Brookfield India REIT Secures ₹3,500 Crore Through QIP to Fuel Future Acquisitions

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December 14, 2024

Brookfield India REIT Secures ₹3,500 Crore Through QIP to Fuel Future Acquisitions

Brookfield India Real Estate Trust (Brookfield India REIT) has raised ₹3,500 crore through a Qualified Institutional Placement (QIP), marking a significant move towards strengthening its financial position. This capital raise will primarily focus on reducing the company’s leverage and creating room for acquiring high-quality real estate assets.

The QIP saw strong participation from notable investors, including the International Finance Corporation (IFC) and Life Insurance Corporation of India (LIC), marking the first-ever REIT investments from these entities in India. Other prominent anchor investors included SBI Mutual Fund and ICICI Prudential Mutual Fund. The overall demand for the offering exceeded ₹5,200 crore, with ₹3,500 crore successfully allotted to investors. Alok Aggarwal, CEO and Managing Director of Brookfield India REIT, shared that the raised funds will help the trust strategically reduce its leverage, thus positioning it for future acquisitions of top-tier properties. The QIP issuance and allotment of 12.77 crore new units was approved on December 12, 2024, by the issue committee of Brookprop Management Services, which manages Brookfield India REIT. This latest fundraising comes after a similar QIP in August 2023, where Brookfield India REIT raised over ₹2,300 crore to acquire premium properties such as Brookfield’s Downtown Powai in Mumbai and Candor TechSpace (G1) in Gurugram. Brookfield India REIT’s ongoing efforts to strengthen its balance sheet and expand its portfolio align with its long-term strategy of acquiring and managing high-quality commercial real estate assets across India.

Parliamentary Panel Recommends Boosting Assistance for PMAY-Gramin to Meet Housing Targets

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December 14, 2024

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Parliamentary Panel Recommends Boosting Assistance for PMAY-Gramin to Meet Housing Targets

The Parliamentary Standing Committee on Rural Development and Panchayati Raj has recommended a much-needed increase in the financial assistance provided under the Pradhan Mantri Awas Yojana – Gramin (PMAY-G). The scheme, which aims to build two crore homes by March 2029, has faced challenges due to stagnant per-unit assistance, which has remained at Rs 1.2 lakh for plain areas and Rs 1.3 lakh for hilly areas for an extended period.

Led by Congress MP Saptagiri Sankar Ulaka, the committee pointed out that the current financial support is insufficient due to rising inflation, which impacts raw material costs, labor, and transportation expenses. This shortfall has led to incomplete houses in some cases, hampering the progress of the housing scheme. The committee emphasized that for the “Housing for All” vision to succeed, beneficiaries must receive appropriate financial support at the right time, and it urged an urgent review and hike of the per-unit assistance to help beneficiaries complete their homes. The committee also highlighted a significant issue faced by landless beneficiaries. More than two lakh such individuals are still waiting for land or assistance from state governments to construct their homes. This delay further threatens the timely completion of the housing target.

The report also noted that while the initial target was to construct 2.95 crore houses by March 2024, 2.66 crore homes had been completed by October 2022, leaving 29 lakh homes still unfinished. To address this, the government has set an ambitious target of constructing an additional two crore homes over the next five years (2024-2029). With the scheme extended until 2029, the committee has recommended a revision of the financial assistance to meet the new goals and ensure timely project completion. It also called on the Department of Rural Development to take proactive steps in expediting construction and addressing the issue of land availability for landless beneficiaries. Additionally, the committee raised concerns about the low pension amounts under the National Social Assistance Programme (NSAP), which provides support to elderly, widows, and disabled persons from BPL households. The report noted that the pensions of Rs 200 to Rs 500 per month were inadequate given the rising cost of living. This call for increased assistance and policy reform aims to ensure that rural housing targets are met and that beneficiaries can complete their homes with the financial support they need.

