04 Jun 2024

A recent ruling by the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) determined that for an under-construction property, the date of taking possession should be considered when determining eligibility for tax benefits under Section 54 of the Income Tax Act. Section 54 of the Income Tax Act allows taxes on long-term capital gains from selling an old home to be reduced by investing in a new property within a specified time period. However, an Income Tax officer denied benefits to a non-resident couple citing the purchase agreement date, not possession date. ITAT ruled in favour of the taxpayers, holding that possession date, which fell within the required period, determined eligibility for the tax break.Read more

03 Jun 2024

Prachay Capital, a prominent Pune-based NBFC, has teamed up with Knest, an Indian Aluform manufacturer, to offer financing solutions for the real estate sector. Developers often struggle with upfront costs for Aluform, crucial for high-rise buildings. Prachay's Equipment Lease Finance (ELF) and Equipment Purchase Finance (EPF) programs alleviate these financial pressures by providing flexible payment plans. Unveiled at YouthCon, Delhi, in March 2024, these solutions received enthusiastic responses, highlighting a significant shift in real estate financing. This initiative positions Pune's real estate sector for accelerated growth, benefiting from Prachay Capital's innovative approach.Read more

03 Jun 2024

Columbia Pacific Communities (CPC), a US-based senior living operator, plans to invest over INR 200 crore (USD 25 million) in India in FY25, reflecting the growing demand for senior living communities. CPC will expand to Pune, Hyderabad, Kottayam, and Kochi, increasing their portfolio to over 1,500 units. They use joint ventures, manage and brand senior living facilities, and pilot innovative models like fee-based and rental options. In Kerala, they partner with Asset Homes on four projects. CPC's national expansion aims to deliver 300 units and launch 1,200 more in FY25, catering to India's rising senior population.Read more

03 Jun 2024

The Indian construction and infrastructure sectors face a potential slowdown due to new Reserve Bank of India (RBI) guidelines. These proposed rules aim to increase loan provisioning requirements for banks, raising concerns among industry stakeholders. Bank loans to the construction sector have surged nearly 26% over five years, jumping from INR 1.08 trillion in January 2019 to INR 1.4 trillion by March 2024. The infrastructure sector saw loans rise by almost 31%, from INR 7.98 trillion to INR 10.5 trillion in the same period. The new RBI guidelines could require banks to set aside up to 5% of loan amounts during the riskier construction phase, potentially reducing banks' appetite for such loans and affecting India's economic development.Read more

03 Jun 2024

Arpwood Partners Fund LLP is set to acquire a majority stake in SEWA Grih Rin, also known as Sitara, a housing finance company focused on providing affordable loans to low-income households, especially women, in urban and semi-urban India. Founded in 2015, Sitara has assets worth INR 1,200 crores and over 25,000 customers across 75 branches. Arpwood Partners, a private equity firm led by Rajeev Gupta, will invest INR 680 crores to acquire a major stake as part of Sitara's INR 705 crores fundraising effort. The deal, pending RBI approval, aims to enhance Sitara's operations and expand its reach.Read more

31 May 2024

Sundaram Home Finance reported a net profit of INR 57 crore for the January-March 2024 quarter, down from INR 65 crore in the same period last year. However, for the full fiscal year 2023-24, net profits grew to INR 236 crore from INR 215 crore the previous year. Disbursements in Q4 rose 20% to INR 1,469 crore, and overall disbursements crossed INR 5,000 crore for FY24, up 27%. Assets Under Management increased to INR 13,812 crore as of March 31, 2024, from INR 11,180 crore a year ago. The company expanded its branch network to 150 and hired over 400 employees during the year.Read more

31 May 2024

Strata, India's largest commercial real estate investment platform, has applied for a Small and Medium REITs (SM REITs) license from the Securities and Exchange Board of India (SEBI). SEBI recently introduced new regulations expanding the fractional ownership model to assets over INR 50 crore. Strata will migrate eligible assets to SM REITs as it looks to achieve INR 2,000 crore in assets under management by fiscal 2025. Strata currently leads the fractional ownership sector with over INR 1,800 crore in transactions and 4 million square feet under management across major Indian cities. In line with its vision and coupled with acquiring a SM REITs license, Strata aims to be the largest alternative investment platform in India by enabling retail investors to invest in CRE assets and democratizing access through its easy-to-use online platform.Read more

31 May 2024

Homebuyers now prioritize proximity to shopping malls, which have evolved into hubs offering high-end retail, entertainment, and lifestyle amenities. The average Indian household visits a mall 15 times a year, underscoring their growing urban significance. Real estate developers are responding by integrating malls into residential projects, enhancing property value and catering to urban lifestyle preferences. With over INR 20,000 crore planned for mall investments and mixed-use developments expected to grow by 20% in five years, India's urban landscape is set to become more dynamic and integrated, driven by consumer demand and significant institutional investments.Read more

31 May 2024

TA Associates is set to acquire a significant stake in Vastu Housing Finance Corp. Ltd for about USD 400 million, valuing the company at over USD 1.4 billion. The deal, involving both secondary and primary fundraises, will also see increased investments from existing investors such as Norwest Venture Partners and 360 One Asset Management. Vastu Housing Finance, focused on the affordable housing segment, has maintained profitability and strong capitalisation, positioning it for continued growth.Read more

30 May 2024

IIFL Home Finance (IIFL HFL) has reported impressive financial results for FY24, with a 32% rise in profit after tax to INR 1,017 crore. Revenue from operations increased by 23% to INR 3,317 crore, and their Asset Under Management (AUM) grew by 25% to INR 35,499 crore. Loan disbursements rose by 28% to INR 12,861 crore. The company maintains a robust capital adequacy ratio of 42.7% and reduced gross non-performing assets from 2.1% to 1.5%. Securing over USD 450 million in funding, IIFL HFL continues to drive affordable housing, addressing India's 2.1 crore unit housing shortage.Read more