REALTY REWARDS - Ultra HNIs high on commercial real estate - Article TOI

REALTY REWARDS

Ultra HNIs high on commercial real estate

Shilpa Phadnis TNN 

    The super rich in India are not just buying trophy homes, but they also betting their money on preleased commercial properties offering good rental yields. These big-ticket investors are locking 30-40% of their portfolio in real estate, higher than any other investment category including equities. 
    A majority of ultra HNIs-—some define them as those with a net worth of over Rs 100 crore while others as those with a networth of over Rs 25 crore—are mandating what are called family offices to help them cherry pick grade ‘A’ commercial properties. Family offices are specialized financial firms managing investments and trusts of wealthy clients. 
    “Ultra HNIs are increasingly investing in commercial real estate generating fixed income. They are also entering into joint development agreements with the developer for commercial ventures,” said Rajesh Saluja, CEO and managing partner at ASK Wealth Advisors. 
    Arecent study titled ‘Top of the pyramid’ by Kotak Wealth Management and CRISIL Research found that real estate holds the greatest attraction for ultra high networth households (HNH) in Delhi and Bangalore. Over 50% of ultra HNH investments in Delhi are in real estate, followed by 37% in Bangalore. But ultra HNHs in Mumbai put more money in equities (37.2%), followed by real estate (32.8%). 
    The report, which defines ultra HNHs as having a minimum net worth of Rs 25 crore,estimates that there were around 62,000 ultra HNHs in India in 2010-11. 
    The shift towards commercial real estate is driven by higher rental realization compared to the residential market. “The annual rental realization from commercial offices is between 8-10% compared to 4-5% in the residential space,” said Sunil Shah, promoter of Evergreen Family Office. 
    Karun Varma, MD-Bangalore and Kochi at Jones Lang LaSalle, says even if an ultra HNI buys a commercial property at Rs 4,000 per sft, he can expect Rs 40 per sft as monthly rental that translates to 9.5% annualized returns. In comparison, if he buys a Rs 50 lakh flat and rents it out, he can expect a monthly rental of Rs 20,000 that translates into 5% annual return. 
    A spokesperson of Bodhi-Tree family office says ultra HNIs prefer commercial properties as they come with greater clarity on tenancy rights and it’s easier to evict tenants from these buildings. 
    Some ultra HNIs are broadening their portfolio to include real estate private equity funds. Around 200 ultra HNI clients of Ask Wealth Advisors have invested in ASK-promoted real estate PE funds. 
    “We advise our clients to co-invest in real estate PE funds through debt or equity. When capital is scarce, many HNIs help developers with last mile financing where they charge between 18-36% as interest,” said Saluja. 
    But Jones Lang Lasalle’s Varma says ultra HNIs are still averse to real estate PE funds because it’s a new product and there is lack of clarity on income generation. “They don’t commit fixed returns. Some may give a lump sum at the end of the lock-in while others many look at annualized returns. If land acquisition is delayed, the project runs late and income generation is delayed. They are comparatively new products and there is a learning curve that everybody has to go through,” he said.

 

 

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June wipes away those jantri blues Monthly Figures Show More Realty Deals Struck Than Last Year - TOI article

