Page 96 - Real Estate

Realty firm Sobha looking to up equity capital to Rs 10,000 cr in 5 yrs

Realty firm Sobha Ltd is looking to increase its equity capital by four times to Rs 10,000 crore over the next five years to support future expansion plans and is set to launch a rights issue this fiscal year to raise around Rs 2,000 crore. Bengaluru-based Sobha Ltd is part of Sobha Group that was founded by PNC Menon in 1995. The Group has real estate business in Dubai under an entity named Sobha Realty. The Group is planning to enter the US property market as well. Sobha Ltd's board has approved the company's proposal to launch rights issue for an amount not exceeding Rs 2,000 crore. "We want to increase the equity of the company. So the purpose of bringing the rights issue is to provide money into the company so that we can fund the growth," Sobha Ltd Chairman Ravi Menon said in an interaction with reporters in Dubai recently. Post rights issue to eligible equity shareholders of the company, the equity capital base would increase to Rs 4,500 crore from Rs 2,500 crore ...

New supply of homes fall 38% across top 8 cities in Jan-Mar: PropEquity

New supply of affordable homes -- priced up to Rs 60 lakh each, declined 38 per cent across eight major cities to 33,420 units during January-March this year, with builders focusing on developing luxury flats, according to PropEquity. Real estate data analytic firm PropEquity attributed the fall in new supply to sharp rise in land and construction costs, which has made development of affordable housing projects less profitable or unviable. According to PropEquity data, the fresh supply of homes, up to Rs 60 lakh each, stood at 33,420 units during January-March 2024 across top eight cities, as against 53,818 units in the year-ago period. These eight cities are -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Kolkata, Pune and Ahmedabad. PropEquity data showed that the new supply in this price category fell 20 per cent during the 2023 calendar year and the declining trend continued in the first quarter of this year as well. "The number of affordable hou

Data centres in India to drive 10 mn sq ft real estate demand: Report

Sector likely to get $5.7 bn investments by 2026, it says

Eyeing expansion in South, West markets: Puravankara CEO Abhishek Kapoor

Kapoor discussed the factors driving revenue growth, strategy to strengthen the Southern market, project pipeline, and investment targets

Unsold homes in Delhi-NCR drop 57% in last 6 years to 86,420 units in Q4

The unsold housing stock in Delhi-NCR has declined 57 per cent in the last six years to 86,420 units at the end of March quarter this year, according to Anarock. Real estate consultant Anarock said in its latest report that NCR's unsold stock declined from 2,00,476 units at the end of the March 2018 quarter to 86,420 units as of March 31, 2024. In the same period, the main southern cities (Bengaluru, Hyderabad and Chennai) saw their unsold stock decline from 1.96 lakh units in Q1 2018 to over 1.76 lakh units in Q1 2024. Santhosh Kumar, Vice Chairman of Anarock, said, "What really worked for the NCR market was developers' determination to keep new supply addition under control". Quoting Anarock's data, he said the NCR witnessed a total new supply of about 1.81 lakh units between Q1 2018 to Q1 2024. In contrast, southern and western markets witnessed significantly higher new supply additions of about 6.07 lakh units and 8.42 lakh units, respectively. As per the data, the unsold hou

Registration of over 20,000 Maha real estate agents suspended by MahaRERA

Starting January 1, 2024, real estate agents are mandated to go through training, clear the test and register their certificate as stated by the Maharashtra Real Estate Regulatory Authority (MahaRERA)

Financialisation of household savings can fund private capex: Goldman Sachs

The report titled 'Changing Contours of Indian Household Savings' notes that within financial savings, allocations are shifting from banks to non-banks, especially into retirement savings

Hotel industry clocks 11% revenue growth per room during Jan-Mar: Report

India's hotel industry saw strong demand at both business and leisure destinations during the January-March period this year leading to an 11 per cent annual rise in revenue per available room, according to JLL. In a statement on Wednesday, real estate consultant JLL India said that the hospitality sector saw an increase in Average Daily Rate (ADR) of 8.5 per cent year-on-year, resulting in a revenue per available room (RevPAR) growth of 11.4 per cent. Chennai recorded the strongest growth in RevPAR at 21.7 per cent in January-March. "Major factors contributing to this growth included an increase in corporate travel, weddings, and Meetings, Incentives, Conferences and Exhibitions (MICE) demand," the consultant said. During the first quarter of 2024, there was a robust demand for hotel rooms in both business and leisure destinations. The occupancy levels in key business markets were strong, averaging around 70 per cent, and supported by significant growth in average daily occupancy

Exploring real estate investment opportunities abroad? Know key risks here

From a financial standpoint, the allure of diversifying, tax benefits, capital appreciation, and enjoying favourable rental yields serves as compelling incentive for investment in real estate

Awfis Space Solutions garners Rs 268 cr from anchor investors ahead of IPO

Co-working space operator Awfis Space Solutions Ltd on Tuesday said it has mobilised a little over Rs 268 crore from anchor investors a day before its initial share-sale opening for public subscription. The company has allotted 70.13 lakh equity shares to 32 funds at Rs 383 apiece, which is also the upper end of the price band, according to a circular uploaded on BSE's website. At this price, the firm has collected Rs 268.61 crore, it added. Those who participated in the anchor round include -- Goldman Sachs, EastBridge Capital Master Fund, HDFC Mutual Fund (MF), ICICI Prudential MF, Axis MF, UTI MF, Aditya Birla Sun Life Insurance Company and SBI General Insurance Company. The issue, with a price band of Rs 364-383 per share, will open on May 22 and conclude on May 27. The proposed initial public offering (IPO) is a combination of fresh shares of Rs 128 crore and an offer for sale (OFS) of 1.23 crore shares worth Rs 471 crore at the upper end of the price band. This takes the tot

