In a bid to tap the growing demand for residential projects in India, ETA Star Property Developers Ltd, a group company of Dubai-based ETA Ascon, has announced to invest USD 923 million to construct an info-tech park in Chennai.
The IT Park, to spread over an area of 100 acres would home leading software companies such as Microsoft, Intel, IBM. Its commercial part will be developed as a part of mega residential project.
This is part of a 350 acre IT Township project which will accommodate residential units spread across 200 acres, says Syed M Salahuddin, managing director, ETA-Ascon Group.
The project will also include 17.5 million square feet for the construction of apartments, row houses, bungalows, shopping arcades, hospitals, schools, hotels, and service apartments.
With this upcoming project, the group’s total property investment in India shoots to Dh16.44 billion so far. The company has introduced its first residential project in Chennai as a part of Dh11 billion investment project in Tamil Nadu.
ETA Star is keenly scouting investment options in India and will narrow down on the best once it gets handful of them, adds Salahuddin.
Another project in the company’s pipeline concerns Jasmine Court residential development. It will commence within next few months offering investors mixed size apartments spread over 4.4 acres of landscaped property in proximity to Chennai International Airport, with an array of facilities including swimming pool, a gym, and a basketball court.
Friday, March 14, 2008
Global Asia Real Estate Fund Concludes Its Third Acquisition
Global continues its golden run in the Asian market. With the announcement of its latest acquisition in the People’s Republic of China, as part of its Asia Real Estate Fund investment strategy, Global Investment house added the third feather in its portfolio of assets.
Global Asia Real Estate Fund had announced the successful closure of two investments; In China and India last month.
Executive Vice President at Global, Mr. Sameer A. Al-Gharaballi, quoted in a statement that the investment will give the fund an excellent opportunity to invest in the development of a mixed usage project consisting of residential and retail space in Changzhou city, China.
He further revealed that the investment is a joint venture with a Chinese real estate development and construction company. He also added that a significant driver of their decision to invest in Changzhou relates to the fact that in recent years, there has been a strong demand in the real estate sector, especially in the residential segment.”
Changzhou city is strategically located in the Yangtze River Delta and it will benefit from the booming economy in the area. The site selected for the construction is easily accessible to all the supporting facilities.
Mr. Rakesh Patnaik, Head of Real Estate Funds at Global, disclosed that the total cost of the project is approximately USD62 million in which the fund is contributing USD11 million as equity into the project.
The fund looks forward to have a strategic stake of 49% in the project, with this equity investment. He also said that the fund is in the process of conducting due diligence of two more transactions situated in India and South Korea. Patnaik expects the fund to be fully invested very soon.
Speaking on the successful acquisition, Helen Wong, CEO of Cushman & Wakefield Capital Asia -the fund advisor- stressed that the fund will benefit from strata-titled sale strategy of the residential and retail units.
The pre-sales of these units is expected to start shortly with complete exit through retail sales by 2010. The expected return to the fund anticipated to be greater than 25% on a gross basis.
It is worth mentioning here that Global Asia Real Estate Fund was offered to investors last year. The Fund specializes in investing in Chinese and Indian Real Estate markets in addition to its ability to invest in other Asian Real Estate Markets.
Global Asia Real Estate Fund had announced the successful closure of two investments; In China and India last month.
Executive Vice President at Global, Mr. Sameer A. Al-Gharaballi, quoted in a statement that the investment will give the fund an excellent opportunity to invest in the development of a mixed usage project consisting of residential and retail space in Changzhou city, China.
He further revealed that the investment is a joint venture with a Chinese real estate development and construction company. He also added that a significant driver of their decision to invest in Changzhou relates to the fact that in recent years, there has been a strong demand in the real estate sector, especially in the residential segment.”
Changzhou city is strategically located in the Yangtze River Delta and it will benefit from the booming economy in the area. The site selected for the construction is easily accessible to all the supporting facilities.
Mr. Rakesh Patnaik, Head of Real Estate Funds at Global, disclosed that the total cost of the project is approximately USD62 million in which the fund is contributing USD11 million as equity into the project.
The fund looks forward to have a strategic stake of 49% in the project, with this equity investment. He also said that the fund is in the process of conducting due diligence of two more transactions situated in India and South Korea. Patnaik expects the fund to be fully invested very soon.
Speaking on the successful acquisition, Helen Wong, CEO of Cushman & Wakefield Capital Asia -the fund advisor- stressed that the fund will benefit from strata-titled sale strategy of the residential and retail units.
The pre-sales of these units is expected to start shortly with complete exit through retail sales by 2010. The expected return to the fund anticipated to be greater than 25% on a gross basis.
It is worth mentioning here that Global Asia Real Estate Fund was offered to investors last year. The Fund specializes in investing in Chinese and Indian Real Estate markets in addition to its ability to invest in other Asian Real Estate Markets.
