Affordable Housing to Redeem the Reality

FACE TO FACE: SANJAY DUTT

Managing Director & CEO of Tata Realty & Infrastructure Limited and Chairman of FICCI Real Estate Committee

INTERNATIONAL : TROUBLED HONG KONG INVESTORS EYE SINGAPORE

Editor’s Letter

Publisher Raj Kumar CEO & Business Head Biswaroop Padhi Editor Vinod Behl ADVISORY BOARD Dr. PSN Rao Chairman, DUAC & Director, SPA, New Delhi Ramesh Nair Country Head & CEO JLL India

Festive Green Shoots

Pradeep Aggarwal Chairman, Assocham National Council on Real Estate, Housing & Urban Development

In the backdrop of slow residential sales, project delays, liquidity crisis and ongoing consolidation of the sector amidst reforms, the news of the substantial rise in share prices of the real estate companies comes as a music to the ears.

Ambar Maheshwari CEO, PE Funds,Indiabulls Asset Management Farook Mahmood Founder President & VC NAR- India & President, FIABCI India Ankit Kansal MD, 360 Realtors Sachin Sandhir CEO - India, Valocity EDITORIAL Assistant Editor Vishal Duggal Senior Reporter Sujeet Kumar Jha Vishnu Rageev R. Content Research Nivriti Raj Mannu Kantt Photographer Atul Chaudhary CREATIVE & DESIGN Art Director Kumar Mangalam Graphic Designer Himanshu Rawat ADVERTISING & SALES Vice President Sales Krupal Nayak krupal.nayak@proptoq.com +91 70456 56796 Account Head Monika Kapur monika.kapur@proptoq.com +91 98119 82911 ENQUIRY Editorial editor@proptoq.com Advertising advertisement@proptoq.com Subscription subscription@proptoq.com

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Reflecting optimism, this year by August end Realty Index has surged 13.95% against the meagre 4% rise in 30-share sensex. So much so that top performers like Godrej Properties(38.6%) , Prestige Estates (34.7%), Sunteck Realty (34%), Oberoi Realty (26.9%) have recorded 2-3 times more growth than the average gain of the Realty Index.

In a run up to the festive season, the continuous cut in interest rates followed by measures to boost their transmission, coupled with booster dose to banks and NBFCs/HFCs has boosted the sentiment of both endusers and investors. Amidst ongoing reforms and policy measures,, home buyers are showing increasing faith in developers who have shown commitment to execute and deliver their housing projects. This has resulted in the increase in home sales by 22% during the first half of this year. And as this uptick continues, industry experts expect 5- 10% increase in sales during the festive season.

This figure could have been much better if the RBI had not withdrawn the subvention scheme. Leading players like Tata Housing is still confident of clocking up to 50% hike in home sales this year.

While the realty sector is betting big on government steps to resolve its problems to ensure speedy recovery of residential sector, stalled housing projects continue to be its major worry. Industry statistics put this number at 1.74 lakh homes spanning over 200 projects across seven top cities, with their overall value pegged at Rs 1.8 lakh rupees.

These large number of stalled projects have been creating a negative sentiment in the market. However, seized of the situation, the government is working out overtime to roll out a stress fund by early September to help stressed developers complete these projects and provide relief to the home buyers.

Meanwhile, various measures initiated by the government to ease credit flow to developers should also bring results, in the backdrop of Y-o-Y loans to developers had declined by about 40% in March. The roll out of the budget scheme for liquidity support to NBFCs (major source of funding to developers) by way of one lakh crore partial guarantee to PSBs, linking of interest rate for micro, small and medium enterprises to external benchmarks amidst reduction in the NPAs of banks should somehow help ease the lending to developers. Together, all these measures for developers and home buyers bode well to bring some festive relief if not cheer to them.

Vinod Behl

Vinod.behl@proptoq.com vinod.behl

v_behl

vinodbehl

48

FACE TO FACE Sanjay Dutt

Managing Director & CEO of Tata Realty & Infrastructure Limited and Chairman of FICCI Real Estate Committee talks about the crisis gripping the sector and the opportunities that lie ahead amidst consolidation.

INTERNATIONAL ROUND UP

30

SINGAPORE, A BIG DRAW FOR INVESTORS IN TROUBLED HONG KONG

Amidst fluid political situation, HNIs and family offices in Hong Kong are increasingly looking at overseas property purchases.

Singapore has emerged as the most favoured overseas destination for the Hong Kong investors.

45

CONTENTS SEPTEMBER 2019

OFFICE REALTY

DESTINATION REPORT REGULATION

46

54

60

Hot New Emerging NCR Office Destinations

Thane, Mumbai

SEBI to ease norms for smart cities to issue municipal bonds

DLF Cyber City, Golf Course Road, Aerocity, Golf Course Extension have emerged as key office corridors.

24

Infrastructure

Boost For Building a New India

68

From an industrial hub to an IT destination and a residential hotspot, Thane has emerged as one of the fastest growing realty markets in Mumbai-MMR.

Investment Trends Pre-leased commercial assets are high on investors’ radar

84

Realty Etc.

Growing Preference for Grade A Warehousing

Capital market regulator SEBI is planning to ease its norms for municipal bonds to help smart cities.

+

Plus

News Line, Pot Pourri, Product Line, News in Numbers and much more‌

FEEDBACK

I have seen the inaugural issue of PropTOQ magazine on real estate and related issues.

At the outset, I must say that it is refreshingly new with several unique features and heralds the new age of real estate in the 'New India' which our beloved Prime Minister Hon'ble Sh. Narendra Modi ji is envisaging. With several new watershed developments in the real estate sector, the need for a new media initiative is very much needed. We hope that PropTOQ will bring in more deeper insights into the industry and help articulate new ideas, alternative view points and innovations to build a developed, wealthy and strong nation.

I wish the team PropTOQ all the best.

Prof.Dr.P.S.N.Rao

Chairman, DUAC, Ministry of Housing and Urban Affairs, Govt. of India Director, SPA, New Delhi, Ministry of HRD, Govt. of India

PropTOQ is a credible voice of property developers, buyers and investors. Covering all real estate classes, the magazine has a complete focus on India market, with insightful analysis and projection of real estate ecosystem.

Anyone who is interested in new trends in real estate, surely PropTOQ is a great option.

Ashwin Chawwla

Founder & CEO, Trustmore Technologies

Your inaugural issue looks great. My best wishes to you.

Anil Kashyap

Head Geography & Environmental Management, University of the West of England Bristol

Your inaugural issue is superb. I went through the full magazine. It has super nice layout and great content that highlights various facets.

Cheers !

Anuj Puri

Chairman, Anarock Property Consultants

I congratulate Vinod Behl and his team on the launch of the new real estate magazine PropTOQ. With Mr. Behl's experience and knowledge of the subject matter, this magazine will definitely become a top choice for all persons connected with the real estate industry.

Uddhav Poddar

Director, Bhumika Group

6 | PropTOQ

I am very impressed with the quality of content and vast coverage in PropTOQ. A world class content platform was much needed to complement the new age and reformed real estate sector. Besides offering insightful content, the magazine is well designed. I wish your team all the best and look forward to future issues.

Haresh Motirale

Founder & MD, Brandniti & CBO Vivan Realty

The inaugural issue of PropTOQ has a rich look and feel with a great layout and attractive graphics. In a day and age when smart packaging helps great editorial products to stand out and rise above competition, I think the magazine has all the ingredients to be a super success. My best wishes.

Vijay Kumar

Executive Editor, KBK News Graphics

POTPOURRI

DDA unveils new policy to involve private developers in housing development in Delhi.

News Maker This month the spotlight was on Finance Minister Nirmala Sitharaman who announced economic stimulus including â‚š 70,000 crore fund infusion into PSBs followed by â‚š 1.76 lakh crore fund transfer by RBI to government to beat recession.

Event of the Month

Ficci-NaredcoKnight Frank Sentiment Index paints 21-month low outlook for Real Estate.

Ins Outs 7th Archbuild Show 2019 13 th-15th September 2019 Chandigarh PropTOQ | 7

NEWS IN NUMBERS

Key Demand Drivers -H1 2019 3PL E-Commerce Retail

3PL firms accounted for about 56% of total absorption during

H1 2019 as compared to 31% in H1 2018

Small-sized transactions (below 50,000 sq.ft) dominated leasing activity by accounting for 38% of leaseng, medium -sized transactions (50,000 sq. ft. to 1000,000 sq. ft.

rose from 26% in H2 2018 to 32% in H1 2019

Domestic Corporates APAC Corporates EMEA Corporates Domestic occupiers drove demand, accounted for

85% of total absorption during first half

Supply addition of about 11 mn sq. ft. observed across cities, an increase of more than 50% compared to

H2 2018, led by Mumbai, Chennai, Ahmedabad, followed by NCR

H1 2018 31% 27% 19%

H1 2019 56% 9% 8%

Demand From Region -H1 2019

American Corporates

H1 2018 67% 14% 10% 9%

H1 2019 85% 5% 5% 4%

CITIES THAT LED THE DEMAND

Top Rental Leaders 41.0% 24.1% 16.7% 12.5% 6.5% 5.6% 5.3% 5.3% 2.6%

Kundli/Murthal, Delhi-NCR Western Corridor, Banglore Western Corridor, Hyderabad Southern Corridor, Hyderabad Northern Corridor, Chennai Western Corridor II, Chennai NH-8, Delhi-NCR Narol, Ahmedabad Eastern Corridor, banglore

Key Trends Expected in H2 2019 Logistics leasing activity is likely to strengthen, owing to occupants looking to consolidate/expand operations.

Substantial investment from organized players anticipated, to boost supply of quality assets.

Tech enhancement likely to improve logistics operations, increase in supply of investment-grade developments.

Rental growth to be driven by occupier interest towards locating in core locations, particulary newly completed investment-grade assets.

Various government initiatives such as the draft logistics policy, Draft industrial Policy, Draft E-Commerce Policy, etc. when finalized, would regulate the sector and boost investment activity.

Mumbai

Cities with highest rental growth on a half-yearly basis

Bangalore Chennai

Demand Continued to be strong, more than 13MN SQ.FT. leased in H1 2019

India

Industrial And Logistics Marketview H1 2019

Source - CBRE Research

30% 15% 14%

4 BHK - 4084 sqft

3 BHK - 3221 sqft

4 BHK - 4084 sqft

3 BHK - 3221 sqft

4 BHK - 4084 sqft

JAYANAGAR, BANGALORE (Before Jayadeva hospital) JAYANAGAR, BANGALORE (Before Jayadeva hospital) 7 kms from CBD

7 kms from CBD JAYANAGAR, BANGALORE (Before Jayadeva hospital) +91 7090 471 471 | sales@bandbinfra.com | www.bandinfra.com 7 kms from CBD Project approved by major banks RERA NO : PRM/KA/RERA/1251/310/PR/171015/000561

proptoq-pages.indd 2

B&B Infra B&B Infrastructure B&B Infrastructure Ltd Ltd

3 BHK - 3221 sqft

4 Cr Onwards 4 Cr 4 Onwards Cr Onwards

Who said luxury is reserved for Whomansions? said luxury is reserved for mansions?

29/08/2019 09:

NEWS LINE

GODREJ FUND MANAGEMENT EXPANDS OFFICE PLATFORM TO $ 450 MILLION

Godrej Fund Management (GFM), the real estate private equity arm of the Godrej Group has announced the second and final close of its USD 450 million office development platform. Across Godrej Build to Core - I (GBTC-I) and the existing core fund, GFM can now invest in developing office assets worth over USD 1 billion in value.

With this development, the assets under management for GFM has crossed USD 1.6 billion mark across asset classes. GBTC-I, is a ‘club style’ office investment platform that invests in developing world class, Grade-A office buildings in leading locations across the key office markets of India. APG Asset Management N.V. (APG) was the cornerstone investor for GBTC-I since its inception in 2018, committing USD 150 million. The platform has now partnered with Allianz Real Estate (Allianz) which has committed another USD 150 million to the platform.

This is the second and final close for GBTC-I, taking it to the full potential of USD 450 million. It has already secured two developments, one each in Mumbai and Gurgaon, totaling 2 msf. The platform currently has a strong pipeline

of assets with an aim to fully deploy the capital within a timeframe of next 12-18 months.

Karan Bolaria, Managing Director & CEO, Godrej Fund Management, said, “We are pleased to partner with Allianz Real Estate and APG Asset Management on our office development platform, GBTC-I. GFM, with its strategic combination of investment management and development manag ement capabilities, is ideally positioned to deliver on the opportunity that exists in Grade-A office in India.”

According to Graeme Torre, Managing Director, APG Asset Management Asia Ltd, the build–to-core strategy that commenced with Godrej Fund Management last year has had a very successful start with two first class acquisitions

and a strong pipeline of future opportunities. With Allianz Real Estate now joining the partnership, the portfolio is expected to further extend to provide exposure to India’s premium office sector.

Strong demographic trends and improving transparency are supporting real estate occupier as well as investor demand, in particular the office sector, which is ideal for long-term institutional investors such as Allianz. Says Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate. “We are excited about this new partnership. Godrej is one of the most trusted brands in India with a successful track record in office. We are confident that the platform will deliver upon completion a premium office product that is increasingly sought after by multinational tenants operating in India.”

PropTOQ | 13

NEWS LINE

SIGNATURE SATTVA TO INVEST ₹500 CR ON AFFORDABLE HOUSING PROJECT IN ALWAR Realty firm Signature Sattva Infratech will invest ₹ 500 crore over the next four years to develop its first project in Alwar, Rajasthan under the state government's affordable housing policy.

The Gurugram-based firm has acquired a 27-acre land parcel at Alwar to develop 4,500 apartments in the two phases, according to Parveen Aggarwal, the company's founder and chairman. The company is foraying into real estate with this maiden project.

In all, about 37 lakh sq.ft area will be developed to construct 4,500 units, including 1,600 EWS homes which will be available in the price range of ₹7-10 lakh. In the first phase, the company will be developing affordable units in the price range of ₹ 14-20 lakh.

Going forward, Signature Sattva will be expanding in other parts of Rajasthan, besides tapping newer regions of Haryana, Uttar Pradesh and Maharashtra.

14 | PropTOQ

NEWS LINE

LAND POOLING WINDOW EXTENDED Delhi Development Authority's ambitious land pooling policy, which initially didn't get a very encouraging response from land owners in the capital, has witnessed a spurt in areas being registered under the policy.

On February 5, 2019, DDA had launched a singlewindow online portal for inviting registrations under the land pooling policy. The portal was the first step towards operationalisation of the policy for inviting "expression of willingness" from land owners of contiguous land parcels of any size falling in five planning zones in the city.

The portal was scheduled to be kept open for six months - till August 4. However, DDA has now decided to extend the date till September 6.

To encourage more land owners to come forward and register land under the policy, DDA also plans to develop two 'model sectors' from the land that has been pooled till now. These sectors would showcase the development that DDA envisages under the policy and the authority believes these model sectors would encourage land owners "who are sitting on the fence right now to come forward and aggregate their land".

Once the land registration process is completed, the land parcels that have been registered for pooling will be verified by the Delhi government.

Subsequently, DDA will send notices to land owners to form consortiums and following this, it will prepare sector plans showing land area break up. The extension of the portal is expected to ensure maximum participation and pooling in the identified sectors so that planning and execution of infrastructure can be taken up in an integrated manner.

DDA APPROVES SCHEME FOR COMMERCIAL PROPERTIES The Delhi Development Authority has approved the proposal for launching an online running scheme for 225 commercial built-up properties on a first-come-first-serve basis on the lines of a scheme earlier launched by the Housing Department for disposal of undisposed built-up units.

Most of these are small shops that may be taken by small traders who may find it easier to take the shops through an online system. The units are located in Rohini, Narela, East, West and South Zones of the DDA. The scheme will be operational until the entire inventory included under the scheme is disposed of.

The list of available shops with tentative size, location and tentative cost will be made available on the DDA website. Desirous applicants can apply online and opt for specific units on a first-come-first–serve basis.

In its meeting, the authority also approved disposal of residential plots for group housing societies through “e-auction mode�. Individuals, partnership firms, private and public limited, or consortium, which have sufficient funds to purchase the land and develop the project, can be part of it. The developer will require to develop group housing in terms of Master Plan of Delhi 2021, with 15 per cent of floor area ratio (FAR) for community service personnel, and lower category housing, and this economically weaker section (EWS) component will be over and above the permissible FAR.

PropTOQ | 15

NEWS LINE

PIRAMAL REDUCES EXPOSURE TO RESIDENTIAL REAL ESTATE Piramal Enterprises has reduced its exposure to residential real estate, as part of its strategy to de-risk its portfolio. Piramal’s exposure to Lodha has reduced to Rs 3,180 crore from Rs 4,300 crore in October 2018, and it plans to reduce it further to Rs 2,600 crore by September 2019.

Since March this year, exposure to Lodha has dropped by over Rs 700 crore, of which Rs 532 crore was from downselling to Goldman Sachs and the balance through repayments and pre-payments from the company itself.

Piramal has been reducing exposure to real estate and increasing the share of non-real estate since the September quarter of FY19, to de-risk its portfolio.

Non-banking financial companies, including Piramal Capital faced a liquidity crunch after the IL&FS default last year.

Developers have also seen liquidity crunch since August last year, as NBFCs stopped lending to them.

This, coupled with lower sales, have hit developers badly. The overall share of real estate loans dropped to 63 per cent in March last year, while the share of retail loans rose to 11 per cent.

BENGALURU GLOBAL VILLAGE TECH PARK ON SALE

Coffee Day Enterprises Ltd (CDEL), the holding company of retail chain Cafe Coffee Day has entered into a non-binding agreement with New York-based private equity giant Blackstone to disinvest its Global Village Tech Park in Bengaluru.

CDEL board has decided to sell the group’s assets to pare its debt. The sale of Technology Park could fetch up to Rs 3,000 crore. As of March

16 | PropTOQ

31, 2019, Coffee Day Enterprises reported a debt of Rs 6,547 crore. The development came a little over a week after the death of CCD founder V.G.

Siddhartha.The board had constituted an executive committee to explore the opportunities to deleverage Coffee Day group.

NEWS LINE

AMRAPALI BUYERS TO GET COMPLETION CERTIFICATES The Supreme Court has directed Noida and Greater Noida authorities to grant completion certificates to thousands of harassed home buyers residing in various Amrapali Projects in compliance with its verdict and warned that the officials concerned will be sent to jail if they fail to do so. It also said that project-wise list of home buyers should be provided to both the authorities.

A bench of Justices Arun Mishra and U Lalit warned that officials posted at the authorities for more than 10 years will be in trouble if its orders are not complied with. Advocate Ravindra Kumar, appearing for the authorities, informed the SC that they have started complying with the apex court’s verdict and have constituted a special cell to handover the completion certificates.

The court ordered that project wise list should be provided to Noida and Greater Noida authorities with respect to the people who are already staying in such projects.

Kumar further informed that they have started providing electricity and water connection to homebuyers as directed by the court despite there being no completion certificate.

On July 23, the apex court had ordered cancellation of the registration of Amrapali Group under the real estate law RERA, and ousted it from its prime properties in the NCR by nixing the land leases.

The judgement, which was first of its kind, may have far reaching consequences and impact across the

country on other realtors like Unitech and Jaypee, which are facing similar litigation in the top court from hassled homebuyers for not handing over possession of flats on time despite putting in their hard earned money.

â‚š14 crore fine on Jaiprakash Associates for unfair practices The Competition Commission of India (CCI) has imposed a penalty of nearly Rs 14 crore on Jaiprakash Associates for abusing its dominant market position by imposing "unfair" and "discriminatory" conditions on homebuyers.

The ruling came on a complaint filed by a buyer Naveen Kataria who had booked a villa at Jaypee Greens in Greater Noida, Uttar Pradesh, in 2011.

In February 2019, the complainant informed the CCI that he did not wish to pursue the instant case, since all the pending disputes with the firm have been settled. But under the Competition Act, complaints filed under a certain section cannot be withdrawn.

It was alleged that conditions in Provisional Allotment Letter (PAL) were unfair, one-sided and loaded in the favour of the company.

