Final guidelines for Real Estate Investment Trusts (REITs) are expected soon, aiming to provide the real estate sector with long-term funding and boost investment opportunities.
Omaxe promoters raised Rs 250 crore via Offer for Sale (OFS) to boost growth and meet SEBI's public shareholding norms. The company also announced a bonus share issue.
Godrej Properties plans to raise ₹700 Cr through a rights issue to fund new and ongoing projects across key Indian cities. The company aims for growth despite previous market sluggishness.
Knight Frank reports India faces severe housing shortages, exacerbated by funding issues in construction. Real Estate Investment Trusts (REITs) offer a viable solution.
RBI's decision to hold key policy rates steady has disappointed real estate developers, who were hoping for a reduction in borrowing costs. Industry leaders believe this will negatively impact the sector and hinder funding for projects.
IL&FS private equity plans to boost investments in infrastructure and real estate, increasing commitments significantly by FY10's end, highlighting bullish market outlook.
HDFC Property Ventures and Temasek are negotiating a potential Rs 625 crore investment in Prestige Group, which seeks a business valuation of $1 billion.
Peninsula Land plans to raise ₹500 crore through QIP to acquire land in Mumbai, focusing on Parel, Lower Parel, Kanjurmarg, and Thane.
Amidst lending reluctance from banks, real estate developers are turning to lease discounting for ongoing commercial projects, providing banks with guaranteed cash flow and a safer lending option.
Berggruen Holdings plans to invest over Rs 1,000 crore in India by 2012 to establish 3- and 4-star hotels. The company has secured funding from IDFC and is exploring additional funding options.
A Mumbai NBFC starts selling shares of a Delhi real estate firm, causing further decline in stock price.
Indian real estate developers halt land acquisitions amid market downturn, rising interest rates, and funding challenges. Tepid sales and cash crunches force project delays and potential distress sales.
LIC Housing Finance plans to launch a Rs 500 crore real estate fund by the end of this fiscal year. They are seeking a banking partner and will approach SEBI for approval.
Private Equity deals in Indian real estate and infrastructure reached $2.32 billion in H1 2008, a slight increase but with smaller deal sizes. Sluggish market conditions and funding challenges led developers to seek PE funding, with Red Fort Capital and others closing deals.
India's National Housing Bank aims to raise ₹110 billion by March 2009 to satisfy loan demand, including plans for a mortgage guarantee firm.
BPTP Group paid Rs 1000 crore to Noida authorities as first installment for its 95-acre project, utilizing internal accruals and past PE investments. The remaining Rs 250 crore will be paid soon. BPTP outbid DLF and Omaxe for the project, facing a tight deadline due to funding challenges in the current real estate market.
As land prices soar and liquidity tightens, builders are getting more cautious. They are now focusing on risk mitigation strategies, joint ventures, and leveraging land banks to navigate market challenges.
BCCL invests ₹60 crore in Mantri Realty for new projects and infrastructure expansion, including a ₹2,400 crore power plant near Nagpur.
Eldeco Group seeks $200-250 million from private equity investors for projects in Punjab and Maharashtra after abandoning merger and capital market fundraising plans.