15 July 2020

Ticker Tape-Construction

Prestige Estates’ commercial project in Pune


Embassy REIT offered 6.2 mln sq office premise in B’luru


Embassy Office Parks REIT (Embassy REIT) has got an invitation to right of first offer from Embassy Property Developments Pvt Ltd, certain subsidiaries and other shareholders, for potential sale of 6.2 million square feet (msqf) of completed office premises and 2.5 msqf of under-construction area in Embassy TechVillage, an integrated office park situated on Outer Ring Road, Bengaluru.


With this, cumulative distribution for 1H FY2020 totals Rs.879.70 crore or Rs.11.4 per unit. The record date for distribution is November 19 and distribution will be paid on or before Nov 26. The Board of Directors of Embassy Office Parks Management Services Pvt Ltd (EOPMSPL), manager to Embassy REIT, at its board meet on Monday declared a distribution of `463 crore or `6 per unit for Q2.



Salarpuria enters affordable segment


Plans to invest Rs.900 cr in two projects in Bengaluru


Bengaluru-based realty firm Salarpuria Sattva is entering affordable housing segment with two projects in the IT city, at an estimated investment of around Rs.900 crore. It among leading real estate developers in South India with focus on commercial real estate projects.


In partnership with global investment firm Blackstone, it has developed many commercial projects. Recently, Blackstone and Salarpuria Sattva bought ‘Global Village Tech Park’ in Bengaluru from Coffee Day Enterprises Ltd for Rs.2,700 crore. Residential units are in a price range of Rs.25-60 lakh in these two projects comprising about 2,500 flats. The price will be around Rs.3,500-4,000 a sq ft. Both projects, one located near the Kempegowda Airport and other on the Mysore Road, are expected to be launched early next year. Total investment will be around $130 million (about Rs.900 crore).


Besides Bengaluru, the group has a presence in Hyderabad, Kolkata, Pune, Coimbatore, Jaipur and Goa. The group is also into education and hospitality businesses among others. It has forayed into two major growing segments — co-working and co-living — in partnership with Co-live and Simpliwork.




WeWork India to raise 1,400 cr


Co-working major WeWork India, owned by realty firm Embassy Group, will raise $200 million (around Rs.1,400 crore) by December to expand business and expects to be profitable at the entity level in one year. The company has already invested Rs. 1,300 crore, including  Rs.1,000 crore as equity, in this business and will continue to infuse more for growth.


WeWork India has 26 operational coworking centres with 46,000 seating capacity. It has nine centres in Bengaluru, 10 in Mumbai,  6 in Gurugram and one in Pune. The company is targeting to reach 1 lakh desks/seats by end of the next year. In order to fund this expansion it plans to raise $200 million by end of this year from foreign and domestic investors. WeWork India will soon enter Noida and Hyderabad markets.




Prestige’s focus on affordable housing


Realty firm Prestige Estates Projects plans to focus on mid-income and affordable housing projects, the segment that has been driving demand for residential units in India. Prestige plans to focus on mid-income and affordable housing projects, the segment that has been driving demand for residential units in India. The Bengaluru-based company, which has ready stock worth over Rs.2,000 crore in the luxury housing segment, will take up more luxury housing projects only selectively. Prestige had earlier tied up with Vijay Mallya and Leela Hotels for one of the most expensive luxury homes projects in Bengaluru.


Prestige is also looking to expand its presence in Hyderabad, NCR, Pune and Mumbai with residential projects. It recently partnered with New Consolidated Construction Company (NCCCL) and Ace Group to develop residential projects in Mumbai and Noida.


In 2018, the builder entered into a strategic partnership with HDFC Capital Advisors to set up a dedicated residential platform to invest in the mid-income and affordable housing segment. Prestige utilised HDFC money to invest in three recent housing projects. Entry into new geographies will expand its economy of scale. This platform has capital to the tune of Rs.2,500 crore, which is a combination of equity and debt.




Cella’s Kochi logistics park


Cella Space Ltd (formerly Sreesakthi Paper Mills) has received the government’s nod to set up a dry chill cold storage logistic park in Kerala. The Kochi-based company is investing around Rs.60 crore to establish the park in the Edayar Industrial area. Cella Space promoter has established logistics park in other states, and the Kerala venture will be the first of its kind, according to the company.

Infrastructure for logistics includes providing good internal road facilities for dry, chilled and cold storage, common fire-fighting systems, common power and power back-up systems and common security systems. Logistics back-up implies storing of goods, assembling spares, repacking, labelling, cold storing and also transporting which generates substantial employment opportunities directly and indirectly. The Kerala government is also encouraging industrialists by allotting 5 per cent of land in industrial estates for logistics operations. The government’s thinking is based on the fact that logistic expenses can be reduced by establishing state-of-the-art warehouses at strategic locations to move goods throughout the state.