In 2015, the regulator ordered the director general (DG), its investigation arm, to conduct a detailed probe into the matter. The regulator found Jaiprakash Associates to be in dominant position in the relevant market for provision of services for development and sale of independent residential units such as villas, estate homes, town homes and row-houses in integrated townships in Noida and Greater Noida regions.

Based on the DG's reports and regulator's examination of the issues, CCI found clause pertaining to defaults in the PAL was heavily in favour of the Jaiprakash Associates.

Under the pact, there was only a marginal penalty on the firm for any default while the allottees were to pay a huge fine.

Accordingly, the CCI imposed a penalty of Rs 13.82 crore, arrived at by calculating 5 percent of turnover earned by the firm during relevant period (2009-10 to 2011-12).

PropTOQ | 17

NEWS LINE

WAVE GROUP FORMALISES EXPANSION PLANS AFTER SPLIT

Real-estate-toentertainment conglomerate, Wave Group, has lined up a slew of projects for expansion and new forays post the July 2019 split in the group.

The ₹ 15,000- crore diversified conglomerate is planning aggressive expansion in the areas of liquor and films, which will be led by Rajinder (Raju) Chadha, brother of late promoter Ponty Chadha, who has inherited 36% of the business. Around 64% of the group, consisting largely real estate and sugar mills will be controlled

by Ponty Chadha’s son Manpreet Singh Chadha. Under the new leadership, the Raju Chadha faction of Wave Group has now planned to increase capacities in the company’s breweries and distilleries. New Greenfield projects to add more distilleries are also on the drawing board.

Apart from expanding the liquor business, Raju Chadha has also lined up a major expansion of his film business. Other than investing in film projects both in Bollywood and Hollywood, the erstwhile Wave Group chairman is looking to invest in his relatively new company Wave Digital that will venture into a brand new area of creating content for the web series with a separate OTT platform.

Global rating agency Moody's has downgraded Macrotech Developers Limited (MDL), formerly known as Lodha Developers Limited, citing increased liquidity risk which resulted in insufficient progress in refinancing its upcoming debt maturities.

18 | PropTOQ

MOODY DOWNGRADES LODHA DEVELOPERS Moody has downgraded the corporate family rating to B3 from B2. The rating agency also downgraded the senior unsecured rating of the US dollar-denominated bonds issued by Lodha Developers International Limited (LDIL) and guaranteed by MDL to B3 from B2.

The real estate firm is facing challenges and is hit by the liquidity crunch in the sector. The bond yields of Lodha Group spiked to 71 percent on August 1, indicating the possibility of default by the company.

MDL is the largest real estate

developer in India in terms of sales of residential apartments. The company is focused on residential developments in the Mumbai Metropolitan Region, with some projects in and around Pune.

However, according to Lodha Group, it has made arrangements for repayment and definitive documentation is underway. The process is expected to be completed in about two months. The company has received terms of offer from one of the existing lenders for refinancing the outstanding US bonds.

NEWS LINE

NBCC TO SIMPLY MANAGE AMRAPALI PROJECTS

The National Buildings Construction Corporation (NBCC), which has been asked by the Supreme Court to complete pending projects of the Amrapali Group at 8% commission, has made it clear that it will function only as project management consultant.

The total investment required for completing Amrapali's stalled projects is a whopping Rs8,500 crore. This amount includes 8% PMC (project management consultancy) margin for the NBCC which has been agreed and ordered by the Supreme Court. NBCC has declined to make any investment for the construction of Amrapali projects.

The expected time schedule for the completion of Amrapali projects is around four to five years considering volume of work as well as difficulties of the execution process.

HC BARS DB REALTY ENTITIES FROM TAKING LOANS The Bombay High Court has restricted Shahid Balwa, Vinod Goenka and their family entities from taking loans or withdrawing cash from their bank accounts in an arbitration case. It also told DB Realty owners’ family entities to deposit Rs 48 crore with the Court.

Justice G S Kulkarni gave this order as an ad interim protection to an FDI fund that had invested Rs 100 crore in the flagship hotel companies of the DB Realty Group viz Marine Drive Hospitality (MDH), Neelkamal Central Apartment (NCA) and Goenka Family Trust (GFT). The same restrictions also apply to Balwa and Goenka, who cannot create any charges on their assets nor withdraw any amount from their bank accounts without the prior consent of IIRF, floated by IL&FS Investment Managers.

The IL&FS Fund and IIRF had invested Rs 100 crore in MDH.

PropTOQ | 19

NEWS LINE

OBEROI REALTY PLANS AFFORDABLE HOUSING LAUNCH DHFL EXITS ASSET MANAGEMENT SPACE Dewan Housing Finance Corporation (DHFL) has exited the asset management business by selling its entire stake to its joint venture partner PGLH of Delaware Inc. The deal will ensure that the US-based company will take over the entire control of DHFL Pramerica Asset Managers which manages about Rs 5,400-crore of assets.DHFL held 17.12 per cent stake directly in DHFL Pramerica Asset Managers and 32.88 per cent stake through its wholly owned subsidiary, DHFL Advisory and Investments. Both these companies sold the entire 50 per cent stake to PGLH of Delaware Inc. Last December, the cash-strapped DHFL had announced its plan to sell off the asset management business and had received necessary approvals including that from capital market regulator SEBI. The mortgage lender DHFL is undergoing a severe stress triggered by liquidity constraint for non-banking finance sector after the troubles surrounding infrastructure lender IL&FS last year. It has been forced to sell its non-core assets and the promoter Wadhawan family is also reportedly mulling a stake sale of its holding.

20 | PropTOQ

Oberoi Realty Ltd, which had so far been into luxury homes, is gearing up to enter the affordable housing segment with new project launches during Diwali.

The new project comprising 2,0003,000 apartments will be built on a 60-acre plot in Thane. Oberoi had bought the plot from GlaxoSmithKline Pharmaceuticals for Rs 555 crore two years ago.

In the recent past, many large developers have entered the mid-income and affordable segment to tide over the slowdown in the luxury housing market, particularly those costing above Rs 2 crore.

The housing units will be up to 600 sq. ft in carpet area, and are likely to be priced at Rs 12,000 per sq. ft. Accordingly, each unit

will cost around â‚š 70 lakh.

While the price range will be well above the affordable housing category under the goods and services tax (GST), the company will be eligible for tax benefits under the affordable housing scheme as per Section 80-IAB of the Income Tax Act. The Union budget of 2017 had proposed 100% tax deduction on profits for homes of up to 30 square metre (323 sq. ft) and 60 sq. m (646 sq. ft).

NEWS LINE

NCLT ORDERS FRESH BIDS FOR JAYPEE INFRA One of the primary conditions would be that the builder-buyer agreements that were originally signed must not undergo any changes.

A two-member Bench of the NCLAT led by Chairperson Justice S J Mukhopadhaya stipulated that all the allottees will be given flats according to their builder-buyer agreements. The contract terms cannot be changed. If the allottee is not present, the Committee of Creditors (CoC) will decide on how the flat is to be adjusted.

Other than this, the land attached to the buildings and the common

area amenities would be a part of the terms for new bidders. Inviting fresh bids would mean that the door would be open for all and not just a select few. Apart from this, the Tribunal also asked the banks, led by IDBI Bank, to file an affidavit listing out new terms and conditions if a fresh round of bidding was to be conducted.

Jaypee was taken to the NCLT by an IDBI Bank-led consortium for failing to repay debt worth nearly â‚š 24,000 crore.

With the banks having rejected state-owned NBCC India’s plan for Jaypee Infratech, the National Company Law Appellate Tribunal (NCLAT) has suggested terms for fresh bids to be considered for the latter.

PropTOQ | 21

NEWS LINE

KOTAK ACHIEVES FINAL CLOSE OF FUND AT $1 BILLION Kotak Special Situations Fund has achieved the final close with aggregate commitments of $1 billion. The fund was launched in February 2019 and is anchored by a $500-million commitment from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

The fund invests across sectors to tap the stressed assets opportunity in India. It has expertise in sectors like real estate, healthcare, infrastructure, power, consumer, industrials, information technology and financial services. Its investments typically involve a combination of debt, equity and mezzanine instruments. The fund invests in stressed assets, taps IBC opportunities and special situations that include situations like investor take-out financing, group restructuring and promoter financing as well as asset acquisitions.

The fund has a flexible investment mandate, enabling it to provide the much- needed capital to address the short-term financial dislocation in the market as well as longterm capital to address the NPL issue. It has a robust pipeline of transactions coming through structured credit solutions as well as potential settlement of NPLs under the new RBI dispensation.

BLACKSTONE, INDIABULLS SET FOR â‚š4800 CR REALTY DEAL Blackstone Group is set to buy 50 % stake in Indiabulls Real Estate's commercial properties for about â‚š4,800 crore ($688.8 million). The deal will give the private-equity giant full control of the portfolio. Blackstone bought a 50 per cent stake in two units at an aggregate enterprise value of about $1.46 billion early last year.

The PE firm is expected to add the assets to the portfolio of Embassy Office Parks Real Estate Investment Trust (REIT), its joint venture with Bengaluru-based realty developer Embassy Group.

The latest transaction is part of the Indiabulls Group's strategy of exiting real estate completely and focusing on financial services as it seeks to merge with Lakshmi Vilas Bank.

22 | PropTOQ

FINANCIAL NEWS

HIL ACHIEVES 53% GROWTH

HIL Limited, one of Asia’s leading building material solutions company, sets the tone for the financial year with 53% improvement in year-on-year revenues at ₹768 crore in Q1 FY’20, up from Rs 501 crore in Q1 FY’19.

Though roofing solution business experienced tough market conditions this quarter compared to the same period last year, it continues to make progress in a market that has been facing some impediments in the last quarter due to 2 months long staggered national election which has impacted rural demand significantly. Growth in the building solutions and polymer solutions stood at 4% and 23% respectively, both yearon-year. The commissioning of

augmented capacity in pipe and fittings is shaping up well.

The business performance highlights include ₹100 crore EBITDA, compared to ₹ 89 crore for the same quarter last year, marked by a growth of 13% year-on-year. Profit before tax stood at ₹67 crore on account of tough market conditions and additional interest cost on borrowings towards acquisition of Parador.

Dhirup Roy Choudhary, Managing Director, HIL

Limited says that despite tough market conditions in the roofing business, HIL enjoys customer loyalty and continue to be the market leader for yet another quarter.

HIL, according to Choudhary, is geared to hold a leadership position in the marketplace as the company has taken several steps to improve the efficiencies of operating processes ,focusing on cost and productivities across the enterprise to minimize the impact of external factors.

PropTOQ | 23

INFRASTRUCTURE

INFRA BOOST FOR BUILDING A NEW INDIA

With a vision to make India a USD 5 trillion economy, the Modi government in its second term, has earmarked more than ₹100 crore for infrastructure investment over the next five years to support India’s long-term growth and adding a positive sentiment to the construction and the real-estate industry.

Though, India is far ahead of many emerging economies, the government is leaving no stone unturned to boost the economy via investments mainly in infrastructure, which will have a multiplier benefits and also create jobs at various levels, bringing about improved productivity. The Rs. 100 lakh crore investments in infrastructure over the next five years is reflective of the importance placed by the government on the GDP, nation building, employment along with a special emphasis on building last mile connectivity .

expansion drive will create massive employment opportunities for the youth of the country. The rail network expansion will help India to improve its last mile connectivity and enable better mobility infrastructure for passengers and goods, resulting in growth and expansion of business across the country.

The increased focus by the government on the development of railways, roads, aviation, ports, smart cities, power and intra-city connecting networks like metro rail, Udan will give a thrust to the infrastructure fabric of the country.

These are important measures which will not just help in the recovery of real estate but also help in its expansion.

In order to boost road infrastructure, the government plans to launch Phase 2 of Bharatmala project for providing seamless connectivity to the interior and backward areas and borders of the country. Pradhan Mantri Gram Sadak Yojana Phase 3 envisages upgrading 1.25 lakh kms of road length at an estimated cost of Rs 80,250 crore.

The government plans to mobilize Rs 50 lakh crore investments in the Railway Infrastructure Development by 2030. Budget allocation for the railways sector has been increased from ₹ 53,060 crore to ₹65,837 crore in line with announced investment in railways sector. Railways being one of the largest employer in India, this

24 | PropTOQ

Under the UDAN scheme, more than 100 airports are operating in India. The government will prepare blue print for the regional airports to connect various towns and cities across the country to improve connectivity.

more competitive.

The maiden budget of the new government seeks to provide an impetus to Transit Oriented Development (TOD) model to spur commercial activities along corridors and the Multi-modal Corridor will help in seamless geographical interlinking.

To provide a thrust to ‘Make In India’ initiative, the government is exploring new modes of transport like inland waterways, developing, regional airports for remote connectivity and speeding the development of national highways. Such semi-urban and remote connectivity will set a level playing field to augment service sector resulting in migration workforce.

To meet this massive challenge, the finance minister has advocated more of public sector participation in infrastructure investment, which will re-invigorate private investment in the sector.The government is pinning high hopes on its positive initiatives but the government has a cut out task of gigantic proportions to translate its intentions into reality.

The Sagarmala Scheme will look into the development of Port and related infrastructure to reduce logistics cost for exports and domestic trade with minimal infrastructure investment, Niranjan Hiranandani which will increase the efficiency of supply chain sector. The project will President, NAREDCO drastically reduce the logistics cost in India, helping to make our industries

INFRASTRUCTURE

NIIF GETS $2-BILLION BOOST FROM CANADIAN, AUSTRALIAN FUNDS

TASK FORCE TO STREAMLINE MEGA INFRA PROJECTS

Australia’s largest superannuation fund AustralianSuper and Canada’s Ontario Teachers’ Pension Plan have each signed agreements to invest up to $1 billion with the National Investment and Infrastructure Fund (NIIF) Master Fund.

The agreements include commit ments of $250 million each in the Master Fund and co-investment rights of up to $750 million each in future opportunities alongside the Fund.

The Centre has set up an inter-ministerial task force to draft a list of infrastructure projects coming up in the next five years.

Significantly, AustralianSuper and Ontario Teachers’ will now join the Government of India (GOI), Abu Dhabi Investment Authority (ADIA), Temasek, HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance and Axis Bank as investors in the Fund.

According to Finance Minister Nirmala Sitharaman, this panel will identify projects to boost modern infrastructure worth ₹100 trillion, augment growth and create jobs.

The NIIF invests in equity capital in the country’s core infrastructure sectors with a focus on transportation, energy and urban infrastructure.

The task force would be under the Department of Economic Affairs. The projects would be monitored actively to accelerate capital expenditure and investments in the economy. Also, an organisation would be set up to provide credit enhancement for infrastructure and housing projects, increasing the flow of funds to them.

PropTOQ | 25

INFRASTRUCTURE

ADANI COMMITS ₹ 10 , 000 CRORE CAPEX FOR AIRPORTS Adani Enterprises Ltd (AEL) has committed an investment of ₹ 10,000 crore for its airports venture through its subsidiary, Adani Airports Ltd, to be made over seven years.

By April 2020, the company will take over three of the six airports it had won bids for, and make an upfront payment of approximately ₹ 1,600 crore, with an additional ₹ 2,000 crore to be made later.

start generating revenues from April 2020. Of the six airports, AEL has been awarded three and is awaiting state approval for the other two, while for one airport in Kerala it is facing litigation from the state government.

The three airports projects will

Last year, the company had won

26 | PropTOQ

the right to upgrade and operate airports in Thiruvananthapuram, Ahmedabad, Lucknow, Jaipur, Guwahati and Mangaluru for 50 years.

MORTGAGE

BUDGET SCHEME FOR LIQUIDITY SUPPORT TO NBFCS ROLLS OUT

The partial guarantee scheme announced in the budget for non-banking and housing finance companies (NBFCs and HFCs), which will allow state-run banks (PSBs) to purchase their assets has been operationalized.

It is aimed at providing liquidity support to avoid distress sale of assets in a sector facing a shortage of cash due to asset-liability mismatch. The stress on NBFCs and HFCs is seen as a major reason for a slowdown in the economy, as it has caused reduced credit flow to small businesses and consumers.

The government is putting in place a mechanism to ensure the scheme takes off on ground. As per the guidelines of the scheme

announced in the budget, the Department of Economic Affairs will provide government guarantee of up to 10% of the fair value of assets purchased by a bank from a stressed NBFC or HFC. The scheme is capped at â‚š 1 lakh crore and will be open for up to six months.

NBFCs will also have to rework the asset-liability structure within three months to have a positive asset liability management in each bucket for the first three months

and on cumulative basis for the remaining period.

The one-time guarantee on the pooled assets will be valid for 24 months from the date of purchase and can be invoked in specified circumstances. The guarantee shall cease earlier if the purchasing bank sells the pooled assets to the originating NBFC or HFC or any other entity before the validity of the guarantee period.

PropTOQ | 27

MORTGAGE

NHB'S ₹10K CRS INFUSION INTO HFCS TO BOOST FUND FLOW

DHFL SEEKS ₹15000 CRORE LIFELINE Mortgage lender Dewan Housing Finance (DHFL) has sought funding of ₹15,000 crore from banks for on-lending to retail customers as well as to project developers.

With a view to boost credit support for the purchase of houses, National Housing Bank (NHB) will offer additional liquidity support of ₹ 20,000 crore to housing finance companies (HFCs).

This will increase the total liquidity support to ₹30,000 crore. Lack of adequate liquidity due to an ongoing debt crisis among several large NBFCs has been a cause of concern and without adequate credit support, HFCs were not able to lend to homebuyers which in turn led to a drop in property sales.

On August 2, NHB had said it will infuse additional ₹10,000 crore in HFCs for individual housing loans for affordable housing to ease the flow of funds into the housing sectors. According to Finance Ministry, NBFCs are now receiving liquidity from the banks and are also extending credit to people and as such the increase in funding by NHB will make a further difference.

28 | PropTOQ

The troubled company had submitted a draft resolution plan to lenders under which it asked for funds from banks/NHB for restarting retail funding which was stopped after equity crisis hit it last year and to fund viable projects that are stuck due to lack of money. The troubled home financier owes close to ₹ 90,000 crore to banks, NHB and other creditors.

Amidst severe financial crunch and defaults leading to rating downgrades ,the Wadhawan family, who owns a little over 39%, has been looking at various ways to come out of the stress which first came to light late last year following the IL&FS bankruptcy.

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COVER STORY

- Vinod Behl

In the wake of painfully slow sales and crippling effect of liquidity crunch, the crisis-ridden residential real estate is increasingly looking up to affordable housing as its saviour.

30 | PropTOQ

COVER STORY The reform-oriented Modi government with its flagship 'Housing for All Mission' is heavily promoting affordable housing through policy incentives to meet the housing goal. Key measures like creditlinked subsidy under PMAY for homes with area up to 60 sq metres and costing up to â‚š 45 lakh, income tax exemption to developers, zero GST on ready to movein affordable homes and just 1% GST on under construction homes, along with increase in deduction of interest on home loan to Rs 3.5 lakh announced in this year's budget are all contributing to the growth of affordable and mid-segment housing.

And the impact of these measures is quite visible. Real estate developers who earlier considered affordable housing as down market and were not prepared to take a plunge due to low margins, are now increasingly taking to it as this segment has become much more attractive. The statistics show that during the first half of this year, almost one third of new launches were in the affordable category.

That now there is a growing market for affordable housing is also evident from the sale figures. According to Knight Frank H1 2019 statistics, there was 4% pan India increase in the sale of affordable homes while the supply of new homes rose by 21%. Looking at these growth prospects, many real estate players across India are expanding their business. In the crisis-hit NCR, Signature Global which is just a 5 year old company, has emerged as number one brand in affordable housing, according to RICS-Knight Frank report. It has launched 14 affordable housing projects with close to 13000 units in Gurugram, Karnal and Sohna under PMAY and has already delivered one project with over 1000 units ahead of government mandated schedule and will be delivering another 1800 units by the end of the year. With a mission of 'Har Parivar Ek Ghar' (one home each family), by 2022, the group is targeting to deliver 1 lakh homes across Haryana, Uttar Pradesh, Rajasthan and Maharashtra, according to Founder Chairman, Pradeep Aggarwal.

