Wednesday, May 12, 2021

Table of Contents for Ticker Tape





Construction

Ministry of Housing and Urban Affairs approves construction of 56,368 houses under PMAY-U

Ministry of Housing and Urban Affairs has approved construction of 56,368 houses under PMAY-U at Central Sanctioning and Monitoring Committee Meeting. These houses are proposed to be constructed under various verticals of PMAY-U Mission.

“Let’s get into the mode of implementation and execution,” said Durga Shanker Mishra, Secretary, Ministry of Housing and Urban Affairs (MoHUA). Mishra urged the States/UTs to ensure 100% completion and delivery of PMAY-U houses to all its eligible beneficiaries within the mission period. The participating States/UTs were also directed to use the online mechanism (MIS) for proper implementation and monitoring of the Mission.

The progress of Light House Projects (LHPs) and Demonstration Housing Projects (DHPs) was also reviewed by Secretary, MoHUA. The foundation stones of the LHPs were laid by the Prime Minister on January 1, 2021. The houses under LHPs are being constructed at Lucknow, Ranchi, Rajkot, Agartala, Chennai and Indore.

To promote these LHP sites as Live Laboratories for transfer of technology to the field, the Ministry has initiated an Online Enrolment Drive for Technograhis to encourage large scale citizen participation and create technical awareness, on-site learning, find ideas for solutions, experimentation and encouraging innovation.

Construction of PMAY-U houses are in various stages. As of now, more than 73 Lakh houses have been grounded and nearly 43 Lakh have been completed.

 

 

Migsun group to invest Rs.4,500 crore in three stuck projects

Realty developer Migsun is in talks to acquire three stress projects in NCR with the development potential of 30 million sq ft. The group will invest Rs.4,500 crore over the period of five years in the construction and will form a JV with the existing owner. The group is in the final stages of signing the deal with three different developers. Beside these three projects, the group is also in talks to overtake another residential project through the NCLT.

Plan to resurrect stalled projects might not have a major effect on new demand, but it will provide relief to aggrieved homebuyers who have been waiting for their real estate asset with bated breath. However, it would go a long way toward enhancing overall consumer sentiment as well as helping to fix the supply side of the real estate market. Migsun has recently acquired HDFC and Ansal Properties & Infrastructure Ltd’s stake in Ansal IT City Park (SEZ) Tech Zone, Greater Noida, and plans to develop the 37.5-acre mixed-use project. The project will have 50 per cent IT/ITeS offices, 15 per cent industrial, and 15 per cent commercial. According to multiple reports, there are more than 4 lakh stuck units in projects launched in 2013 or before, out of which around 70% are in MMR and NCR. The company is executing 16 projects, both residential and commercial, in various parts of Delhi and its suburbs.

 

 

Mumbai region, Pune Bengaluru top 3 cities for property investment, report

Mumbai Metropolitan Region (MMR), Pune and Bangalore have emerged as the top three property markets for investment in the backdrop of bottoming out of prices, decline in inventory levels and booming information technology sector amidst COVID19 pandemic, according to an Anarock Property Consultants report. Interestingly, Bengaluru and Pune have, respectively, also been declared the top two most liveable cities of India in the recent Ease of Living Index published by the Ministry of Housing and Urban Affairs (MoHUA). The IT/ITeS sectors’ post-COVID boom seems to be working well for the IT-centric realty markets of Bangalore and Pune. According to data, these three cities remained the most active markets in 2020 – together accounting for a 67% share of the total housing sales (of around 1.38 lakh units) recorded in the top 7 cities, and 60% of all new launches (around 1.28 lakh units).

 

 

Xanadu Realty signs with Pashmina Developers in Bengaluru

Xanadu Realty has bagged marketing rights for a 10 acres affordable housing project from Pashmina Developers.

The project, Codename Maximum Khushiyaan is located at Whitefield extension, Budigere Cross, an emerging destination in North-East Bengaluru. The digital mega-township is powered by Airtel Xstream Fiber through which families residing here will get access to the speed internet through multiple wi-fi zones. This project is also equipped with digital gaming & e-learning facilities, digital security & much more. The project, offering elegant 1 BHK homes with a private balcony in a 14 storey tower at just Rs 26.91L, is well-connected to key hotspots of Bengaluru and will cater to more than 4.5 lakh IT professionals & other self-employed community working within a 30-minute radius.

The Budigere cross neighborhood is an extension of the upmarket Whitefield area, home to the city’s affluent consumers. The area has been under the spotlight following several launches by prominent realty players, especially as it provides key nodal connectivity to the Karnataka Industrial Area Development Board (KIADB) Park that spans more than 3000 acres. The KIADB Park will house an Aerospace SEZ, IT Park, Hardware Park, , and the IFCI Financial City and is expected to generate more than one lakh jobs by 2022. The partnership comes at a time when housing affordability has witnessed a significant boost due to lower real estate prices and a steep fall in home loan interest rates. Despite pandemic-related slowdowns, the demand for homes has already picked up. According to international property consultant Knight Frank, The affordable housing segment has continued to dominate the Indian market in 2020, with more than 50% new launches in the segment across the country. At the same time, affordable homes made for almost half the overall sales in Q3 2020. With the Indian government’s push for Housing for All by 2022 and the Pradhan Mantri Awas Yojana, the supply of affordable homes is likely to remain strong.

 

 

Government plans to open about 20 million sqft real estate, attracting investment of Rs.50,000 cr.

