News tracker: March 10, 2024

Maharashtra CM lays foundation of Mumbai metro line-12

• Metro Line 12 linking Kalyan with Taloja in Navi Mumbai covers a distance of 22.173 km
• Completely elevated structure with 19 stations,
• Estimated completion by Dec 2027 at a cost of ~₹5,865 Cr
• Expected to reduce travel time between Kalyan and Taloja by 45 minutes

MahaRERA grants extension to over 540 lapsed housing projects

• Extensions come with conditions for developers to ensure the completion of stalled projects
• If a project fails to meet the extended deadline, developer can request additional time after obtaining consent from at least 51% of the homebuyers involved
• The goal of these extensions is to ensure that the rights of the homebuyers under the 2016 Act are upheld while enabling the completion of residential projects

Co-promoter also liable to pay refund if flat delayed: Bombay HC

• The term ‘promoter’ under Rera includes both promoters and co-promoters, holding them jointly responsible for refunds with interest.
• This ruling ensures that all parties involved in real estate development are accountable for timely project delivery
• Co-promoters cannot evade their responsibility towards homebuyers for project delays as per the Bombay High Court’s interpretation of Rera

Macrotech Developers raises about Rs 3,300 crore equity through QIP

• QIP was oversubscribed 3 times within 5 hours of issue opening
• The QIP witnessed traction from a diversified set of investors including sovereign funds, pension funds, insurers etc
• QIP saw new marquee investors like Invesco Oppenheimer, Blackrock, Carmignac, Franklin Templeton, Norges, Lazard, APG and RWC etc
• This is the 4^th equity raise in last 36 months raising ₹13,000 crores

Ajmera Realty raises ₹ 500 Cr from Standard Chartered Bank and ICICI Bank

• Funds to be used for execution of Ajmera Manhattan, in Wadala, Mumbai
• ₹200 crs to be used for partial prepayment of loan availed from HDFC Bank
• Secured this deal at a lower cost of funds compared to prevailing rates with existing lenders

Virat Kohli leases 18,340 sq ft office space in Gurugram

• Virat Kohli leased office space to Mynd Integrated Solutions at Gurgaon’s Reach Comerica building.
• Annual rent of ~ ₹ 1 cr at a rate of ₹ 48/ Sq / month
• Kohli bought the space around a decade ago & the building recently reached completion.
• Kohli owns a bungalow in DLF-1 Gurgaon and also a property in Mumbai and Alibaug

Godrej Properties highest bidder for Noida land with ₹3,000 crore revenue potential

• Land parcel of  6.46 acres located in Sector 44 in Noida purchased for ₹ 506 crs
• Implied purchase price comes to ₹78 cr/acre
• Offers a development potential of 1.4 mn sq ft & revenue potential of around ₹ 3,000 Cr
• This acquisition marks the company’s 6^th venture in Noida, showcasing a strategic expansion in the region

DLF in talks to buy projects coming up at Aerocity in Delhi

• In discussions with Bharti Realty to acquire under-construction phases of Aerocity in Delhi; total development potential of 17 mn sq ft
• Project includes 5 mn sq ft of retail space & is expected to generate an annual rental income of ₹5,000 crs
• The first phase of Aerocity was also developed by Bharti, but later Canada’s Brookfield Asset management acquired 51% controlling stake
• DLF Cyber City Developers (DCCDL), the rental arm of DLF, is likely to take care of the asset, already operates 40 mn sq ft across the country

Signature Global (India) looks to launch 8-10 million sq ft in the next six months

• New launches in Gurugram’s sector 71, sector 84, sector 37-D & along Sohna road
• Expecting to cross pre-sales of ₹7,200 -7,500 crore by the March 2024-end
• Looking to achieve a target of ₹9,500 crore pre-sales in FY25
• For the nine months ending Dec 31, 2023, the company achieved revenue of ₹546 crs

Real estate companies approach finance ministry over GST notices

• GTS authorities send notice to 27 big and medium-size developers
• Imposition of 18% GST on intra-group royalty payments and guarantees in Special Purpose Vehicles (SPVs) will impact project costs
• The tax authorities have confirmed tax liability of a ₹3,500 Cr
• The matter has attracted attention and may be discussed during the next GST council meeting

Godrej Properties to develop township project in Bengaluru

• 62-acre township project in North Bengaluru
• 5.6 mn sq ft of saleable area comprising residential apartments
• The land acquisition agreement for this project was made in 2014
• Expected booking value of the project is around ₹ 5,000 Cr

Mahindra Lifespaces plans to build projects pipeline worth ₹ 45,000 Cr in five years

• The company aims for five-fold growth in pre-sales in the next five years.
• New pipeline target is nearly 10 times its current size
• To focus on joint developments, housing society redevelopments & land parcel acquisitions.
• To deploy ₹ 7,500 Cr through internal accruals & capital infusion from the parent Mahindra group

Edelweiss Alternatives set to buy IT park in Bengaluru for over ₹ 1,475 Cr

• To acquire MFAR Developers’ 1.21-mn-sq-ft information technology park in North Bengaluru’s Hebbal locality along Bellary Road and Outer Ring Road
• 12-storey office tower has a verage expiry of existing leases of ~6 years.
• Lease rental at the property currently hovers around ₹ 100 per sq ft a month
• Nearly 100% leased and occupied by MNCs & domestic companies across various sectors

SEBI notifies micro-REITs regulations; move to boost transparency, investments

• SEBI has notified the regulations to govern small and medium real estate investment trusts (SM-REITs) of income generating and completed properties
• These include commercial assets, rental housing, warehousing, and hotels among others
• Minimum REIT size notified is of Rs50 crores and the maximum size is 500 crores
• Regulations allow these micro-REITs to leverage with a cap of up to 49% of the value of the scheme’s assets.

U.S. Annual Home Price Growth to Slow to 2.6 % by Year End 2024

• US annual home price growth strengthened to 5.8% in January 2024
• The CoreLogic HPI Forecast envisions home prices to remain unchanged from January 2024 to February 2024 & then increase by 2.6% on a year-over-year basis
• Despite the recent acceleration in year-over-year home price gains, the annual price growth in the US is projected to slow to 2.6% by the end of 2024