June wipes away those jantri blues

Monthly Figures Show More Realty Deals Struck Than Last Year

Rajiv Shah | TNN 

Gandhinagar: Contrary to the apprehension that the real estate market is slowing down, latest figures with the Registrar of Stamp Duty suggest that while the increased jantri rates did adversely impact the market in the first two months of April and May, realty deals have started hitting new highs in the third month of the financial year. In June 2011, as many as 90,884 real estate properties were sold or purchased — up from 85,431 deals in June 2010. 
    No doubt, the deals initially slumped in April after the sudden rise in jantri — government assessment of the value of real estate property with effect from April 1, 2011. The jantri rates were increased steeply between 300 and 400 per cent in the developed areas of Gujarat, leading to a sharp fall in the deals in April as also the amount collected as stamp duty — six per cent of the jantri. 
    The number of deals in April 2011 was merely 33,160, almost one-third of the April 2010 figure of 90,954. However, the revival began in May as the gap was bridged, soon after the reduction in jantri by 50 per cent by the government, under pressure from developers. In May 2011, 74,975 deals took place, as against 80,209 deals in the same period in 2010. 
    But realty seems to have stepped up one gear in June this year as deals are being struck at a frenetic pace. Kutch is leading the pack of districts where there has been maximum percentage increase in realty deals as the region is witnessing some astounding growth along its coastline.This is followed by Surat, Jamnagar and Vadodara which have shown positive growth, while the Ahmedabad numbers still fall behind the 2010 benchmark. 
    But in terms of sheer number of deals, it is Rajkot which leads the pack, despite a fall in percentage from last year. Surat and Ahmedabad come next with more than 10,000 deals in a month. 
    Stamp duty registrar Lochan Sehra says, “Latest trends clearly suggest buoyancy. We expect lot more deals in monsoon this year than last season. And, we believe, there would be a 40 per cent rise in stamp duty collection in 2011-12.” This would mean that even Ahmedabad, which may have struck less deals than 2010, would be adding much more to the government coffers now.

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A’bad realty rose steadily in one year - Max Growth In East; Prices Still Highest In West - TOI article

A’bad realty rose steadily in one year

Max Growth In East; Prices Still Highest In West

Paul John | TNN 

Ahmedabad: The city has seen an overall 46.01 per cent rise in realty prices between January-March 2010 and the same period in 2011, according to figures released by National Housing Bank (NHB), a wing of the Reserve Bank of India. 
    NHB has taken 2007 realty as a benchmark of the Residex pegged at 100. The figures show how Ahmedabad along with five others cities – Mumbai, Delhi, Chennai, Lucknow and Pune – have bucked the trend of falling prices. 
    Residex (residential index) figures for city areas reveal that the road expansion of the Vastral-Vinzol road linking the expressway has caused a dramatic rise of 67.82 % in prices in areas like Gomtipurgam, Old Viratnagar and Jhulta Minara in the last one year. The eastern zone has recorded the highest rise in the city. 
    West zone areas like Bodakdev, Ambli, Bopal, Jodhpur, Thaltej, Shilaj and Ambawadi remain the most expensive. Prices have seen a rise of 53.24 per cent over in the last one year. This is partly because of the policy to encourage low-rise housing. The area is getting a massive push because of GIFT city, Nano plant, Metro rail etc. Plans to create two special investment regions in the Sanand-Viramgam-Changodar-Dholera belt have also fuelled prices. 
    Bhadra, Dudheshwar and-Gaikwad Haveli saw a 36.61 per cent rise in prices. Areas like Ahmedabad dairy, Gordhanvadi, Ramvadi, Vatva and Vishalnagar have benefitted from the SP ring road, BRTS and two new railway overbridges that have come up recently. Prices have registered a 32.94% rise here. 
    Areas like Saijpur-Bhoga, Sardarnagar and Vishnunagar saw 30.67 % rise – the lowest in the city. Pankaj Kotak, K Raheja Corp head for Gujarat, business development, says, “Overall infrastructure development has kept the prices firm in the city.” 
    Nirav Kothary, regional director (Gujarat), Jones Lang LaSalle India, says, “Price corrections have not happened here as property owners and investors in Ahmedabad have deep pockets and can hold on to the price lines.”

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Varia plans 130 cr steel plant near Ahmedabad - TOI Article

Varia plans 130 cr steel plant near Ahmedabad Nayan Dave | TNN  Ahmedabad: Varia Engineering Works, part of the Rs 200 crore Varia group is setting up a six-stand continuous cold rolling mill at Kerala GIDC in Ahmedabad district. The Ahmedabadbased company is investing Rs 130 crore for the new plant at its existing facility.      “We are going to manufacture stainless steel cold rolled coils and sheets with an annual capacity of 2 lakh tonnes per annum. The new facility would commission by the end of August this year,” said Himanshu Varia, director of the company.      The company is in the business of rolling mills supply to businessmen manufacturing steel sheets and coils over the past three decades. With the new facility, the company will be able to supply coils and sheets directly to end users, said Varia.      The group has manufacturing facilities at three locations surrounding Ahmedabad at Kerala GIDC, Bavla and Vatva.

