The Indian Economy Has Itself to Blame: Fund Managers

he economy may stay in the doldrums in the foreseeable future but the Indian markets appear to be clawing their way out. The question now is: What can spoil sentiment again—do we need to worry about external global events (tapering of bond purchases by the US Federal Reserve, unrest in Syria) or the economic policies followed by India? Forbes India asks fund managers for their take.


The Syrian crisis may have a short-term impact and a QE taper may have a medium- term effect on Indian markets: Either the events play out or the markets re-adjust. But the chief concern has been the economic policies of the government and the aftermath of the policy paralysis. The bias towards subsidies is well-taken but there seems to have been an overdose and the concurrent implications in terms of high twin deficits, inflation and interest rates have halted investment.
S Krishna Kumar,
Fund Manager, Sundaram Mutual Fund

The QE taper has caused debt capital to leave emerging markets and has led to weakening of currencies and rise in interest rates. Spike in oil prices on account of Syria will also cause pain. Red tape, corruption and higher deficits on account of increased social entitlement spends are responsible for lower growth. However, the hubris of corporates in 2006-07, when there was excessive leverage and overambitious projects, is equally responsible for the pain the economy is going through.
Rajeev Thakkar,
Chief Investment Officer, PPFAS Asset Management




We have only ourselves to blame. When the West was slowing down and money was flowing in to us, we frustrated genuine long-term investors and lapped up portfolio investments. We complain about governance, but some of the policies that put money, food and employment in the hands of the poor give a fine balance of growth trickling top down and fusing bottom up. But putting a stop to anything that is malfunctioning has backfired. We need to learn to repair the system on the go.
Ashish Somaiyaa,
CEO, Motilal Oswal AMC


Read more: http://forbesindia.com/article/checkin/the-indian-economy-has-itself-to-blame-fund-managers/36145/1#ixzz2fQTsCQvo

Homebuyers protest against developer

As many as 500 homebuyers of DLF New Town Heights, Gurgaon held a demonstration against the developer for delay in handing over possession of the flats. They alleged that they had incurred a collective loss of over R680 crore. The aggrieved homeowners demonstrated against the developer


at Jantar Mantar, New Delhi. Fighting for their right to get their home on time, the homeowners protested peacefully by putting up banners and pictures showing the poor state of the complex and shouting slogans against the company and DTCP.

The New Town Heights, Gurgaon project was launched between February 2008 to March 2008. There are more than 3,000 flats in three projects of New Town Heights in sectors 86, 90 and 91. According to the association, the homeowners were promised possession by February to March 2011 which the developer failed to abide by. Despite waiting for more than 5.5 years, the customers have not yet received  possession of their apartments.

The association alleged that the developer had been giving false assurances on timelines. The DTCP (Department of Town & Country Planning, Haryana) issued the Occupancy Certificates (OC) to DLF in February 2013, according to which the homeowners were to receive possession within a month’s time. Despite this, the homeowners still do not have possession of their homes and moreover the complex is still unfinished and heavy construction continues to happen even in towers for which OC has been granted.

According to the Association, “These homes from inside are in a bad condition with no doors, windows or toilets. The state of apartments is so bad that DLF has not been able to handover apartments even after six months of receipt of OC. As per the agreement signed between DLF and customers, DLF has promised to handover homes within 30 days after getting OC from DTCP.”

 “By getting the OC before completion of construction, DLF has breached its own agreement clause 17 that provides for compensation for failure to hand over apartments. It has stopped paying  compensation to homebuyers who have to pay both the EMI and the house rent. This amounts to over R30 crore, which is increasing every passing day,” allege homeowners.

Said Nitin Grover, president, New Town Heights Homeowners Association, “We have invested our hard-earned money into buying a house and most of us are first-time buyers. The developer is not only playing with emotions of common people like us who dream of owning their own home, but also invading a huge amount of money. We would like DLF to take an immediate action in this regard and give us a final date of possession and pay us delay compensation till actual possession in line with its own contract. If the company does not keep its promises, we will protest again until our demands are met.”

