ICS Realty India, the Mumbai-based retail asset management firm has announced to develop projects on its own. The company has hitherto raised and managed funds for other developers. It is also floating a joint venture firm for its hospitality foray in two week’s time.
It is no more portfolio diversification that is driving the real estate developers into medical realty, it is rather a serious business as Track2Realty observes. After all, no other vertical of realty is as resilient to macro economic conditions as healthcare realty and it also needs more space than retail in the year ahead.
Sunil Dahiya: What is happening is that we imported certain professionals from other industries and somewhere the vision and mission of the promoter was fueled by their greed or professionalism. They called it financial engineering. And that was the reason we got blocked from the IPO market. Today, whoever has filed DRHP, is going to face so much scrutiny and the band value itself will be discounted by 30%.
Sunil Dahiya: I will share a very personal experience. There was an IRS officer who was monitoring these IPOs at some level and said to me ‘Sunil you watch these IPOs, these are going to be windfall IPOs and then you will see watershed.
When the Reserve Bank of India (RBI) was to announce its annual monetary policy for 2012-13 on 17th April, there were widespread concerns of slowing economy, rising inflation, trade deficit of 4 per cent of GDP and drying FDI too emerging as a grace concerns
Ravi Sinha: One issue which Sunil raised on funding mechanism that it was a strategic mistake by certain developers to raise money through IPOs. I would like to rake this issue again and seek the panel’s view.
The demand fundamentals of the India story are now focused around all cities that have sufficient economic activity, be it industrial, service sector-driven or incentive-driven programs by the State Government. In Gujarat, which has seen considerable industrial progress, the key cities of Ahmedabad, Surat and Vadodara come readily to mind.
Hyderabad Police have arrested six persons, including director of a real estate firm, in Ongole town of Andhra Pradesh on charge of cheating people under multi-level marketing money circulation schemes suspected to be involving several crores.
Real estate companies reeling under the bad debt and falling sales graph are expected to record yet another bearish quarterly results with most of the listed companies’ shares already in the red. Listed real estate companies represented by the Realty Index on BSE have witnessed a fall of 1.7 per cent over the past one month.
Land is scarce and the only way in urbanisation is to go up where more FSI/FAR would mean increasing the supply and bringing the price down, goes an old philosophy of the Indian developers. In reality, nearly all the high rises across the Indian cities are high-end luxury projects and seem to fulfil the aspirational needs of the Richie Rich.