The government proposes to treat the investments by foreign institutional investors in pre initial public offers (IPOs) of real estate companies as foreign direct investment (FDI), as reported by Business Standard.
The government has also said FII investments in the pre-IPO allotment of real estate companies will have a lock-in period of three years, in line with the FDI norms. The lock-in period of three years is currently applicable to FDI in real estate.
The government recently also clamped down on the use of external commercial borrowings for the real estate sector for integrated townships. All these measures are in response to widely held opinion that overseas funds are contributing to an asset bubble in the real estate space.
The government had said that it intended to slow down the flow of foreign debt into the real estate sector through its recent curbs on external commercial borrowings (ECBs).
Wednesday, May 23, 2007
HDFC Realty Fund invests 75 crs in Pune based real estate co.
HDFC India Real Estate Fund has bought a 10% stake in Pune-based real estate company Paranjape Schemes for Rs 75 crore. Private equity investor GE Capital has also signed a deal worth Rs 250 crore with the company for developing an integrated township project in Pune.
The funds infused by HDFC will be used for all upcoming projects of the company, while GE Capital’s investment is for a specific project in Pune, as reported by the Economic Times. Paranjape Schemes, which also undertakes construction activities and has completed over 100 projects, is also planning an IPO in the future.
HDFC India Real Estate, a real-estate fund having a corpus of Rs.1000 crs, was the first dedicated real estate fund launched in India in 2005. The fund has bought stake in another Pune based real estate developer Vascon Engineers. The fund has a mandate to invest in three broad classes of projects-those that are complete, those in the development stage and those in the planning stage.
The funds infused by HDFC will be used for all upcoming projects of the company, while GE Capital’s investment is for a specific project in Pune, as reported by the Economic Times. Paranjape Schemes, which also undertakes construction activities and has completed over 100 projects, is also planning an IPO in the future.
HDFC India Real Estate, a real-estate fund having a corpus of Rs.1000 crs, was the first dedicated real estate fund launched in India in 2005. The fund has bought stake in another Pune based real estate developer Vascon Engineers. The fund has a mandate to invest in three broad classes of projects-those that are complete, those in the development stage and those in the planning stage.
India, China are Asia's top M&A destination - Are you surprised??
India & China are top M&A destination...havn't we heard this often enough. India is a party destination for the Financial services industry, and everyone wants to cover this party.
PWC has come out with a survey reiterating the above. “China and India still remain the top two targets for M&A in the region due to underlying economic growth conditions,” an annual report presented by the financial advisory firm said, as reported by Mint.
The survey which polled 230 senior financial executives in Asia, Europe, North America and the Middle East, showed interest in India had increased slightly from 37% in 2005 to 39% in 2007.
By comparison, 47% of executives answered that they expected to execute a merger or buyout in China over the next five years.
Taiwan, Pakistan and Vietnam were also fast emerging as M&A hot spots, the report said.
Managers also signalled particularly strong expectations for Hong Kong, Singapore and Indonesia over the next five years.
Among those surveyed, nearly three quarters predicted that their companies would undergo a significant merger or acquisition some time in the next five years, up from 68% last year. Already, transaction value in Asia last year totalled $64 billion (Rs2,59,711 crore), a jump of 66% from 2005.
The sun is shining...and we all know whos making hay
PWC has come out with a survey reiterating the above. “China and India still remain the top two targets for M&A in the region due to underlying economic growth conditions,” an annual report presented by the financial advisory firm said, as reported by Mint.
The survey which polled 230 senior financial executives in Asia, Europe, North America and the Middle East, showed interest in India had increased slightly from 37% in 2005 to 39% in 2007.
By comparison, 47% of executives answered that they expected to execute a merger or buyout in China over the next five years.
Taiwan, Pakistan and Vietnam were also fast emerging as M&A hot spots, the report said.
Managers also signalled particularly strong expectations for Hong Kong, Singapore and Indonesia over the next five years.
