Blackstone buys Mumbai office hub
May 17, 2014
Source : The Times of India
 
BANGALORE: Private equity giant Blackstone's big appetite for India's commercial real estate is poised to trigger more buyouts. The global investor is close to acquiring a 1-million sqft office space at Vikhroli in Mumbai for Rs 1,050 crore from homegrown real estate fund house Milestone Capital.

The fully leased-out property, 247 Park, is 74% owned by Milestone and 26% by HCC Real Estate. The asset carries a net enterprise valuation of Rs 1,000 crore and a working capital requirement of around Rs 50 crore, people directly involved with the matter said. This comes a week after blackstone closed a transaction acquiring the iconic Express Towers in South Mumbai for Rs 900 crore, first reported by TOI in March last year. The property was acquired through a joint venture with Pune-based Panchshil Realty, in which the latter owns majority shares, sources added.

Sources added that the deal with Milestone could also involve Panchshil jointly picking up the asset. Last year, Blackstone had submitted a term-sheet (a preliminary non-binding agreement) to buy out 247 Park, but walked away from the transaction in the absence of environment and regulatory clearances. "The deal is close to being sealed as all approvals are now in place," said one of the sources cited earlier. Both Milestone and Blackstone declined to offer comment. Milestone is one of the largest Indian real estate focused funds with Rs 3,200 crore in assets under management.

In 2010, Milestone picked up a majority stake in 247 Park, through a leveraged buyout, at an enterprise valuation of Rs 775 crore. Since then the property, which counts Siemens, DHL, Piramal and Future Group among clients, has clocked a capital value appreciation of close to 10% year-on-year. The annual rental revenue is estimated at Rs 100 crore, while average rental appreciation for the project has been 12%.

In the last two years, Blackstone has infused over $700 million into India's commercial real estate to emerge as the second largest office space landlord after Gurgaon-based DLF. Blackstone's portfolio of rent yielding office space stands at over 24 million sqft currently, behind DLF's 27 million sqft. Blackstone has a bigger joint venture with south India's largest commercial space developer Embassy Group. This JV controls 20 million sqft of developed and leased commercial space, which earns approximately Rs 700 crore in rental income annually.

Birla Sun Life MF buys ING MF assets

MUMBAI: Birla Sun Life Mutual Fund on Thursday said it has bought over the assets of ING Mutual Fund, about Rs 1,100 crore, for an undisclosed amount. Sources said that Birla MF, part of Aditya Birla Financial Services Group (ABFSG), paid less than Rs 10 crore for ING MF's assets although the top Birla group official did not confirm the price. ING MF was on the block for several years now and had initial negotiations with several fund houses.



 

 

Latest Realty News

Homing in on cheap house? Not yet
May 17, 2014
MUMBAI: Affodable housing may still be a few years away as projects set to be undertaken by the new Government could take three to five years to get ready and home price may rise in the short term as sentiment improves. Developers and investors are set to take fresh stock of their real estate plans in line with the new government's plan to develop 100 new cities.
Mumbai: The ‘undisputed king’ in Indian office market
May 16, 2014
MUMBAI: International property consultancy JLL India, has released its latest research report ‘Mumbai Offices 2020: Mapping the Future of the Mumbai Office Market’. Anticipating the changing trends of commercial real estate in India’s financial capital, ‘Mumbai Offices 2020’ provides ‘foresight with purpose’ into where Mumbai’s office market is headed. Talking about this report, Ramesh Nair, COO – business, JLL India, says, “With this report, we reaffirm that Mumbai will continue to be acknowled
What Pune real estate can expect from the new government
May 16, 2014
PUNE: Even though the BJP-led NDA government has taken up the driving seat, it is only time that will tell how real estate friendly it turns out to be. Real estate is a sector wherein the State government plays a larger role than the Central government, as every state government has its own policies. At this moment in time, what we can hope for is:
It’s raining offers in real estate sector too!
May 14, 2014
MUMBAI: Cash discounts, freebies, lucky draws, sale fiestas, home buying days, foreign trips, et al; if anyone were to talk about all of these in the real estate context, even five years back, it would just elicit disbelieving responses. Today, all these selling strategies, which have been drawn from sectors like retail, FMCGs, etc., is a major part of any real estate company’s marketing and branding strategy. As the players in the organised sector of real estate grow in numbers and profit margi
Builder fined for not delivering flats
May 14, 2014
DELHI: In what could tame builders who fail to deliver houses on time, the National Consumer Disputes Redressal Forum has asked realty major Parsvnath Developers to return the entire principal amount paid by two flat buyers with 18% interest and another Rs 7 lakh compensation to each for causing mental agony and harassment because of delay in handing over possession.
Farmers protest against Cidco’s development plan
May 14, 2014
AURANGABAD: The Aurangabad Zalar Kisan Sangharsh Samiti on Friday staged demonstration in front of the office of City and Industrial Development Corporation (Cidco) alleging large scale irregularities in its proposed fringe area development plan.
Five ways to check a builder’s reputation
May 13, 2014
MUMBAI: If you are planning to buy a property under construction, don't just go by the brochure claims. A lot depends on the builder's competence and resources. ET lists some checks before you finalise a project.
CREDAI to organise property show
May 12, 2014
NASHIK: The Confederation of Real Estate Developers' Association of India (CREDAI) will be organising 'Property Show 2014' from May 23 to May 25 at Dongre Vasatigruha. This year, the exhibition is being organised on national and international level.
Community living vs township projects
May 12, 2014
MUMBAI: Community living projects and integrated projects, are changing the lifestyle of home buyers. “Community living is a concept which defines a closely-knit social fabric within a residential cluster. Such a fabric may be the result of various driving factors, including proximity of buildings, the fact that the neighbourhood has been tailored along certain lines, or the collective need to address certain circumstances or objectives,” says Om Ahuja, CEO-Residential Services, JLL India.
RBI asks banks not to levy penalty on pre-payment of loans
May 11, 2014
MUMBAI: Providing relief to borrowers, Reserve Bank today directed banks not to levy any penalty on individual borrowers for pre-paying floating loans.

Latest Realty News Of State

Realty Talk's