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New 4 bhk flat - Sankalp Grace - bh Rajpath Club, S G Highway, Ahmedabad

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Grace : Grace means more than gifts. In grace something is transcended, once and for all overcome. Grace happens in spite of something; it happens in spite of separateness and alienation. Grace means that life is once again united with life, self is reconciled with self. Grace means accepting the abandoned one. Grace transforms fate into a meaningful vocation. It transforms guilt to trust and courage. The word grace has something triumphant in it.

It has been designed by Architect, Apurva Amin

Area :                                                                    3500 Sq.ft.

Total No.of Blocks :                                         Four (4)

Total No. of Units               :                             Twenty Four (24)

Total no. of Units on each floor :               2            

Total Floor :                                                        Ground + Two

Amenities

·         Secured gated community

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·         Ample car / Two wheeler parking in basement and hollow plinth (allotted)

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·         Kitchen with granite working top

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·         Ceramic tiles dado on kitchen counter up to 7ft, ft. height SS sink.

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·         3” thick(Avg.)layer of brick-bat concrete with china mosaic for heat reflection and thermal insulation

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·         Natural stone flooring with hard and soft landscape

Paint

·         All wall nicely plastered with gypsum plaster and finished with primer coat

·         All external walls sand faced with acrylic paint or texture plaster. Ceiling plastered surface with putty and primer

Windows

·         Anodized aluminium sliding windows with stone jamb

Plumbing work

·         CPVC / GI water supply pipes and UPVC pipes for soil, waste and drainage system

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·         Branded modular switches

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Project details Source http://www.sankalporganisers.com/grace-overview.html

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Regards,

Prakash M. Notani  +91 98791 14454

Chief Executive - Dhyaana Realty Advisory Pvt Ltd

To reply to Prakash Notani directly, click here or info@dhyaanarealty.com,

11, Hillora Residency, Nehru Park Charrasta, Opp. Vastrapur Lake, Vastrapur Ahmedabad, Gujarat, India - 380015

 www.dhyaanarealty.com

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Volatile market: Equity funds beat key indices - Article Times of India

Volatile market: Equity funds beat key indices 2 Of 3 Funds Give Higher Returns Than Sensex M Allirajan TNN      The sharp downturn in the markets has pushed key indices close to levels seen in mid-October 2009 but most equity mutual funds (MFs) have managed the volatility well. While the sensex inched up by just 1.3% and the Nifty gained only 2.6% since October 16, 2009 when the indices hit a high on the postelection recovery rally, equity MFs have done much better.     In all, two in every three equity MFs (excluding sector funds) gave higher returns than the Sensex and about six in 10 beat the Nifty since October 2009, analysis shows. Only gold exchange-traded funds did better than equity MFs during the period.     Equity funds have also managed the downturn well. A good majority of funds declined at a lower pace than the indices in the recent market downslide. The sensex and Nifty have fallen 16.3% and 16.4% from the highs hit on November 5, 2010. However, about 175 out of the 330-odd equity MFs (excluding sector funds) restricted their fall to below 16%, data shows.     “Many aggressive stocks did badly and many funds were underweight on them,” explains Sankaran Naren, CIO, equities, ICICI Prudential MF. This helped funds post better returns than benchmark indices and trim losses during the downslide, he says. Moreover, fund houses were overweight on pharmaceuticals, which has outperformed the markets significantly, he says.     “Fund houses have more exposure to non-interest rate sensitive sectors now,” says Gopal Agrawal, head, equities, Mirae Asset Global Investments. In fact, several leading diversified equity MFs have good exposure to technology, FMCG and healthcare stocks.     While the BSE FMCG index moved up 1.1%, healthcare and energy indices declined 7.5% and 21.7% respectively from their November 5 highs. The real estate index fell 47% while the metals and auto indices lost 19.4% and 19.8% respectively. “It is a testing time. There is too much fear and even value stocks are getting punished,” a senior industry official said.     Fund houses would steer clear of interest rate sensitive sectors such as auto and realty for now, observers say. “Interest rates have moved up sharply. Unless, there is a pause in monetary tightening, fund houses would maintain a defensive posture.” MANAGING VOLATILITY WELL Source http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIA/2011/06/23&PageLabel=19&EntityId=Ar01904&ViewMode=HTML

