News tracker: March 17, 2024

HNIs line up to enquire about Amitabh Bachchan’s neighbour’s bungalow auction in Mumbai

• Deutsche Bank auctioning bungalow next to Amitabh Bachchan’s Jalsa in Juhu, Mumbai
• Reserve price at ₹ 25 crores & auction set for March 27
• Current owners, Seven Star Satellite Private Limited have defaulted on secured loan to the tune of ₹13 crs
• Carpet area of the bungalow is 1,164 sq ft with an open space of 2,175 sq ft

MahaRERA cancels registration of 13,785 real estate agents

• Registration of agents cancelled as they failed to renew their license received in 2017
• Agents must complete MahaRERA’s training, pass an examination & obtain certificate to be reinstated as property brokers
• The highest number of delisted agents are from Mumbai followed by Thane & Pune

Motilal Oswal Financial Services MD purchases Rs 36 crore apartment in Mumbai’s Bandra

• Ashish Sharad Gumashta, MD of Motilal Oswal Financial Services has purchased a 3,416-sqft flat in Sadguru Rendezvous building in Bandra
• Implied value comes to ₹105,000/sq ft
• The under-construction property has RERA completion deadline as Dec 2024
• Gumashta recently joined Motilal Oswal Financial Services from Julius Baer India.

ICICI Prudential Life leases 2.52 lakh sq ft office space in Mumbai

• Office space leased in IT park Mindspace in Mumbai’s Malad west for 5 years
• This is one of the largest office lease transactions concluded in the country so far
• Monthly rental has been set at ₹ 91.5 / sq ft /month with 4% yearly escalation
• Company plans to utilize this substantial space for expansion & relocation, aiming to accommodate ~ 2,400 employees

Mumbai: DB Realty lease out 186 acres land to BMC for annual rent of ₹248 cr

• Land adjoining Mira Road Railway Station leased for 5 years
• BMC invited tenders for land parcels for setting up casting yards & allied works use for its various projects
• The land has development potential of 50 mn sq ft & is expected to be undertaken for development of an integrated township post completion of the infrastructure linking the Mira land

Dharavi redevelopment project to begin survey for rehabilitation of residents

• Dharavi Redevelopment Project will commence a survey in Kamla Raman Nagar on March 18, 2024
• Nearly 1 mn residents in Dharavi, one of Asia’s largest slum clusters, are expected to benefit from the redevelopment project
• Special technology such as a designated app and laser mapping will be utilized during the survey for efficient data collection

Set up special cell to hear complaints of senior citizens on delays in redevelopment

• Court emphasizes proactive measures to prevent delays in senior citizen redevelopment, protecting their rights.
• Immediate resolution of complaints on delays stressed on a case-to-case basis.
• Significance of addressing senior citizens’ fundamental housing rights highlighted in judgment.
• Developers urged to resolve disputes amicably to avoid redevelopment delays.

DB Realty raises ₹ 920 cr via qualified institutional placement

• Institutional investors such as Morgan Stanley Asia (Singapore), Reliance Commercial Finance, and Bofa Securities Europe SA were allotted shares
• The QIP took place from March 7-13, 2024
• DB’s consolidated net worth now exceeds ₹ 5000 cr after completing three equity raises totaling about ₹2,470 cr in less than two years
• EY has been appointed to advise the board on the demerger process

Delhi HC asks Unitech’s founder to surrender, refuses to extend interim bail in ED case

• Delhi HC observed that petitioner was embroiled in serious offence with diversion of over Rs 5,000 cr, leaving home buyers “duped” & without shelter
• Chandra was initially granted an 8-week interim bail on July 28, 2022 which was extended from time to time as there was no improvement in his condition
• ED opposed extension of interim bail stating that the sickness was not life threatening

Gurugram civic body to offer 15% rebate on property tax dues till March 31

• Property tax recovery rate is currently less than 40% of the estimated revenue target of ₹ 500 cr
• Property owners are urged to clear their property tax dues to avail the benefits of interest waiver and rebate offered by the government.
• The waiver plan includes a 100% waiver on interest and a 15% rebate on property tax for the 2023-24 financial year

Mahindra Lifespaces acquires 9.4 acres land parcel in Bengaluru

• Development potential of 1.2 mn sq ft with an estimated gross development value of ₹ 1,700 cr
• The focus of the development will be on mid-premium residential apartments
• Whitefield, where the land is situated, is a prominent hub in Bengaluru known for its tech corridor
• Plans to launch the first phase of the project within the next twelve months

DLF sells 4.67 acres land in Chennai for ₹ 735 cr

• DLF sells 4.67 acre land in Chennai for ₹735 crs to Cholamandalam Finance
• At an implied price of ₹158 crores/acre, it is one of the costliest deal in the region
• In Gurgaon, DLF is expected to launch phase 2 of Privana after the 1st phase was sold out within days of the launch.
• It also plans to launch a super luxury project in DLF-5, where the current market rate has already reached ₹100,000 per sq ft.

Godrej Properties acquires about three-acres land parcel in Hyderabad

• Development potential of ~1.2 mn sq ft of saleable area
• Focus on premium residential apartments with an estimated booking value of ₹ 1,300 cr
• This is Godrej’s 2^nd major land acquisition in Hyderabad, recently acquired 12.5 acres of land in Rajendra Nagar
• The company has been on land acquiring spree across India

Byju’s gives up most office spaces in India, shifts to remote work

• Byju’s has left all office spaces across India & is only retaining its headquarters at IBC Knowledge Park in Bengaluru
• Company asked all employees to work from home indefinitely, except those working out of approximately 300 Byju’s Tuition Centres
• Byju’s has been facing challenges with rental payments & legal issues due to non-payment of rents, resulting in disputes with landlords

National Association of Realtors [US] to pay $418 mn to settle lawsuits

• NAR agreed to resolve the anti-trust litigation accusing brokerages of inflating sales commissions
• Settlement aims to eliminate decades-old rules on commissions & make it easier for buyers to negotiate fees with their own agents or even use no agents at all.
• Settlement may reduce revenue for traditional real estate brokerages & make employment less lucrative for the more than 1 mn members
• Real estate brokers earned an average $90,000 a year as of May 2022

China’s Real-Estate Market Just Set a Record—but Not a Good One

• The prices for 2^nd homes in most developed cities fell by 6.3% in Feb 24
• No relief yet for China’s housing market with excess supply in secondary market
• China Overseas Land recently priced a new Beijing project below the going rate in the secondary market
• Listings of lived-in homes in 14 major mainland cities rose 57 % y-o-y in Feb24