The Macquarie SBI Infrastructure Fund (MSIF) has announced the completion of an investment into Ashoka Concessions Limited (ACL) for $US150 million1 (INR8 billion), along with a co-investor, the SBI Macquarie Infrastructure Trust (SMIT).
Fitch Ratings says in a new report that the Rating Outlook for the Indian real estate sector continues to be Negative for H212, due to persistent sluggish demand, high construction costs and liquidity pressures.
DLF is in advanced stages of negotiation with Lodha Developers to sell its prime land in Mumbai for about Rs 2,700 crore and a deal is expected to be finalised shortly.
Singapore-listed technology park developer Ascendas is close to acquire an IT Special Economic Zone of Shriram Properties in Chennai for about Rs 500 crore, said banking sources close to the development. Ascendas, which owns a string of business parks in India, is said to have pipped competing offers from other global investors Tishmen Speyer, Xander Group and Mapletree, a real estate arm of Temasek.
Indian real estate companies, which borrowed heavily during the peak of the economic cycle and rosy business forecast, are now caught in the vortex of piling debt post-slowdown. Most of the realtors who went on a land bank acquisition with borrowed money are struggling to repay even the interest and banks look reluctant to restructure the debt any more.
Ansal Properties & Infrastructure plans to expand its two big…
In the coming months, the pressure will be to reduce debt-to-equity ratios. With so many developers in debt already, the industry is trying to come out of the situation and 2012 will not be much different. It won’t be easy and the developers are trying various routes. Selling of developed projects, vacant land is a route taken by many developers. Several developers are now providing attractive terms to PE funds to securing funding.
Even as fund raising in India seems to be tough,…
Ravi Sinha: I welcome all the panelists in this roundtable discussion. We are organizing the brain storming session for our inaugural yearly Handbook Focus 2012. This is the second of the series after the 1st discussion in Mumbai on “Funding Gap in Real Estate.”
Sahara Group, ICICI Bank, Bhushan Steel, Bharti Realty, Red Fort Capital and Shri Lal Mahal are understood to be in the race among others to acquire Parsvnath Developers’ 1.18 acre of prime commercial land near Connaught Place in the National Capital.