JLL launches separate consultation arm for non-realty firms

The country's largest property consultant Jones Lang LaSalle India today said it has started a new arm to service non-realty focused companies that want to put in money in the sector as an investment purpose only.

The company has launched a new division -- JLL Corporate Finance, which has already brokered some high profile deals such as Jet Airways tying up with Godrej Properties to develop 2.5 acres land in Bandra Kurla Complex and Mafatlal Industries selling 7.6 acres land to Piramal Realty for Rs 605.80 crore.

"Real estate as an investment and asset class has existed in India almost forever. However, this sector has also been limited in many respects by a severe dearth of information.

"JLL Corporate Finance will assist corporates to make informed decisions about acquiring, disposing of or optimally utilising their real estate, regardless of whether they occupy it or have acquired it purely from an investment perspective," Jones Lang LaSalle (JLL) India Chairman and Country Head Anuj Puri said in a statement.

The consultant firm said every business is functionally into real estate as traditionally all Indian corporates have parked funds in this sector when they have excess liquidity, especially when they perceive the property market to be down.

However, JLL India said not all companies or businesses have has the expertise required to make sound business decisions about their realty holdings.

"During times of market improvement or when they require liquidity to rake back into their business, they tend to monetise their real estate holdings," it added.

JLL Corporate Finance Managing Director Ambar Maheshwari said the companies, for whom real estate is not a core business focus, are engaged in such dealings on a gut-feel and promoter-driven perspective.

"Such a perspective can only come with a sound understanding of the real estate sector, which is extremely important when it comes to addressing the shareholder value issue. Real estate is a substantial asset class and unless corporates optimise the returns their real estate portfolios yield, shareholder value is compromised," he added.