Gujarat CM Inaugurates Rs 550 Crore Atal Smart City Project in Rajkot

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December 14, 2024

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Gujarat CM Inaugurates Rs 550 Crore Atal Smart City Project in Rajkot

Gujarat Chief Minister Bhupendra Patel inaugurated the Atal Smart City in Rajkot on Friday, a cutting-edge urban development project under the central government’s Smart City Mission. Located in the Raiya area, this expansive initiative spans 930 acres and has been developed at a cost of Rs 550 crore.

The Atal Smart City is designed to accommodate approximately four lakh residents, providing them with modern amenities and robust infrastructure. The project, which began on August 23, 2019, is set to be fully operational by November 19, 2024. A key highlight of the development is its focus on sustainability, with the retention of natural drainage systems and tree plantations along drains to prevent encroachment. The city’s power supply infrastructure includes power ducts, eliminating the need for overhead lines, and laying the groundwork for future development, such as double-decker buses. The road network is planned for long-term growth, with roads ranging from 18 meters to 60 meters in width to accommodate future transportation needs. The Rajkot Municipal Corporation (RMC) has developed 18.21 km of integrated roads and an 8.51 km BRTS (Bus Rapid Transit System) corridor, complete with 15 sophisticated bus stops. The city also boasts a 24/7 potable water supply system and a recycled water system, which includes two separate water lines—one for potable water and another for recycled water, expected to save 30% of potable water usage.

The 56 MLD sewage treatment plant (STP) and tertiary treatment plant ensure efficient water treatment. The stormwater drainage system is designed to conserve rainwater, with rainwater directed to Atal Sarovar lakes for storage and reuse. Additionally, special RCC ducts have been installed for 66KV power cables and optical fiber networks, ensuring no need for road digging in the future. The city promotes eco-friendly transportation with a 14 km cycle track and footpaths, providing easy access for pedestrians and cyclists. With these advanced features, Atal Smart City in Rajkot is set to become a model for sustainable urban development, offering a modern, comfortable, and eco-friendly living experience to its residents.

Infopark Phase III in Kerala to Showcase 300-Acre Township at Global Summit

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December 14, 2024

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Infopark Phase III in Kerala to Showcase 300-Acre Township at Global Summit

The Kerala government is gearing up to present Phase III of Infopark at the upcoming Invest Kerala Global Summit in Kochi this February. The state’s ambitious IT park project, spanning 300 acres, aims to attract global investors and establish Kerala as a prominent hub for IT development.

The Greater Cochin Development Authority (GCDA) has identified three potential land parcels, each covering 300 acres, in the Kizhakkambalam and Kunnathunadu areas for this prestigious project. Currently, the government is finalizing the concept designs and components for the multi-crore township, which will feature state-of-the-art IT infrastructure along with residential and commercial developments. Once the designs are completed, one of these land parcels will be selected for development. The project will be executed using a land pooling method, offering landowners 60% of the original land after implementation. The move is expected to significantly increase property values in the area, with projections indicating a rise of three to four times.

The proposed Infopark Phase III campus will be a blend of cutting-edge IT infrastructure and modern social amenities. Unlike traditional IT parks, this township will include a mix of 200 acres dedicated to residential and commercial development, while the remaining 100 acres will be allocated for IT infrastructure. The non-SEZ area will feature essential social infrastructure, such as schools, retail facilities, and recreational spaces, ensuring a self-sustained ecosystem. The campus will also be well-connected, with direct road access to Kochi’s airport and national highways, along with self-sufficient transport systems to make commuting easier for residents and workers. “We are in talks with major investors for different components of the project. By showcasing the detailed plan at the Invest Kerala Global Summit, we hope to attract global IT companies and investors,” said a senior Infopark official. The demand for a third Infopark campus has been steadily increasing. Both the Phase I and Phase II campuses are fully occupied, with no space available for new businesses. The success of Infopark’s earlier phases has set high expectations for the third phase, and the government is optimistic about securing significant global investments to fuel Kerala’s IT growth.