Among those surveyed, nearly three quarters predicted that their companies would undergo a significant merger or acquisition some time in the next five years, up from 68% last year. Already, transaction value in Asia last year totalled $64 billion (Rs2,59,711 crore), a jump of 66% from 2005.
The sun is shining...and we all know whos making hay
Nasscom floats a 100 cr VC fund for IT start-ups
In December 2005, Nasscom wanted the Union Government to set up a separate venture fund to fuel innovation in the software products space.
A year and a half later Nasscom is set to launch a Venture Fund, with a corpus of Rs.100 crs, along with Hyderabad-based ICICI Knowledge Park, an arm of the ICICI bank.
Disclosing this to CyberMedia News here, Rajdeep Sehrawat, vice president of Nasscom, said “We have earmarked Rs 100 crore to fund IT start-ups in India, which are involved in IP-creation. These companies could be anyone who is working on automotive electronics, wireless and broadband, life sciences, medical devices and the like.”
The venture fund is expected to be in place by October this year. The fund will be looking at disbursing seed capital or angel funding, which other venture capital firms hesitate to enter. It intends to finance early start-ups, in their ideation stage, as this is where the liquidity crunch is felt the most.
Such initiatives promise to offer a lot of opportunities to an entrepreneurial mind. One hopes to see more such initiatives being taken in the future.
A year and a half later Nasscom is set to launch a Venture Fund, with a corpus of Rs.100 crs, along with Hyderabad-based ICICI Knowledge Park, an arm of the ICICI bank.
Disclosing this to CyberMedia News here, Rajdeep Sehrawat, vice president of Nasscom, said “We have earmarked Rs 100 crore to fund IT start-ups in India, which are involved in IP-creation. These companies could be anyone who is working on automotive electronics, wireless and broadband, life sciences, medical devices and the like.”
The venture fund is expected to be in place by October this year. The fund will be looking at disbursing seed capital or angel funding, which other venture capital firms hesitate to enter. It intends to finance early start-ups, in their ideation stage, as this is where the liquidity crunch is felt the most.
Such initiatives promise to offer a lot of opportunities to an entrepreneurial mind. One hopes to see more such initiatives being taken in the future.
Funds continue to be lured by the Indian Real Estate story
About $2.5 billion have been invested by overseas realty funds in India to date. And if that wasn't enough, wait to see another $3.5 billion running after the best real estate opportunities India has to offer.
Nearly two dozen US funds are raising $3.5 billion for investments in Indian realty. Those raising the money include Wall Street powerhouses such as Blackstone Group ( $1 billion) Goldman Sachs ($1 billion), Citigroup Property Investors ($125 million), Morgan Stanley ($70 million) and GE Commercial Finance Real Estate ($63 million). Others raising the money are: JP Morgan, Warburg Pincus, Merrill Lynch, Lehman Brothers, Warren Buffett’s Berkshire Hathaway, Colony Capital and Starwood Capital.
Theres been enough said and written on the increasing property prices in India. But that doesn't seem to deter these funds to make investments in the sector. The attraction for these funds is potential investment returns of 25% and more in Indian projects that might be hard to come by in the US and Western Europe today.
One such determined big player is Goldman Sachs. For about a year now, Goldman Sachs’s Whitehall Street Real Estate Funds have been exploring the Indian market and checking out potential investment partners. Some time back the California Public Employees’ Retirement System invested $100 million in a $400-million real estate fund promoted by IL&FS.
Tishman Speyer is among the first US developers to invest in India. Last year, the New York City-based firm formed a joint development company with ICICI Venture Funds of Mumbai that will have a war chest of $2.5 billion. Similarly, New York-based developer Vornado Realty Trust has teamed up with The Chatterjee Group, a venture capital firm also located in New York.
The Indian Real Estate story seems to be growing by the day and everyone wants to play a part in it.
