Golden State Capital to raise $500 m from REIT listing
PE firm plans to invest $1 billion in office space in three years
Mar 18, 2014
Source : The Hindu Business Line


DELHI: Private equity firm Golden State Capital (GSC) said it will set up a real estate investment trust (REIT) to spearhead operations in India. The company, which hopes to raise $500 million (around ?3,060 crore today) by listing the REIT in Singapore, intends to invest $1 billion over the next three years in stabilised offices that are FDI-complaint.

Additionally, GSC has also formed a joint venture with the Dabur promoter, the Burman family. Burman GSC will look for business opportunities in the realty space.

REITs are pooled investment entities where the corpus is invested primarily in completed, income-yielding real estate assets.

“We are still working out on whether the realty foray will be residential or commercial,” said Gaurav Pandey, Chief Executive of GSC.

“We are looking at an REIT listing of above $500 million,” Pandey said, adding the company may look at another joint venture post its listing.

Last year, capital market regulator SEBI had released draft guidelines for REITs that will enable them to list on local bourses. So far, REITs incorporated in Singapore have been investing in India.

GSC began investing in India in 2002 with construction of leased assets by recovering industrial buildings. In 2008, the company entered into a pact with realty investment firm Ascendas to develop a 62-acre IT SEZ in Gurgaon, near Delhi.

Pandey added the company is now looking at office assets in places such as Delhi-NCR, Mumbai, Bangalore and Hyderabad, which have been built and leased out. According to a report from real estate consultancy Jones Lang LaSalle, commercial real estate space is witnessing a change. Previously only institutional investors or heavyweight high net worth individuals were investing. Several retail investors are now getting into the office realty space.

There are three ways to invest in commercial real estate – directly buy office space from a developer, buy shares of a commercial developer from the stock market, or invest in a real estate fund focused on commercial real estate.

Today, even professionals like doctors, auditors, stock brokers and lawyers are buying commercial properties for investment and self-use.

Industry watchers note that the rental yield in commercial property is anywhere between 8-12 per cent.

Latest Realty News

Entry of high-speed elevator manufacturers bring a paradigm shift in high rise buildings
Mar 18, 2014
DELHI: Indian real estate has progressed in leaps and bounds in the last decade and one can marvel at the rapid growth of high rise buildings across the country, be it in the inner cities, suburbs or 2nd tier towns.
Freehold property will boost NCR’s market
Mar 18, 2014
DELHI: There is good news for homeowners who bought flats on hire purchase basis but could not pay in time and are unable to convert their properties from leasehold to freehold as the Delhi Development Authority (DDA) has recently approved a fresh Penalty Relief Scheme.
SIPs best way to create wealth via mutual funds
Mar 18, 2014
DELHI: At the very basic, wealth creation refers to the process of deploying your money in a manner that there is real-value accretion over the long run. In other words, you should deploy your savings in such a way that the rate of return on your money beats the rate of inflation.
Name owners of multiple plots: Chandigarh High Court
Mar 18, 2014
DELHI: Taking up the issue of allotment of multiple plots in the defence category and under discretionary quota by HUDA, the Punjab and Haryana high court on March 13 asked the urban development authority to submit the names of all allottees who were allegedly granted multiple plots. According to HUDA records, around 8,000 people have taken multiple plots under various categories in contravention of the norms.
Hunt for Gurgaon’s best homes narrows to 15 condominiums
Mar 18, 2014
DELHI: The Clash of the Condominiums has come to the deciding stage. A survey conducted by the Indian Market Research Bureau in association with The Times of India has identified 15 finalists among 150 societies that will vie for the honour of being among the best five places in the city to live in.
Jung plans facelift operation for DDA
Mar 15, 2014
DELHI: A thorough restructuring is in store for the Delhi Development Authority. According to information issued by Delhi LG’s office, an exercise will be carried out “not just to revamp the DDA but to equip it with modern processes to enhance its efficiency.”
Developers pushed for tourism in Aravalis
Mar 14, 2014
DELHI: The minutes of an NCR Planning Board committee meeting to consider changes in the regional plan reveal how hard Haryana pushed for opening up the state’s fragile conservation zones, such as the Aravalis, for tourism.
‘Millennium City’ Gurgaon comes a long way
Mar 14, 2014
DELHI: As Delhi slips from the reach of property buyers, Gurgaon emerged as a hot destination, providing world-class infrastructure and better connectivity. In the National Capital Region (NCR) Gurgaon saw immense growth. After witnessing a spurt in commercial and residential properties, Gurgaon has come a long way.
Udyog Vihar industrialists urged to not pay double tax
Mar 14, 2014
DELHI: Udyog Vihar’s plot owners have asked local industrialists not to pay their annual maintenance charges to the industry authority for the next financial year.
Decoding paperwork required for buying property
Mar 14, 2014
DELHI: For the purchase or lease of residential or commercial real estate, as an investment or end-use, various factors need to be considered beyond the price and location. For properties in new projects by reputed developers, there is no reason to be too stressed about this. However, it can and often does become necessary while purchasing a resale property. One of the most important aspects to verify is the title of the property.

Latest Realty News Of State

Realty Talk's