“DLF has also added additional seven floors in certain towers (M and N Sector 90) and added an additional tower (Tower A Sector 90) in the complex as late as 2012. Through this action DLF made more than R100 crore at the cost of customers who now have to wait till 2014 or 2015 to get their homes,” he alleged.

source:- http://www.hindustantimes.com/HTEstates/RWAWatch/Homebuyers-protest-against-developer/Article1-1118911.aspx

Buyers 'beg' to protest 'apathy' of builder

As many as 200 homebuyers of Uniworld Garden II project on Sunday hit the streets and 'begged' for money on MG Road to protest the delay in possession of their flats.

It is a 16-tower residential project of realty major Unitech in Sector 47 on Sohna Road. The buyers were supposed to get possession of their flats by 2011.

The buyers started the demonstration from City Centre Mall and walked up till Sahara Mall. Armed with banners and placards, they called it a UG-II (Uniworld Garden II) scam.

"We had paid nearly `300 crore to Unitech in 2009 and still haven't got possession of our flats. We have to pay EMI plus the house rent and therefore we have no other option but to beg money from others," said Joginder Singh, president of the Uniworld Garden II apartment owners' association.

Unitech, however, did not respond to queries from HT, despite repeated attempts.

"We have given Unitech time till Diwali to give the possession of our flats. We will try to wreck their annual general meeting on September 26," said Vikas Dhingra, a buyer.Buyers had lodged a complaint of fraud and cheating against Unitech with the police commissioner, who had then marked an inquiry to ACP (Sadar). The senior town planner (STP) RK Singh had summoned Unitech officials on July 22 after receiving a complaint from buyers.

The company had submitted that five out of 16 towers of the project were complete and would be handed over to the buyers.

sourcE:- http://www.hindustantimes.com/India-news/gurgaon/Buyers-beg-to-protest-apathy-of-builder/Article1-1119412.aspx

Commercial real estate transactions

Sales

Rainier Capital Management of Dallas bought the Texas Oncology Center, a 21,470-square-foot office property on Josey Lane in Carrollton. Ron Hebert and Wayne Bares of Marcus & Millichap Real Estate Investment Services brokered the sale.

Taco Casa purchased more than an acre for a new restaurant at 1909 Hebron Parkway in Carrollton. Dennis Leibovitz and Shelley Taylor of The Retail Connection brokered the sale.

Taylor-Deal Aviation acquired a 68,500-square-foot industrial building at 911 Maryland in Irving. Paul Blight of Glacier Commercial Realty brokered the sale.

CrossPointe Community Church of Corinth purchased a 6.4-acre tract of land at the southwest corner of Tower Ridge Road and Meadows Oak Drive in Corinth in Denton County. W. Thurston Witt of United Commercial Realty brokered the sale.

A franchisee for Taco Bell bought a 32,670-square-foot building site on the northwest corner of U.S. Highway 380 and Oak Grove Road in Crossroads in Denton County. Brad Gibbs and Tyler Isbell of SRS Real Estate Partners brokered the sale with Tommy Crowell of Standridge Cos.

A local investor bought the Falcon Apartments, a 33-unit apartment property at 501 Falcon Drive in Irving. Clint Roberts of Marcus & Millichap Real Estate Investment Services brokered the sale by Delicias Investments Inc.

Leases

Tech Mahindra Inc. leased 20,739 square feet of office space in Preston Park Financial Center at 4965 Preston Park Blvd. in Plano. Sam Pruitt of Site Selection Group negotiated the lease with Clint Madison and Rodney Helm of Cassidy Turley.

Dental One Inc. expanded its lease to 15,478 square feet at 17300 Dallas Parkway in Dallas. An affiliate of Hartman Income REIT negotiated the deal.

Dallas Label & Packaging leased 11,200 square feet of industrial space at 2502-2510 Camp Avenue in Carrollton. Nathan Denton of Lee & Associates negotiated with Rosana Shekman of Dallas Prestige Realty.

Acoustical Services Interiors leased 7,400 square feet of industrial space at 4656 Leston Avenue in Dallas. Phil Rosenfeld and Matt Thompson of Colliers International negotiated the lease.

DOHH leased 6,860 square feet of office space at 8070 Park Lane in Dallas.  Andy Leatherman of Jones Lang LaSalle negotiated the lease with Trey Smith, Ward Eastman and Johnny Johnson of Cassidy Turley.

