Incor to buy Israeli partners stake in Hyderabad project

 

 

Hyderabad-based builder Incor Infrastructure is buying out its Israeli partners Property and Building Corporation and Electra Real Estate from the 25-acre PBEL City township in the city for $34 million (about Rs 225 crore). 

Of the total deal value, $11 million (about Rs 73 crore) will come from the non-banking finance company of Canadian asset management firm Brookfield, two people with knowledge of the development said. 

The two Israeli investors hold 45% stake each in the PBEL City township in Hyderabad and Incor Infrastructure holds the rest in the project, which is part of the joint venture firm PBEL Property Development (India) formed by the three companies in 2008 to invest in India's real estate market. An email sent to Incor and Meir Boukris, a director in PBEL Property Development (India) did not elicit any response. A spokesman for Brookfield said, "Brookfield's corporate we have no comments on the transaction mentioned below." Last year, Israeli billionaire Mordechai Zisser-owned Elbit Imaging had sold its 1 million sq ft Plaza Centre Mall in Pune to Bengaluru-based builder Nitesh Estates Rs 250 crore. 

Several Israeli real estate firms had entered India during the peak years 2005-2008. These included the likes of Meshulam Levinstein Contracting, which invested in three projects here and Hodu Ventures, which is a part of Gindi Holdings Group from Israel 

 

Apart from the Hyderabad project, the JV includes a mixed use township in Chennai's OMR area where the company has a 42-acre plot and another one in Mysore spread over 10 acres, though the current deal is only for the Hyderabad project. In 2008, the company had put in Rs 500 crore to acquire these parcels of land. The Hyderabad project, which is located in the Appa Junction area of the city, between Hitec City and the airport, was originally planned to have about 3,000 apartments in 13 towers 

 

PBEL started construction of the project in 2009 with L&T as its construction partner. Of this, the company has so far completed four towers which are sold out. There are three towers which are currently in different stages of construction and where about 25% of the inventory has been sold so far. 

Another six towers are still to be made. One of the persons cited earlier said Incor will pay $15 million now to buy the unsold inventory in the under-construction part of the project and will pay the rest over the next three years as new towers get launched every six months. 

 

At that time, new projects launched dried up and sentiments among both buyers and builders were low. Since the resolution of the problem with the formation of Telangana state, there has been a huge improvement. "Hyderabad has seen an increase of 67% in apartment sales between October 2014 and September 2015 compared to the same period a year ago," said Trivita Roy, associate director research and REIS at property advisory firm JLL India. During this period, new players such as Puravankara also e .. 

Last year, Brookfield and Incor had come together to jointly develop a land parcel that the former owns in Kukatpally area of Hyderabad. 

The land parcel is valued at over Rs 300 crore and Incor will invest Rs 700 crore to develop the mixed use project.

Hyderabad has strong ties with Marathi language: Jakhade

the vibrancy of the Marathi literary scene is only growing by the day- at least that seems to be the verdict of a sizeable number of authors and poets from Maharashtra, in the city for the Hyderabad Literary Festival (HLF), which had Marathi as the language in focus, this year.

"There are a little over 150 publishing houses spread across Maharashtra and the literary scene is undergoing a transformation with many authors willing to experiment with various themes and forms", said award-winning Marathi author Arun Jakhade.

Jakhade's claims were supported by a few Marathi poets, who asserted that the Marathi readership is presently, more welcoming of new forms and styles of poetry.

"When I initially started writing poems, I faced severe criticism for using a few English and Hindi words in my works. People accused me of undermining the purity of Marathi while all I tried to do was make the verses more informal so that people could relate to it. However, over time, many have begun to accept this new form of poetry and the number of poets has also witnessed a boom in recent times," said Hemant Divate, a Mumbai-based poet, editor and translator.

The Marathi readership too, according to the Marathi writers, is nowhere close to dwindling.

"Marathi literature is still in demand, both in Maharashtra and other states where there is a strong Marathi presence. One of these places is Hyderabad", explained Jakhade.