A leading player of NCR, ATS has launched 'Homekraft" brand in the affordable segment and has earmarked â‚š 2000 crore to develop 6500 units over the next 3-5 years. There are several other players who are quite active in this domain.

PropTOQ | 31

COVER STORY In the current regulatory environment, large players are into bigger play. Bangalore based Puravankara, with its Provident Housing brand, intends to launch 6 new projects across Mumbai, Pune, Bangalore, Chennai, Kochi, spanning 8.21 msf. Its managing director, Ashish Puravankara, describes Provident Housing as a game changer as with this year's launches affordable housing share in the overall residential projects of the company may touch 70%.

Even PE

players are coming forward to fund projects of credible and big players. Shapoorji Pallonji Group has formed a JV with Standard Chartered PE, IFC and Asia Development Bank for its affordable housing brand - Joyville to launch 20msf of residential space over next 7-8 years. With a financial commitment of $250m, these projects will come up in Mumbai, NCR, Pune, Bangalore, Chennai, Ahmedabad.

While biggies like Tata Realty are playing a balancing game with residential and commercial realty and between luxury and affordable housing, many luxury players are feeling the need to get into affordable segment.

Oberoi Realty which had been into luxury

Today, more and more developers are taking to affordable homes below â‚š 45 lakh to avail benefits under PMAY. South-based Shriram Properties has planned 9 launches this year in sub-45 lakh category. real estate is making its entry into affordable housing, with a mega project of about 3000 units.

Today, more and more developers are taking to affordable homes below â‚š45 lakhs to avail benefits under PMAY. South-based Shriram Properties has planned 9 launches this year in sub45 lakhs category with some houses in

32 | PropTOQ

COVER STORY ₹30-40 lakh bracket.

Another Southern player, Ozone group having sub-45 lakhs projects in Bangalore plans to launch homes in the city in the price category of ₹ 18-35 lakh.

VBHC group is also focusing on building homes in the bracket of ₹20-45lakh including its new project in Navi Mumbai. Such is the lure of affordable housing that even development bodies like DDA is gearing up to arrange land parcels through land pooling and unlock its land through auction for private developers to create high quality life style affordable housing.

The government's PPP policy is also coming handy.

Mahindra Lifespaces is scaling up its affordable housing business by partnering with state governments. It has

Mahindra Lifespaces is scaling up its affordable housing business by partnering with state governments to deliver 10,000 low cost homes every year over the next 4-5 years. chalked out an ambitious plan to deliver 10,000 low cost homes every year over the next 4-5 years.

For India's leading mortgage housing player, HDFC which has been involved

in launching half a dozen projects in June -August across India, affordable housing is the name of the game. As Deepak Parekh, Chairman, HDFC puts it," It is unaffordability which is responsible for bad shape of housing.Otherwise, right sized and right priced homes coming under PMAY are selling well".

But then all is not hunky dory. The large number (5.6 lakhs) of delayed/stuck units worth ₹451,750 crore are badly impacting the recovery of real estate. Out of 2 lakh such units in NCR, 75% are in Noida/Greater Noida. Deepak Parekh says that in order to restore the confidence of home buyers and revive housing market, there is an urgent need to provide last mile funding to several projects which are nearing completion.

PropTOQ | 33

COVER STORY

" There is a need to provide home loans at 7.5% under priority sector lending to first time home byers to push sales."

Satish Magar President, CREDAI Industry bodies have appealed to the government for creating a stress fund to complete stalled projects and the government, which is receptive to the idea, is likely to announce it soon.

Ramesh Nair, Country Head & CEO, JLL India dwells on the need for a continuous flow of alternate investments into affordable housing. Pradeep Aggarwal calls for implementing infrastructure status granted to affordable housing, in letter and spirit in order to ensure easy flow of funding to developers.

Besides easing funding to developers to push supply, there is a need to provide easy home loans at low rates. Satish Magar, President, Credai makes a strong case for providing loans at 7.5% for affordable homes under priority sector lending to first time home buyers.

The demand - supply mismatch is another hindrance to the growth of affordable housing.

According to RICS- Knight Frank Report, in the LIG category (below 25 lakh), against the demand of 3.4 lakh homes, the supply of affordable homes is only

34 | PropTOQ

COVER STORY 44, 000 per year. Even in midsegment category, against the demand of 4.8 lakh units, there is supply of only 1.12 lakh units. The success of Housing for All depends on high supply of affordable housing.

The biggest challenge before supply is lack of easy and cheap availability of land in cities and in suburbs where it is available at low rate, lack of infra and connectivity hits the demand.

That is why many prefer the Haryana model, where the government is making land available .

Lack of funds and delayed permissions make projects financially unviable.

The price cap of â‚š 45 lakh for affordable housing under PMAY in metros is

restricting the supply.

But then despite these challenges, in a run up to the festive season, RBI has mandated to link interest rates with external benchmarks and it is widely expected to further cut interest rate in upcoming policy review which will bring down EMIs to prompt homebuyers to go for home shopping. In the crisis- hit NCR, there is 47% drop in unsold inventory in Q1 2019 in Noida and Greater Noida w h i c h account f o r

75% of total unsold inventory in NCR. The increase of 21% in supply of affordable housing and 4% hike in housing sales in H1 2019 bodes well, especially in view of the festive season. Niranjan Hiranandani, President NAREDCO exudes confidence that growth in residential market will come from affordable housing whose sales are rising. Deepak Parekh who terms slowdown as temporary, is confident that festive season will lift the fortunes of residential real estate, particularly affordable housing. That of which seems well on its way to redeem real estate.

The increase of 21% in supply of affordable housing and 4% hike in housing sales in H1 2019 bodes well, especially in view of the festive season.

PropTOQ | 35

COVER STORY

AFFORDABLE HOUSING INVENTORY ON DECLINE

Thanks to the various incentivised schemes for the home buyers and developers under Pradhan Mantri Awas Yojana (PMAY), there is a double-digit decline in the inventory of unsold housing units in the affordable segment.

Affordable Housing Unsold Inventory as on quarter end

36 | PropTOQ

CITY

Q1 FY19

Q1 FY20

YoY Change

Ahmedabad

45,751

41,791

-9%

Bengaluru

23,950

20,146

-16%

Chennai

15,570

18,709

20%

Gurugram

22,203

22,307

0%

Hyderabad

7,965

4,881

-39%

Kolkata

33,554

30,923

-8%

Mumbai

165,404

139,984

-15%

Noida

43,204

35,811

-17%

Pune

113,771

98,378

-14%

Grand total

471,372

412,930

-12%

COVER STORY According to the data furnished by PropTiger.com, by the end of June ,the affordable housing inventory consisted of over 4 lakh affordable units priced below ₹45 lakh. This is half of the overall housing stock that Indian property markets currently have. Numbers available for the April-June quarter show that real estate developers across India’s nine key markets have an overall inventory consisting 797,623 units.

Inventory stock, however, in the affordable housing category declined over 12% when compared to a year-ago period, data shows.

India’s nine key markets had an inventory consisting of 471,372 units in Q1 FY’19. This number has reduced to 412,930 in Q1 FY’20.

₹ 45 lakh. Property owners would now be able to claim ₹3.5 lakh deduction on their home loan interest in a year. Interest rates on home loans have also declined after the RBI brought repo rate to a record low this year. This together with developers' focus on delivery against new launches, according to Dhruv Agarwala, Group CEO, PropTiger.com, would encourage home buyers to invest actively in affordable housing category, in turn resulting in further decline in the inventory of affordable housing.

An annual comparison shows sales as well as new launches in the affordable housing segment declined in the June quarter when compared to the same quarter last year. As against, 42,828 units in Q1

LAUNCHES

SALES

CITY

Q1 FY19

Q1 FY20

YoY Q1 Change FY19

Q1 FY20

YoY Change

Ahmedabad

5,403

259

-95%

3,666

3,577

-2%

Bengaluru

3,339

2,891

-13%

3,426

2,854

-17%

Chennai

2,340

1,723

-26%

2,078

2,301

11%

Gurugram

1,202

3,626

202%

2,087

3,319

59%

Hyderabad

1,330

417

-69%

1,187

686

-42%

Kolkata

1,414

524

-63%

1,929

2,210

15%

Mumbai

13,795

3,633

-74%

14,512

12,459

-14%

Noida

2,688

900

-67%

4,192

1,867

-55%

Pune

9,843

4,069

-59%

9,751

10,551

8%

Grand total

41,354

18,042

-56%

42,828

39,824

-7%

A city-wise analysis shows Mumbai contributed nearly 1.39 lakh units to this stock, the highest seen in a city during the quarter. This is despite the city registering a 15% decline year-on-year in its affordable housing inventory. Hyderabad saw the sharpest fall in its inventory stock in the past one year. By the end of June, the city had only 4,881 units in its inventory.

However, real estate developers might see their inventory stock decline substantially in the September quarter, with the government incentivizing purchase of affordable properties.

In the budget, the government had announced an additional ₹1.5 lakh deduction on interest paid towards units priced within

FY’19, only 39,824 units were sold in Q1 FY’20, a decline of 7%. The sharpest decline in sales during the period was registered in Noida and Hyderabad while a pick-up in sales of affordable units was seen in Gurugram, Kolkata and Chennai.

As against 41,354 units launched in June quarter last year, only 18,042 units were launched in the same quarter this year, resulting in a decline of over 56%. Except Gurugram, where the numbers tripled, new launches declined in all other cities during the quarter.

The most dramatic fall in launches was however seen in Ahmedabad, where only 259 units were launched during the quarter ending June, as against 5,403 units in Q1 FY’20.

PropTOQ | 37

COVER STORY

50 PROJECTS UNDER ₹50LACS CHENNAI KG Earth Homes

Thalambur

1, 2 & 3 BHK

Urban Tree Oxygen

Perumbakkam

1, 2 & 3 BHK

Optima Upgrade

Avadi

1.5, 2 & 3 BHK

Jains Avalon Springs

Potheri

2 & 3 BHK

DRA Pristine Pavilion

Paranur

2 & 3 BHK

STARTING FROM

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₹18.19Lac ₹25.14Lac ₹25.51Lac ₹30.12Lac ₹45.50Lac

HYDERABAD Chandan Nagar

2 & 3 BHK

Gandipet

2 & 3 BHK

Nacharam

2 & 3 BHK

Sita Pride

Kushaiguda

2 & 3 BHK

Praneeth Pranav Zenith

Bachupally

2 & 3 BHK

KT Towers Kalyan Platinum Valley Raheja Vistas

38 | PropTOQ

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₹33.95Lac ₹34.36Lac ₹41.03Lac ₹41.82Lac ₹42.13Lac

COVER STORY

MUMBAI - MMR Sadguru Sky Heights

Nalasopara (W)

1, 2 & 3 BHK

Ekta Brooklyn Park

Virar (W)

1 & 2 BHK

Virar (W)

1, 2 & 3 BHK

Virar (W)

1 & 2 BHK

Arihant City

Bhiwandi

1 & 2 BHK

Neelkanth Shrushti

Kalyan (W)

1 & 2 BHK

Pramukh Paradise

Taloja

1 & 2 BHK

Ostwal Orchid

Mira Road East

1, 2 & 3 BHK

38 Park Majestique

Undri

1, 2 & 3 BHK

Siddhivinayak Vision City

Talegaon

1, 2 & 3 BHK

Tata La Montana

Talegaon

1, 2 & 3 BHK

Rohan Abhilasaha

Wagholi

1, 2 & 3 BHK

Gemini Grand Bay

Manjri

1 & 2 BHK

Wakad

1, 2 & 3 BHK

Hadapsar

1 & 2 BHK

Aggarwal Viva Vrindavan Township Bhoomi Acropolis

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₹30.37Lac ₹31.54 Lac ₹32.74Lac ₹33.05Lac ₹35.05Lac ₹38.64Lac ₹45.10Lac ₹48.00Lac

PUNE

Shroff Signature Heights Kumar Pebble Park

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₹26.50Lac ₹26.99Lac ₹27.75Lac ₹28.95Lac ₹36.11Lac ₹39.19Lac ₹40.10Lac PropTOQ | 39

COVER STORY

DELHI - NCR Signature The Serenas

Sector 36, Sohna

1 & 2 BHK

Signature The Millenia

Sector 37D, Gurugram

1 & 2 BHK

Supertech Upcountry

Yamuna Expressway

1, 2 & 3 BHK

Ajnara Le Garden

Noida Extension

2, 3 & 4 BHK

Gaur City

Noida Extension

2, 3 & 4 BHK

Silverglades The Melia

Sector 2, Sohna

1, 2, 3 & 4 BHK

Logix Blossom Greens

Sector 143, Noida

2, 3 & 4 BHK

Panchsheel Greens

Sector 16B, Greater Noida

2, 3 & 4 BHK

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₹19.41Lac ₹19.87Lac ₹22.18Lac ₹29.41Lac ₹33.10Lac ₹38.20Lac ₹33.50Lac ₹38.70 Lac

BENGALURU Brigade Orchards

Devanahalli

1, 2 & 3 BHK

Tata New Haven

Nelamangala

1, 2 & 3 BHK

SJR Parkway Homes

Hosa Road

1, 2 & 3 BHK

S2 Avantikaa Lifestyle

Sarjapur Road

2 & 3 BHK

Provident Sunworth

Mysore Road

2 & 3 BHK

Samruddhi Rhythm

Hennur Road

2 & 3 BHK

Ramky North One

Yelahanka

2 & 3 BHK

40 | PropTOQ

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₹35.17Lac ₹36.38Lac ₹37.83Lac ₹43.72Lac ₹47.51Lac ₹47.01Lac ₹48.15Lac

COVER STORY

KOLKATA Eden City

Maheshtala

2 & 3 BHK

Merlin Maximus

Sodepur

2 & 3 BHK

Behala

2 & 3 BHK

BT Road

2 & 3 BHK

Tollygunge

2 & 3 BHK

Srijan Greenfield City Godrej Prakriti Noble Pearl

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₹22.40Lac ₹30.02Lac ₹31.37 Lac ₹31.58Lac ₹39.74Lac

AHMEDABAD Sankalp Satyaa Square

Chandkheda

2 & 3 BHK

Elite Smart Homes

New Ranip

2 & 3 BHK

Nirman Rejoice

Jagatpur

2 & 3 BHK

Siddhi Aarohi Elysium

South Bopal

2 & 3 BHK

Aashray Arise

Shilaj

2 & 3 BHK

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₹32.15Lac ₹33.64Lac ₹34.44Lac ₹37.55Lac ₹38.55Lac

PropTOQ | 41

COVER STORY

TIME FOR SMART & EFFICIENT HOMES

Today when the millennial home buyers are placing greater emphasis on improving their lifestyle, affordable technologies have paved the way for smart and efficient homes to meet their lifestyle needs.

In 1923, SwissFrench architect Le Corbusier Ashish Puravankara ( 1 8 8 7 - 1 9 6 5 ) famously described a house as “a machine for living in”. Mocked for his ‘definition’ at the time, Corbusier soon became one of the pioneers in the field of modern architecture & urban planning and ultimately inspired architects around the world to provide better living conditions for residents of crowded cities.

In the last couple of decades, especially, the whole concept of housing has undergone revolutionary changes. Technology has successfully altered the dynamics of the housing industry and has been at the forefront of most of these changes. From demand & supply to service offerings to capital appreciation and beyond, technology has been highly influential in shaping the needs of people. Today, homebuyers place greater emphasis on improving their standard of living and simplifying their housing needs.

As a result, the concept of Smart Homes has become highly popular in recent times. While most of us are quite familiar with the term, it is interchangeably and indistinctly used with Home Automation. Not many are aware that there is a thin line of difference between home automation and smart home. So if you

42 | PropTOQ

are looking at upgrading your living space with modern technologies or acquiring a new home altogether, it becomes imperative to have a basic understanding of the functionality of both - home automation and smart home technology.

Smart home concept comprises of various technologies and features that are interconnected to one another by Internet of Things (IoT).

The devices in a smart home are ‘smart’, in the sense that they utilize microprocessors, software and sensors that run autonomously and are capable of performing multiple actions. The concept of a smart home allows all interconnected devices to communicate with each other.

An interesting facet of smart homes is the ability of the systems and devices to work in sync with each other and communicate with you, irrespective of whether you’re home or outside.

They share consumer usage data among themselves and perform actions based on the preferences of the home owners.

Home automation, on the other hand, is an enabler for a smart home.

It is like having a manager for your connected devices. It is essentially a centralised process connecting smart devices together and controlling them with a single controller, app or

an interface. With a fully automated home the functions of its devices are automatically adjusted according to personal preferences. In recent times, the affordability of home automation technologies and advent of IoT (Internet of Things) have enabled the development of wireless systems that can even be managed from halfway across the globe.

It is indeed fascinating that we have certain technologies at our disposal which can make our lives far more convenient than it currently is, while also giving us an opportunity to save our depleting natural resources. It’s time to get smarter and go smarter in your home.

In a larger context, smart homes/ automated homes have helped home owners fight some of the prevalent challenges faced by the world today.

Not only have these homes provided a greater sense of safety, security and wellness but they have an innate ability to contribute towards overall efficiency. The last is of appreciable significance given that our planet is in dire need of technologies that can help us minimize wastages as well as our carbon footprint.

The writer is Managing Director, Puravankara Limited

ARCHITECTURE & INTERIORS

RISING TREND OF SPECIAL FINISHES The increasing innovation in building materials and technology has seen the rise of special concrete and liquid metal finishes that are customizable and made to order.

Surface materials, in the olden days, were limited to paints, laminates, plywood, marble, tiles and stainless steel. Most interiors would be designed using different qualities and combinations of the above. While facades and interior walls were finished with either textured paint, fabrics or wallpapers, it was often difficult to find surface finish material for curved surfaces and furniture pieces.

just flat but also curved and threedimensional surfaces with ease. An increasing number of architects are using decorative concrete finishes for facades, compound walls and gates and even signages, while interior designers are designing furniture pieces, doors and side tables with these special finishes.

Owing to the colour and feel of concrete, decorative concrete finishes are easy to work with and a With the rise of innovation in the great choice for a large surface area building materials industry, there like exteriors of a villa. has been an introduction of new Decorative Concrete finishes can technologies that are aiding the be textured as per one’s liking and production of new forms of already needs. From granular to sandy, existing materials. These innovations marble to glossy, concrete can have led to the rise of special finishes. be designed to fit any project These are finishes that are produced aesthetics. Our decorative concrete using varied kinds of materials in finishes are applied in thin layers their organic form. These finishes ranging from 2mm to 5mm are usually customizable, made thickness and are pocket-friendly. to order and not retailed like their They are available in the form of Doabove counterparts. Evolve India It-Yourself material kits as well as manufactures two such finishes, ready to install panels that are quick Decorative Concrete finishes and and easy to apply to flat surfaces.

Liquid Metal Finishes.

Another range of our special Out of the above two, the more finishes is Liquid Metal finishes prominent one being Decorative which are manufactured using Concrete real metal. The technology used to finishes. These special finishes are manufacture these finishes is watermanufactured using real concrete based, making these finishes green and a combination of different and non-hazardous. Liquid metal additives that help make it fluid. finishes can be applied to any base These are different from paint, as substrate ranging from MDF, wood, they do not involve pigments or acrylic to fabrics, papers, fibre and solvents and have a low VOC. The more. With this technology, metal innovation of these finishes has led can be hand textured to create to the finish being applicable on not unseen designs as well as aged

Krishika Shah

to create patinas like Rust and Verdigris.

These finishes are great to bring out novelty in spaces like accent walls, public areas in hotels as well as powder areas in washrooms.

They can be added in as wall dĂŠcor pieces or used on a custom furniture piece. A great advantage of liquid metal finishes is that it retains the inherent properties of the metal used. Copper, brass, bronze and iron, all naturally oxidize over a span of time, on exposure to the sun. This process of oxidation brings about one of a kind abstract finish, which is difficult to replicate, thus producing a unique finish every time.