Habibganj in Madhya Pradesh (MP) and Gandhi Nagar in Gujarat will be India’s first railway stations to be operationalised under the public-private partnership scheme as the Indian Railways sets in motion its ambitious station redevelopment plan.

Indian Railway Stations Development Corporation Ltd (IRSDC) said both the stations will offer space for retail, office spaces and food & beverage set-ups.

In Habibganj, the developer will monetise 170,000 sq ft of land while in Gandhi Nagar, a five-star hotel has been built on the railway tracks, which will also be inaugurated shortly.

“These stations will become a model for future development where we plan to redevelop more stations under the PPP mode,” said S K Lohia, Managing Director and Chief Executive Officer of IRSDC. “We have not only used the vacant nearby land, some commercial development has also been done using the air space above the station.” Of the 123 stations currently available for redevelopment, the railway aims to issue tenders for 50 by March 2021. The government plans to open up about 20 million sq ft of real estate, attracting investment of Rs.50,000 crore.

Some of the major stations, work for which has been awarded this financial year include Delhi, Mumbai, Nagpur, Amritsar, Dehradun, Nellore, Tirupati and Puducherry. Habibganj railway station was redeveloped as a brownfield project under a PPP agreement signed in March 2017. The developer has 45 years lease rights for 17,245 sq metre of railway land.

The responsibility of the station’s operation, maintenance and revenue collection is also with the developer for eight years.

IRSDC will get a fixed percentage of station revenue as its management fee, without any expenditure for operations and management. The redevelopment of Gandhinagar Capital Railway Station project, with a 300-room five star hotel, has been completed by special purpose vehicle (SPV), Gandhinagar Railway & Urban Development Corporation Ltd. The SPV was formed with equity contribution of government of Gujarat and IRSDC in the ratio of 74:26 respectively. “Habibganj brownfield PPP project will pave the way for other interested private developers to invest in similar upcoming projects,” Lohia added. IRSDC is also executing the redevelopment of Mumbai’s CSMT station.

 

 

Embassy Office Parks REIT | Board approved fund raising upto Rs.2,000 crore.

Bengaluru-based real estate firm Embassy Group, and Ivanhoé Cambridge, a global real estate industry leader and a subsidiary of the Caisse de dépôt et placement du Québec, one of Canada’s leading institutional fund managers, are partnering to launch an investment platform focused on office business parks in campus-based and mixed-use environments in India.

The platform will have an investment capacity of $500 million from the two partners, the company said in a statement. Ivanhoé Cambridge and Embassy will be investing in an 80:20 ratio, with an initial focus on the Southern Indian markets of Bengaluru and Chennai. The concept aims at meeting the demand in the expansion of Global Capability Centres and Research and Development Campuses, it said.

The Embassy Group will lead all real estate development, project management, leasing and operations, while Ivanhoé Cambridge will leverage their expertise in investment, the company said.

The platform will invest in develop-to-core and acquisition of partially developed business park opportunities to cater to the preferences of the millennial workforce in providing flexible workplaces and building sustainable communities across key Indian urban centres.

The seed asset for the platform will be the first phase of the 60-acre Embassy East Business Park located in Whitefield Main Road in Bengaluru. The first phase will be developed on a land parcel of 9 acres, with a gross leasable area of 1.3 million sq. ft. The upcoming Business Park boasts of a mixed-use community offering co-living, essential retail and amenities which will create a vibrant ‘work-live-play’ experience for the occupiers. With its prominent location in the growth corridor on the ITPL Main Road, the Business Park will have direct commuter access to the upcoming ITPL metro station, connecting the park seamlessly to Bengaluru’s CBD and will be complemented by accessibility to social infrastructure including a renowned list of educational institutes, hospitals and hotels.

The first phase of the project is expected to be ready for occupancy by early 2024, the company said.

This partnership of Embassy Group and Ivanhoé Cambridge is a strategic step towards transforming the commercial real estate landscape in India. Through the Embassy-Ivanhoe commercial office platform, Embassy aspires to develop state-of-the-art business parks in India. The company aims to continue delivering a differentiated and holistic workspace ecosystem by integrating concepts like co-living and co-working, expansive office spaces, and easy to access amenities.

 

 

Cement prices up 4% in March as demand from infra and real estate pick up

The Centre’s infrastructure push, a pick-up in real-estate demand and industry consolidation have helped drive pan-India cement prices by around 4% in the first week of March. Prices climbed around 18% in the south and 11% in the west. Demand remained firm as continued traction in infrastructure building, affordable housing and rural consumption drove volumes. While the West and East saw average price hikes of Rs.10-20/bag, prices rose by Rs.5-15/bag in North and Central regions and Rs.20-30/bag in South. Dealers indicate companies may announce further hikes in the coming days to ensure the sustainability of the current increases, given year-end pressures to achieve volume targets.

On a year-on-year basis, Q4 FY21 prices are up 15% in South, 8% in West, 2-3% in North / Central regions and are still down 3% YoY in East. Except for the South, dealers expect prices to sustain in other regions. Price increases are also attributed to an increase in input and logistics cost. The strong demand momentum could offset the impact of subdued prices.

Analysts expect the cement sector to post strong earnings growth at more than 30% YoY in Q4 of FY 2021. Industry likely to post highest-ever quarterly volumes of around 105mnte (our estimate) with 20-22% YoY growth during Q4FY21E implying ~85% pan-India utilisation, said the ICICI Report.

Morgan Stanley has raised FY 23 earnings estimates up to 13%, driven by better realization/margin assumptions, and are 4-15% ahead of consensus.




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