While reiterating the tales of strong ties between Maharashtra and the erstwhile princely state of Hyderabad, under the Nizams' rule, which included large parts of present-day Maharashtra and Karnataka, the Marathi delegates pointed out how the 'Dakhini Urdu' spoken by many in Hyderabad is strongly influenced by Marathi.

"Marathi, Urdu and Telugu are all closely linked. In addition to Hyderabad having a strong Marathi presence, the Urdu spoken in Hyderabad is heavily influenced by Marathi and in the Marathi spoken in a few districts in Maharashtra, Nanded in particular, there is a notable influence of Telugu," said Jakhade, who is also the editor of the Maharashtra edition of PLSI (People's Linguistic Survey of India), which was published in 2013.

According to the independent survey conducted by PLSI, which engaged more than 700 scholars and language professors on field duty over a period of four years, Maharashtra was found to be home to the third-highest number of indigenous languages in the country. The last effort to map the linguistic diversity of India was carried out over a century ago by Irishman George Grierson.

Srisailam Highway, Hyderabad: An ideal location for long-term investment

 

 

After a prolonged slump due to the global recession followed by political turmoil, Hyderabad's realty market is once again set for an upswing. Hyderabad, with its buoyant and thriving economy and a dynamic workforce, is once again a favourable buyer's market. The thriving IT/ITeS industry has given impetus to consumer trends, which is evident from the growing demand for residential, commercial and retail spaces in Hyderabad.

When compared to the other metros, housing in Hyderabad is relatively affordable. Property prices here are almost 60 per cent of those of Bengaluru and Chennai. Due to political uncertainty, land prices in Hyderabad have remained stable. However, with political stability and creation of a new state of Telangana, Hyderabad can now expect large investments in its property market in the near future.

Srisailam Highway, located in the southern part of Hyderabad, is bustling with real estate activity. New projects around this road are expected to firm up further in about a year.

Srisailam Highway benefits from its close proximity to the Rajiv Gandhi International Airport. The area houses several developing regions such as Barkas, Venkatapuram and Tukkuguda. Being situated close to the TCS special economic zone (SEZ) at Adibatla, Srisailam Highway has a superb advantage. The TCS SEZ has become a prominent destination for Hyderabad's thriving software industry, has a significant impact on the real estate profile of the region and has helped boost demand for residential apartments in the region.

On the social infrastructure front, Srisailam Highway is well supplied with entertainment avenues, and the general and physical infrastructure of the region is adequate. ZAK International School of Excellence, VIP's International School, Huda High School, Al-Qurmoshi Institute of Business Management and Pragati School of Nursing are a few renowned educational institutions dotting this highway. The presence of healthcare facilities such as Life Line Hospital, Al Madina General Hospital and Composite Hospital also add to the value of this well-defined residential catchment.

With a number of SEZs planned along Srisailam Highway, the locality is developing at a very fast pace. Already, many developers have launched a wide spectrum of quality projects catering primarily to the middle-income segment. The area is witnessing a strong real estate activity, and there is appreciable demand in store in the years to come.

Srisailam Highway is a perfect destination for long-term investment, and is perfect for those who are looking to invest in plot or built-up property at relatively affordable price points.

Ranga Reddy and Medak districts fight as water levels dip in Telangana

 

Hyderabad: With groundwater levels dipping, water wars have started between Ranga Reddy and Medak districts. 

 

Nizampet, a gram panchayat under Quthbullapur mandal in Ranga Reddy district, started attracting people around eight-10 years ago for the cheap houses it had on offer and now has around 200 apartments many of which occupied by IT employees. However, even though the number of residents rose exponentially in Nizampet in the past few years, getting water connections has proven a distant dream for residents, forcing them to depend entirely on water provided by illegal water tanker units which extract groundwater, mostly from Patancheru in Medak district.

 

As groundwater levels have taken a serious dip in Medak, residents from the district have been pressurising the district authorities to crackdown on illegal water tanker units. 

 

In the past few days, due to seizure of illegally sunk borewells in Patancheru by district officials, water tanker operators have halted operations, affecting Nizampet residents. The residents, in turn, conducted a rasta roko on Saturday, demanding a resolution of their water woes. 