Prestige Estates’ commercial project in Pune


Realty firm Prestige Estates Projects will invest about Rs.350 crore to develop a commercial project in Pune. The project will be developed in joint venture with a local firm, to develop a one million sq ft office complex in Pune.


About Rs.350 crore would be required for the construction of the project, which is expected to be completed in the next three years. Prestige Group has completed 107 office complexes comprising 33 million sq ft area. As many as 13 projects covering 12 million sq ft area are under construction.


The total development potential in this upcoming project is estimated at around 2 million sq ft comprising more than 1,000 units. Prestige achieved sales bookings of over Rs.1,000 crore during the first quarter of this fiscal despite slow demand. It expects momentum to continue in the remaining quarters of this financial year.


Prestige Estates had given a sales booking guidance of Rs.5,000-6,000 crore for 2019-20 financial year. During the first quarter of this fiscal, the company launched three projects with 6.57 million sq ft of developable area. It delivered four projects having 10.33 million sq ft area, of which three projects were housing consisting of 3,892 units. Prestige posted a net profit of Rs.123.9 crore over a revenue of Rs.1,567.4 crore during the April-June quarter. Across all verticals, the company is currently constructing 48 projects having nearly 50 million sq ft area and 36 projects are in pipeline with 55 million sq ft development potential.





Nestaway launches co-living space vertical


Nestaway Technologies, a managed home rental network, has announced the launch of its co-living segment The Hello World. Nestaway plans to invest $10 million in the project.


The Bengaluru-based firm has set up the subsidiary to cater to both students and professionals. The firm has a presence in 15 cities with a capacity of 10,000 beds and plans to launch in nine more cities across the country and has set a target of 50,000 beds by the end of this fiscal.


The 15 cities include Bengaluru, Hyderabad Delhi/NCR, Pune, Kota and Dehradun. The nine cities where the company plans to expand are Indore, Manipal, Chandigarh, Vizag, Lucknow, Ahmedabad, Cochin, Goa and Vellore. The company will charge just one-month rent as security deposit and zero brokerage fee from its customers.


Founded in 2015, NestAway caters to individuals looking for affordable rental housing in the top cities in India. The company, through the acquisition of Zenify in May 2017, has also entered the family rental solution business. Nestway has raised around $100 million to expand its business.





IWG to double its co-working network in India


International Workplace Group (IWG), a global flexible workspaces, is considering doubling its co-working network in India in the next 36 to 48 months. It currently has 120 workspaces in 16 cities across the country. The company is planning to adopt three strategies to grow its network – organic growth, acquisitions and the franchise route. It is looking at markets where there is demand, where there is availability of good commercial real estate stock in major metros or Tier II cities and where it will grow organically.


IWG is aggressively rolling out its franchise model across the globe. The company has based its expansion plan on two brands within its portfolio of five -- Regus, the serviced offices brand; and Spaces, its co-working, informal, inspirational transformational space brand in a large format of which it has nine facilities in India. It launched its ninth centre in Noida last week. The facility is spread across 55,000 sq ft and is located in Max One Towers.It plans to introduce the other three brands in India by next year. Its global strategy is focused on co-working right now. It is evaluating the opportunity  of whether to get the other three next year if the opportunity comes in.




Ajnara’s Ghaziabad housing project


Realty firm Ajnara Group will invest over Rs.300 crore to develop a housing project in Ghaziabad, Uttar Pradesh. The company will construct 450 units in this 5.6 acre housing project at Raj Nagar Extension, Ghaziabad. Total saleable area in this project would be 7.85 lakh sq ft residential and 1.25 lakh sq ft commercial. As housing market is facing multi-year slowdown, there has been a limited launch of new project ahead of festival season as developers are focusing on selling their unsold inventories. Ajnara’s basic selling price has been fixed at around Rs.2800-3,350 per sq ft. In about three decades, Ajnara has delivered 64 projects comprising over 25,000 units across Noida, Greater Noida and Ghaziabad. It aims to deliver around 4,000 units in FY 2019-20.





Assam push for smart city in Guwahati


A review meeting in Assam discussed ways and means to implement the smart city project. A state-of-the-art stadium, a riverfront bridge and an aesthetically designed entry gate at the LGBI airport - Guwahati is set to get a makeover soon as part of the state government's Smart City project.


The meeting also directed the Guwahati Development Department to conduct a survey to identify the homeless people in the city and develop available space under flyovers as night shelters for them with proper sanitary facilities. It asked the officials to arrange for double- parking facilities under the flyovers, if there was space. Several decisions were taken at the meeting, including construction of huge entry gates, reflecting the state's heritage, at the LGBI Airport and Khanapara area, a bridge on the Brahmaputra riverfront and a state-of-the-art stadium with facilities for indoor and outdoor games.


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