07 Aug 2024

The WSB Real Estate Partners has raised over INR 700 crore through its fourth SEBI-registered Category II Alternative Investment Fund (AIF) to invest in mid-income and affordable housing projects in tier I and select tier II cities. The fund aims for a INR 1,000 crore corpus, expandable by another INR 1,000 crore. It has a six-year term, extendable by two years. Key investors include family offices, corporates, offshore investors, and HNIs. WSB has initiated two investments and has a strong pipeline. The fund focuses on structured debt, secured by collateral, with an aim to deliver favorable risk-adjusted returns.Read more

07 Aug 2024

Last week, SEBI banned real estate company Omaxe, along with its Chairman Rohtas Goel, Managing Director Mohit Goel, and three others from the securities market for two years due to discrepancies in financial statements. The ban includes prohibitions on serving as directors or holding key managerial roles in any publicly traded company. Additionally, a fine of INR 47 lakh was imposed on 16 entities, with penalties ranging from INR 1 lakh to INR 7 lakh, payable within 45 days. SEBI's 126-page order revealed that the company engaged in fraudulent activities, misrepresenting financials to stabilise its stock price while misleading investors.Read more

07 Aug 2024

Singapore's Vantage Point Asset Management has acquired the financially troubled Alchemist Infra Realty for approximately INR 470 crore through a bankruptcy process. The National Company Law Tribunal (NCLT) approved the acquisition, with lenders unanimously supporting the revival plan. Initially triggered by a default on INR 401 crore in dues, the resolution plan aims to address INR 1,293 crore in claims. Experts suggest that takeovers are crucial for reviving stalled real estate projects. Despite legacy challenges, rising property values and investor interest indicate potential recovery for the Indian real estate sector.Read more

07 Aug 2024

The Income Tax (I-T) Department has clarified new guidelines for calculating long-term capital gains (LTCG) taxes on real estate acquired before April 1, 2001. Property owners can now choose between using the fair market value (FMV) as of that date or the original purchase price to determine their acquisition cost. For properties acquired before April 1, 2001, the FMV cannot exceed the stamp duty value. The indexed acquisition cost, calculated using the 2024-2025 Cost Inflation Index (CII) of INR 363, impacts taxable gains and LTCG tax, which is 20% on gains exceeding this indexed cost. This flexibility allows property owners to select the lower taxable amount, potentially reducing their LTCG tax liability. As property transactions rise, investors can use these guidelines to optimise their tax outcomes.Read more

06 Aug 2024

Private equity (PE) investments in Indian real estate soared to USD 3 billion in the first half of 2024, marking a 15% increase from USD 2.6 billion in H1 2023, according to Knight Frank India. The warehousing sector led with 52% of total investments, reflecting a shift from the traditional office sector dominance. Mumbai and Bengaluru were key beneficiaries, attracting substantial investments, particularly in warehousing and residential properties. Economic recovery, favorable policies, and infrastructure development are driving this growth, though challenges like regulatory hurdles remain.Read more

06 Aug 2024

In June, the Kolkata Metropolitan Area saw a record 25% increase in residential property registrations compared to the previous year. This surge occurred while a stamp duty discount was available. The state government will now end these benefits, including a 2% stamp duty reduction and a 10% circle rate cut, on July 1, 2024. Since these incentives began in July 2021, approximately 140,000 homes were registered. Despite the rebate ending, Knight Frank anticipates continued market growth due to strong demand. The company also reported new trends in the important zones, such as the South and North, within the city.Read more

06 Aug 2024

The Noida Authority plans to allocate land expected to generate INR 3,795 crore in revenue. Despite only meeting 23% of last year's land allotment target, they have set this ambitious goal for the coming year. The largest allocation, 3.3 lakh sqm, is for institutional use, focusing on IT/ITES parks, data centres, and educational facilities. Industrial plots will receive 1 lakh sqm, while residential, commercial, and group housing plots are set at 67,500 sqm, 35,000 sqm, and 13,800 sqm, respectively. The Authority has also raised the allotment rates by 6% across most of the categories.Read more

06 Aug 2024

DLF Limited, India's largest real estate firm, has reported a 23% year-over-year increase in its net profit for the quarter ended June 30, 2024. The company witnessed a strong sales performance, with new sales bookings of INR 6,404 crore, representing a YoY growth of 214%. DLF's consolidated revenue also surged by nearly 14% YoY, reaching INR 1,729.82 crore. The company's rental business continued its steady performance, with the consolidated revenue of DLF Cyber City Developers Limited (DCCDL) reaching INR 1,553 crore, a 10% year-over-year growth.Read more

06 Aug 2024

PNB Housing Finance reported a 25% increase in net profit to INR 433 crore for Q1 June 2024, up from INR 347 crore the previous year. Total income rose to INR 1,832 crore, with interest income at INR 1,739 crore. Net interest income grew 4% to INR 651 crore, though the net interest margin declined to 3.65% from 3.86%. The gross NPA reduced to 1.3%, and the net NPA fell to 0.92%. Total disbursements increased 19% to INR 4,398 crore, with retail disbursements making up 99%. The company continues to demonstrate strong financial performance and strategic growth.Read more

05 Aug 2024

Piramal Capital & Housing Finance is set to issue its first dollar bonds, aiming to raise up to USD 500 million. The initial price guidance for these Regulation-S bonds is 8.25%, with the final coupon rate expected to be finalised this week. The bonds will have a maturity of three and a half years. The funds raised will be used in accordance with the Reserve Bank of India's external commercial borrowing guidelines and the company's sustainable finance framework. Barclays, Deutsche Bank, and Standard Chartered are joint global coordinators, while Axis Bank, Citigroup, and Emirates NBD Bank are joint book-runners.Read more