ED Seizes 19 Properties in Goa Over Alleged Land Grab Case

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December 14, 2024

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ED Seizes 19 Properties in Goa Over Alleged Land Grab Case

The Enforcement Directorate (ED) has seized 19 properties, worth crores of rupees, in Anjuna and Assagao, Goa, in connection with an ongoing land grab case. On Thursday, the ED provisionally attached the properties under the Prevention of Money-Laundering Act (PMLA), marking a significant move in tackling illegal land transactions and money laundering activities in the region.

Of the 19 seized properties, 11 are located in Anjuna, while the remaining 8 are in Assagao. The provisional attachment was carried out under Sub-section (1) of Section 5 of the PMLA, which enables the ED to seize properties involved in money laundering. The order was confirmed by the adjudicating authority as per Section 6 of the PMLA. The properties, now in the custody of the ED, will remain at the agency’s disposal until further proceedings are completed. As part of the attachment process, the ED has prohibited any transfer, sale, or mortgage of these properties. All individuals are restrained from transferring or acquiring any interest in the seized properties in any manner—whether by sale, gift, mortgage, or otherwise.

I N Asha, Deputy Director of the ED, emphasized that anyone occupying the seized premises must vacate them within 10 days of receiving the notice, as per Rule 5(2) of the PMLA. The agency also instructed that any rent or lease income generated from these properties be deposited directly into the ED’s office under Rule 5(3). The action taken by the ED is part of its efforts to curb illegal land grabs and money laundering activities in Goa, particularly in high-value areas like Anjuna and Assagao. These areas have been the subject of controversy regarding land acquisition, with numerous reports of unauthorized or illicit land transactions. The ED’s intervention in this case highlights the ongoing crackdown on money laundering and the use of illicit properties for illegal purposes. Authorities have warned that further actions will be taken as investigations continue, ensuring that such practices are halted and property rights are protected in the state.

NGT Orders Halt on Construction Projects in Noida and Greater Noida Without Environmental Clearances

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December 14, 2024

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NGT Orders Halt on Construction Projects in Noida and Greater Noida Without Environmental Clearances

The National Green Tribunal (NGT) has issued a crucial order barring the continuation of building projects in Noida and Greater Noida that lack the necessary environmental clearances. This ruling comes in the wake of a plea highlighting the alleged unauthorized construction of residential and commercial complexes, which has violated environmental norms. The NGT, in its order dated December 9, directed that construction activities on such projects must cease until they obtain the required clearances, including the Consent to Establish (CTE), Consent to Operate (CTO), and Environmental Clearance (EC).

The plea, filed by BJP leader and former Municipal Corporator Rajendra Tyagi, raises concerns about large-scale illegal construction in the region, with reports of topsoil extraction and unauthorized borewells being dug. The petitioner’s counsel, Akash Vashishtha, presented extensive evidence showing the rapid development of illegal townships, villas, and apartments, alongside photographs indicating the erection of electricity poles and digging of borewells without mandatory no-objection certificates (NOCs). The NGT bench, led by Chairperson Justice Prakash Shrivastava and comprising judicial member Justice Sudhir Agarwal and expert member A Senthil Vel, noted that authorities had confirmed that some realtors continued construction without obtaining the requisite environmental clearances. The tribunal ordered that such projects should not be allowed to proceed until they comply with all necessary environmental regulations.

Further, the NGT directed the Uttar Pradesh Pollution Control Board to prevent illegal plotting activities in areas that fall within floodplain zones, ensuring that no construction occurs in these environmentally sensitive areas without proper authorization. The petition also flagged concerns about the encroachment of over 40,000 hectares of fertile agricultural land, with more than 20,000 hectares in Greater Noida and Noida allegedly being illegally used for residential and commercial developments. These illegal activities have prompted the NGT to take swift action to safeguard the environment and ensure that builders comply with environmental norms. This order from the NGT underscores the importance of enforcing environmental regulations in urban development, particularly in rapidly growing regions like Noida and Greater Noida, where illegal construction has become a major concern. The tribunal’s ruling aims to curb the negative environmental impact and restore compliance with regulations to protect the region’s natural resources.

