Jhumur Ghosh: I am a little curious. In 2008, all the funds of the world were lining up for real estate and signing and today we are having this discussion, in just four years. How does that happen?
Track2Realty: The 3C Company has partnered with Indo Canadian Cancer Research Foundation (ICCRF), who host the Terry Fox Runs in Dehradun, Delhi and Kashipur for cancer research in India. A marathon was organized in Dehradun as the first drive for the cause.
Track2Realty-Agencies: After making her foray into cricket with IPL Rajasthan team, Shilpa Shetty is once again entering a field dominated by men – real estate development. The actor has launched a company, Groupco Developers, in partnership with her friend and first generation entrepreneur Hem Tejuja, to develop housing projects in collaboration with land owners across the country.
I would like to ask the developer friends here when they say there is an ambiguity as far as ECB is concerned. Which are the funding routes that you find without ambiguity—whether it is private equity, QIP, IPO or any other route to raise money?
Gaurav Gupta: I would say there are multiple challenges for the sector.
Track2Realty: The NCR chapter of realtors’ body CREDAI said on Saturday, April 13, it will direct developers to disclose both saleable and carpet area in their brochure and is considering measures to regulate brokers who are engaged in mis-selling projects. It also claimed to put a check on the secondary sell by speculators.
Track2Realty Exclusive: For quite some time the developers in Mumbai were making pitch for the review of FSI in the city which they termed as archaic. Their grouse has not been lacking the merit also.
Atul Modak: The perception that you are talking about is true. On that we had a meeting with the members of MCHI-CREDAI and the focus was this poor perception that builder is chor (thief), not interested to give possession and he will take away your money. But that is not the case as in majority of the cases developers’ intention is good. They want to deliver project on time, but because of delays in approvals, added to the funding gap and he has nowhere to go once he has launched the project.
Track2Realty Exclusive: Objective analysis of all risk factors helps in proper selection of developer which mitigates completion risk and developer risk. Most of the investments involve creation of Special Purpose Vehicles (SPV) and provision of controls to REPE funds at SPV level by virtue of their financial investment.
Track2Realty: Godrej Properties has launched its ultra-luxury residential project, Godrej Platinum, in Alipore, Kolkata. Spread over approximately 1.4 acres, this project will have only 35 luxurious homes. Apartment sizes range between 3,762 sq. ft. per apartment and 5,075 sq. ft. per apartment with an average ticket size of INR 10 crores per home.
Track2Realty: DTZ annual office space forecast says 21% increase in take-up is expected. Overall take-up stood at 4.80 million sq ft for Q1, a sharp drop of circa 29% from previous quarter. Mumbai witnessed the highest take-up of 1.25 million sq ft, an increase of 3% q-o-q.