Sobha Developers IPO Open.

After the success of Parsvnath Developers Ltd IPO, Bangalore based, Sobha Developers IPO is now open for subscription. The IPO seems to be priced at very high P/E of 37.5 but due to sound track record of managment most of them may apply. Dalal Street Business has more details on Sobha Developers IPO.

Also read another article on how people and foreign investors are evaluating the Indian Real Estate Stocks on Dalal Street. The situation is getting crazy and ENAM, a brokerage house has told that the property market will cool down in 2008.

Tags: Sobha IPO, Real Estate, India Real Estate, Real Estate Stocks

K Raheja raises money in London. Hirandani Plans 750 Million float

The Mumbai based K Raheja group, today raised Rs 1,500 crores on the London Stock Exchange's AIM - Alternate Investment Market for their group company Ishaan Realty.

Ishaan is a real estate investment company promoted by K Raheja group and plans to invest in Indian real estate development projects located in the southern and western parts of the country - such as Hyderabad, Mumbai, Bangalore and Pune. They are also planning to build an IT SEZ.

Following the success of Ishaan Real Estate, Hiranandani Developer insiders talked about their plans to go for a listing on London Stock exchange with a mega float of $750 Million. Hiranandani are the developers of Mumbai's landmark for corporate executives, Hiranandani Gardens.

The main reason for these promoters to go for international listing is to get visiblity and also higher valuations for their company.

Tags: Raheja Real Estate, Ishaan IPO, Hiranandani IPO, Hiranandani Gardens

Institutional Money Chasing the Indian Real Estate Sector

We know that every major financial institution wants a piece of Indian Real Estate pie. Here is the record of the Fund and Size in USD Million they have raised to invest in India.

Goldman Sachs proprietary India Fund (partly for real estate) 1000
ICICI India Advantage Fund 800
HDFC India Real Estate Fund 720
Horizon International Fund (Pantaloon Group) 350
Citigroup Property Investors 350
India aReit Fund (Piramal Group) 350
AIG Group 300
Deutsche 300
Maia (Malini Alles) 250
3i Group 160
Xander RE Fund LLC 150
Kotak Mahindra 100
Kshitij Venture Capital Fund (Pantaloon Group) 100
Dream Fund (Dewan Housing Finance Ltd.) 100

Funds deployed So Far:
Name of the Fund followed by Investee company, Amount in USD Million and Stake

Citigroup Property Investors in Gera Developers 125 JV 50:50
HDFC India Real Estate Fund in Ansal IT City & Parks 100 Stake-33%
Siachen Capital LLC in Nitesh Estates 100 PE
Capitaland in Mumbai based Runwal Group 100 JV 49:51
Laing O’Rourke in DLF 100 50:50 JV
Morgan Stanley in Mantri Developers 68 PE
Morgan Stanley in Alpha G Corp 65 PE
3i Group in Suntech group 41 PE
India aReit Fund (Piramal Group) in Suntech group 13.6 PE

Tags: India Real Estate, Citi, Morgan Stanley, Real Estate Funds

SEZ Policy is absolutely Non-Sense and a MESS

What are SEZs for ? If you thought they were for promoting export orienetd industrial and manufacturing, you are so wrong. SEZ India act is the largest Land Bank scam ever on this universe.

Realitycheck is reporting that someone wants to setup a University on SEZ. God Damm these policy makers! The story doesn't end there, Anil Agarwal controlled Vedanta Resources wants 10,000 acres of land to setup a university in a SEZ.

Tags: SEZ India, Scam India, India Real Estate Scam, University

RBI Warns again on rising Indian Real Estate Prices

RBI governor, Dr Y V Reddy has ssaid that he is uncomfortable at the rate at which property prices are rising in India. Earlier, he had told lending to real estate would get expensive and had slammed the government's SEZ policy.

Today, the RBI said that it is monitoring exposure to Real Estate, bank by bank, branch by branch. "We don’t take a view as to whether there’s a bubble, but there is slight discomfort that asset prices have been moving too fast".

He has further added,
"On the whole, my assessment is that our warnings would have had some impact and given the exposure of the banks, I would not expect damage to our banking system in a systemic sense, assuming there is a localised bubble that bursts"

Hopefully we will see the trend reverse soon as we want lower real estate prices to provide global services and manufacturing activity which is the main job creator and driver of our economy.

Tags: RBI India, Realty India, Real Estate India, Indian Economy

Sobha Developers Land Bank and Land Reserves

We have obtained the figures of Sobha Developers Ltd Land Bank and Land Reserves in Bangalore, Chennai and other south Indian cities. For IPO details, kindly refer to DalalStreet.

Bangalore / Bengalooru - 1767.90 Acres. (1767 Land Reserve of which 57 acres is Green Belt)
Pune - 995 Acres. (302 Land reserve + 693 Land Arrangement)
Chennai - 3,000 Acres. (392 land Reserve + 2607 Land Arrangement)
Cochin - 256 Acres. (183 Land Reserve + 73 Land Arrangement)
Coimbatore - 26.14 Acres (Land Reserve)
+Mysore and Thrisur.

Sobha Developers: Total Land Reserve is 2,747 acres. Total Land Arrangement 3,373 acres.
Total amount paid for these lands is Rs 662 crores and total amount to be paid is Rs 1,345 crores.

Unlike, Parsvnath Developers SEZ, Sobha Developers has no SEZ.

Tags: IPO India, Sobha Developers, Parsvnath, Real Estate India

Bangalore based DivyaSreee Developers to setup IT SEZ

At a time when MNCs like HP are opting out of the SEZ race in India, Bangalore based Real Estate Developer DivyaSree is understood to have applied for an IT/ITeS SEZ license.

They propose to setup a 73 acre campus with over seven million sft of office space. It is proposed to be built in Whitefield, Bangalore.

Tags: Sez India, Bangalore RealEstate, Whitefield, Divyasree

Xander Real Estate to pick stake in RIL Bandra Kurla Project

Sidharth Yog promoted, Xander Real Estate fund is close to pick-up 25% stake in Reliance Industries Ltd promoted Bandra Kurla project. RIL had tied-up with Maker group to jointly develop an alternative to Nariman Point. The plot earlier used to host an open air theatre run by Maker group.

Insiders claim that the value of the deal could be in the range of $125 Million (Rs 560 crores). The project will have 60% residential accomodation and 25% commercial office space. It is also likely to have commercial retail space which is likely to be filled by Reliance Retail.

Tags: Reliance SEZ, Mumbai Real Estate, Bandra, Xander Real Estate