Adilabad real estate sector faces sharp decline

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December 14, 2024

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Adilabad real estate sector faces sharp decline

The real estate sector in Adilabad has experienced a significant downturn, with property registrations in 2024 plummeting by 17,866 compared to 2023. This year recorded only 43,497 registrations, a stark decline from the 61,363 transactions registered in the previous year. In monetary terms, the sector’s income has decreased by approximately 15% compared to the previous two years, underlining the mounting challenges for stakeholders.

In contrast, the composite Adilabad district displayed a comparatively positive trend in 2023, with registrations exceeding the 54,425 mark recorded in 2022. This discrepancy highlights the uneven recovery and growth trajectory within the region, influenced by various economic and policy factors. Stakeholders attribute the current decline to weaker economic activity, reduced consumer confidence, and tighter liquidity, which have collectively impacted demand for properties.

From a civic perspective, the slowdown raises concerns about its ripple effects on urban development. Real estate plays a pivotal role in shaping infrastructure growth and boosting revenue for local administrations. A sustained decline could hinder planned projects and municipal improvements, delaying critical urban development initiatives. This downturn could also reduce employment opportunities in construction and allied sectors, amplifying its socio-economic impact.

On a sustainable note, industry experts suggest leveraging this slowdown as an opportunity to pivot towards greener construction practices and eco-conscious developments. By focusing on sustainable housing and energy-efficient designs, developers could meet emerging consumer preferences while contributing to environmental goals. Such a shift may not only revitalise demand but also position Adilabad’s real estate sector as a benchmark for sustainable growth.

Alkem promoter’s family invests in Worli property worth ₹185 crore

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December 14, 2024

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Alkem promoter’s family invests in Worli property worth ₹185 crore

Seema Singh, wife of Alkem Laboratories promoter Mritunjay Kumar Singh, has acquired an ultra-luxurious apartment worth ₹185 crore in Mumbai’s upscale Worli locality. The property is part of the under-construction Lodha Sea Face project by Macrotech Developers, a prominent name in Indian real estate. This high-value transaction, registered on 11th December 2024, underscores the surging demand for high-end residences in India’s financial capital.

Spanning an expansive 14,866 sq ft, the luxury apartment occupies the 30th floor of the tower and offers nine podium parking spaces. At an impressive ₹1.24 lakh per sq ft, the transaction highlights Mumbai’s thriving ultra-luxury real estate market. The possession date for the apartment is scheduled for 31st December 2027, with an 18-month grace period for completion. Singh has made an initial payment of ₹46.50 crore, with the remaining sum structured in instalments. The deal also incurred a substantial stamp duty of ₹9.25 crore and a registration fee of ₹30,000.

From an urban development perspective, this purchase exemplifies how Mumbai continues to attract high-net-worth individuals with its cutting-edge developments and prime locations. Lodha Sea Face, situated in one of the city’s most coveted areas, blends exclusivity with modernity, reflecting the aspirations of India’s elite. The transaction resonates with the larger narrative of Mumbai’s skyline transformation, where luxury residential towers redefine urban living standards.

The project also commits to sustainability, aligning with contemporary architectural trends prioritising eco-consciousness. Developers are increasingly incorporating energy-efficient designs, water conservation systems, and green building certifications in their offerings. This trend not only enhances the appeal of such properties but also aligns with global sustainability goals, creating a positive impact on the city’s environment.