J. Marc Hess of Chicago Title leased 6,116 square feet of office space in Preston Pointe Centre at 1400 Preston Road in Plano from Intercity Investment Properties Inc. Sharon Friedberg and Melanie Hughes of Bradford Commercial Real Estate Services negotiated the lease with Alex Reedy and Scott Jessen of Citadel Partners.

Koper Enterprises leased 6,067 square feet of industrial space at 2515 Tarpley Road in Carrollton. Brett Lewis of Lee & Associates negotiated the lease with Mike Rose of Group Real Estate Services.

Real estate editor Steve Brown compiles this list.

source:- http://www.dallasnews.com/business/commercial-real-estate/headlines/20130919-commercial-real-estate-transactions.ece

Real-Estate News: Empire State Building Prepares for Launch

Here is a look at real-estate news from Wednesday’s WSJ, including the Property Report:

Prices Keep the Locks on Myanmar: For years, international companies wanting to set up in Myanmar were stifled by Western sanctions or rebuffed by the country’s military government. Now, as the country opens up, global corporations are finding a new hurdle: real-estate prices.

Empire State Building Prepares for Launch: The New York family that controls the Empire State Building is about to launch the formal marketing process to sell the building, in what would be one of the largest real-estate initial public offerings and the end of a colorful era for the storied skyscraper.

Placing Bets on Brooklyn: An investor group is betting the growing popularity of New York’s Brooklyn borough will help it resurrect Industry City, one of the largest privately owned industrial properties in New York.

Crowdfunded Hotel Is on Tap: A New York real-estate company that has been a leader in crowdfunding in South America plans to replicate that strategy in the U.S.

Project Promises to Transform Lower East Side: New York City has awarded a development team the rare opportunity to transform a central Manhattan neighborhood, a project of offices, shops and homes spreading out from the foot of the Williamsburg Bridge.

House of the Day: A 1900s Pueblo-style home shared by two siblings includes many of its original charms and expansive views of the mountain landscape.

http://blogs.wsj.com/developments/2013/09/18/real-estate-news-empire-state-building-prepares-for-launch/

Projects in Gurgaon -SREIndia.in

Prism Portico

Spaze Arrow

Baani

Suncity

DLF

http://www.sreindia.in/new-commercial-projects-gurgaon.php

Blueprint to build 24 cities: Will India's biggest infra project, DMICDC, worth $100 bn deliver?

Seated in his Delhi office Amitabh Kant says with a tinge of sarcasm: "I am not here to build a mall." The chief executive of the $100-billion Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC), India's biggest-ever infrastructure project, is piqued about "some people" saying that the project is "not on the fast track".


Several government officials ET Magazinespoke to say DMICDC — which in its first phase will set up six cities each of 40-50 sq km and one of 153 sq km — has to be "expedited" so that it spurs manufacturing growth in the country and helps the country ride out the bad times. Once completed, the mega project is expected to generate 2.15 lakh direct jobs and 6.18 lakh indirect jobs in the country.

The deadline for the first phase is 2019. While Kant finds such statements laughable empty talk, Vinayak Chatterjee, founder and chairman of Feedback Infra, which advises infrastructure companies, makes a point: "Well, it [DMICDC] can't go as fast as his political bosses expect it to because it is a complex project and it is a conceptually sound one. It has to proceed at an appropriate pace."

In its first phase, DMICDC, which falls under the industry ministry and envisages creating 24 new cities in the country by 2040, will build cities around the high-speed 1,483-km-long dedicated freight corridor (DFC), a fast-progressing railway network funded by the Japanese government. DFC doesn't face issues with buying land because it will mostly use the land owned by Indian Railways.




The genesis of the idea called DMICDC lies in the need to develop industries around DFC and that makes a lot of sense, points out Chatterjee. On Tuesday, nine projects of the first phase were approved by the DMIC Trust, a body that gives the go-ahead for individual DMICDC projects once it secures all other regulatory nods. It is headed by the Department of Economic Affairs secretary Arvind Mayaram.

"People who criticise the so-called slowness of the work in progress don't understand how intricate and highly complex this is. In fact, I don't want to do what Kalmadi did," thunders Kant, referring to the sloppy construction work undertaken for the 2010 Commonwealth Games. Suresh Kalmadi, a former Congress leader and Union minister, was later arrested for causing major losses during the event.