These new forms of finishes are sustainable, environment-friendly and certainly more flexible in terms of use. Ranging from walls, doors, furniture to artefacts, sculptures and wall art, special finishes can be used to create surface designs like never before. Special finishes are changing the way the world works with metal and concrete. With the rise of their usage, architects and interior designers now have a wide range of options to work with. One can literally say that the designers are now only limited by their imagination.

The writer is Co-Founder Evolve Interiors & Exteriors Solutions

PropTOQ | 43

ARCHITECTURE & INTERIORS

HYBRID & HARMONIOUS DESIGNS FOR GEN NEXT WORKSPACES Driven by changing workforce behavioural patterns, working environment has evolved tremendously. This is pretty evident with changing work policies, nature of work, workplace structure and interestingly, workspace designs. This presents a huge challenge for architects and designers to break the monotony without dismantling the company’s ethos.

Often, business leaders fail to understand the reciprocal relationship between workplace culture and office design.

For instance, people spend one-third of their day at their workplaces. Hence, cubicles are replaced with more modern and interactive workspaces.

The changing workspaces instigated by dynamic workforces and technological advancements are catalysing innovation, sustainability, collaboration, transparency, learning and engagement in an organization.

With the benefit of advancements in building solutions, adapting to the changing workplace landscape is not anymore an elusive task. For example; drywalls have brought in the component of flexibility in traditional spaces.

Additionally, it is established that drywalls are ecological in nature, and have higher safety aspect compared to a masonry wall. Hence, it indeed has a significant role to bring in the overall well-being and productivity. So be it ergonomics that is redefining the workplace interior culture or sustainability that is slowly gathering attention; the landscape of Indian offices is maturing.The new design ideas are changing the paradigm of office interior.

Spontaneous collaboration was exactly what open office culture earmarked.

However, now it is clouded with doubts whether it actually fosters collaboration, or rather has become a hindrance in employee productivity. The solution lies in hybrid offices that beautifully blend the culture of next-gen workspaces with temporary cubicles, sound-proof rooms, communal areas etc. Such office designs integrate a wide range of spaces and provide employees with the much needed flexibility that makes it more desirable. Now with innovation in building materials, creating such offices is not a distant dream. A good illustration of this would be drywall, wallboard or plasterboard that promotes sound control, versatility as well as scope for customization as per needs. Hence, it gives room for more collaborative efforts

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and brings in much more efficiency on the floor.

Asian countries like Singapore, China and Australia are ranked the highest in green office spaces complying with building construction codes and encouraging green building development. With an increasing awareness about sustainable development, ecological architecture has witnessed an immense push from demand point of view.

Changing human behaviour states that millennial and gen z will be the first generation to consider sustainable products in their daily lifestyle. Also, an observation stated that the current generation is considered to be an indoor generation, mostly surrounded by lack of vegetation and connection with the nature. Clearly, office designs will have to fill the gap to incorporate green designs in order to attract and engage employees, considering their physical well-being. As a result, living walls and biophilic designs are becoming prominent in contemporary office spaces. Similarly, besides the thought of bringing the outside inside with innovative green designs, sustainability has also progressed towards materials that support eco-friendly designs. The market today is well sufficient with alternative building solution however employing the same is a matter of choice.

For example, replacing standard bulbs with LEDs for electricity conservation, drywalls with its multifaceted properties adds to the flexibility, acoustics, easy installation and of course the recyclable features make it apt for green spaces.

Undoubtedly, healthy workers tend to be more productive and promote a much positive environment. Long working hours and inadequate work-life balance are proving to be a huge hindrance for employee wellness. Consequently, office designs will play a huge role to coax people in opting a much healthier lifestyle. Many offices have adopted staircases at various junctions where

Sudeep Kolte

employees can move around.

Installing sit-stand desks to improve productivity and many other ergonomic considerations have supported the concept of creating a healthy workplace.

Similarly, recuperative spaces such as meditation rooms, power nap room or even electronic-free room can provide employees with the much needed space they seek to clear their head.

A quirky fresh interior plays a significant role in motivating employees and spurring creativity. Multi-comfort along with aesthetics is given due attention as it increases employee engagement.

Breakout areas are essential as they break the monotony in the workstyle. Breakout areas can include cafeterias, recreational facilities like indoor games, a lounge area for informal meetings to bring a change in the mundane desk – chair surrounding.

For example, the modern day office designs like Google and Amazon who emphasize on investing in such spaces which include fun, quirky themes and interesting furniture. Visual, space and acoustical comforts, these factors play a colossal role in creating a harmonious ambience for an office space. The use of right construction materials to provide seamless work life, the right choice of colours etc. should be on the checklist while deciding office interiors. Floor Plans that include soundproof kiosks created with insulated plasterboards resembling the iconic London’s telephone booths add to the aesthetics and quirky element in offices.

The stated wave of change in office designs is led by many reasons; new gen professionals, advanced technologies or greater insight into the impact of such designs. As employees change their way of functioning, workspaces will have to cater to this change in order to break stagnancy and build a much more efficient workforce.

The writer is VP Sales & Marketing, Saint Gobain India Private LimitedGyproc Business

INTERNATIONAL ROUND UP

SINGAPORE , A BIG DRAW FOR INVESTORS IN TROUBLED

HONG KONG

Amidst fluid political situation, HNIs and family offices in Hong Kong are increasingly looking at overseas property purchases. And as trade friction and Brexit uncertainty takes a toll on the traditionally favoured destinations of U.S and the U.K, Singapore has emerged as the most favoured overseas destination for the Hong Kong investors.

According to Cushman & Wakefield's latest research report of H1 2019, Hong Kong Real Estate Investment Overseas (HKREIO) faced downwards pressure in H1 and global economic uncertainties. Compared to Q1, total HKREIO investment volume declined 21% QoQ to US $ 2.3 billion in Q2, marking the sixth consecutive quarterly contraction in terms of YoY growth.

Of late, Singapore has started to attract increased attention from Hong Kong investors and may increasingly be viewed as a comparatively safe haven, given the challenges some other global destinations are facing. Hong Kong investors deployed US$1.4 billion in Singapore commercial real estate, lured by the Republic’s stable political environment and relatively strong office rentals. Year to date, the value of transactions by Hong Kong investors in Singapore commercial real estate are higher at US$3 billion.

Key transactions include Hong Kong investor Gaw Capital Partners’ purchase of Robinson 77 for US$510 million (S$710 million) in February this year. Gaw Capital Partners also led a consortium including Allianz to buy DUO office and retail space for US$ 1.1 billion (S$1.58billion).

Another Hong Kong investor, Arch Capital Management completed the purchase of Anson House at US $151 million (S$ 210million) in August.

According to Christine Li, Head of Research, Singapore and Southeast Asia, some of these Hong Kong investors and funds have been active in Singapore for some time but the advent of the political situation in Hong Kong has coincided with more high-net-worth-individuals and family offices from Hong Kong enquiring on potential purchases. There is also an increasing interest in retail assets by Hong Kong investors with the recent acquisition of Chinatown Point Mall

by Pan Asia Realty Advisors, a joint venture between Mitsubishi Estate and Hong Kong-headquartered CLSA Capital, for S$520 million.

For Hong Kong investors in overseas markets, the office sector still remained the most attractive at a 68% share of overall investments by the sector in H1. The hotel sector saw increased interest, accounting for 8% of total investment by sector in H1.

Today, U.S and U.K follow Singapore as the most favourite global destinations for Hong Kong investors.

However, there is growing appetite for commercial real estate in other Asian markets such as India, Malaysia and Vietnam from Hong Kong investors. For the remainder of 2019, countries linked to the Belt & Road Initiative, as well as Australia are likely to see Mainland Chinese Real Estate Investment Overseas (MCREIO) interest.

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OFFICE REALTY

HOT NEW EMERGING NCR OFFICE DESTINATIONS

While Connaught Place (CP) retains its charm, areas like DLF Cyber City, Golf Course Road (GCR), Aerocity have emerged as new business districts, catering to the burgeoning IT/ITeS segment demand. Golf Course Extension (GCE) in Gurgaon is also emerging as a prominent office corridor in the region with huge supply pipeline slated to be completed in the next 3-4 years.

Connaught Place had been NCR’s Central Business District (CBD). It is still probably the CBD, but office space in CP is stagnated. The new business districts such as Cybercity, GCR, Aerocity and GCE are growing at a rapid pace, meeting an enormous demand for commercial office space.

Back in 1992, CP had 9.06 lakh sq.ft of commercial Grade A real estate stock.

Steady growth has happened over the years. Around 2.46 and 2.3 lakh sq.ft has been added in 2012 and 2014, respectively. The total Grade A stock at CP now stands at 2.6 million. But now, it is saturated. Hardly any new stock is coming up. Only a few new projects are expected to come in near future.

There is no scope for big development as there is no available land. There is only scope for upgradation and redevelopment.

When we look at the new business districts of Cyber City, GCR, Aerocity

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and GCE Road, we find the growth in office stock in these areas has been tremendous.

humongous growth and single-digit vacancy, DLF Cyber City could well be called the CBD of Gurgaon.

IT/ITeS companies have been the main growth drivers in the commercial office space. The segment has driven 40-50% transactions in the top seven cities. Similar is the case of DelhiNCR. IT/ITeS prefer large buildings and large floor plates. The stock in these emerging business districts has grown to meet this demand.

GCR has a similar story. In 2002, it had less than 2.5 lakh sq.ft. Today we are talking about almost 8.6 msf. All this stock has been added between 2002 and 2017, after which there was hardly any new stock addition.

A few things have worked in favour of Gurgaon. One is the relatively lower rentals. metro connectivity, its proximity to the airport and a large residential catchment area have made it significant. Grade A supply office space has complemented the trend.

According to our data, back in 1999, Cybercity had just over 1 lakh sq.ft of Grade A commercial space. Today it boasts of almost 13.2 msf With such a

GCE Road has also witnessed tremendous growth in office space supply. From 2.15 lakh sq.ft in 2009, today the stock of office space stands at a whopping 7.88 msf.

Aerocity, a relatively new phenomenon, had 1.12 lakh sq.ft of space six years ago.

Today it stands at 1.77 msf.

These numbers indicate that there has been a shift as far as Grade A office space is concerned. Though CP still holds a place of pride as CBD because

OFFICE REALTY There has been a clear movement in occupier preference, resulting in rental growth across these micro-markets. In the last six years, rentals in CP have tapered down slightly. From 230-255 INR/ sq.ft/month in 2013, the rentals have come down to 225-240 INR/ sq.ft/month in 2019. However, rent in this bracket is still out of bound for IT/ITeS segment. Rentals in the emerging business districts have gone up correspondingly.

In 2013 rentals at Cyber City stood at 75-78 INR/sq.ft/month. Now it has gone up to 115-118 INR/sq.ft/ month. If we look at GCR, rentals have gone up from 86-87 INR/sq. ft/month in 2013 to 90-100 INR/ sq.ft/month now. Aerocity is an emerging destination, but even it has seen a rental growth from 178-184 INR/sq.ft/month in 2013, to 190-200 at present. Rental is still the highest in CP, followed

by Aerocity, Cybercity, GCR and finally GCE. There is a co-relation among demand, office space supply, affordability and rent.

Even core IT/ITeS cannot afford rentals that are around 200 INR/ sq.ft/month or more. Their rental affordability is in the range of 90100 INR/sq.ft/month plus-minus 10%. So core IT space has moved to Cyber City and NH 8. Next is back-end office space for IT/ITeS and banking for which there is a huge demand. That is gradually moving to GCE Road as rentals in the range of 55-65 INR/sq.ft/ month suits them. The capacity at 7.88 msf complements the demand.

When it comes to corporate occupiers, national and regional headquarters, CP still leads.

While it has its status value, its positioning and strategic location at the heart of the city along with connectivity makes it important.

But there is no further scope for growth. Hence, corporate occupiers, big banks, insurance companies, manufacturing, management consulting, telecommunication, co-working operators are preferring Aerocity and moving there. Here, the rentals across offices are hovering around 200 INR/sq.ft/month and have a very low vacancy rate.

Demand driven growth escalation is evident in new business districts. Over the years, the developers have also understood the market and have added quality commercial spaces to these emerging locations.

Samantak Das

Chief Economist and Head of Research & REIS, JLL India

PropTOQ | 47

FACE TO FACE

Sanjay Dutt

DESPITE FACING HEADWIND, REAL ESTATE OFFERS LOT OF OPPORTUNITY

- Vinod Behl

Sanjay Dutt, Managing Director & CEO of Tata Realty & Infrastructure Limited and Chairman of FICCI Real Estate Committee is an industry leader who with his vast and varied experience, knows the pulse of real estate. In this candid interview, he talks about the crisis gripping the sector and the opportunities that lie ahead amidst consolidation.

He also bares his company's plans to revamp both residential and commercial segments in order to emerge as a formidable all-round developer. Excerpts.

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FACE TO FACE According to you, how serious is the current crisis in real estate and how long will the pain last?

It is serious but more importantly transformational for the real estate sector & its stake holders. For fair analysis, we need to look back to 2005 when major developers were ambitious to become pan India/multi regional players and wanted to get their hands dirty in every RE segment including office, hotel, shopping centers, spreading themselves too thin.

They were active in B2B & B2C. Few of course went to London, Dubai & Malaysia etc. Then the developers wanted to do IPO’S, AIM's Listing, few took entity level investments from PE/Funds and most in SPV’S. major players stuck to debt leaving the PE play, except for few, very young developers who needed capital and were hungry for growth. Speculators in real estate were at their peak. Rise of the retail investors was all time high. Debt was at its peak with equity kind returns. Investment in core assets increased substantially due to low development and marketing risks.

After a splendid period of growth between 2005-2008, the correction in 2009 was short lived and most came back to home markets to reclaim their share of market from the new entrants in their respective markets. They did that by borrowing expensive capital for land from NBFC’s who were more than pleased to continue with equity kind of debt structures like PE. This was the beginning of the end for many.Some bold ones kept dancing for growth while the music had actually stopped. The residential sector became more attractive from cash flow point of view and commercial had still not recovered from excessive inventory and remained static in terms of rental growth.

Commercial development was left to few who had access to cheap capital, corporate relationships, had the holding capacity and later went on to benefit the most as a result in rent and yield compression, giving them handsome returns and exit values. REIT listings in 2020 is likely to witness entry of more organized players. Few developers remained solvent only because of this.

The crisis became serious

primarily from residential and over-leveraged developers’ perspective.These were quite a lot and for those who danced longer than the music lasted. The rest of the real estate segment - office, retail, warehousing and hotels are growing, doing well and the developers/investors who have scale in these projects are benefiting the most.

The sentiments got affected due to liquidity crisis largely because of excessive inventory, NBFC situation, impact of GST, RERA and the recently awarded relief to the buyers under IBC, which now allows customers to take the matter to NCLT. Lot of home buyers were strictly investors, who because of price corrections are upset. As a result, whenever the developer has not delivered the project or met committed obligations ,it is resulting in customers angst.

However, some customers who had no reason to complain did take advantage of the situation to undo the erosion of capital value of homes they purchased, which now seems unjustified premiums from their perspective. This situation has added to the problem through cancellation/delayed payments & litigations. It is now quite a fashion.

What according to you, is the recipe for revival?

The recipe of revival lies only in the revival of the economy and responsible participation by all the stake holders of the real estate sector including customers & RERA authorities.

Developers who would be around with cash flow in 2020, would have demonstrated the fact that they have disciplined the organization and are course corrected. The institutional investors are keen to particulate.

Debt is the darling, but equity is available increasingly, wherever one sees realistic returns. The banks, NBFC’s & investors should embrace consolidation and take hair cut if needed, to let the incoming developer have some realistic returns.

The good news is that customer is the King and now is perhaps the best time for home buyers to purchase. It is also good time for real estate in general including corporates, developers and institutional investors. I believe, by the time we are into 2020, we would be discussing the upside we are beginning to notice.

The demand drivers of Real Estate remain strong. we need to ensure that the economy remains at current 5-6% growth rate.

PropTOQ | 49

FACE TO FACE

Our residential sales have grown by 40% last year and this year, we are aiming to increase it by another 40 % What is your advice to the developers?

Firstly, never assume that one has become wiser after going through the correction in the markets because markets at every stage of life, have a different challenge waiting for you.

Secondly, follow financial discipline.

Thirdly, finding out why developers still follow the herd mentality. I am saying this to avoid this question three years from now when developers may lead to excessive office inventory or vacancy. Lastly, alternative asset classes could be main streams in the times to come and developers need to explore student housing, senior living, co-living, perhaps mix of all and develop 'proprietary expertise.'

Where do you see the sector heading in terms of demand, supply, sales, new launches, property prices.

Do you see opportunity in adversity, with many domestic and foreign players shopping for the stressed assets?

The demand drivers of real estate remain strong. We need to ensure that economy remains at current 5-6 % growth. Overall, the vacancies and inventories are declining and, in many markets, values have already shown signs of upward trend as the number of launches have reduced and consolidation in the sector will leave the best making most of the market.

While there is a lot of headwind in the market, there is also an opportunity because the industry is in a shakeout mode, especially the residential developers. I hear about distressed funds between 500 mn USD to potentially 1 billion USD. Will the current regulated environment favor big corporate players with financial muscle

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Tata Capitol Heights, Nagpur

like Tata Group, with smaller players at disadvantage.

How do you see real estate landscape shaping up after consolidation and what kind of challenges and opportunities will through up?

There is certainly an opportunity for credible developers to seize the consolidation opportunity in the market and grow their market share.

However, I believe the corporate culture is not confined to large Corporates/developers only. Even small developers can become corporate and compete with large developers.

You need financial and organizational discipline, focus, efficient operations and customer centric approach to be successful. I believe the real estate business is local and small developers have the depth and the better feel of the market, which they can exploit.

As far as emerging real estate landscape is concerned, we will see more REIT listings and more reforms by the government to revive the economy and the sector.

E- Commerce growth will fuel logistics.

Consolidation will throw up newer growth alternatives.

FACE TO FACE

Even small developers can become corporate and compete with big developers.

All that they need is financial and organizational discipline, focus, efficiency and customercentric approach.

What new trends do you foresee in the real estate sector. How do you see the potential of emerging asset classes like CoLiving, CoWorking, REITs , Warehousing etc?

Commercial real estate in India is witnessing disruptive trends over past few years. Workplace as a Service (WaaS) is an emerging concept in commercial office space that combines elements of sharing, flexibility, access, amenities, and collaboration. India has seen a rapid growth in co-working space within the last couple of years, and this is an area that will certainly grow in the coming years too. Likewise co-living potentially may expand besides student housing and senior living. You would see far more organized players entering than ever before. Finally, the use of new technologies, pre-cast, artificial intelligence and digitization would impact the real estate sector.

the process of building a pipeline of additional 12-13 msf through commercial projects under evaluation for acquisition.

We would take our commercial portfolio to over 40-45 msf by 2027, besides the combination of residential and retail in 6-7 key cities of India.

In the current troubled times, how do you look at the performance of Tata Realty both in residential (affordable and luxury housing) front. Going forward, what are your short term and long term business plans. Do you intend getting into newer regions and newer asset classes?

We are aligned to the market and the management. Our residential sales have grown by 40% last year and this year we are aiming to increase it by another 40 % as we continue to execute 15 projects with 12.5 msf. in residential and over 12 msf across 3 projects in the commercial segment.

We are very fortunate to have strategic investors with us who are equally keen to grow with us.

In our commercial and residential segments, we have delivered 33-34 msf and have the potential of 37 million set sq.ft. We are also in

PropTOQ | 51

CORPORATE LADDER

NEW COO FOR KATERRA Katerra, a construction technology startup has appointed Paal Kibsgaard as its chief operating officer. Kibsgaard was previously the chairman and CEO of Schlumberger Limited and served on Katerra’s Board of Directors for three years.

He will report to Katerra’s Co-Founder and CEO, Michael Marks.

Paal Kibsgaard Chief Operating Officer, Katerra

In his new role, Kibsgaard is responsible for Katerra’s U.S. operations, including architecture, engineering, manufacturing, and construction.

He will drive alignment across these groups to ensure operational excellence as Katerra delivers a growing number of projects in the U.S. and expands its advanced manufacturing footprint. He will also be responsible for additional international expansion beyond the company’s current footprint in the U.S., the Middle East, and India. Lastly, he will oversee the development of new construction technologies.