Join Us

For Regular Updates On Property Market

Black Berry PIN 26F55F8A

Regards,

Prakash M. Notani  +91 98791 14454

Chief Executive - Dhyaana Realty Advisory Pvt Ltd

To reply to Prakash Notani directly, click here or info@dhyaanarealty.com,

11, Hillora Residency, Nehru Park Charrasta, Opp. Vastrapur Lake, Vastrapur Ahmedabad, Gujarat, India - 380015

 www.dhyaanarealty.com

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This message (including any attachments) is confidential & may be privileged. If you have received it by mistake please notify the sender by return e-mail & delete this message from your system. Any unauthorized use or dissemination of this message in whole or in part is strictly prohibited. Please note that e-mails are susceptible to change. Dhyaana Realty Advisory pvt ltd shall not be liable for the improper or incomplete transmission of the information contained in this communication nor for any delay in its receipt or damage to your system. Dhyaana Realty Advisory pvt ltd does not guarantee that the integrity of this communication has been maintained nor that this communication is free of viruses, interceptions or interference. If you wish to unsubscribe to updates, please reply to this email with "USUB" as the subject. Customer Service id info@dhyaanarealty.com

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DHOLERA SIR TO BECOME NEW AGE CITY - TOI 23/06/2011

DHOLERA SIR TO BECOME NEW AGE CITY

World-Class Infrastructure Planned For 20 Lakh People

TIMES NEWS NETWORK 

Gandhinagar: A high-level Gujarat Infrastructure Development Board (GIDB) meeting, held under the chairmanship of chief minister Narendra Modi, has decided to convert Dholera Special Investment Region (SIR), proposed on 903 sq km area off Gulf of Khambhat and south of Ahmedabad, into a new age city with world-class infrastructure and high quality of life. 
    A comprehensive assessment of the industrial and commercial potential, undertaken by top international consultants, Walcrow, has determined economic viability of the proposed city, which will seek to provide residence to about 20 lakh people over a 30-year time frame. 
    A recent presentation made at the GIDB meeting suggested that the Dholera SIR will have a wide range of industrial uses, with particular strengths in the electronics and high-tech industries, pharmaceuticals and biotechnology, heavy engineering and auto and general manufacturing sectors. 
    The industrial employment is proposed to provide the economic foundation of the SIR and generate “base” jobs to 3.43 lakh people. It would further generate 4.84 lakh jobs in support services. All of it together would support a total population of 25 lakh, including people commuting from urban centres like Ahmedabad and Bhavnagar. 
    However, as majority of the people doing job in the SIR would live in the new city, the SIR itself would construct five lakh dwelling units. 
    Category-wise, 20 per cent of the residential area would be reserved for the development of low income groups, another 57 per cent for medium income groups, and the remaining 13 per cent for higher income groups. All residential areas would be mixed incomes and housing will be developed with comprehensive range of community facilities, including schools, medical facilities, neighbourhood retail and open space. Major hospitals, colleges, government offices and facilities such as post offices, fire stations, libraries, theatres and meeting halls, parks and sports venues and a range of religious building would be located in the central business district and the key commercial centres located in different parts of the city. 
    While most of the work would take place in three phases, each having 10 years’ time space, the development of the city would start at Ambli village in the north side, close to the existing state highway 6, and then proceed southward to Bavariyari village. A 116-km-long expressway for Rs 2,500 crore, starting at Auda Ring Road, would connect Ahmedabad with Dholera SIR. For this, land acquisition, 150 metres wide, starting at Auda Ring Road, passing through Dholka, Vataman, Pipli and Dholera, has begun. The proposed Dholera international airport would be linked to this expressway with a five-km link road. There would be only about half-a-dozen other outlets for the expressway.

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