When the Reserve bank of India was announcing the CRR rate cut by 50 base points, the house wife Sugnadha Dubey, glued to TV news channels, couldn’t resist the temptation to call up her husband to know whether the EMI burden on this middle class home owner is going to ease out from next month. With no background of the world of financial jargon, her husband could only assure her with a wishful thinking.
Sahara India, US-based Turner Construction Company and Acropolis Capital Group have together formed a construction company that plans to build realty projects undertaken by the Sahara India Group worth $2.5 billion over the next five years in India, the companies said on Thursday. The group has plans to build projects worth $25 billion over the next 20 years.
As far as IPOs are concerned, out of the 132 IPOs lined up, the largest number -15 -are from the real estate sector.
Bangalore-based property firm Century Real Estate Holdings is reportedly setting up a venture capital fund with a corpus of around Rs.100 crore.
The real estate sector has welcomed the CRR rate cut by the RBI and said it will help revive demand in the housing segment.
IIFL Venture Capital Fund, the private equity arm of the India Infoline group, is reportedly raising Rs.500 crore for investing in real estate.
Analysts are worried and do not see a rosy picture ahead in 2012. According to them real estate companies planning IPOs in 2012 may experience a lack of enthusiasm on the part of investors.
In 2011 six big ticket real estate IPOs was expected to raise over $2.9 billion or Rs.13,000 crore. Emaar MGF, which could not raise money in the capital market in consecutive attempts even when market conditions were conducive.
Macro level forecast suggests Asia in general, and China and India in particular, will continue to attract foreign direct investment (FDI) despite the slowdown as Europe and the US continue to grapple with economic problems of their own.
ArthVeda Fund Management (AVFM), a fund management arm of Dewan Housing Finance Corporation (DHFL), India’s 3rd largest mortgage finance company, has launched its second real estate fund – ArthVeda Star.