Gaurav Ajmera is new COO India & South Asia for OYO Hospitality firm OYO has appointed Gaurav Ajmera as the chief operating officer for India and South Asia. With over a decade of rich Gaurav Ajmera experience, Gaurav will play a key role in growing OYO's business in South Asia, reporting directly to company's CEO for India & South Asia, Aditya Ghosh.

NRE AGM for Realistic Realtors

Arun Kadian AGM, Realistic Realtors

Realistic Realtors, leading commercial real estate advisory firm of NCR, has appointed Arun Kadian as Assistant General Manager (AGM).

Arun has been working in the field of Infrastructure, administration and facility management. He brings with him a rich experience of nearly 19 years.

Earlier, he worked as Regional Manager in Exide Life Insurance, Regional Head - North with Kerala Holiday Mart, Senior Manager with Muthoot Fincorp Ltd. (Infra & Admin), and Regional Admin Manager with Bharti AXA Life Insurance.

He will be responsible for handling corporate leasing under N.E.W team and will help in expanding firm’s reach to Tier 2 and Tier 3.

52 | PropTOQ

KP Singh Quits as DLF Wholetime Director DLF patriarch KP Singh has stepped down as whole-time director. DLF board has accepted his resignation but on board's request , Singh KP Singh has agreed to continue as non-executive director designated as chairman. Earlier DLF in its July 30 board meeting had reappointed Singh as whole time director for a period of five years w.e.f from October 1, 2018.

Ajay Munot Named New CEO of Emaar India Dubai based Emaar Properties has appointed Ajay Munot as its chief executive officer for its India business, replacing Prashant Gupta who had put Ajay Munot in his papers. Prior to his new appointment, Munot was the CEO of Adani Realty.

NBCC Appoints BK Sokhey as Director Finance BK Sokhey has been named as director finance of public sector construction companyNational Building Construction Company (NBCC).

BK Sokhey With more than 30 years of experience in accounts and finance , Sokhey had joined NBCC in 1990 as Accounts Officer.

Dr. Ananta Singh Raghuvanshi is Senior ED, Experion Developers Dr. Ananta Singh Raghuvanshi has joined as the Senior Executive Director of Experion Developers, a 100% FDI funded real estate developer. Prior to this , Raghuvanshi, a celebrated corporate leader in real estate and a TEDx speaker, handled challenging national and international assignments such as Executive Director, DLF, Chief Executive Emaar MGF, Senior Director (India & Nepal), Damac.

FINTECH

VALTECH BOOST TO MORTGAGE LENDING FOR PROPERTY In the age of Fintech, PropTech and RegTech, it’s important to recognize the crucial need for ValTech to make innovation and transformation truly possible when it comes to mortgage lending for property and banks.

For every bank in the world has to validate the value of a property and its risks prior to lending, and until very recently, this was a very manual and inefficient process, without any innovative cloud based technology. Valocity has changed all that.

In Australiasia, where banks are renowned as some of the best regulatory compliant and innovative in the world, Valocity has transformed the valuation and lending process to enable a faster more seamless transaction and now following this success, it is imminently launching it in the Indian and Asean markets. Prior to Valocity, the valuation process was either entirely manual with no workflow, or a simple pipe from lender to valuer to lender. Valocity’s cloud based modular platform, technology and data are able to completely transform this process.

For anyone dealing with data and valuations in India, it can be recognized there is no quick fix. It is only through a unique combination of geospatial analytics, customizable work flows and real time data capture that is then analysed and benchmarked that Valocity is able to deliver increased regulatory compliance, parallel with a more relevant and seamless customer experience.

Thus enabling and powering digital lenders to approve loans faster with reduced risk.

Regulatory compliance and the need for global best practice standards is continuing to increase, adding friction to an already complicated lending transaction

– mortgage. At the same time, customer expectations are higher than ever, and as digital humans, we seek out a seamless and relevant transaction. Delivering on this growing increased friction is only possible through technology platforms and data.

Using random allocation rules, digitally onboarding valuers, and doing real time scoring and benchmarking of outcomes with SLA’s, enables banks to leverage data to make data driven decisions at crucial moments when lending.

The increased change in the mortgage landscape means it is simply not viable for individual lenders to build ecosystem platforms, nor to expect valuation firms to be able to invest in the fast changing landscape of increased changeable data and technology.

Best practice demands Valuers and their firms use a secure platform to protect private home owner details of the property they are inspecting, as well as any applicant contact details. This is only possible by way of providing them with an industry platform that delivers data security and data capture within it, such as Valocity. The changing technology landscape against banks legacy systems, means the fastest and most future proof way to execute is to partner – with niche industry experts, who have invested in the technology to be scalable, modular and agile and seamlessly connect for a rapid adoption, while remaining technology first – to continue to innovate and leverage technology advancements in a way that banks just simply can't.

Valocity has experienced growth and success through it’s bank grade technology which was built in collaboration with lenders and valuers, to solve a global problem better than ever before.

In today’s rapidly changing world of everything digital, it is crucial to leverage the technology and data available across all of the ecosystem and for true innovation, to connect the entire ecosystem of property, valuers and lenders, all uniquely in one smart platform.

Valocity is excited to bring ValTech to India to transform the valuation process, deliver standardization, innovation and efficiency, and through technology, to truly make the complicated process simple.

Carmen Vicelich

The writer is Founder & CEO, Valocity

PropTOQ | 53

DESTINATION REPORT

Thane, Mumbai

THE NEXT BOOMING METROPOLIS From an industrial hub to a happening IT destination and a residential hotspot, Thane, over the years, has witnessed significant growth in infrastructure to emerge as one of the fastest growing realty markets in Mumbai-MMR.

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The emergence of Thane as a selfsustaining city in Mumbai Metropolitan Region (MMR) has attracted lakh of people, making it their home.

In the past two decades the city has witnessed tremendous growth in terms of infrastructure development and transformation from being an industrial hub and a haven of low rise buildings to a

- Nivriti Raj

high rise hub. Vibrant cosmopolitan city Thane enjoys excellent connectivity to Navi Mumbai as well as to Eastern and Western Suburbs of Mumbai via Ghodbunder Road, Jogeshwari - Vikhroli Link Road (JVLR), Santacruz - Chembur Link Road (SCLR), Eastern Freeway, NH 8, Mumbai - Nashik Highway and Thane Belapur Road.

DESTINATION REPORT Recent real estate reports have acknowledged that Thane realty market is faring better than Mumbai in sales and even property prices have not seen any significant downturn, while prices dipped in some areas of Mumbai. Thane is one of the fastest growing realty markets in MumbaiMMR and the property market here will get a huge impetus

with a major connectivity announcement of the Thane Metro project. Thane has emerged as the ace performer followed by Navi Mumbai and Mumbai.

Thane is blessed with various industrial belts, but the gradual shift from manufacturing to tertiary sector and evolution of IT sector has attracted people from many cities and spurred

it as a residential hotspot in MMR. There are many national and regional realty developers who have their residential projects in Thane, such as Hiranandani Group, Lodha Developers, Raheja Developers, Dosti Group, Runwal Group, Cosmos Group, Kalpataru Group, Puranik Builders, and Tata Housing etc.

Thane Market Snapshot Parameter

Q4 17-18

Q1 18-19

Q2 18-19

Q3 18-19

Q4 18-19

Q1 19-20

Q-o-Q Change

Launches (units)

550

592

1,122

5,050

2,943

1,667

-43%

Sales (units)

2,176

1,616

1,801

1,683

2,016

2,280

13%

Price (weighted average)

9,936

9,867

9,900

9,879

9,932

9,696

-2%

Unsold inventory (units)

28,205

27,928

27,374

28,124

22,931

31,504

5%

Months inventory

39

52

46

50

45

41

-9% Source: PropTOQ Datalab

The realty market of Thane Q1 2019-20 on a quarterly during Q1 2019-20 (Q-o-Q). The is encouraging, many new basis. The significant dip in price cuts were more evident residential projects are being new launches during Q1 2019- in the Thane realty market and developed across various 20 has been recorded due to this aided the sales growth. micro-markets of the city. It is a dream destination for home PROJECTS AT A GLANCE buyers with around Project Name Developer Name Location BSP (â‚š/sq.ft) 220 residential projects available in 8,873 Lodha Amara Lodha Group Kolshet Road all budget ranges Northern Lights Shapoorji Pallonji Pokhran Road 2 11,287 (affordable, mid and luxury segments).

Grand Central Puranik Builders Vartak Nagar 9,313 The Thane Piramal Vaikunth Piramal Realty residential market has always been a Raymond Realty Ten X Habitat buyer’s market, well Kalpataru Starlight Kalpataru Group supported with a fall in weighted average price of 2% during Q1 2019-20 (Q-o-Q). The new change in policies like GST, launch supply of residential ban on new constructionand elections.

Thane units in Thane has seen a general registered 13% growth in sales massive decline by 43% during

Majiwada

9,664

Naupada

9,914

Kolshet Road

8,796

On the back of fewer new launches in Q1 2019-20 and a surge in sales of housing units, reduced inventory overhang to

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DESTINATION REPORT 41 months improved by 9% in the same period. Nearly 71,100 units were added in Thane during the past 7 years, of which 55% are already absorbed. In particular, there was an overall absorption of 10%, demonstrating an upbeat market sentiment even in the backdrop of structural changes and policy reforms.

Unit Types Analysis

54.6%

31.4%

New launch units during Q3 2018-19 recorded maximum growth in the past six quarters because during this period, the Maharashtra State Cabinet had officially cleared the proposal for setting up a metro line of 29 kilometers for Thane. This infrastructure announcement gave huge impetus to Thane realty market.

Ghodbunder Road area, which is a coveted hub for both budget homes and luxury properties.

Thane realty market is segregated into two regions, Thane East which is an affordable residential market and Thane West which covers

In the last one year, despite slowdown Thane property market performed better in terms of unit sales as compared to other realty markets of MMR.

12.1%

1.9%

1 BHK 2 BHK 3 BHK OTHERS

Most of the properties (54.6%) sold in this realty market are in 2 BHK configuration followed by 1 BHK unit sizes. It is the affordability and availability of spacious homes that brings home buyers to Thane. Unit sizes in Thane market are more spacious than other markets like Mumbai and Navi Mumbai.

2 BHK units are available in the size range of 650 – 1385 sq.ft and 1 BHK configuration in the size range of 380 – 1054 sq.ft.

Wagle Estate and Ghodbunder Road currently have several business complexes with a presence of both domestic and global occupiers. Most of the performing realty micromarkets are lying around Ghodbunder Road such as Kolshet Road, Majiwada and Manpada which have witnessed optimum traction in terms of sale and launches.

Budget Wise Breakup Supply and Absorption 46.7% 50% 25.5% 24.5%

15.5%

8.1% 7.40%

16% < 60 Lac

2% 60 Lac - 1 Cr Annual Sales (%)

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4.2%

1 Cr - 1.5 Cr

1.5 Cr - 2.5 Cr

Total Supply (%)

> 2.5 Cr

Source: PropTOQ Datalabs

DESTINATION REPORT Thane realty market is the hub of mid-segment properties with 46.7% falling in the budget range of Rs.60 lakh – Rs.1 crore, followed by units in the price range of Rs.1 crore – Rs.1.5 crore (25.5%) and properties below Rs.60 lakh (15.5%) respectively.

Ghodbunder Road and Majiwada are the biggest contributors to the midsegment supply (units priced between Rs.60 lakh – Rs.1 crore) and Kolshet Road offers mostly big ticket size properties in the budget range of Rs.1.5 crore – Rs.2.5 crore.

Absorption of home units in the last four quarters saw maximum traction in the ticket size of Rs.60 lakh - Rs.1 crore followed by properties priced between Rs.1 crore - Rs.1.5 crore and properties priced less than Rs.60 lakh.

Thane West realty market in the last few quarters witnessed

thriving commercial transactions which further gave buying boost to the market. Corporate giants like Maersk, Cipla and Godrej Group moved their operations and increased their office space in Thane region in the last one year. Excellent connectivity, nod to Thane metro line, and commercial activities lifted the market sentiment.

During Q1 2019-20, the unsold inventory in Thane realty market registered a minor surge of 5% over Q4 2018-19.

The primary market of Thane is end-user driven having greater focus on affordable properties with weighted average prices recording downward trend.

Weighted average prices are pegged at Rs.9,696 per sq.ft in Q1 2019-20, registering decline of 2% on a quarterly basis.

In order to cut down unsold inventory many developers reduced basic selling prices of

properties. Currently, Thane realty market has an inventory of around 31,504 units & hence developers are coming up with attractive offers to reduce unsold inventory.

Thane’s rental market seems to be equally competitive than new property purchase in the same period. Rental yield of 2.73% in Thane West outperformed Thane East at 2.51% in Q1 2019-20 on a quarterly basis. Renting a property in Thane in some of the micro-markets such as Majiwada, Ghodbunder Road and Vartak Nagar is more lucrative as compared to capital gains on new property purchase. Majiwada provides superior rental yields at 2.9% compared to all other micromarkets in Thane.

Residential and commercial properties are sprouting all

Unsold Inventory and Price Trend 35,000

10,000 9,950

30,000 9,900 25,000

9,850 9,800

20,000

15,000

9,700 9,650

10,000

9,600 5,000 9,550 0,000

Time

Q4 16-17

Q1 17-18 Q2 17-18

Q3 17-18

Q4 17-18

Q1 18-19

Unsold Inventory (Units)

Q2 18-19

Q3 18-19

Q4 18-19

Wt Avg Price

Q1 19-20

9,500

Source: PropTOQ Datalabs

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Rs. per sq.ft

Unsold Units

9,750

DESTINATION REPORT

Rental Outlook

over Thane area, aided by excellent connectivity, social and physical infrastructure attracting thousands of people. Annual absorption rates of residential spaces are in the range of 7.5 – 8.2 million sq.ft. Owing to a high-volume job market for IT/ ITeS, BPO and manufacturing industry, homes in adjoining areas of Ghodbunder Road, Kolshet Road and Kalwa micromarkets are very much in demand for renting out. It is expected that rental yield will see a significant upward trend in the coming months.

Thane residential market recorded slump of 2% in weighted average price during Q1 2019-20 and rental yield of 2.73%.

3.0% 2.9%

₹ Per Sq. Ft.

2.8% 2.7% 2.6% 2.5% 2.4% 2.3% 2.2%

Ghodbunder Road

Kolshet Road

Investment Outlook Micro-market Prices

16,000

10,245

11,943

11,394

11,714

14,949

Ghodbunder Road

Kolshet Road

Majiwada

Vartak Nagar

Naupada

14,000

₹ Per Sq. Ft.

12,000 10,000 8,000 6,000 4,000 2,000 0,000

to move in options in Thane which can be rented out if not meant for self-use.

Micro-markets like Ghodbunder Road, Kolshet Road and Naupada have well developed social and physical infrastructure, most of the commercial developments are around these micro-markets and

Majiwada

Vartak Nagar

There are about 220 residential projects in different stages of construction, out of which 31,504 units are available in the primary market of Thane.

Residential properties are available in the price range of Rs.6,510/ sq.ft – Rs.16,528/sq.ft at weighted average price of Rs.9,696/ sq.ft spanning mid segment to premium offerings.

Rental yields are infact on the upswing, hence it makes sense for buyers to look at ready

proximity to Mumbai suburbs offers an excellent opportunity to home buyers and investors. Properties available in Ghodbunder Road at Rs.10,245/sq.ft are more affordable than other micro-markets such as Vartak Nagar, Naupada, Majiwada and Kolshet Road.

PropTOQ View PropTOQ has an affirmative outlook in general towards Thane realty market. Thane as a hub of residential and commercial properties is a buyer’s market well supported by price correction, 58 | PropTOQ

improved sales volume, rapid infrastructure developments and GST rationalization.

Recent liquidity infusion by central government will have a further positive impact on Thane real estate market that

scores high with vibrant social infrastructure and overall liveability of 8.2 out of 10.

PropTOQ forecasts an upward movement of 3-4 percent in prices in the next three quarters.

Real Estate Fact File Residential Commercial

Retail Size of Family Entertainment Centres market

Share of co-working in total office leasing

05% 08% H1 2017

H1 2018

15% H1 2019

Certified buildings in 2019

Co-Living market Opportunity by 2023

mn sq. ft.

Data centre industry in India to double by 2021-22 to

Source: JLL

83

bn

Capital Markets Dedicated investment platform funds

₹ 13 bn in 2012

₹ 10 trillion in 2018 Expected to grow at

13%

41 28 Projects

REAL ESTATE IN NUMBERS

CAGR

from 2019-2021

₹173

bn

in 2017

Investments witness a record flow

₹1,400 bn from 2014-18

REITworthy Assets mn sq. ft.

294 Potential investment

₹2,400

bn

REGULATION

SEBI TO EASE NORMS FOR SMART CITIES TO ISSUE MUNICIPAL BONDS

Capital market regulator SEBI is planning to ease its norms for municipal bonds to help smart cities and other registered entities working in areas of city planning and urban development work, like municipalities, raise funds through issuance and listing of their debt securities.

The Securities and Exchange Board of India (SEBI) had issued its Issue and Listing of Debt Securities by Municipalities (ILDM) Regulations nearly five years ago and since then seven municipalities have raised nearly Rs1,400 crore by issuing their debt securities, which are commonly known as municipal bonds.

After representations from the industry and market participants for amending its ILDM Regulations to expand this market segment, SEBI had initiated a public consultation process in June proposing certain amendments to these norms. After taking into account the feedback, the regulator has now decided to amend the regulations to provide a greater flexibility in fund raising and for strengthening the investor protection.

Under the current regulations, this fund-raising route is only available to the issuers defined as a municipality under the relevant articles of the Constitution of India or the corporate

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municipal entities set up as a subsidiary of a municipality for the purpose of raising funds for a specific municipality or a group of those. SEBI is now proposing to allow issuance of municipal bonds also by other entities such as entities or bodies like urban development authorities and city planning agencies that perform functions similar to a municipality such as planning and execution of urban development projects.

Besides, SEBI also plans to allow this route for other structures where a group of municipalities pool their resources together to jointly raise funds through issuance of bonds.

These structures are generally known as Pooled Finance Development Funds. In addition, the regulations would also be amended to allow fund-raising through municipal bonds by special purpose vehicles set up by the state government or union territory and the urban local body of the area for implementing the smart city projects.

The regulator is now proposing that any entity incorporated under the Companies Act, or any statutory body or board, authority, trust or agency established nor notified by an Act of Parliament or an Act of the State Legislature or any SPC notified by the state or central government or any structure set by a state government under the Pooled Finance Development Fund would be eligible to issue municipal bonds, provided they undertake one or more functions of a municipality.

The existing regulations allow issuance of only revenue bonds with a minimum tenure of three years and maximum five years, if it is a public issue. This clause has been proposed to be dropped. In case of private placement, the minimum subscription amount per investor is currently Rs 25 lakh, which is being proposed to be reduced to Rs 10 lakh to align it with the regulations for corporate bonds.

REGULATION

RERA CAN GRANT INTEREST ON DELAY IN POSSESSION Settling the question of law over the jurisdiction of the Real Estate Regulatory Authority (RERA) vis-à-vis the adjudicating officer, the Haryana Real Estate Appellate Tribunal (HREAT) has ruled that RERA can award interest in case of delay in possession of a dwelling unit.

Dismissing 95 applications of builders, the tribunal has ruled that RERA is competent to deal with the complaints where the claim is only for grant of interest simply due to delay in delivery of possession and there is prima facie no express or implied prohibition to the Authority (RERA) to entertain such matters.

The builders had moved the HREAT for waiving the condition of pre-deposit, which is at least 30 per cent of total penalty, mandatory for an appeal required to be heard. They contended that it was only the adjudicating officer and not the authority (RERA) who could entertain and adjudicate upon the complaints wherein the relief for refund, compensation along with interest or even the interest for delayed possession was claimed. In some of the appeals, the builders had also submitted that they would face undue hardships as they were facing a financial crunch.

