednesday, 17 January 2018

Blackstone in Talks to Buy Commercial Property Portfolio from L&T for Rs 2.3k Crore

MUMBAI: US-based private equity player Blackstone Group is in advanced talks to acquire two commercial properties of L&T Realty, totalling 1.7 million sq ft, in a deal valued at Rs 2,300 crore, said two persons familiar with the development.
Blackstone Reuters 
This portfolio of the real estate arm of engineering major Larsen & Toubro includes about 8 lakh sq ft of fully-leased commercial tower at the L&T premise in Powai suburb and another 9 lakh sq ft office block at the company's commercial project at Seawoods, in Navi Mumbai.
The Seawoods office tower — yet to be completely leased — will be acquired in phases, the people cited earlier told ET. 
 "The deal is expected to be inked by late February as due diligence is currently in its final stages," said one of the persons cited above, adding that L&T Realty will assist in further leasing at Seawoods commercial block. 
 Both L&T Realty and Blackstone Group declined to comment. 
In 2016, Blackstone had bought a 1-million sq ft retail mall, adjacent to the office tower in Seawoods, from L&T Realty for over Rs 1,400 crore. L&T Realty's office block in Navi Mumbai is part of India's largest Transit Oriented Development Seawoods Grand Central, a mixed-use development area over 40 acres that includes the mall and other commercial spaces.
The persons cited earlier said Blackstone is acquiring these assets directly and not through existing joint ventures with Bengaluru-based Embassy Group and Pune's Panchshil Realty. The New Yorkbased institutional investor has acquired assets and stake in portfolios independently earlier too. The commercial tower in Powai is completely leased and has JP Morgan Chase, Colgate-Palmolive and L&T Infotech among its tenants. Being a fully-leased property with long-term contracts, the Powai asset is valued at Rs 1,500 crore and has a capitalisation rate of about 8.5%
Cap rate is ratio of net operating income of the property to its asset value. 
Over the past few years, Blackstone has emerged as the most aggressive institutional investor in India's real estate sector, picking up properties across major cities in deals that are turning out to be benchmarks in the sector. The company owns India's biggest portfolio of incomeproducing office assets, totaling over 31 million sq ft across key property markets of Noida, Mumbai, Pune and Bengaluru. 
The private equity player established its India office in August 2005, and since then has committed over $6 billion to companies in the country. In its real estate portfolio, Blackstone has over total 19 companies that own 31 million sq ft across 18 operating office parks, and it has invested $2.7 billion in these assets. It also has 11 million sq ft of commercial space under development across the country. 
Large global institutional investors including Blackstone Group, Asset Management, GIC, Canada Pension Plan Investment Board, Goldman Sachs and Qatar Investment Authority have been investing aggressively in Indian real estate assets over the past few years.

Source :

Wednesday, 20 December 2017

Dwarka E-Way Connector to Get Extra Lanes

GURUGRAM: MCG will be converting the stretch connecting Daulatabad flyover and Dwarka expressway into a four-lane road to ease traffic congestion on the route. The move will bring relief to hundreds of residents living in sectors along the expressway and areas such as Rajinder Park and Daulatabad.
dwarka expressway four-lane road
"This junction has always faced problems in terms of traffic congestion during peak hours. We have often received complaints regarding the traffic mess at this point and hence, we are making some changes in order to cut down on the snarls on the route," a senior MCG official told TOI on Saturday.

According to officials, the tendering process for the work has started and an estimated Rs 4.5 crore has been sanctioned by Chandigarh for the project.

The work on the project is expected to be completed in the coming year. There is a one km stretch between Daulatabad flyover and Dwarka Expressway. The widening of this stretch will be a big relief to people living in the new sectors along the expressway, including sectors 109, 110, 103 and 106, since in the absence of another approach road, they take this route.

"The area has a lot of societies and there are no proper roads and the approach from Daulatabad is almost always congested. The road widening project would bring some relief for the people living in the area," said Sushil Kumar, a resident of Sector 109.
Additionally, the service lanes along the Daulatabad flyover will also be widened to streamline the traffic under the flyover.

A slip road will also be built near the entry point of the flyover that will take the traffic directly from Daulatabad to Rajinder Park residential area.

"The widening of the service lane and construction of the slip road will benefit residents in areas such as Rajinder Park, Vishnu Garden, Mahalakshmi Garden, Jai Vihar and Daulatabad Industrial Area," said another MCG official.

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Monday, 20 November 2017

Government Invites Bids for Consultant for 4-km Tunnel from Dwarka Expressway

NEW DELHI: Delhi will get its biggest tunnel road, about four kilometers long, to link Gurugram and Dwarka to the International Airport. The government invited bids on Friday for appointing a consultant for this ambitious project, proposing to complete the same in the next three years.

Dwarka-Expressway project

The present approach to the airport from the Millennium city is a highly congested one through the National Highway-8, also known as the Delhi-Gurugram Expressway. An under-construction ‘Dwarka Expressway’ will act as a by-pass of NH-8 from Gurugram to Dwarka. The plan finalized now is to build a 4-km tunnel road from the Dwarka Expressway straight to the T3 terminal of the Delhi Airport.

This deep 4-km long tunnel for vehicles is proposed to run along the alignment of the existing underground Delhi Airport metro line from T3 Terminal to Dwarka Sector 21 Metro station. Passengers destined for the International airport from Gurugram by 2020 will be able to take Dwarka Expressway and then the tunnel road to reach the airport, bypassing the entire NH-8 road.

Residents of the bustling Dwarka area will have the same faster option. The technical consultant to be engaged for the project has been asked to advise on the feasibility of the said tunnel and other pre-construction activities like having its junction with Dwarka Expressway.

The tunnel, one built, will offer “western connectivity” to the International Airport. Both the Dwarka Expressway and the new tunnel road will be executed by the National Highways Authority of India (NHAI). This comes out of the urge of the government to decongest NH-8, where the intensity of traffic has increased significantly and there is urgent requirement of augmentation of capacity for safe and efficient movement of traffic, as per the bid document floated on Friday.

“The standards of output required from the appointed consultants are of international level both in terms of quality and adherence to the agreed time schedule. NHAI has assigned works of consultancy services for DPR of Dwarka Expressway to the technical consultant M/s AECOM. The consultant (of tunnel road project) is required to co-ordinate with M/s AECOM as well as other stakeholders viz. AAI, DAIL, DDA, DMRC and finalize the alignment & configuration of Tunnel Road accordingly,” the bid document says.

It has also been mentioned that since it is envisaged that the tunnel road project “would be completed and opened to traffic after 3 years”, the traffic demand estimates should be made accordingly.

The Centre has been pushing aggressively for projects in and around Delhi, including fast-tracking of the Delhi-Meerut expressway which is set to be built in record time. The first phase of India’s maiden 14-lane highway will be completed next month, road transport and highway minister Nitin Gadkari had said on Tuesday.

The entire 96-kilometre expressway will be completed by 2019, the minister had said.
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