Track2Realty: India Ratings & Research (Ind-Ra) maintains a negative outlook on the infrastructure sector for H213, largely due to unfavourable macro-economic variables and project level stresses.
Track2Realty: India Ratings & Research (Ind-Ra) has maintained a negative outlook on the Indian construction sector for the second half of 2013 (H213). This is in view of the continued execution and liquidity challenges facing the sector, identified as major constraints in the beginning of the year. The impact of these challenges is likely to intensify in the near term.
Track2Realty: To strengthen long-term competitiveness and deliver a stronger and more differentiated client servicing experience, DTZ has announced a new company structure for its real estate business operations in India.
Track2Realty-Agencies: Shriram Properties the Bangalore-based realty arm of the Shriram Group, is understood to have up lined up discussions with key global players including Mapletree and Ascendas to sell its Gateway SEZ, a 1.3 million square feet information technology special economic zone in Chennai for $150 million.
Track2Realty Exclusive: Real estate has not just been innovative but also aggressive in raising money. They have raised money against sales with a guarantee that if the price falls, they will buy it back. It has been a protection on the bank’s side that if the prices fall, of course there is a margin of about 20% and if the prices fall more than that, they will buy back. 20% has been the cut off because about 10% is the expense in buyback, brokerages, paperwork etc.
Track2Realty Exclusive: The realty market has been pretty exposed to the greedy investors and vulture funding, not venture funding. In desperation the developers often lost track of what kind of funding was required and met with the disaster. Amidst the cyclic very high and very low there has been off balance debt-equity ratio as well. Of late, some developers tried within the box and some outside it. The needs and solutions are different for listed and unlisted companies. Still the sector is in search of right funding mechanism and as Track2Realty finds, are guinea pigs in the funding market.
Track2Realty-Agencies: While the promoters of realty firms in India are wary of selling stake and instead choosing institutional placement programme (IPP) over share auction to bring down holding to comply with regulatory norms, Bangalore-based Puravankara Projects has also plans to raise around Rs 450 through IPP route.
Track2Realty-Agencies: Ansal Properties & Infrastructure (Ansal API) has achieved a sales bookings of Rs 2,361 crorein the first 11 months of this fiscal, slightly down from the year-ago period.
Track2Realty: 2012 presented the real estate sector with an array of challenges. Valuable lessons were learnt as the real estate markets dealt with the uncertainties surrounding the local and global economic fundamentals. Many of these uncertainties persist in 2013. DTZ is now embarking upon a new journey this year and putting risk back into perspective is the war cry.
Track2Realty: DLF lost 2.85% to Rs 246.70 at 11:09 IST on BSE after the company after market hours on Thursday, 14 February 2013, reported weak Q3 December 2012 results at operational level.