On the jurisdiction of RERA, the order said, “There cannot be two separate forums, i.e., one for regulating the development of real estate projects and another forum to award interest for delayed possession, as both these aspects are closely interlinked and interwoven.” The HREAT clarified that the adjudicating officer can only intervene in cases where the claim was for refund and compensation along with interest.

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RERA IMPLEMENTATION TRACKER REGULATION

General Rules Notified

Web Portal Setup

AHMEDABAD

General Rules Notified

Web Portal Setup

DELHI

General Rules Notified

Web Portal Setup

CHANDIGARH

General Rules Notified

Web Portal Setup

HYDERABAD

General Rules Notified

Web Portal Setup

MUMBAI

General Rules Notified

Web Portal Setup

KOLKATA*

General Rules Notified

Web Portal Setup

BENGALURU

General Rules Notified

Web Portal Setup

CHENNAI

General Rules Notified

Web Portal Setup

INDORE

General Rules Notified

Web Portal Setup

NOIDA

General Rules Notified

Web Portal Setup

BHUBANESHWAR

General Rules Notified

Web Portal Setup

GOA

General Rules Notified

Web Portal Setup

KOCHI

General Rules Notified

Web Portal Setup

PUNE

Note* West Bengal has enacted its own Act namely ‘West Bengal Housing Industry Regulation Act, 2017’ however, state has been advised by MoHUA to notify the rules under Real Estate (Regulation & Development) Act, 2016.

REGULATION

RULES RELAXED FOR PROJECTS CLEARANCE NEAR BUFFER ZONE The office memorandum of August 8, 2019, published on the environment ministry website, mentioned that projects outside the boundary of the notified Eco-Sensitive Zone (ESZ) of a sanctuary or national park but within 10 km radius of the park will not need prior clearance from the National Board for Wildlife (NBWL).

Such proposals will now get environmental clearance from the ministry’s Expert Appraisal Committee (EAC), which will ensure “appropriate conservation measures in the form of recommendations".

Projects located within the notified ESZ will require the NBWL's nod, which can be applied for together with the initial “terms of reference” application.

Mining will be prohibited within the notified ESZ or within only one km from the boundary of the park, whichever is higher. However, in many states, protected areas do not have an ESZ of 10 km as specified by the Supreme Court. Some have a buffer zone of a few hundred metres to one-km radius, while other states still have not notified an ESZ. In cases where the ESZ notification is in the draft stage, a nod from NBWL is needed and can be applied for along with environmental clearance.

GMDA ISSUES NOTICES TO 366 HOUSING SOCIETIES The Gurugram Metropolitan Development Authority (GMDA) has issued notices to 366 residential societies in the city to install sewage treatment plants (STPs) immediately lest they will lose sewerage connections.

The move comes in the wake of the National Green Tribunal (NGT) criticism of the city for polluting the Yamuna.

The notices, according to GMDA, have been served on private developers who had given an undertaking to install sewage treatment plants while seeking a construction licence from the Town and Country Planning Department.

Most of them did not honour their undertakings even a decade after completing construction works and have been directly discharging sewage into drains including the Najafgarh drain. It was in April this year that an NGT-appointed principal monitoring committee reviewed the GMDA’s performance and expressed concern over the agency’s failure to check sewage discharge into the Yamuna through the Najafgarh drain.

The GMDA has provided an option to all builders to either get their own STPs built or take proper sewerage connections from it and pay charges.

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LAW

JAYPEE INFRA RESOLUTION EXTENDED The lenders had sought a 260day extension for the Corporate Insolvency Resolution Process (CIRP).

A two-judge Bench headed

by SJ Mukhopadhaya, NCLAT Chairperson, scrapped all the previous bids for the firm.

Fresh bids are to be filed now.

The appellate tribunal also pronounced that Jaiprakash Associates Ltd, the holding company of Jaypee Infratech, cannot participate in the fresh bids. The Adani Group had also submitted a bid earlier and NCLAT did not express its opinion on it.

In the previous hearing, NCLAT had asked Jaiprakash Associates to suggest an alternative solution as the company was neither in favour of extension of CIRP period nor wanted to go into liquidation. Under the current legal framework, the resolution process once started has to be completed within 270 days,

64 | PropTOQ

failing which the company goes into liquidation.

Earlier, state-owned NBCCâ&#x20AC;&#x2122;s revised bid to acquire Jaypee had been rejected by the lenders, who had a vote share of 41 per cent. The homebuyers had a vote share of 59 per cent.

Of that, 34.75 per cent voted in favour of the bid, 1.75 per cent against it, and the remaining homebuyers abstained from voting. The direction of voting was not enough to arrive at a conclusion as per the rules.

Mumbai-based Suraksha Realtyâ&#x20AC;&#x2122;s proposal to acquire Jaypee was also earlier rejected by the financial creditors.

Jaypee Infratech had gone into insolvency in August 2017 after the National Company Law Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium.

National Company Law Appellate Tribunal (NCLAT) has extended the resolution period of debt-ridden Jaypee Infratech by another 90 days, starting from receipt of the order.

LAW

HOME BUYERS GET FINANCIAL CREDITORS STATUS The Supreme Court has upheld the constitutional validity of amendments made to the Insolvency and Bankruptcy Code (IBC) which conferred the 'financial creditors' status to homebuyers and entitled them to be a part of the Committee of Creditors (CoC) to safeguard their interest.

The apex court's verdict came as a big relief for lakh of harassed homebuyers who are facing difficulties due to delayed possession and incomplete real estate projects. As financial creditors now, they will have a say in the resolution process of a cash-strapped real estate developer. As per section 7 of the IBC, a home buyer, who is now a financial creditor, may trigger the insolvency proceedings against the real estate developer. The Supreme Court observed that since home buyers give advances to the real estate developer and finance the project, they are really the "financial creditors".

The top court also said that the Real Estate (Regulation and Development) Act (RERA), 2016, which regulates the real estate sector, is to be "read harmoniously" with the IBC and in case of conflict, the IBC would prevail. "The fact that RERA is in addition to and not in derogation of the provisions of any other law for the time being in force, also makes it clear that the remedies under RERA to allottees were intended to be additional and not exclusive remedies. Even by a process of harmonious construction, RERA and the IBC must be held to co-exist and RERA, therefore, cannot be held to be a special statute which, in the case of a conflict, would override the general statute, viz. the code (IBC)", the apex court said.

BUYER CAN'T BE FORCED TO TAKE DELAYED POSSESSION A builder cannot “impose” upon a buyer to take possession of a ready house if it is delayed, and the customer is justified in seeking a refund, the Supreme Court has ordered.

Upholding an order of the National Consumer Disputes Redressal Commission to a Pune-based builder, a SC bench said, “Even assuming that the villa is now ready for occupation (as asserted by the appellants), the delay of almost five years is a crucial factor and the bargain cannot now be imposed upon the respondents. The respondents were, therefore, justified in seeking refund of the amounts that they had deposited with reasonable interest on said deposited amount."

In another case NCDRC had said that a homebuyer had full freedom on whether to take possession of his/her flat in a delayed housing project or seek refund and a builder could not refuse to return the amount on the ground that the flat was ready. This order was passed in a case involving a project in Gurgaon.

The SC order came with regard to a project in Pune in which the developer had sold a villa to a customer in 2012 promising to hand over the villa by December 31, 2014.

The home buyer had filed a complaint with the NCDRC in 2016 seeking a refund of Rs 13.24 crore. The builder had challenged the NCDRC order in the SC to refund Rs 8.14 crore principal amount with 10% annual interest to the home buyer.

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MOBILITY

OVER 5500 E-BUSES TO BOOST MOBILITY

In what could be a big boost to electric mobility in cities, Centre has approved proposals from state and city transport undertakings to run 5,595 electric buses in 64 cities.

These include 100 e-buses for Delhi Metro Rail Corporation.

The Centre will provide subsidy to the state and city transport entities, which will pass this on to the private operators whom they will engage through bidding. The subsidy will be only for operational expenses of buses and not for buying the new fleet.

Maharashtra will be getting the maximum number of buses followed by Uttar Pradesh, Gujarat and Tamil Nadu. Delhi and Mumbai

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including Navi Mumbai would respectively get 300 and 400 buses respectively. Majority of the most polluting cities have been covered under the scheme. The panel has also approved 400 electric buses that will be run on inter-city routes by eight State Transport Undertakings (STUs).

The Narendra Modi government had notified the second phase of FAME policy to push adoption of electric vehicles in March, earmarking Rs 10,000 crore for providing

demand incentive (subsidy) and to create charging facilities. It had approved financial support to about 7000 e-buses, with a total outlay of Rs 3,500 crore.

This can be availed only by STUs. All million-plus cities, smart cities as notified by Urban Affairs Ministry, satellite towns connected to Delhi, Mumbai, Kolkata, Chennai,Hyderabad, Bangalore and Ahmedabad and all capital cities could also participate.

MOBILITY

METRO LINK BETWEEN HYDERABAD AIRPORT AND IT HUB ON THE CARDS With the work on the proposed metro link from the IT hub of Hyderabad to the Hyderabad International airport starting soon, this important line will become a reality soon.

The 56 km of the 72 km metro line is now operational and the remaining segment is likely to be completed soon. Alongside, efforts are on to develop an Elevated Bus Rapid Transit System from the dense Kukatpally area to the IT hub of Gachibowli. The State Cabinet has approved the proposed Metro Link to the airport and work on this project will soon commence.

GURUGRAM RAPID METRO FACES CRISIS India's first privately built and operated metro train - Gurugram Rapid Metro is facing closure if funds are not made available to it immediately by the Haryana government.

Rapid Metro has had an uncertain run since its parent company, infrastructure major IL&FS, ran into a huge financial crisis due to abysmally low ridership. Last July, Rapid Metro, citing huge financial losses, had served a notice to the Haryana government, seeking a compensation of Rs 1,484 crore in order to sustain its operations. The Rapid Metro has sent a fresh SOS to the state government to bail it out.

Last year, the Haryana government had initiated talks with Delhi Metro Rail Corporation (DMRC) for taking over and operating Rapid Metro but nothing came out of that. The revival of Rapid Metro assumes importance as it connects the office hub in Cyber City with residential areas in Sector 55-56 and alongside Golf Course Road. It also intersects the Delhi Metro line at Sikanderpur. Because of the financial crunch, its plan for third phase also hangs in the balance.

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INVESTMENT TRENDS

PRE-LEASED COMMERCIAL ASSETS HIGH ON INVESTORSâ&#x20AC;&#x2122; RADAR -Vishal Ahuja

Amidst mature and transparent market, high networth investors and uber rich are betting big on pre-leased assets, primarily office assets among all kinds of asset classes.

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INVESTMENT TRENDS The biggest incentive for investors is the rental yield that is much more than that available through traditional investment option – the residential segment. While the yield for Grade A commercial properties ranges from 7.5 to 8.5%, it is 2-3% in the residential segment.

And investors start getting returns on their investments immediately and don’t have to scout for a tenant.

The segment, in particular, has become increasingly lucrative for investors on account of the newly achieved professional standards through regulation on Real Estate Investment Trust (REIT), entry of several foreign investors and strict disclosure norms under the real estate regulation (RERA).

Country’s regulatory scenario relating to REIT has also come

demand from HNI’s and CXO’s of corporates etc. However, this is early in the curve and we anticipate greater participation from family offices for real estate investment opportunities.

Most investors look at a deal in the ticket size of Rs 5 to 50 crore. Country’s top six cities including Mumbai, Pune, Bengaluru, NCR, Hyderabad and Chennai followed by tier 2 cities are on their radar. Despite premium pricing, properties in metros are more in demand than the ones in smaller cities.

The key reason for this is that metros have a mature market and as such it is easy to get tenants and it is easier to liquidate in comparison to that in a smaller, tier 2 market.

Apart from commercial real estate, interest levels of investors are going up for high street retail ,logistics and warehousing sector as well. a long way and is now a piece of established machinery for investors. At the beginning of 2019, India witnessed its first REIT listing by BlackstoneEmbassy JV. The Embassy Office Parks REIT includes Blackstone’s assets as well as those in partnership with Embassy Group, comprising 33 million sq. ft. across Mumbai, Pune, Bengaluru and Noida.

24 million sq. ft of the portfolio is completed and 95% leased.

This includes 11 assets - seven office parks and four buildings.

It is expected that investors will continue to invest in this segment irrespective of the challenges the segment faces on various fronts. Further, clarity is a key aspect that investors look for. This trend is likely to grow in coming years.

With the absorption levels at an all-time high and vacancy levels for Grade A assets being in sub-10% zone, properties in most of the micro-markets will continue to witness healthy demand -- both from tenants and investors.

Apart from commercial real estate, interest levels of investors are going up for high street retail, logistics and warehousing sector as well.

A closer look at the nature of these deals reveals that family offices are increasingly focusing on real estate asset segments, especially preleased assets.

The market continues to witness active

The year 2019 is expected to set new benchmarks in terms of new completions, expected to touch 47 mn sq ft mark. Quality supply will continue to draw in investors & occupiers who are willing to pre-commit.

The writer is Head Private Wealth Group, JLL India

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VOICES

Rajeev Talwar

Abhishek Lodha

Sanjay Chaturvedi

The recent measures announced by the FM for NBFCs will help in time adjustment. The roll back of surcharge will help the FPIs, but it should have been done for the salaried class also.

Over the next 3 years, we are expecting Rs 27000 crore from our current and under construction projects and our expense against that is less than Rs 9000 crore.

One of the issues faced by the housing finance industry is that banks continue to lend only to the largest NBFCs and the smaller companies are starved for funds. This should now get addressed.

Anshuman Magazine

Nilesh Shah

Gagan Banga

Going forward, office stock is expected to grow from 600 msf in mid 2019 to a billion sft by the end of 2030, with flexible space comprising up to 10 percent of the total office stock.

Investing in firms with good governance practices is catching up.

Right now, we are fully focused on making sure that our commercial realty book comes down. Since April we have already done successful reduction in our real estate book of over Rs 6000 crore.

Mike Holland

Ishar Judge Ahluwalia

Harshvardhan Neotia

While there is a lot of headwind in the market, it is also an opportunity because the industry is in a shakeout mode.

Indian cities need a new planning template with bold measures for connectivity through transit - oriented development.

It's certainly difficult to make money out of the hospitality business ; it requires a lot of consistent hardwork and patience.

CEO, DLF

CEO, South East Asia, Middle East & Africa, CBRE

CEO, Embassy REIT

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CEO, Lodha Group

MD, Kotak Asset Management Company

Chairperson, ICRIER

CEO, Shubham Finance

Vice Chairman & MD, Indiabulls Housing Finance

Chairman Ambuja Neotia Group

GUEST ARTICLE

PROCUREMENTKEY TO SUCCESS OF A PROJECT Procurement as a function today is an essential factor behind the success of any project. It starts with procuring the right team of design and specialist consultants, moving on to construction vendors and finally setting up the right annual maintenance contract (AMC) vendors.

Successful procurement is based on the experience and market information available with the manager in charge of procurement.

Establishing a procurement strategy at the inception of the process is the key to a successful outcome. The strategy must focus on aspects like speed, workflow, cost, quality, specific project constraints, asset ownership, financing, among others.

Procurement as a function if not done right can lead to extensive cost and time overruns in a project. It is important that the procurement lead is completely conversant with the current financial health of the prequalified vendors. He should know about their recent projects and how they have fared in them. The performance of a vendor / service provider is dependent on various factors. A good procurement strategy should consider all those factors before it is put into practice. The nature of the project and its scale has to be considered in the same strategy.

Client procurement verticals tend to finalise vendors who have the lowest quote assuming they are taking advantage of the competition.

However more often than not, there is no benchmarking done to evaluate the right cost of a product or service.

This leads to an unhappy situation later. The pressure to finalise vendors within a target budget is immense and the lack of ownership of the procurement vertical after finalisation of vendors lead to frictions with the project delivery team.

Here are a few procurement practices to ensure best-in-class projects, which

Arnab Ghosh

not only optimise the costs but also corporates, if they consider the end improve process efficiency. users of their built spaces as clients.

Prequalification of vendors is the most important exercise in a procurement workflow. The idea is to choose a set of prequalified vendors, all of whom are equally capable to execute the contract in question. This is the premise based on which technical and commercial evaluation will be done and the most competitive agency will be appointed. There are various templates to prequalify vendors with varying weightage against turnover, staffing, locational and miscellaneous information. Going wrong at this stage can substantially increase the project risk percentage.

Real estate developers and PMCs have undertaken major initiatives towards reducing impacts that are detrimental to the environment. It is time we ingrain our sustainable initiatives in our procurement strategy to address the issue at its root. It is crucial to design eco-friendly systems and procure materials & equipment to keep in check the buildingâ&#x20AC;&#x2122;s carbon footprint.

The practice of not considering vendors as partners and treating them as mere suppliers of goods and services is detrimental to the project. Vendors when treated as equal partners will always be more accommodative. A partnership indicates transparency and trust. A true partner will take risks on your behalf, recommend solutions to address your business needs and will be respectful of your budget. The quality of interaction between the procurement lead and prospective vendors is extremely important to create this environment of collaboration.

Making procurement functions transparent is one of the basic prerequisites in order to unlock potential savings and achieve operational excellence. It ensures accountability in the process besides minimising opportunities for fraud. Defining and implementing procurement policies properly, monitoring and documenting every step of the process and conducting frequent audits helps in maintaining Procurement teams must ensure the transparency in the process. integrity of the procurement process.

Having a leader to monitor the supply If there is any doubt regarding the chain helps align organisationâ&#x20AC;&#x2122;s integrity of the process, the contracting strategy with the overall strategy. It officer should consider suspending the is often noticed how a supply chain procurement process until the issue is organisation struggles for recognition, resolved. Also, it is very important to because their objectives and strategies keep the upper management in the do not coincide with that of their loop about minor details of the process clients. A supply chain head can during procurement. control that by providing consolation The writer is Director, and validation with respect to clientâ&#x20AC;&#x2122;s Synergy Property ideas to match corporate standards. Development Services This is also relevant for developers and

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EVENTS & AWARDS

HOUSING FOR ALL BY 2020

The National Real Estate Development Council (NAREDCO) organised its 15th National Convention in New Delhi on August 20 on the theme , 'Housing For AllReal estate Inflection Point; Readying for the Future' Speaking at the conference in the presence of NAREDCO Chairman, Rajeev Talwar and President, Niranjan Hiranandani, the Chief Guest, Hardeep Singh Puri, Union Minister of State for Housing & Urban Affairs said that the target of housing for all will be met by the government two years ahead of the scheduled time i.e by 2020. He told that the government had sanctioned about Rs 9 lakh crore for urban rejuvenation and by December 2019, half of the 100 smart cities announced by the government will be rolled out.

Union Minister of Environment & Forests, Prakash Javadekar informed the conference participants that the environmental clearance to real estate will soon be given within 60 days. Durga Shankar Mishra, Secretary, Union Ministry for Housing & Urban Affairs told that the government was working towards amending RERA to further strengthen it and make it more effective.

On this occasion, a NAREDCO - KPMG publication titled, 'Disruptions in real estate in India' was launched

by Hardeep Singh Puri.

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EVENTS & AWARDS

REINVENTING REAL ESTATE THROUGH DISRUPTIONS

CII in association with its knowledge partner CBRE, organised 15th edition of its flagship conference on real estate - CII CBRE REALTY 2019.

Addressing the real estate fraternity at the conference, Hardeep Singh Puri, Union Minister of State for Housing and Urban Affairs, Civil Aviation (I/C) and Commerce & Industry said that the introduction of RERA has led to a truly revolutionary phase in the history of real estate. With the transparency, reforms and regulation that these new policies have brought to the sector, it is now time to enter into the new technology-driven approach; building green and ecofriendly homes.

On this occasion ,the CII-CBRE knowledge paper ‘Real Estate – A Relook’ was unveiled by Hardeep Singh Puri in the presence of.

Anshuman Magazine, Chairman – CII Realty 2019 & Co-Chair, CII National

Committee on Housing & Real Estate and Chairman & CEO – India, Southeast Asia, Middle East & Africa, CBRE along with Anil Saraf, CoChairman, CII Realty 2019 & CMD, ASF Group.