Blackstone acquires Tokyo Garden Terrace Kioicho for ¥400 billion, highlighting foreign interest

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December 14, 2024

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Blackstone acquires Tokyo Garden Terrace Kioicho for ¥400 billion, highlighting foreign interestBlackstone acquires Tokyo Garden Terrace Kioicho for ¥400 billion, highlighting foreign interest

In a record-breaking move for foreign investment in Japan, Blackstone Inc. is set to acquire Tokyo Garden Terrace Kioicho, a mixed-use development, from Seibu Holdings Inc. for approximately ¥400 billion ($2.6 billion). This landmark transaction marks Blackstone’s largest acquisition in Japan and signifies growing global interest in the nation’s real estate market, driven by the weak yen, favourable borrowing costs, and robust property performance in key metropolitan areas.

Tokyo Garden Terrace Kioicho, a 2016 development on a historic 70-year-old Seibu site, is strategically located near government offices and the Prime Minister’s residence. This acquisition makes Blackstone one of the few foreign investors to own a prestigious Tokyo skyscraper, highlighting its growing confidence in Japan’s real estate sector. Seibu will earn a ¥260.4 billion profit from the sale and retain management of the property. Despite a turbulent global market, Japan’s commercial real estate investments surged by 21% year-on-year to ¥2.6 trillion in the first half of 2024, cementing Tokyo’s position as the world’s most active property investment city.

From a civic perspective, this transaction emphasises the evolving landscape of urban development in Japan. While local developers traditionally retain control of prime assets, the entry of foreign investors like Blackstone could drive innovation and enhance the quality of urban spaces. The planned refurbishment of the Tokyo complex exemplifies this shift, with promises to integrate modern facilities and adapt to evolving community needs.

Sustainability is central to Blackstone’s plans, as the company aims to enhance energy efficiency and implement green building practices during renovations. The move aligns with Japan’s increasing emphasis on sustainable urban growth and resource management. Tokyo’s recovery from pandemic-induced office vacancies, now at a four-year low of 4.16%, demonstrates resilience, further solidifying its appeal to global investors. This acquisition reflects a promising intersection of economic recovery, urban development, and sustainable innovation in the real estate sector.

NBCC’s ₹9,500 crore rescue for homebuyers

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December 14, 2024

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NBCC’s ₹9,500 crore rescue for homebuyers

In a landmark decision, the National Company Law Appellate Tribunal (NCLAT) has appointed NBCC (India) Ltd. as the project management consultant to complete 16 stalled projects of Supertech Ltd., bringing hope to over 50,000 affected homebuyers across Uttar Pradesh, Uttarakhand, Haryana, and Karnataka. The ₹9,445 crore project will see NBCC complete the construction within 36 months, aiming to restore trust in the real estate sector.

The NCLAT has set March 31, 2025, as the deadline for preliminary approvals, with construction expected to commence by May 1, 2025. NBCC will manage 49,748 pending units and intends to finance the construction through ₹1,800 crore from sold units and ₹14,000 crore from unsold inventory. This transparent process, including e-tendering for contractors, seeks to rejuvenate buyer confidence. However, homebuyers demanding compensation were denied by the tribunal, which emphasised maintaining affordable costs for existing allottees as per their agreements.

From a civic perspective, the resolution underscores the pressing need for stronger accountability in India’s real estate sector. Supertech’s stalled projects reflect a broader issue of trust deficit and regulatory gaps that have left countless buyers stranded. The establishment of Apex and Project-specific Court Committees ensures transparency in fund allocation and project execution, aiming to safeguard homebuyers’ interests. These committees will oversee project-specific accounts and financing to avoid mismanagement.

Sustainability remains integral to this initiative. NBCC’s commitment to high-quality construction will adhere to regulatory requirements, including green building standards under RERA. By completing all 16 projects simultaneously, the move represents a shift towards sustainable urban development, prioritising social impact alongside economic recovery. This intervention not only sets a precedent for addressing housing crises but also highlights the critical role of government agencies in fostering equitable urban growth.

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