 

The protest by residents exposed the extent of the business of illegal water tanker units in this region. It also exposed the ignorance of government departments in ensuring basic amenities to citizens. As Nizampet is a gram panchayat, the Rural Water Supply (RWS) department should establish water connections. However, due to the large size of Nizampet “village” RWS did not take up the work

Hyderabad real estate mart to pick up in 2015

 

Hyderabad: The Hyderabad real estate finally appears to be coming out of tunnel, with the wait-and-watch approach, adopted by buyers following the division of Andhra Pradesh, being gradually replaced by optimism.

“The wait and watch period is in its last phase, buyers anticipation of price reduction is fading away leading to a more positive approach towards decision making. Developers are gearing up to launch new projects in 2015. With the end of political turbulence the Hyderabad residential market is likely to revive by end of 2015,” said Vasudevan Iyer, director, Hyderabad, Knight Frank India, after releasing India Real Estate Outlook.

The major demand driver in the city for the time-being will be commercial segment, which looks more promising than residential.

“The year 2015 looks brighter from the demand side as the vacancy in the city has fallen to 17 per cent and rents have already started rising,” he said, adding some mega office deals on the cards.

Residential market, which though does not appear to be booming, is expected to benefit as more and more new companies establish their presence in Hyderabad.

Mr C. Shekhar Reddy, the national president of housing sector body Credai, claims: “There is a definite pick-up in the Hyderabad real estate market, if not boom. With the economy expected to pick up pace, the housing market also will see a good growth.”

Real estate in TS still sluggish

 

As Telangana reached its one-year milestone, the real estate sector in Hyderabad appears to have given up hopes of a quick recovery of fortunes and instead remains content with slow and incremental growth.

Real estate activity, which relished the boom period of 2005 to 2008 with large scale construction work in and around the city, was left with a bitter taste during the global recession followed by the agitation for a separate State. Construction activity almost came to a grinding halt and builders were left with unsold inventories piling up in large numbers.

The coming of Telangana last year was seen by most in the building community as ushering in a new dawn for the construction industry and hopes were pinned on a quick revival being just a matter of months. Most predicted real estate activity to start flourishing by December 2014. However, that was not to be so.

But then, the builders do not really seem perturbed at their calculations having gone awry and express satisfaction at the slow growth that has been registered in the last one year. “Agreed that business for us is not in the fast mode but at least we are slowly moving out of standstill status,” says P. Dasarath Reddy, president, Telangana Real Estate Developers Association (TREDA).

According to city builders and developers, there has been a steady, albeit incremental growth in enquiries and footfall at project sites, particularly in the last six months. “If not euphoric, the mood is definitely optimistic. Unlike earlier years, enquiries are converting into sales but the conversion rate has to go up,” observes Anand Reddy, co-founder, PBEL-INCOR.

C. Sekhar Reddy, national president of Confederation of Real Estate Developers Association of India (CREDAI), says, “There is a positive movement in sales and a rise in enquiries. A small push along the line will bring real estate back into the reckoning.” The Greater Hyderabad Municipal Corporation (GHMC) according sanction for 1,100 building plans in March shows that construction activity is returning to tracks, he says.

The State government’s steps aimed at improving conditions of Hyderabad are cited as factors that will help real estate surge ahead in the coming months. “The government has narrowed down its focus on key issues of power, water and roads and this is going to push the city back in the centre-stage,” remarks Mr. Anand Reddy. Recent announcements on Google, Amazon and few others on setting up and expanding base in the city also added to the buzz, says Mr. Sekhar Reddy.

Property prices remain low

Despite a very marginal rise in the last one year, property prices in and around the city continue to remain very less compared to most other metro cities. Apart from all other attractions, a builder points out, the icing on the cake here happens to be the low pricing.

C. Sekhar Reddy, CREDAI president, puts the average property pricing in the city as ranging between Rs.3,500 and Rs.4,000 per sq ft. “In locations such as Kompally, Alwal and Bollaram, good residential properties are available at Rs.2,000 per sq ft too,” he says.