The report encapsulates how real estate, that witnessed decades of traditional approaches, is now going to become future- ready, revolutionized by disruptive trends. The report also details the evolution of smart cities, co-working spaces, affordable housing, logistics and warehousing and sets context for the future. It further assesses the role of dedicated policy and regulatory reforms like RERA, REITs, Ease of Doing Business, Housing for All in enabling the muchneeded transparency across the realty

value chain. The role of innovative technologies along with emergence of PropTech in transforming the Indian Realty sector and the need for building ‘future-ready’ talent are also key attributes emphasized that will pave the way for the sector.

In addition to Hardeep Singh Puri, the key attendees at the conference included Dr Sunil Kant Munjal, Past President, CII and Chairman, Hero Enterprise, Sanjaya Gupta, Managing Director, PNB Housing Finance Ltd., Sriram Khattar, MD, DLF, Rahul Kapoor, Director – Smart Cities Union Ministry of Housing & Urban Affairs, Dr K K Khandelwal, Chairman, Haryana Real Estate Regulatory Authority, Gurugram among others.

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NEWS FOR USE

SAFETY TIPS FOR RIDING ESCALATORS AND MOVING WALKWAYS

Escalators and moving walkways are a convenient way to travel from floor to floor, go up and down slopes and comfortably cover flat distances.

Here are some ways to ensure you and your fellow riders make every ride a safe one.

THE BASICS Before taking an escalator make sure your shoes are tied. Don’t ride barefoot.

Also don’t ride with canes, walkers, carts or wheeled vehicles, including strollers it’s best to take the elevator instead.

People with infants and toddlers who still cannot walk should take the elevators as well, same for if you have a pet in general, if you are uncomfortable boarding or riding an escalator, use the elevator instead.

emergency stops are located before you step on the escalator. They are at the top and bottom of each escalator, and sometimes in the middle. Activate the emergency stop if an article has got entangled in the unit, a rider is unsteady or has fallen.

Step onto the center of each step, hold on to the rail and face forward. Take extra care if you are wearing bifocals.

THE RIDE

THE APPROACH

Continue to stand in the center of each step, with a hand on the rail. People should not ride side by side on the escalators. Only one person on a single step. Don’t lean against or over the sides.

Check the direction and enter only when steps are going in the proper direction.

Do not climb up the escalators, whether in motion or not. Be patient until you reach your destination.

Make a mental note of where the

Keep your feet away from the sides.

Don’t use an inoperative escalator as a stairway - the steps are at uneven distances, making it easier to trip.

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SEBI Joseph

President, Otis Elevators India

Also keep loose clothing clear of the steps and the sides.

Hold small packages firmly in one hand, and don’t rest your handbag or parcels on the handrail. Do not touch the sides below the handrail, and ensure carryon items also do not make contact with the sides.

If you’re with children, hold their hands firmly and keep a watch on them.

On moving walkways, stationary passengers should stay to the right and let those walking pass on the left.

Never sit on the escalator step or moving walk, and don’t run on the moving walk.

THE DISMOUNT When exiting, step off and promptly move clear of the exit area - don’t stop to talk or look around. Other passengers may be behind you.

NEWS FOR USE

GAMECHANGER UPMARKET ELEVATORS Otis India is launching the Gen2® Life elevator for upscale residential and commercial buildings.

Manufactured from the Otis factory at Bengaluru, the Gen2® Life will be based on the company’s flagship elevator technology - the Gen2® elevator system.

Passenger capacities will range between 8 - 15 passengers with speeds of 1.5 and 1.75 meters per second as well as offering either machine-room or machine roomless configurations. The robustness of the elevator design will allow users to opt for a rear glass door and accommodate a large variety of customers’ demands for new aesthetics.

This new product will come with additional elevator cabin interior options, including two more new variants to the Aura aesthetics theme, which was launched in 2017. In addition, its special features include steel-coated, flat-belt technology; spacesaving, a compact gearless machine, Pulse™, ReGen™ drive and energy-efficient operation that has made the Gen2® family of elevators a game-changer for the elevator industry.

“The Gen2® Life system is an exciting offering from Otis India for upmarket residential and commercial segments.” said According to SEBI Joseph, President, Otis India, Gen2® Life follows the huge success of the Gen2® series attributed to customers' growing desire for greener solutions.

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PROJECT LAUNCH

SOHNA

GLOBAL PARK PHASE 2-3

NCR based Signature Global group , a leader in affordable housing has come up with phase 2 & 3 of Global Park premium floors in Sector 36 Sohna, South of Gurugram, promising high style living in green clean environment in the lap of nature.

This is the 14th project by Signature Global under Haryana government's Affordable Housing Scheme.

Earlier 11 group housing projects were launched under Haryana Government's Affordable Housing Scheme, besides two projects under Deen Dayal Jan Awas Yojana and one commercial project in Vaishali, Ghaziabad. Spread over 23.14 acre, phase 2 & 3 of Signature Global Park will have 432 units of 2BHK (745.51 sft) & 3BHK (1439.79 sft) configurations.,

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with price ranging between Rs 38-75 lakh.

With a tagline of 'Elevate & Rejuvenate', Global Park has all the promise of a fine living with high lifestyle quotient.

It boasts of great features like Palm Avenue, reflexology path, classical themed garden pavillion in sculpture garden, floating garden pavilion, walkway through decorative columns linear water feature and open air theatre . It will have a number of

sports features like badminton court, skating rink, half basket ball court and swimming pool. The project on main Gurugram- Sohna Road (being upgraded to six lane road) with large number of premium residential and commercial projects in close proximity, enjoys good connectivity with NH8, Golf Course Extension Road, KMP & IMT Manesar.

PROJECT LAUNCH

SION , MUMBAI

RUPAREL ZION Ruparel Realty, a leading real estate developer known for building iconic spaces , has come up with a premium luxury project ‘Ruparel Zion’ located in Sion, Mumbai. The project comprises of premium 2BHK residences with configurations starting from 692 sq .ft The project is strategically located at Sion Circle. Ruparel Zion offers seamless connectivity to the Eastern Express Highway and Sion Railway Station. The Sion-Bandra Link Road & Western Expressway are few minutes away from the project. It is also in close proximity to business hubs of Bandra Kurla Complex.

Ruparel Zion comprises of G+21 storey tower that is conceptualized as sky lifestyle with project offering exclusive health & entertainment features on rooftop.

The project provides world class amenities like gated security and hi-tech surveillance, sky party lawns with Pergolas, swimming pools, senior citizen’s zone, sky observatory with telescope to name a few. The pricing of these sky scaling luxury apartments is ₹ 1.99 crore with zero GST. The home buyer using a debit/credit card is eligible for one lakh worth of diamond jewelry at the time of registration. The project is surrounded by ample greenery and modern development. Social infrastructure like multiplex cinema, prominent educational institutes, healthcare facilities including multi-specialty hospitals are in close proximity of the project.

According to Amit Ruparel Managing Director, Ruparel Realty, today’s home buyers are evolving and they look for homes that offer great lifestyle with good connectivity. Moreover, this strategically located lifestyle project that offers easy commute to business hubs and Sion as a location will provide an edge to home buyers promising utmost luxury with high return on investments.

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PROJECT LAUNCH

AHMEDABAD

SOBHA DREAM HEIGHTS

SOBHA, India’s leading real estate brand, has launched SOBHA Dream Heights, the first residential project of Gujarat International Finance Tec-City (GIFT City) - a global Financial and Technology Hub, which is an operational Smart City and International Financial Services Centre (IFSC), offering world class infrastructure.

O f f e r i n g stunning views, this 33 - storey building will be the tallest residential project in Gujarat. Each home at SOBHA Dream Heights is designed to offer luxury, comfort and fun c tionality for residents to experience modern-day living. SOBHA Dream Heights comprises 474 units across two towers with a total super built-up area of 54,206 sq.ft. The project offers 1 BHK and 2 BHK apartments packed with modern amenities including a 3 - storey club house with a water wall, covering a massive area of 8,000 square feet. Some of other amenities include cricket pitch, basketball court, swimming pool, gymnasium and

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tennis court.

According to J. C. Sharma, Vice Chairman and Managing Director, SOBHA Limited, GIFT City has witnessed exceptional growth in the recent times. It was featured among the top three emerging business hubs in the world Global Financial Centres Index 24 (GFCI) in September 2018. In this context, SOBHA’s entry into the Gujarat market with its first residential project in GIFT City is not only opportune but also timely. At Sobha, we are continuously working towards offering products that meets the evolving requirements of home buyers. Today’s home buyers are well-read, tech-savvy and realise the importance of making a stable long-term investment. They prefer premium homes that are compact and designed efficiently.

With SOBHA Dream Heights, we are offering homes that fulfil the needs of modern-day home buyers with world-class amenities.

Tapan Ray, MD & Group CEO, GIFT

City adds that after witnessing unprecedented growth in commercial developments, SOBHA’s residential project will attract people to stay in GIFT City and complete the ecosystem of a truly integrated smart city. The walk-to-work concept at GIFT City will soon be a reality and this tallest residential project of SOBHA will significantly change the skyline of GIFT City on the banks of Sabarmati River, connecting the business capital Ahmedabad and the political capital Gandhinagar of Gujarat State. It is spread over 886 acres of land. featuring world-class infrastructure such as district cooling system, underground utility tunnel, and automated waste collection which are being implemented first time in India. The city is designed for walkability and includes commercial, residential, school, club etc.

Presently, around 200 companies are operational at GIFT City, employing around 9,000 people.

ALTERNATE ASSET CLASSES

CO-LIVING PLAYER ZOLOSTAYS TO RAISE UP TO $100 MN

Nexus Venture Partners-backed co-living startup Zolostays Property Solutions Pvt. Ltd is in advanced talks with new investors to raise up to $100 million for its Series C round through a mix of equity and debt options.

According to Dr Nikhil Sikri, Chief Executive , Zolostays, the company is looking to close a $100 million round, which will be used to fund the expansion of our workforce team in the wake of launches in new cities this year, and to help increase inventory size and upscale furnishing options across current inventory as well.

Zolostays had last raised $30 million in its Series B round in January from investors including IDFC Alternatives, Mirae Asset, and Nexus Venture Partners. Other investors in the company include Alec Oxenford, founder of OLX, and Chennai-based Olympia Developers and Patni Computers Family Office.

The four-year-old startup is looking to make housing affordable for students, working professionals, and freshers who move away from their hometown in search of jobs. Since 2015, the company has added around 30,000 beds, and another 60,000 contracted beds that will be added to

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the platform in the coming months, according to Sikri.

Currently, Zolostays offers both shared and private rooms for rent on its platform. It works with both property developers and owners on a revenue-sharing model and leased model. The demand for private room portfolio has been increasing, primarily because people have become more comfortable with the co-living concept, says Sikri.

Apart from just a fully managed room, Zolostays also provides amenities like WiFi, housekeeping, repairs & maintenance, food service, and DTH connections at its properties and included in the monthly rent.

There are two formats of housing options -one is the Zolo Select option which offers high-end luxury apartments on shared rentals and the other being Zolo standard which is basically 4-5-floor tower, along with a community lounge. Around 30%

of company's new closures come in through referrals from current property owners, rest 70% is outbound closures, Sikri.

Besides shared living spaces, the coliving market has been increasingly focusing on offering fully managed apartments and independent buildings on rent by directly tying up with individual owners. With dwindling rental yields and large amounts of inventory lying unsold in the real estate segment, coliving startups have been looking to onboard these unsold properties.

Zolostays is also looking to launch fully-managed houses targeted at families and individual groups in the next three to four quarters. Currently, Zolo is present in 10 cities, including Bengaluru, Chennai, Kota, Gurugram, Hyderabad, Pune, Mumbai, Noida, Delhi NCR, and Coimbatore. It plans to launch in more cities like Indore, Nagpur, Nasik, and Chandigarh in 2020.

ALTERNATE ASSET CLASSES

NESTAWAY TO LAUNCH LIVING SPACES FOR WOMEN & SENIOR CITIZENS

Home rental start-up, Nestaway Technologies, plans to launch living spaces exclusively for women and senior citizens in Bengaluru by the end of 2019. It hopes to enter three new cities by December 2019 and ramp up its headcount with 360 additional hires over the next 12 months.

“We are looking to scale up our tenant base of over 16,500 single women and single moms to 30,000 by next year. To achieve this, we are piloting living spaces for single women/moms in gated communities and in well lit areas which are secure and will be adding 1,000 more homes for them by the year end. Home owners in Bengaluru

are willing to offer 30% discount on rentals for single moms which mean a lot to them as they spend 40% of their income on housing", according to Amarendra Sahu, co-founder and CEO, Nestaway Technologies.

in the pilot phase. Both senior citizens’ homes and single women/ moms’ homes will consist of a mix of shared and family homes that are unfurnished, semi-furnished and fully-furnished.

Nestaway, which has raised $104 million so far, plans to launch 350400 homes for senior citizens by the year end. This project is currently

The company plans to foray into three new markets - Kolkata, Indore and Kochi by December.

WEWORK UNVEILS IPO

Co-working space major We-Work, has filed its first public regulatory filing, expected to be one of the largest initial public offerings (IPOs) in the US after the recent listings by cab-haling major Uber and other major US-based startups.

WeWork, which was last valued at $47 billion, saw its revenue(management fee) going up in India during the first six months of 2019 compared to 2018, the highest at 12% of the revenue, compared to China & Japan (8% of the revenue).

WeWork entered India in late 2016 through a strategic partnership with real estate group Embassy, where the latter owns the property and the New York-based company runs the workspaces under its brand.

It is expected that after the IPO,

WeWork may buy out 51% stake in its India business for which it has been in talks with Embassy Group. with which under licensing arrangement, it is running 35,000 desks across 17 locations and plans to ramp up to 90,000 desks by the end of this year.

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ALTERNATE ASSET CLASSES

CO-WORKING SPACES SCALE UP WITH INVESTMENT BOOST With greater penetration across cities, co-working spaces that are playing an important role in supporting the growth of start-ups and enabling accelerator programmes for a number of newly formed firms, are making most of the investment boost to scale up their operations.

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Ramesh Nair

ALTERNATE ASSET CLASSES Over the last few years, co-working spaces have gained popularity with start-ups, small and medium enterprises (SMEs) and large corporates. Unlike the traditional business centres, co-working offices offer unique amenities such as a gymnasium, spa, food court, gaming zones, sleeping pods, crèche services etc. These attributes have helped popularize co-working spaces among employees, entrepreneurs and corporates alike.

An analysis of leasing trends in the top seven cities in India in the report by JLL and FICCI ‘Co-Working: Reshaping Indian Workplaces’ , clearly reflects the rising proportion of mainstream corporates and established entities from different sectors in the total co-working space leased. Space taken up by the co-working segment has doubled to 3.9 mn sq. ft. in 2018 compared with 2017. Cumulative space taken-up by co-working segment from 2017 to 1Q 2019 stands at 6.9 mn sq. ft. Not just that,the coworking share in office leasing in the top seven cities of India increased from 5% (2017) to 8% (2018) and this moved up further to 12% in 1Q 2019.

Large scale investments: Naturally investments have been pouring into this sector. According to JLL estimates, at the end of May 2018, close to $400 million would be invested in co-working space. The trend has continued until now. As a result, the flexible workspace segment is likely to attract over $1 billion in investment during FY 2019-20. The trend is fuelled in part by the sleuth of large enterprises that have started moving into flexible workspace solutions.

This has also resulted in commercial real estate markets seeing a larger shift - wherein flexible workspaces account for a larger share of absorption.

Huge investments in the sector are enabling shared space providers to scale up faster by utilising these funds. The scaling up is not only in terms of geographical expansion, but also technological innovation. Besides the top seven cities, co-working operators are venturing into tier 2 cities such as Jaipur, Goa, Chandigarh and Lucknow. It is expected that smaller cities would further see the growth of co-working spaces as they are witnessing a spurt of start-ups and incubation spaces.

Interestingly, co-working spaces are not only playing an important role in office leasing markets but also supporting the growth of start-ups and enabling accelerator programs which help them grow.

While co-working spaces are catering to the requirements of large enterprises, they are also providing start-ups and SMEs a well- structured office space from where they can work and grow. For instance, coworking player Incuspaze recently announced its collaboration with Small Industries Development Bank of India (SIDBI) to support micro and small enterprises (MSEs) and start-ups with a wellmanaged space to meet their office requirements.

While, Incuspaze will develop and operate the co-working space, SIDBI will provide support to the start-ups to grow further.

Co-working spaces have now moved beyond their initial role of acting as providers of flexible and vibrant workspaces. Today, they are acting as business enablers for start-ups as well as large corporates.

The writer is CEO & Country Head of JLL India

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ALTERNATE ASSET CLASSES

GROWING PREFERENCE FOR GRADE A WAREHOUSING With rising levels of maturity, the industrial and logistics sector is becoming more organised as well as standardised. Grade A space is one of the stepping stones in this process as it provides an ease in time-bound supply, customer satisfaction, risk-free environment and rationale in working capital requirement.

There has been a quantum leap in demand for Grade A space in the last year. While in 2017, overall India absorption in Grade A space was 9.9 mn sq ft against Grade B absorption of 9.8 mn sq ft , the year 2018 witnessed a significant jump of preference for Grade A space. In 2018, at a pan India level, Grade A absorption was 17.66 mn

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sq ft against Grade B absorption of 14.14 mn sq ft.

Grade A warehousing space has multiple advantages.

One big advantage is of operational efficiency.

There is up to 30% additional open space; up to 30% space for internal cargo handling and up to 40% storage

height to enhance traffic & cargo movement, use of modern MHEs and maximise storage load. Then there is advantage of wider cargo lines. Additional floor-load capacity (up to 50%) and storage height facilitates heavy/odd-dimension cargos and increases pallet position for standardised cargo, especially for long

ALTERNATE ASSET CLASSES

term storage. Grade A warehousing grows, Grade A warehouses have turn influences preference among space has improved firefighting become a workplace of choice too, for tenants towards Grade A spaces. system, drainage system, floor-height many without a college degree. This is Globally, Grade A warehouse follows the and construction quality provides helpful for many from the employment criteria of additional height and higher additional protection from unexpected perspective. floor load bearing threats and minimises capacity,better risk of probable in-store inf rastructure damages.

Provision with access to for sufficient parking, mechanised MHEs, material handling and fire detection and marshalling space Comparison of 1,000 sft Grade A Grade B prevention systems, optimises operational of WH Space clean environment time and cost not only and land use with INR/SQ.FT. for vehicles and MHE RENTAL 20 15 /MONTH space for parking operation but also for heavy vehicles/MHEs Storage Space : 65% 75% sorting/ identification Rental Space movement, and multiof products.Planned modal connections.

Height 42 24 ft. storage space, efficient material handling Grade A absorption 0.73 0.83 INR/month share grew from 50% Rental for Cu.ft. Warespace, safety and housing Space security and better to 56% share of total Rental for Each Tonne 38.46 40.00 INR/month India absorption levels access/ connectivity of Cargo Stored are the predominant from 2017 to 2018.

Rental for Each Pallet 57.14 86.67 INR/month Going by the current criteria for the MNC/ Position and the national trend, It is expected brands.

Source: JLL Research to further grow as occupiers look for Warehouses are the basic foundations However, there are challenges as well. spaces with higher specification as per for the supply chain of any company The high cost of land sometimes requirements. A growing economy and that relies on distribution of its comes as a challenge for investors a preference for well-oiled, organized products from factories to shops and interested in Grade A warehouses. Land spaces, along with GST will drive the to end users. For this, companies cost constitutes a major component of demand for Grade A warehousing might choose to lease or own spaces, a warehousing project investment. spaces. depending on the total costs involved.

While the above comparison shows the Grade A warehouses are labelled on rental premium paid on Grade A space Chandranath Dey the basis of their superior construction to be higher, per pallet or per tonnage Head of Industrial Operations, Business quality, location, space, amenities, rental is lower due to operational Development, Industrial Consulting and clients, among others. As online retail Supply Chain Consulting, JLL India advantages in Grade A space. This in

Cost Comparison : Grade A vs Grade B Warehousing

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ALTERNATE ASSET CLASSES

AWFIS AND GOWORK RAISE $83 MILLION FOR EXPANSION Coworking firm Awfis has raised $30 million in fresh funding led by marquee investor ChrysCapital, touching total funding of $81 million.