HOT projects in Chennai
Some of the exciting projects in chennai are
1.DLF Housing’s - GARDEN CITY - OMR Chennai
2.MANTRI - SYNERGY at OMR
3.PURAVANKARA- SWAN LAKE - OMR Chennai
4.OLYMPIA OPALINE - OMR Chennai
5.MARG SWARNABHOOMI -Navaratna Phase 2 ,Cheyyar(near kalpakkam ,chennai)
6.LAKE VIEW GARDEN VILLA ,Sriperambathur (Around 300 Villas )
7.Ready to occupy - CITILIGHTS -MEADOWS ,Nolambur (Mogappair ,Chennai)
1.DLF Housing’s - GARDEN CITY - OMR Chennai
2.MANTRI - SYNERGY at OMR
3.PURAVANKARA- SWAN LAKE - OMR Chennai
4.OLYMPIA OPALINE - OMR Chennai
5.MARG SWARNABHOOMI -Navaratna Phase 2 ,Cheyyar(near kalpakkam ,chennai)
6.LAKE VIEW GARDEN VILLA ,Sriperambathur (Around 300 Villas )
7.Ready to occupy - CITILIGHTS -MEADOWS ,Nolambur (Mogappair ,Chennai)
Unitech to invest 700 Million US$ in Singapore Stock Exchange
Unitech, a big name in the Indian Real Estate Industry has won regulatory approval to raise $700 million through a public offer in the Singapore Stock Exchange. Unitech will list its subsidiary in Singapore as Unitech Office Trust (UOT), a real estate investment trust (REIT).
Banking majors like Deutsche Bank, Lehman Brothers, JP Morgan and UBS have been appointed as bankers for the proposed offering. The fund raising process is likely to be complete by March 2008. The company also plans to raise $1-1.5 billion through the QIP route, which is expected to be closed by the end of this month.
The Unitech Singapore REIT will acquire some of the IT parks and SEZ projects of the company in India, which are under-construction. According to industry sources six IT Park and SEZ projects being developed by the company will initially offer three to the REIT. A reliable source revealed that these will have a combined leasable area of about 10 million sq ft.
The company has already divested 60% of its stake in the six IT parks and SEZs to another subsidiary, Unitech Corporate Parks (UCP). UCP had raised about Rs 3,000 crore from the London Stock Exchange’s Alternative Investments Market (AIM) in December last year.
As told by Unitech executive, the company is working with the clear strategy of monetising its stake in commercial properties just before construction is started and recycling the capital for future land acquisitions and developments.
Following Unitech are biggies like DLF, touted as the countries largest real estate company DLF is awaiting regulatory approvals to raise $2-2.5 billion from the Singapore market, for listing its subsidiary DLF Office Trust.
Real estate in the country is already attracting investments from Singapore-based companies. Recently, Singapore-based developer Ascendas, raised a REIT of about $500 million to invest in the Indian commercial real estate market.
It has already invested in four IT park projects in India: Maharashtra, Chennai, Bangalore and Hyderabad. CapitaLand is another Singapore-based REIT with an India focus, and has invested $ 100 million in a residential project in Mumbai.
Operations of a REIT in the property market is similar to what mutual funds provide on stock investments. Last year, market regulator Sebi had made a policy announcement regarding real estate mutual funds in India. However, the policy is yet to be notified.
Banking majors like Deutsche Bank, Lehman Brothers, JP Morgan and UBS have been appointed as bankers for the proposed offering. The fund raising process is likely to be complete by March 2008. The company also plans to raise $1-1.5 billion through the QIP route, which is expected to be closed by the end of this month.
The Unitech Singapore REIT will acquire some of the IT parks and SEZ projects of the company in India, which are under-construction. According to industry sources six IT Park and SEZ projects being developed by the company will initially offer three to the REIT. A reliable source revealed that these will have a combined leasable area of about 10 million sq ft.
The company has already divested 60% of its stake in the six IT parks and SEZs to another subsidiary, Unitech Corporate Parks (UCP). UCP had raised about Rs 3,000 crore from the London Stock Exchange’s Alternative Investments Market (AIM) in December last year.
As told by Unitech executive, the company is working with the clear strategy of monetising its stake in commercial properties just before construction is started and recycling the capital for future land acquisitions and developments.
Following Unitech are biggies like DLF, touted as the countries largest real estate company DLF is awaiting regulatory approvals to raise $2-2.5 billion from the Singapore market, for listing its subsidiary DLF Office Trust.
Real estate in the country is already attracting investments from Singapore-based companies. Recently, Singapore-based developer Ascendas, raised a REIT of about $500 million to invest in the Indian commercial real estate market.
It has already invested in four IT park projects in India: Maharashtra, Chennai, Bangalore and Hyderabad. CapitaLand is another Singapore-based REIT with an India focus, and has invested $ 100 million in a residential project in Mumbai.
Operations of a REIT in the property market is similar to what mutual funds provide on stock investments. Last year, market regulator Sebi had made a policy announcement regarding real estate mutual funds in India. However, the policy is yet to be notified.