Source: Financial Express
Nearly two dozen US funds are raising $3.5 billion for investments in Indian realty. Those raising the money include Wall Street powerhouses such as Blackstone Group ( $1 billion) Goldman Sachs ($1 billion), Citigroup Property Investors ($125 million), Morgan Stanley ($70 million) and GE Commercial Finance Real Estate ($63 million). Others raising the money are: JP Morgan, Warburg Pincus, Merrill Lynch, Lehman Brothers, Warren Buffett’s Berkshire Hathaway, Colony Capital and Starwood Capital.
Theres been enough said and written on the increasing property prices in India. But that doesn't seem to deter these funds to make investments in the sector. The attraction for these funds is potential investment returns of 25% and more in Indian projects that might be hard to come by in the US and Western Europe today.
One such determined big player is Goldman Sachs. For about a year now, Goldman Sachs’s Whitehall Street Real Estate Funds have been exploring the Indian market and checking out potential investment partners. Some time back the California Public Employees’ Retirement System invested $100 million in a $400-million real estate fund promoted by IL&FS.
Tishman Speyer is among the first US developers to invest in India. Last year, the New York City-based firm formed a joint development company with ICICI Venture Funds of Mumbai that will have a war chest of $2.5 billion. Similarly, New York-based developer Vornado Realty Trust has teamed up with The Chatterjee Group, a venture capital firm also located in New York.
The Indian Real Estate story seems to be growing by the day and everyone wants to play a part in it.
Source: Financial Express
From DSP ML to Citi: Vikas Khattars big move
The last couple of years have been exciting for the Investment Banking community to say the least. The action though has not been limited to large ticket deals. One gets to hear about high profile moves every now and then. DSP ML seems to have been affected more than others with movements of Munesh Khanna and Sanjay Sharma.
Vikas Khattar is the latest to make the big move. Citi India has poached Khattar from DSP Merrill Lynch to add strength to its equity capital markets team. He will be joining in as a Director early next month. Khattar is an MBA from IIM Calcutta and an engineer from the Birla Institute of Technology and Science. He was a veteran at DSP Merrill Lynch with 11 years experience.
Citi’s equity capital markets team is headed by another erstwhile DSP Merrill Lynch stalwart, Ravi Kapoor. Kapoor left DSP ML, where he was head of equity origination and capital markets, in April 2005 to kick-start the same business for Citi. Khattar will be part of Kapoor's team, which reports to Pramit Jhaveri, who heads investment banking for Citi in India.
For its part DSP Merrill Lynch is also on a hiring spree since Merrill Lynch bought out its Indian partner in December 2005. DSP is aggressively foraying into new areas including private wealth management, real estate and principal investing and hiring to staff these businesses. Indeed, worldwide Merrill Lynch has been beefing up its global private client non-resident Indian (NRI) business at the cost of Citi and has lured Rahul Malhotra, Inderjeet Hora and Aseem Arora from Citi in the last few months.
Source: Finance Asia
Vikas Khattar is the latest to make the big move. Citi India has poached Khattar from DSP Merrill Lynch to add strength to its equity capital markets team. He will be joining in as a Director early next month. Khattar is an MBA from IIM Calcutta and an engineer from the Birla Institute of Technology and Science. He was a veteran at DSP Merrill Lynch with 11 years experience.
Citi’s equity capital markets team is headed by another erstwhile DSP Merrill Lynch stalwart, Ravi Kapoor. Kapoor left DSP ML, where he was head of equity origination and capital markets, in April 2005 to kick-start the same business for Citi. Khattar will be part of Kapoor's team, which reports to Pramit Jhaveri, who heads investment banking for Citi in India.
For its part DSP Merrill Lynch is also on a hiring spree since Merrill Lynch bought out its Indian partner in December 2005. DSP is aggressively foraying into new areas including private wealth management, real estate and principal investing and hiring to staff these businesses. Indeed, worldwide Merrill Lynch has been beefing up its global private client non-resident Indian (NRI) business at the cost of Citi and has lured Rahul Malhotra, Inderjeet Hora and Aseem Arora from Citi in the last few months.
Source: Finance Asia
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