Another coworking player, GoWork, has raised $53 million (around ₹ 375 crore) debt funding from US-based BlackRock and CLSA Capital Partner.

GoWork currently has two coworking centres at Gurugram in Haryana, spread over 8 lakh square feet with a capacity of 12,000 seats. Awfis aims to strengthen its presence in tier 1 cities and expand further into tier 2 cities and will use the funds to introduce new and innovative products and services and further establish new micro markets in

India, the company said.

The additional capital raised will support Awfis in expanding its footprint in India with more than 400 centres and 2,00,000 seats over the next 36 months, according to Amit Ramani,founder and CEO at Awfis. Founded in 2015, Awfis which currently has 63 centres and over 30,000 seats across nine cities,

wants to enter tier 2 cities of Jaipur, Ahmedabad, Bhubaneswar, Kochi and Indore.

GoWork, on the other hand will use this funding to further scale the business with 50 centres across major cities and provide valueadded services to its clients.

SPRING HOUSE OPENS FLAGSHIP PROPERTY IN GURUGRAM Spring House Coworking, a chain of collaborative office spaces has launched its flagship property across 30,000 sq. ft. Grand Mall at MG Road, Gurugram. The facility set up at a cost of ₹ 2.5 crore has a capacity of more than 500 seats, along with a conference and meeting room with state-of-the-art interiors, bespoke furnishings and modern amenities, based on contemporary design ethos.

This facility caters to individuals, consultants , start ups or established companies, with flexi, monthly and daily packages ranging from ₹ 10,000 - 15,000, with a daily pass of ₹ 800.

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Spring House which currently has 14 properties in Delhi, Noida, Gurugram and Lucknow with a total seating capacity of 2800+ seats, is looking for expansion.According to Mukul Pasricha, considering the growing

demand for coworking spaces, the company is planning to come up with three more properties in Bengaluru, Hyderabad and Mumbai, by the end of this financial year.

REALTY ETC.

KONE ELEVATORS LAUNCHES 24X7 CONNECTED SERVICE

KONE, an elevator and escalator company, has launched its 24x7 connected service which helps in fewer faults, and faster repairs.

Using the latest technology, the elevators and escalators can now speak their minds and keep technicians one step ahead of what is happening. Data relating to key operating parameters, usage statistics and faults is gathered from the elevators and escalators. All the

information is sent in real time to cloud service, where the analytics are located.

If the system identifies the need for maintenance, it either alerts a technician immediately, or contacts technical support or customer service, according to how critical the

problem is. Customers are provided with clear notifications and report of all the actions taken to keep their equipment running. The 24x7 Connected Services are remotely monitored to ensure less equipment downtime, fewer faults and detailed information on maintenance task.

PIDILITE INKS JV WITH SPAIN’S GRUPO PUMA

Pidilite Industries, a leading manufacturer of adhesives, sealants and construction chemicals in India, has partnered with Corporation Empresarial Grupo Puma SL (Grupo Puma), Spain based manufacturer of technical mortars, to set up a joint venture company in India.

This new entity will provide an array of technical mortars for applications ranging from flooring and wall plastering, to insulation.

Grupo Puma will license the technology to the JV that will invest in a manufacturing facility in India. The

entity will service the key markets of SAARC (excluding Pakistan) and Myanmar.

According to Bharat Puri, Managing Director, Pidilite Industries, the joint venture is in line with Pidilite’s strategy of building its market position in

pioneering categories and offering future products for customers.

Grupo Puma’s core competence is innovating and delivering the best technical solutions to customers.

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REALTY ETC.

ROCA GROUP TO CONSOLIDATE MARKET POSITION IN INDIA The Roca Group, a global leader in design and production of bathroom products from Spain with presence in 170 countries, has chalked out big plans to consolidate its position in the Indian market.

In 2008, the group acquired Chennaibased Parryware (of the Murugappa Group), and since then has been selling its products through the latter’s distribution network across the country.While Roca serves the luxury and super-premium segments, it caters to the mass category through Parryware products. Currently, India contributes 8 per cent of total Roca’s global revenues and efforts are on to grow this share significantly over the next three years. The group’s turnover in 2018 was €1,775 million.

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Parryware boasts of a network of 10,000 retailers across the country. On an average, the brand sees acquisition of about 100 new customers every hour.

In 2018, Parryware products recorded a growth of 18 per cent year-on-year; for the first-half of 2019, the growth recorded was 20 per cent. This is significantly higher compared to sales of listed players in the sanitaryware space, including Cera Sanitaryware.

According to KE Ranganathan, Managing Director, Roca India, the next

phase of growth in India, will be driven by the Roca brand. The company last month launched designer tiles under the Roca brand in Gujarat and is now tying up with distributors for it across India. This will complete the bathroom products offerings of Roca in India.

REALTY ETC.

INDIA CEMENTS LINES UP EXPANSION WORTH ₹1,400 CRORE India Cements plans to set up a new integrated cement factory in Madhya Pradesh and a grinding unit in Uttar Pradesh involving an investment in the range of ₹1,300-1,400 crore in preparation for the future demand in North and Central India.

The company’s current capacity is about 16 million tonnes and the proposed expansion may take it to about 20 million tonnes in 2-3 years’ time. The move is also expected to make the company a panIndia player.

According to N Srinivasan, Vice-Chairman & Managing Director of India Cements, the company is in the process of buying private lands in

Madhya Pradesh and hopes to complete the land acquisition process in 3-4 months. After this, it will look into raising money for the project.

The company has a mining lease for more than 100 million tonnes limestone, a key raw material for producing cement, after the acquisition of Springway Mining Pvt in Madhya Pradesh last year.

The proposed grinding unit

is expected to come near Allahabad in Uttar Pradesh.

Meanwhile, the company’s net profit in the first quarter of this fiscal rose to ₹72 crore compared with ₹ 21 crore in the year-ago quarter, supported by better prices (net realisation increased by ₹360 per tonne) for cement and cost control measures.

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HOSPITALITY

LEISURE HOTELS FORAYS INTO HOSTELS, RESITELS

Leisure Hotels Group, the Dehradun-based budget accomodation hospitality firm, is diversifying into the hostel and resitel segments as it seeks to unlock the potential in the alternative and long-stay accommodation sectors. It will come up with a new property under Bedz brand in Rishikesh by the end of this year, followed by the one in Jaipur on a franchise model on the lines of Zostel.

With spotlight turning on co-working and co-living, this segment is not getting due attention. Bedz will be targeted at backpackers and long-stay travellers who visit the Himalayan foothill region seeking adventure, wellness or pilgrimage. It will compete with Zostel - one of the largest hostel chains in India, according to Vibhas Prasad, Director, Leisure Hotels.

The hostel accomodation being promoted by Leisure Hotels will create the concept of community living with dynamic pricing model and is part of the fast growing alternative accommodation segment comprising homestays, hostels, serviced apartments, villas, cabins, tree

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houses, house boats and bed and breakfast facilities.

The properties including villas and apartments being developed by Leisure Group under the Resitel concept will be open for sale and transfer of ownership. The buyer will get 30 days stay that could be used by him/her or his/her family or friends, in addition to the rent, the buyer would enjoy for 15 years as per the lease agreement.

The domestic and overseas HNIs are targeted for who are keen to own a vacation/ second home. Itâ&#x20AC;&#x2122;s not an investor-driven model and though there are no assured returns on the property one buys, yet the buyer gets a

yield of 4 per cent when the property is rented back.

Leisure has plans to develop resitels at Bhimtal, Nainital, Rishikesh, and Naukuchiatal.

Meanwhile, the group that currently operates 27 boutique properties with around 875 rooms in India plans to invest â&#x201A;š 160 crore to add nine properties across the country by end-2021.

These will include properties in Goa and Greater Noida, as the company aims to spread beyond Uttarakhand. While some of the aforementioned properties are owned by Leisure, a few are jointly owned and managed by the firm and the others are just managed by it across key leisure destinations.

HOSPITALITY

OYO HOTELS LAUNCHES PARTNERSHIP PROGRAMME

OYO Hotels & Homes has announced the launch of its Partner Privilege Programme for its over-10,000 asset owner community in India.

The programme includes growth benefits to support business advances, capital expenditure requirement for expansion, partnership benefits through tie-ups with entities such as Paytm, Acko, BMW, Volkswagen, as well as staff welfare and personal goals.

These benefits include easy and expedited availability of ‘Cash in Bank’ business advance and improved attractive lending terms from banks and non-banking finance companies (NBFCs).

There is also dedicated capital expenditure support, guidance and consultation to help partners expand and open new properties with OYO. The Cash in Bank facility is for partners who have been with OYO for a period of time and have delivered good consumer experience.

According to Aditya Ghosh, chief executive for India and South Asia, the amount under the Cash in Bank facility is paid as a business advance for expansion. “We benefit

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out of this by seeing an overall growth in the business of the hotel. The owner is taking the business advance, he is investing in better infrastructure, better staff, better cleanliness, etc, that drive customer experience. At the price point that we are in today, which is the affordable segment, the moment a customer sees a jump in the experience, he keeps coming back to the hotel over and over again. When that happens, occupancy goes up and when occupancy increases, revenue goes up”.

This programme is designed for those asset owners who need some infrastructural upgradation for their asset, and who have been with

the firm for a while. This is something where OYO invests in the asset owners and helps them upgrade their infrastructure to deliver a better consumer experience.

Other benefits also include improved attractive lending terms from banks and NBFCs. The programme has also introduced partnership benefits that include Ackodesigned free insurance product for employees without any charges on distributor commission, Paytm-powered zero charges current account for OYO Hotel owner and zerocharges salaried account for staff. OYO has also introduced Paytm-powered accidental insurance cover for staff of up to ₹2 lakh.

Indulge in an everlasting experience with

FOR CORPORATE GIFTING

Call us - 99716 10950/53 | Email us - info@rosemoore.co.in

New Delhi | Lucknow | Chandigarh | Bangalore | Chennai | Hyderabad | Ahmedabad | Mumbai | Pune | Kolkata

www.rosemoore.co.in

PRODUCT LINE

MAGICAL DINING EXPERIENCE WITH ROYAL LAPIZ

Being enwrapped in the precinct of nature is the most tranquil feeling to be perceived by any individual. An abode on the other hand provides the intimate essence that urges us to call it ‘Home’. What if the two could be amalgamated to create pathbreaking ideas of décor?

Understanding the desire for having the best of both worlds, Arttd’inox presents pieces that would redefine the perspectives of personal space with innovative supplements from nature.

The core ideology desired to cater to the nature lover’s fantasy of fusing elements of the environment into the home space. This dogma was thus formulated into creating décor assets for a homely space, inculcated with the verdant vibe of the green cosmos. Intricate twigs, exotic fruits and elusive dragonflies have been integrated in Stainless condiment servers, ice buckets, cake platters and candelabras. Each facet of the product was aimed to be at par with the urbane and plush lifestyle, of the contemporary user, intermingled subtly with the whimsical mystics of nature and its components.

Being a part of Suneet Varma’s Collection at Arttd’inox, this compilation presents the best of our stainless label, with the artistry of baroque design. Its classy appearance is sure to emerge as an accentuating element in your high-tea parties. The recurring use of a pop red shade, along with cast brass elements, render it with the ultimate level of sophistication; while the patterns and incisions impart the requisite organic nuance.

PRODUCT STORY Feast – Two Tier Platter A must-have to accomplish your desire to host the perfect classy tea-

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party, this two-tier platter allows you to showcase those colorful savories and cookies while maintaining the aura of ultimate style. The product is light in weight and pocket pinched at ₹4,695. Along with being functionally viable for long-term usage, the Feast presents a mesmerizing blend between the meandering red branch & sleek stainless platters.

Thus, the Cedar with its natural look symbolizing a fruit attached to a branch, serves the requisite functionality. The servers have been crafted in stainless with accentuating branches dipped in vibrant red this product is valued at ₹6,700. So, when is it going to sprinkle a more plush vibe, into your home?

The evening get together (Maze Platter)

We all love the creamy and tangy dips that accompany most evening tidbits! Thus, the Elixir in the very literal meaning imparts your guests with the opportunity of dipping their fingers into the ambrosia of snacks, by its chip and dip design. With a platter placed below, the design features a rising branch supporting the dip bowl in its tangles. This classy and appealing product costs ₹5,290 and weighs relevantly to support a free-standing dip cup.

The apt evening snack tableware is incomplete without an elegant platter to pass around the little bits of flavorful morsel. The product is fitting to serve refreshments to your imminent guests. Priced at ₹2,450, this piece shows genuine usage of glistening stainless.

Permanent fixture on your table!

(Cedar – Condiment Server) No traditional high-tea can come to full stop without siding the snack bites with some zesty condiments.

Elixir – Chip and Dip

www.arttdinox.com

PRODUCT LINE

OLA DETACHABLE LED LIGHTS Goldmedal Electricals, the leading home-grown fast moving electrical goods (FMEG) company has launched the OLA Detachable LED light in the lighting segment. OLA is an extremely user-friendly LED and takes away the hassles associated with fixing and removing LED lights. With this launch, Goldmedal is offering the best LED lighting technology for indoors with both practical and decorative use.

Goldmedalâ&#x20AC;&#x2122;s OLA LED Light is a smart option that can be easily fitted or removed from its holder with a gentle push or twist depending on the lightâ&#x20AC;&#x2122;s shape. While the round light can be fixed or removed by a gentle twist, the square LED can be attached or detached by gently pushing it into its holder. Designed with an integrated driver, the OLA is an energy saving and eco-friendly LED that is available in different watt variants.OLA also offer features like high lumens with up to 90 lumens per watt,surge protection up to 2.5 KV, square and round shape options in matte white color and ABS holder and polycarbonate anti-glare diffuser. It is available in 6, 12, 15, 18

and 20 watt variants.

According to Kishan Jain, Director, Goldmedal Electricals, with technology as core competency, Gold Medal Electricals is constantly innovating and upgrading its products to meet the growing demands of consumers and the new product launch of OLA LED light is meant to

provide convenience to consumers while also contributing towards building a greener planet through energy saving.The OLA LED light is available at all major retail outlets at a starting price of Rs. 560.The company that offers variety of modular switches and accessories, home automation systems, luminaries and LED lights, wires and cables, doorbells, PVC pipes, DBs, MCBs and others, has also recently launched an innovative home automation series, the i-Touch Wi-Fi Switches and the smart i-Dock music player for charging iPhones and listening to music on the phone.

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PRODUCT LINE

STYLISED WALL & FLOOR TILES

Orient Bell Limited (OBL), one of the largest manufacturers of ceramic and vitrified tiles in the country has come up with two new ranges of value for money stylised tiles- The Valencia range for floors and the Multiplica range for walls.

The Valencia range is inspired by designs and architecture of the city of Valencia, Spain. This range is special not only because of its high quality finish and variety but also because the tiles are printed using high definition 400 dpi printers which make the designs sharper to the eye and stands out among all the regular tiles in the market.

These tiles allow you to have multiple laying patterns and options, the most common being floor tiles wherein the design could cover the entire floor or it could be repeated in patterns and combination with marble designs. There is a choice of shades in white, grey and beige that come with a variety of matte and wood finish as well as glossy finish. Valencia tiles that come in the standard size of 60X60 with superior specs and high breaking strength, have the properties of low moisture expansion, thermal shock resistance and frost resistance which make them a much better choice for outdoor application like balconies, rooftops, garden walkways

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and driveways. However, they can be used anywhere in all kinds of spacesat homes, offices, restaurants and even commercial places with heavy foot traffic.

The Multiplica tile launch is by far the best extension to the wall tiles range. The marble designs with an attractive gloss and global charm are a perfect fit for people who want to give their space a premium look. These beautifully highlighted tiles series are developed to match the already popular base colours in the industry. This in turn gives the customers a wide range of tiles to choose from that go along with their colour preferences, with shades in both pastel and multi colours. These glossy ceramic tiles look best when applied to bathrooms and kitchen walls. Multiplica has been launched in 76 exquisite designs with high grade specs and is available in a total of three sizes: 25x37.5cm, 30x45cm and 30x60cm.

PRODUCT LINE

PICTURESQUE PATTERNS

Patterns in interiors are a rage today. Patterns not only add a dash of colour, but also help instantly infuse elegance to wooden floors. Greenlam has come up with an exciting new range of patterns in wooden flooring.

Oak Winter

Silver Streaks

Oak Winter by Mikasa premium engineered wooden floors from the house of Greenlam Industries Ltd. is the perfect escape into a lively realm of comfort and buoyancy. For a breathtaking look and feel, choose playful patterns. Gone are the days when beige and browns were considered too muted and dull. Reboot your interiors with colours like brown, cremes with gold accents that exude confidence and merriment. Try to keep minimal statement furnishings with open spaces, beautiful wall art and a coffee table that will imbibe a touch of whimsy in your room.

Silver Streaks by Decowood Veneers from the house of Greenlam Industries Ltd. enhances your walls with intrinsic patterns that add an element of interest to your walls. While an engineered veneer is not a natural product, it is reconstituted to make pre-designed appearance. These decorative veneers are eco-friendly with an ability to match natural patterns. They offer a timeless elegance when paired with tones of ash grey, off-white and pastel brown. Place vintage yet minimal wall hangings along with statement furnishings which will give a whole new spin to this look. Black being everyoneâ&#x20AC;&#x2122;s true companion and saviour to decorating, incorporate classic swinging chairs in this colour for a modern and authentic ambience.

To know more visit www.greenlamindustries.com

Anthracite - Anti-Fingerprint (AFX) Laminates Today, a trendy bathroom calls for a lustrous and high-quality surfacing just like this dark grey Anthracite - AFX laminates by Greenlam Laminates.

Anti-fingerprint laminates will keep your surfaces impression free making them last longer. Making the surface non-porous and hydro-repellent, they are easy to clean impurities as well as grease marks. Let your artful attitude reflect where you bathe with abstract patterns dipped in neutral palette. After all, making room for blush tones and cool pastel colors can make your space come back to life. More than statement walls, modern countertops are making their way to interiors. Simply opt for rejuvenating succulents, metallic flower vase, aromatic candles and air fragrances. For the best outcome, you can go creative with opulent or minimal bathroom lighting with hanging bulbs and vintage ship lights.

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TOQ TEN

Uddhav Poddar

Director, Bhumika Group

HIRING, NURTURING AND RETAINING TALENT IS OUR BIGGEST STRENGTH What does regulated realty mean to you?

our customers keeps us motivated.

In the backdrop of some rugged builders bringing bad name to the sector, regulated realty will see such elements getting weeded out, making the sector transparent and growth-oriented.

We believe in taking quick decision.

Even when we are confronted with

What's your leadership lesson?

critical issues, we work towards their quick resolution ,not allowing them to linger for long.

What sets your company apart?

What's your strength ?

Our customer centric approach is our biggest strength. We keep in mind the priorities and choices of our customers and accordingly design our offerings to suit their needs.

Hiring, nurturing and retaining talent is our biggest strength. We

What is your success mantra?

We as company believe that our human resource asset has immensely contributed to our success.

What keeps you motivated?

Our endeavour to provide world class architecture and experience to

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firmly believe that talent must be respected and admired. That is also the key reason for the success of our company.

With millennials believing in work hard, party hard, what is your idea of unwinding?

For me, the best way to unwind is to spend quality time with my family and friends, though because of my busy work schedule and

hectic travel, I am not able to devote enough time.

What's your definition of success?

Fulfilling the aspirations of the customers,creating value for our shareholders and having good profitability is what success means to me.

What is your winning strategy ?

Our winning (success) strategy is very simple having right people for right job. Once you have right people, rest everything falls in place automatically.

What is your ambition in life?

Where would you see your company in 2022 ?

To become one of the biggest companies in North in commercial and retail realty. By 2022, we hope to expand to 7 cities in Rajasthan, besides Delhi NCR, leveraging our strength as an ethical player.