Read more:- http://economictimes.indiatimes.com/news/economy/infrastructure/blueprint-to-build-24-cities-will-indias-biggest-infra-project-dmicdc-worth-100-bn-deliver/articleshow/22587266.cms

Realty slowdown: RBI advisory on 80-20 scheme will hit sector

The RBI advisory to banks not to disburse the entire home loan amount extended under subvention scheme upfront to developers will cause problems for the realty sector. It will affect both buyers and developers.

As property sales slowed down because of rise in interest rates, many developers went with this financing scheme. Buyers were told to pay EMI on home loans up to 80% of the house cost after getting possession. In the intervening period, the builder paid EMI on buyer's behalf.

The buyer had to pay only 20% upfront at the time of booking. MD of Gurgaon-based BDI Group Sumit Berry, which launched a project under the subvention scheme, said the formula helped buyers who couldn't afford the double EMI-and-rent burden. This scheme was a blessing for developers too, for they could draw reluctant buyers who'd otherwise shy away considering the double load.

The RBI move will pose immediate problems for projects where such schemes were prevalent, said Anshuman Magazine, chairman and MD, CBRE (South Asia). He said banks should instead ensure due diligence and assess risks before funding builders under these schemes. Many builders recovered subvention cost by jacking up apartment prices.

Chief operating officer of Bangalore-based Nitesh Estates Ashwini Kumar said the scheme was popular and customers had started demanding financing under this formula as a precondition for booking.

Given this backdrop, the feeling in the market is that the RBI advisory will affect the sector. CMD of NCR-based Supertech Ltd R K Arora said: "The customer will be the greatest sufferer. The only source of funds available to the developer is sought to be denied. This will leave many projects in the lurch.''

Arora said this decision, at a time when the sector is reeling under problems from high home loan rates and steep prices due to high input cost, will further added to the woes of the customers, Arora said.

But Parsvnath group chairman Pradeep Jain welcomed the step to link loan disbursal with construction. "It will streamline the sector and curb delivery delays and restrict developers from diverting 80% loan amount to other project."


source:- http://timesofindia.indiatimes.com/business/india-business/Realty-slowdown-RBI-advisory-on-80-20-scheme-will-hit-sector/articleshow/22500653.cms

Succession certificate to TRANSFER PROPERTY

A succession certificate is needed to transfer property in case the deceased does not leave behind a will. TEAM TIMES PROPERTY writes

    Asuccession certificate is an order granted by an authority or court to the successors of the estate of a deceased person on the basis of an application made by them in the capacity of legal heirs, or otherwise entitled to succeed to the estate of the deceased person under certain circumstances. 
    If a person passes away without leaving a will, a succession certificate can be granted by a court to realize the assets, securities and debts of the deceased. 
    It is issued according to the laws applicable in the case of inheritance. 
    A succession certificate is issued to the legal heirs of a deceased person. The certificate establishes the authenticity of the heirs. It also gives them the authority to inherit the property of the deceased person and is issued by a civil court. It is required by the legal heirs to have the securities and other assets transferred to their names. The beneficiary needs to file a petition with the district court or high court where the properties of the deceased are situated or where he normally resided. 
The petition should give details of the case, including: Full name of the deceased Details of time, date and place of death 
    Details like the name and relationship of the petitioner 
    Place of residence of the deceased 
    Details of the family and other kith and kin of the deceased, and their residential addresses 
    Names of all the heirs of the deceased 
    Details of property and debts of the deceased 
    The person applying for a succession certificate has to provide proof of his rights, or establish in what capacity he should be nominated as the successor of the deceased person. The petition should be filed along with a copy of the death certificate. 
    On the basis of the application, the court will issue a notice in the newspapers for a given period. Usually, 45 days are allowed for anybody to represent against the grant of the certificate. 
    In case no one contests the petition on the expiry of this period, the court will pass an order for issuance of the succession certificate. A fee is levied by the court for the certificate in the form of judicial stamp paper. The whole process may take between three and six months. 
    A succession certificate gives authority to the person who obtains it to represent the deceased for the purpose of collecting debts and securities due to him or payable in his name. The grant of a succession certificate is conclusive against the debtor. 
    One can then apply for transfer of property, bank accounts or securities registered in the name of the deceased on the basis of the certificate.

source:- http://epaper.timesofindia.com

Edenia: Affordable WORLD-CLASS STUDIO APARTMENTS

Edenia, at Wave City Center in Noida, is set to transform multi-use studio apartment market in the NCR with world-class units at pocket-friendly prices. RAVI KUMAR MANGALAM writes

    Wave Infratech, one of the leading real estate developers in India, is bringing world-class multiuse studio apartments at Wave City Center, in the heart of Noida.