The preferred locations for property seekers continue to be Madhapur, Gachibowli, Tellapur and Miyapur. Limited stocks at Banjara Hills and Jubilee Hills command a pricing of Rs.8,000 to Rs.9,000 per sq ft while Madhapur and Gachibowli properties are ticketed between Rs.4,000 and Rs.5,000 and along locations such as Miyapur, which are picking up fast with the Metro Rail project, the price tags vary between Rs.3,500 and Rs.4,000 per sq ft. “Prices vary based on location, amenities provided and the present status of construction,” says a builder.

Interestingly, plots which went out of favour when compared to constructed property few years back, appear to be staging a comeback. Outlining the emerging trend, a realtor says property seekers were evincing interest in HMDA-approved plots at places beyond the outskirts such as Mancherial, Adhibatla and Narsingi.

Top reasons to invest in Hyderabad's Kondapur

 

Kondapur offers a bouquet of advantages such as proximity to the IT ITeS hub of the city along with a well-developed social infrastructure.

Kondapur is one of the most sought after suburbs in Hyderabad, especially by those who are employed in the IT ITeS sector, given the area's proximity to Gachibowli and HiTech city, which is barely 5 km away. The area has many housing units of various formats along with residential projects that are under-construction. Unlike other areas in the vicinity that are close to Gachibowli and Madhapur, Kondapur offers open plots as well. Due to the residential development in the area, commercial real estate is also fairly vibrant here.

Apartments and villas in gated communities are the major housing options available in Kondapur. Most of the apartments are either in 2-BHK or 3BHK format. A 2-BHK apartment will measure close to 1,120 sq ft while a 3BHK apartment, around 1500 sq ft. The prices of a newly built apartment in a gated community range between 3,500 per sq ft to 4,000 per sq ft. Villas here are built on a plot generally measuring 250 sq yard and will cost 6,000 per sq ft. HUDA approved open plots will cost anywhere between 40,000 to 50,000 per sq yard. Rentals for a 2-BHK are in the range of 12,000 to 15,000 per month. A 3-BHK will have a monthly rental tag of anything between 16,000 to Rs 20,000. Villas are rented out for 40,000-50,000.

Kondapur is well connected to other parts of the city. There is a TSRTC bus stop and also many autos and shared autos ply on the roads here. The nearest MMTS railway station is in Hafeezpet which is 4 km away from Kondapur main road. Rajiv Gandhi International Airport in Shamshabad is 33 km away. Jubilee Bus Station is at a distance of 19 km while Secunderabad Railway Station is 21 km away.

Kondapur main road can be called the area's major commercial zone with many large super markets and various stores. Residents here mainly shop from Kondapur main road and for entertainment and larger shopping needs the nearest mall is the Inorbit mall in Madhapur. For day to day requirements there are grocery and daily needs stores in the colonies and by lanes of the area itself. The other elements of social infrastructure in Kondapur are also well established. There is a strong presence of many international schools along with hospitals that are counted among the best in the city. Kondapur is also home to many big and small restaurants that serve various cuisines.

Two aspects that need immediate attention in Kondapur are development of roads in some of the lanes and water connectivity. While some parts of Kondapur get Manjeera water, there are colonies which do not have municipal water supply. Residents in such areas rely on bore-wells and water tankers. When it comes to roads, residents are confident that with the passage of sometime it will soon be developed however sufficient water supply is a more urgent need.

India real estate: Is the worst behind us?

Year 2015 was quite an eventful one for all of us.

India and the Indian government, both were in news globally and of course within the domestic boundaries for various reasons -the primary one being the continued quest for 'achhe din'.

The Indian economy currently stands on a stronger foothold with the growth trajectory moving at the pre 2008-09 pace. I am positive that the GDP growth will be between 7-7.5 percent in 2016. It is encouraging to see the fiscal deficit has tapered from 4.79 percent in 2010-11 to near 3.9 percent in 2015 and indeed there is a stronger push to fiscal consolidation by the government. Inflation has been tamed considerably and the RBI has displayed a softer monetary stance with the reduction of interest rates by a total of 125 bps across 2015.