Chennai Retail Sector Set to Boom
Mall culture in Chennai is all set to exert its full allure, with over 20 glitzy shopping malls planned to come up in the next three years. Some notable upcoming retail projects in the city are to be introduced by reputed builders such as DLF, Shriram Properties, and Prestige Group.
Bangalore based Prestige Group has plans to build a second Forum mall in the city’s artery, Mount Road. The group has recently completed a Forum Mall at Vadapalani in Chennai, in a joint venture with Vijaya Group. Spread over 17 lakh square feet, the mall involves an investment of Rs 350 crore.
Surprisingly, the trend of retail development has overtaken other developments especially the feverish activity of developing residential projects. This has pushed the demand for retail space in areas such as Besant Nagar, Aminjikaral, Velachery, Mogappair, Sirusseri, Semmenchery, and Perambur.
Allied Housing & Development, a prominent real estate developer, is planning a seven lakh square feet shopping mall at Siruseri in Chennai. Following in same footsteps, Ozone Group also has plans to come up with an exclusive 14 lakh square feet shopping mall at its integrated township Metro Zone in Anna Nagar.
Rentals for office space in Chennai are soaring high. The shopping malls in Chennai are entirely dedicated to retail spaces, but the developers are in a look out for the demand to grow.
Marg Constructions will soon develop a jumbo mall at Karapakkam near Chennai. It will have 11 lakh square feet of built up space, including a large packing area. To be develop at an investment of Rs 500 crore, the mall is scheduled to be complete by 2008-end. The company will invest Rs 50 crore, and is searching for potential investors to raise Rs 100 crore. It will raise the remaining money through a mix of debt and equity.
Bangalore based Prestige Group has plans to build a second Forum mall in the city’s artery, Mount Road. The group has recently completed a Forum Mall at Vadapalani in Chennai, in a joint venture with Vijaya Group. Spread over 17 lakh square feet, the mall involves an investment of Rs 350 crore.
Surprisingly, the trend of retail development has overtaken other developments especially the feverish activity of developing residential projects. This has pushed the demand for retail space in areas such as Besant Nagar, Aminjikaral, Velachery, Mogappair, Sirusseri, Semmenchery, and Perambur.
Allied Housing & Development, a prominent real estate developer, is planning a seven lakh square feet shopping mall at Siruseri in Chennai. Following in same footsteps, Ozone Group also has plans to come up with an exclusive 14 lakh square feet shopping mall at its integrated township Metro Zone in Anna Nagar.
Rentals for office space in Chennai are soaring high. The shopping malls in Chennai are entirely dedicated to retail spaces, but the developers are in a look out for the demand to grow.
Marg Constructions will soon develop a jumbo mall at Karapakkam near Chennai. It will have 11 lakh square feet of built up space, including a large packing area. To be develop at an investment of Rs 500 crore, the mall is scheduled to be complete by 2008-end. The company will invest Rs 50 crore, and is searching for potential investors to raise Rs 100 crore. It will raise the remaining money through a mix of debt and equity.
CHENNAI RATES/SQ FT
Chennai Properties Rates
Location Residential (Rs/Sqft)
Adyar 4500 - 8000
Alwarpet 8500 - 15000
Besant Nagar 7000 -14000
Chetpur / Kilpauk 6000 - 7000
K. K Nagar 4500 - 5500
Tiruvanmiyur 4000 - 6000
Mylai 8000 -12000
T. Nagar 5000 - 7000
Kodambakkam 4000 - 6000
Raja Annamalipuram 8000 - 10000
Royapettah 4500 - 7200
Egmore 5000 - 6000
Valasaravkkam 4500 - 6000
Anna Nagar (East) 5000 - 7000
Guindy 4000 - 5000
Velacherry 5000 - 7000
Shastri Nagar 5000 - 8000
Ashok Nagar 5000 - 8500
Lloyds Road 4500 - 5500
Radhakrishnan Road 7000 - 10000
Nungambakkam 8000 -14000
Note : The rates mentioned above are taken according to survey by A.C .Nielsen.The rates will change according to the demand and supply mode
Location Residential (Rs/Sqft)
Adyar 4500 - 8000
Alwarpet 8500 - 15000
Besant Nagar 7000 -14000
Chetpur / Kilpauk 6000 - 7000
K. K Nagar 4500 - 5500
Tiruvanmiyur 4000 - 6000
Mylai 8000 -12000
T. Nagar 5000 - 7000
Kodambakkam 4000 - 6000
Raja Annamalipuram 8000 - 10000
Royapettah 4500 - 7200
Egmore 5000 - 6000
Valasaravkkam 4500 - 6000
Anna Nagar (East) 5000 - 7000
Guindy 4000 - 5000
Velacherry 5000 - 7000
Shastri Nagar 5000 - 8000
Ashok Nagar 5000 - 8500
Lloyds Road 4500 - 5500
Radhakrishnan Road 7000 - 10000
Nungambakkam 8000 -14000
Note : The rates mentioned above are taken according to survey by A.C .Nielsen.The rates will change according to the demand and supply mode
Thursday, March 13, 2008
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