    Edenia will offer airconditioned studios with commercial licence, which come without any legal or regulatory hassles. This will be a boon for young and ambitious entrepreneurs who can work and live here. 

    “Imagine a place where your workplace turns into your own abode with all the services and your needs being taken care of by a renowned hospitality operator. Edenia will offer such services at an unbeatable locationthe neighbourhood already has superior social infrastructure and ample options for entertainment and retail outlets,” a spokesman of Wave Infratech said. 

    The contract for this tower will be awarded to a construction company of international repute and the project is expected to be completed by end-2016, the spokesman said. 

    Studio and serviced apartments have emerged as smart economical investment options in India, as several top developers have also started offering these in other parts of the country. The demand for studio apartments is outstripping existing supply, generating high rental income, property appreciation, and offering opportunities to high-value business tenants. Investors, especially NRIs, believe that investment in studio apartments is a wise and cost-effective decision, as it offers solid returns in a short duration. 
    The National Capital Region has registered huge demand for studio apartments as expats, investment bankers, designers, architects, consultants, doctors, chartered accountants, etc, who are setting up private consultancies, prefer to live near their place of work. According to industry trends, the main buyers of studio apartments are young entrepreneurs and single workers; also, with many IT companies, financial institutions, and BPOs now setting up their base in the NCR, the demand has only grown. 
    Edenia comes with a complete bouquet of services like concierge service, travel desk, housekeeping, laundromat, etc, on demand. The multi-use studio apartments in Wave City Center come in sizes ranging between 422 sq ft and 678 sq ft, which are priced between Rs 35 lakh and Rs 66 lakh. 
    Experts say that existing and forthcoming landmark infrastructural projects like the adventure park, IT-park (to host 9 IT firms), F1 International Circuit, Yamuna Expressway, FNG Corridor, the proposed cricket stadium, and the proposed 102-heactare night safari in and around Noida have helped in generating a huge demand for these studio apartments. If all these projects are implemented as planned, the concept of fully-furnished serviced studio apartments is here to stay and is the best economical alternative to 5- star hotel accommodations, experts said. 
    The residents of Edenia will enjoy the strategic location advantages like excellent connectivity to the Delhi NCR, which comes from being located in Wave City Center. The firm is also offering various payment plans to meet the requirements of prospective customers. Apart from down-payment plan and construction-linked plan, a special payment plan of 40:30:30 is being offered for Edenia where 40% of the total price is payable at the time of booking, 30% on completion of the superstructure, and 30% on offer of possession, the spokesman said. 
    “There is a rising demand for multiuse studio apartments in Noida, and with Edenia, we are looking to set a benchmark for this product in India with our world-class consultants, contractors, architects and technology partners on board, coupled with convenient payment plans,” the spokesman said. 
    There will 558 units in Edenia, a few of which will be fully furnished and managed by a hospitality service provider, to be launched later. Other facilities include dedicated service elevators, high-tech round-theclock security, high street retail on the lower levels, and an exclusive clubhouse with swimming pool, steam, and sauna. 
    Studio units are also in demand from newly-married couples, especially professionals, who are moving into cost-effective 1BHK flats. The demand for studio apartments is growing not just in the metros but also, surprisingly, in Tier 2 cities where there has been an increase in IT and BPO jobs, which attracts young workforce from across the country. 
    Wave City Center is one of India’s biggest mixed-use residential and commercial development over 152 acres in the heart of Noida. It has a diverse portfolio of products in addition to multi-use studio apartments, like premium and ultraluxury residences, premium office complexes, high street shop condominiums, mall & multiplexes, a range of premium hotels, a convention center and a family entertainment center—all these bringing together the experience of luxury living, hassle-free shopping, comfortable work environment, along with fun and entertainment matching international standards.

source:- http://epaper.timesofindia.com