Sobha Group to soon enter Mumbai luxury housing market, says founder Menon

Realty firm Sobha Group has chalked out an aggressive expansion plan for its India business and will soon enter the Mumbai luxury housing market with an aim to achieve more than a four-fold jump in annual sale bookings to Rs 30,000 crore in the next 4-5 years, according to its founder PNC Menon. Sobha Group, which was founded in 1995, has a real estate business in India and Dubai, with plans to soon enter the US property market. Buoyed by its success in the Dubai real estate market where Sobha Group clocked Rs 35,000 crore worth of sales in 2023, Menon -- the richest person in Oman -- intends to replicate the same in the Indian market in terms of scale of business and quality standards. Sobha Group's Dubai entity named Sobha Realty has developed a large resort-style luxury township here named 'Sobha Hartland' with complete backward integration to ensure quality. Another township and a few more projects are being constructed here. "Our India business Sobha Ltd will enter the Mumbai

Shriram Properties inks JV for housing project; eyes over Rs 250 cr revenue

Realty firm Shriram Properties Ltd has partnered with a landowner to develop a 4-acre housing project in Bengaluru with an estimated revenue potential of more than Rs 250 crore. In a regulatory filing on Tuesday, the company informed that it has signed a Joint Development Agreement (JDA) for the development of a prime 4-acre land parcel located at Yelahanka in Bengaluru. "The proposed project will comprise of 270 apartments with an aggregate saleable area of 3.8 lakh square feet. The project has aggregate revenue potential of over Rs 250 crore and is expected to be developed over the next 3 years," Shriram Properties said. The company is targeting to launch of this project during the first half of the current financial year. "This investment is in alignment with our goal of increasing our footprint within the city and also highlights our asset light approach to accelerate growth, Murali Malayappan, Chairman and Managing Director of Shriram Properties, said. This project will ...

Optimism in real estate industry stakeholders highest in 10 years: Report

As many as 82% of the respondents expect residential prices to rise in the near future

Asia shares touch two-year top buoyed by China's property boost plans

Late last week, partly in response to some policymakers' comments, global bonds retraced a rally that had followed an encouraging fall in US CPI data

Goswami Infratech sweetens offer to bondholders, in return for more time

Goswami Infratech is an investment company within the Shapoorji Pallonji group under billionaire Shapoor Mistry. Its projects include apartments, warehouses, parking spaces and shops

China unveils new measures to fix its real estate crisis, spur growth

China announced a slate of fresh measures Friday to reinvigorate its ailing property industry after the latest data showed housing prices have slumped nearly 10% since the start of the year. Among other things, the central bank said it would reduce the minimum down payment for mortgages and remove the floor on interest rates for first and second homes. China's housing market has slumped after a crackdown on excessive borrowing by property developers several years ago, dragging along a wide range of other businesses such as home furnishing, appliances and construction and slowing growth in the world's No. 2 economy. Dozens of developers, whose legions of high-rise apartments have transformed urban landscapes across China, have defaulted on their debts. Many projects have just stalled, unfinished. He Lifeng, a vice premier, said officials would roll out policies to suit each city and fight the tough battle of dealing with the risk of unfinished commercial housing. We will solidly

WFH no more concern for office space demand: Cushman & Wakefield India head

The demand of premium office space across major cities is likely to exceed 70 million square feet this year and going forward as work-from-home is no longer a concern for the Indian commercial real estate market, said Cushman & Wakefield India chief Anshul Jain. Cushman & Wakefield, one of the leading global real estate consultants, is bullish on the Indian office market, driven by high demand from global capability centres (GCCs) and domestic companies across major sectors. In an interview with PTI Videos, Jain, Chief Executive, India & Southeast Asia and Head of Asia Pacific Tenant Representation, Cushman & Wakefield, said, "India is now being called the Office of the world interestingly. And the demand in India is one of the highest in Asia, and in fact the rest of the world." Indian office market across seven major cities is witnessing a very strong demand, with both gross leasing and net leasing reaching around pre-COVID level, he said. "So, from an office market .

China's housing market crash could hurt millions of promising careers

The value of new-home sales from the 100 biggest real estate companies was down about 45% in April from a year earlier

Strong prospects fully priced in for real estate firm Oberoi Realty stock

The revenue increased 37 per cent Y-o-Y to Rs 1,310 crore in Q4FY24 and Ebitda was at Rs 790 crore, up 114 per cent Y-o-Y with the margin increasing sharply to 60 per cent

Brookfield REIT Q4 results: Net operating income rises 89% at Rs 461 cr

Brookfield India Real Estate Trust (BIRET) on Thursday reported an 89 per cent rise in its adjusted net operating income to Rs 460.8 crore during the March quarter and announced distribution of Rs 208.6 crore to unitholders. Its net operating income (NOI) stood at Rs 244.4 crore in the year-ago period. During the full 2023-24 fiscal, the company's NOI increased to Rs 1,506.2 crore from Rs 960.8 crore in the preceding year, according to a regulatory filing. During the fourth quarter of last fiscal, the company said it achieved highest quarterly new leasing since IPO of 0.9 million square feet. It received in-principle approvals for conversion of 1 million square feet of SEZ space to non-processing area and in the process of applying for a further conversion of 0.2 million square feet. "Recent leasing was driven by demand from GCCs (Global Capability Centers), MNCs (multinational corporation) and domestic tenants across sectors such as consulting, BFSI, technology, and oil & gas, ..