Among refreshing developments, REIT came into spotlight once more when the government brought in amendments on MAT. Once launched, REIT is expected to bring big-ticket foreign investments to the country with the Indian REIT market growing to $15 billion in three years. There has been an adequate focus on the infrastructure development as well with an allocation of $7 billion over the next five years towards Smart Cities. This has propelled several Tier 1 and Tier 2 cities to be a part of the Smart City club in order to meet the burgeoning needs of urbanisation. Plans have also been cleared for commissioning the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) project that will focus on urban renewal of 500 cities and towns.

Housing for all by 2022 announced by the National Mission for Urban Housing will be instrumental to provide affordable housing in urban areas through supply side interventions such as extra FSI TDR and relaxation of the density norms. Further, the Government's attempt to ease FDI in the real estate sector has been a welcome move, as it could prove to be a major source of capital infusion for the developers in the coming days. At the back of these developments, real estate did have its share of mixed sentiments.

With the festive season not bringing in the expected cheer, stakeholders resisted the temptation to launch new projects in the season, while the focus remained on reducing the inventory that has piled up over the past few quarters. This year, the Indian residential sector reached an all-time low since 2010. The slowdown was witnessed not just in the premium segment but across all types of residential apartments. Moreover, the homebuyer interest did not pick up due to stalled projects, unaffordable prices, high mortgage rates and poor credibility of the developers in project delivery.

Significantly, the office space market has witnessed a remarkable recovery in the last two years and the vacancy levels are expected to touch a new low at 16 percent. Rentals are firming up and there is a shortage of prime office space. In the last three years, technology-backed e-commerce companies, including start ups, have attracted the maximum amount of interest from investors, both global as well as Indian. This created a positive impact on the office space demand and a testimony to this fact is the large deals being inked by corporates across Mumbai, NCR and Bengaluru in the recent times.

2016 will also be significant year for the Indian real estate sector if the much needed Real Estate Regulation bill becomes a reality.

Prepaid power meters in govt offices soon

 

Hyderabad:  To avoid mounting power dues from various government departments, the Telangana government has decided to install prepaid electricity meters in all the departments from new financial year beginning from April 1. All the departments have been informed that the TS Southern Power Discom Ltd (TSSPDL) and TSNPDCL will install prepaid meters in all offices. 

The cost of the meters will be borne by the departments in three instalments. The Discoms will work out mechanism for enabling recharge of the meters including online payment. This will also help to bring in internal mechanism by all government departments towards energy usage discipline and conservation.

The officials of the Energy department said that the TSSPDCL was facing revenue deficit of nearly Rs 6,000 crore while in case of NPDCL it was Rs 7,000 crore on account of increased cost of power purchase, mounting establishment charges and the supply of subsidised power to the agriculture and domestic sectors.  

Once power supply to the government offices is streamlined, the utilities will get relief from the evasion of tariff payments, officials said. The power utilities have also set March 31as deadline for all the government departments including local bodies to clear power dues pending to the tune of Rs 1,923 crore. Of this Rs 1,450 crore has to come from local bodies and panchayats.

All departments are directed to clear the outstanding CC (Current Consumption) charges dues to the utilities by March 31 and the DPS ( Delayed Payment Surcharge)  on all such charges will be waived off subject to the approval by the TS Electricity Regulatory Commission”,  the official of the state Energy department said

Marri Shashidhar Reddy files petition against the GHMC election schedule

Former minister Marri Shashidhar Reddy has decided to question the reduction of GHMC election schedule in the High Court as he has filed a petition where he appealed for the extension of 20 more days against 31 days set by the Court.

Speaking to the reporters, Marri Shashidhar Reddy said that nearly seven lakhs and 90,000 duplicate voters lists came to notice in the 24 Assembly constituencies coming under GHMC limits and asked for the Chief Registration Officers(CROs) to verify the facts in the voter lists