07 June 2020

Table of Contents for Ticker Tape

Ticker Tape - Construction



An estimated one third of global emissions are accounted for by buildings, according to industry reports. Growing awareness of this fact and the imperatives of environmental regulations will increase green buildings footprint from the present 1.7 billion square feet to 3 billion square feet by 2020 in India. Currently, India is ranked third for LEED green building certification. The demand drivers for green buildings will be majorly fuelled by; mixed-use development, schools, communities and high-rise residential.





During the first quarter, Sobha Ltd., achieved a new sales volume of 815,230 square feet, with a value of Rs.623.4 crore, with an average realisation of Rs.7,647 per square feet. The company, in its real estate operational update for Q1 mentioned its share of sales value of Rs.562.7 crore with an average realisation of Rs.6,903 per square feet. The sales volume and total sales value are up by 12.7 per cent and 11.9 per cent respectively as compared to preceding quarter.





A 47.5 acre plot at Thane-Belapur industrial area in proximity to Mumbai has been acquired by Tata Realty and Infrastructure Ltd (TRIL) and Standard Chartered Private Equity JV for Rs.325 crore, which is the biggest land deal so far this year. The JV intends to build Grade A offices for IT companies which would cover about 6.5 million sq. ft at the plot. The transaction’s property adviser Cushman & Wakefield has declined to comment while TRIL has not responded to an email.






Godrej Properties Ltd (GPL) adds a new premium group housing project which will offer approximately 58,000 square meters of saleable area and a high-end residential housing project of approximately 139,000 square meters at Bengaluru and Gurgaon, respectively. The developments will be on Magadi Road in West Bangalore, located in close proximity to the CBD, Race Course, Majestic, and Rajarajeshwari Nagar, at an acquired land parcel measuring approximately 14.8 acres in Sector 106, Gurgaon in an upcoming residential area.





Shriram Properties plans to raise funds for its new projects and also considers going public by next year. The company plans to pump in around Rs.200 crore and raise approximately Rs.800 crore from investors for mid level and affordable housing projects which will be mostly located in Bengaluru and Chennai.

The company’s IPO may hit the market by 2018-2019. Shriram Properties, has given returns of around 20 per cent, for the $805 million it has raised from various investors till now.






Eyeing the growth potential ushered in by the government’s housing mission, urbanisation and the expansion of real estate players, EPC firm Capacit’e Infraprojects said its order book of Rs.4,000 crore is on a healthy growth path. The company chiefly operates in Delhi-NCR, Hyderabad, Patna, Mumbai, Bengaluru, Chennai, and Kochi. The company has received a nod for an IPO and plans to raise around Rs.400- Rs.500 crore which will be used as long term working capital.






The economic development driven by the government and private sector has revived the focus of International Property consultancies (IPC) like Colliers, JLL, Knight Frank and Savills, on project management services (PMC) in India. Project management consulting, construction management, multi-site program management, capital improvements, advisory, build-to-suit development, and tenant improvements, are some of the services that come under PMC. IPCs aim at reaping the value in the PMC business.






The SIERRA ODC building has been acknowledged as the second highest ranking green building in the world under LEED certification, scoring a 103 of 110.

The three-storey building is designed and constructed to increase the efficiency of resource use such as energy, water or materials, with minimal impact on human health and the environment through its entire lifecycle. For e.g. water is 100 percent recycled, implementation of Amorphous Silicon Thin Building Vortec saves energy costs by 64 percent and makes it carbon neutral.






With around 901 REIT-worthy properties and approximately 283 million sq ft of office space which can be REITed in India, the office space sector is a solace to real estate developers considering the current bearish demand for residential real estate in India. Being able to provide easily accessible quality assets with consistent returns, REITs have grown into a mature market force globally over the last decade. Till 2016, over 500 REITs operated internationally with over a total of $900 billion market capitalisation.





The sale process of the cement business of JAL and JCCL to UltraTech Cement Ltd. has been concluded. The transaction is valued at Rs.16,189 crore. With the sale, part of the debt of JAL and JCCL has been transferred from a stressed account to a AAA rated company.

ICICI Bank led a consortium of banks, and has played a significant role in this sale process. This is the largest asset resolution in the country.






Kakinada Smart City Corporation selected Sterlite Tech as its implementation partner to deliver various Smart City related ICT solutions. These include Command Control Centre, CCTV surveillance, Wi-Fi, automatic number-plate recognition, face detection, waste and disaster management, among other platforms, bringing many technology firsts to India in terms of horizontal IoT platform, LoRa-based city-wide wireless sensor network and disaster management systems. The project aims to bring transformational changes in the everyday living experiences of over 3.25 lakh citizens of Kakinada.





SMC Group and IM+ Capitals, to invest in mid-segment affordable housing projects in India, have formed an LLP to float a private equity fund. The Rs.500 crore fund, received the SEBI nod for the AIF Category-II. The five year fund, will be directed towards MIG and HIG affordable housing projects across India in three phases, targeting Bengaluru in the first, Delhi-NCR and Hyderabad in the second and Lucknow, Kolkata and Chennai in the third.






According to Ind-Ra, in the next four years the affordable housing finance segment will grow from its current size of Rs.1.5 trillion to Rs.6 trillion which will make this segment a main contributor to the overall housing finance segment. The Rs.15 lakh loan ticket size is to become a major segment for HFCs in the five years to come, and its market share is estimated to grow to around 37 per cent in FY22.






Adani Capital Pvt Ltd backs PRA Realty by financing Rs.50 crore which will be used by the latter for the development of an exemplary mixed-use project located at Shivaji Nagar, Pune. PRA Realty is one of the fastest growing real estate developers in Pune having developed over one million sq.ft and about five million sq.ft that is under development at present. Adani Capital is Adani Group's NBFC arm focusing on wholesale and retail lending.






Supertech Ltd is to invest Rs.750 crore to develop about 25 lakh sq ft of commercial and retail projects in Delhi-NCR for the company’s North Eye, E square and Supernova commercial projects which will have the retail presence of about 400 domestic and international brands. Supertech aims at India’s growing retail segment and plans to capitalise it by expanding the company’s retail footprint. Vijay Kapoor has been appointed as CEO of Retail and Commercial segment.






Pennar Industries informed the BSE that Pennar Industries Ltd and Pennar Engineered Building Systems Ltd intends to set up a 50:50 Joint Venture in the United States of America to supply their goods and services. The Joint Venture will help both companies to increase their addressable market and contribute to an increase in Revenue and Profitability.






Thiruvananthapuram topped the list of cities to be developed into smart cities in this round of selections which was contested for by 45 cities for the 40 available slots out of which only 30 were selected to ensure feasible and workable plans. A total investment of Rs.57,393 crore was proposed by the 30 cities under their respective smart city plans. 26 cities have proposed affordable housing projects benefiting the urban poor, 26 proposed school and hospital projects and 29 proposed redesigning and redevelopment of roads.






Signature Global will build 1,448 units and 448 units in ‘The Millenia’ and ‘Solera-2’ projects respectively over a period of four years at a fixed selling price of Rs.4,000 per sq ft. where the price range of the apartments would be in between Rs.20 lakh-Rs.25 lakh. The Rs.400 crore required for the projects will be funded through internal accruals and the Rs.200 crore raised from KKR. The projects have been registered under RERA.

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