IN THIS ISSUE India: Economic Indicators India: PE · PDF file · 2016-07-03IN THIS...
Transcript of IN THIS ISSUE India: Economic Indicators India: PE · PDF file · 2016-07-03IN THIS...
IN THIS ISSUE
India: Economic Indicators
India: Capital Markets
DISCLAIMER: This report contains information available to the public and has been relied upon by Vestian Workplace Services on the basis that it is accurate. Vestian accepts no responsibility if this should prove not to be the case. No warranty or representation, expressed or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change ofprice, rental or other conditions and withdrawal without notice.
2012FEB MARJAN
India: PE Deals and Exits
India: Real Estate Market Trends
Bangalore: Real Estate Market Trends
Both residential and commercial sectors performed well in Bangalore this quarter. The city recorded absorption of 2.3 million sqft of office space and 4,700 residential units. Read More.
India: Capital MarketsRealty Index which gained marginally ahead of the Union Budget, later witnessed a drop as investors remained unimpressed with the budget. Read More.
India: Economic IndicatorsQ1 2012 witnesses reduction of key policy rates by RBI while GDP growth continued to drop for the 5th consecutive quarter. Read More.
India: PE Deals & ExitsDevelopers continued to raise funds from Private Equity (PE) and Non-Banking Finance Corporations (NBFCs); nearly 12 deals were recorded in this quarter. Read More.
Chennai: Real Estate Market TrendsChennai witnessed absorption of 0.82 million sqft of office space in this quarter, while growth in commercial activities & enhanced urban infrastructure has pushed the residential demand. Read More.
Hyderabad: Real Estate Market TrendsGrowing urban infrastructure has provided traction in the residential market across the city despite Telangana agitation this quarter. Read More.
India: Economic Indicators
IN THIS ISSUE
India: Economic Indicators
India: Capital Markets
India: PE Deals and Exits
India: Real Estate Market Trends
Source: www.tradingeconomics.com, www.economictimes.com
GDP Growth, Inflation and Industrial Production
Inflation IIP GDP
In p
erce
nta
ge
Jan-
11
Feb-
11
Mar
-11
Apr
-11
May
-11
Jun-
11
Jul-1
1
Aug-
11
Sep-
11
Oct
-11
Dec
-11
-8
-4
0
4
8
12
Nov
-11
Jan-
12
Mar
-12
Feb-
12
Key Policy Rates
Source: www.rbi.org.in Source: www.statebankofindia.com*
Feb - ‘12 Mar - ‘12
14.75% 14.75%
7.50% 7.50%
5.50% 4.75%
8.50% 8.50%
Jan - ‘12Key Rates
14.75%
7.50%
5.50%
8.50%
PLR*
CRR
Repo Rate
Reverse Repo Rate
l India’s GDP growth for January – March 2012 is estimated
to 6.1% much lesser than 7.8% during Q1 2011. Further, as
per the forecasts of Reserve Bank of India (RBI), GDP growth
projection for the current fiscal has been revised marginally
to 7.2% from its previous estimate of 7.3%.
l
To boost economy, RBI
reduced key policy rates; Cash Reserve Ration (CRR) was
reduced by 50 basis points in January 2012 & 75 basis points
in March 2012.
A key measure of industrial output, Index of Industrial
Production (IIP) grew at 4.1% in February 2012 while, the IIP
for January 2012, estimated to be 6.8% was revised
significantly downward to 1.1%.
l Although overall inflation eased this quarter, an
acceleration in food price inflation was observed. High oil
prices, inflation in coal, electricity and fertilizers and an
increase in indirect taxes are likely to retain inflation at
current levels in short term.
IN THIS ISSUE
India: Economic Indicators
India: Capital Markets
India: PE Deals and Exits
India: Real Estate Market Trends
India: Capital MarketsBSE & Realty Index Performance for Q1 2012
Realty IndexBSE BSE Sensex
2-Ja
n-12
7-Ja
n-12
13-Ja
n-12
20-Ja
n-12
30-Ja
n-12
6-Fe
b-12
13-F
eb-1
2
21-F
eb-1
2
28-F
eb-1
2
5-M
ar-1
2
13-M
ar-1
2
20-M
ar-1
2
Poin
ts
27-M
ar-1
2
20000
15000
10000
5000
0
l The BSE Sensex & Realty Index did not witness any sharp
drop or increase in points during the quarter. The indices
witnessed drop in points during the beginning of the quarter
of the account of the sharp drop in IIP index and growing concerns of slowing economy. However, softening inflation & easing worries over European debt crisis provided traction for growth.
The indices which gained marginally ahead of the Union Budget, later witnessed a drop as investors remained unimpressed by the budget. During the end of the quarter, the indication of a mostly likely cut in the repo rates from RBI provided spur in market sentiments. The BSE Sensex & Realty Index recorded an increase of 12% & 30% respectively as compared to beginning of the quarter.
l
Performance of Realty Index Stocks
Source: www.bseindia.com *On 31 March 2012
Company
Ackruti City
Anant Raj Industries
DB Realty
DLF
Housing Dev. & Infrastructure
India Bulls Real Estate
Orbit Corporation
Parsvanath Developers
Peninsula Land
Phoenix Mills
Sobha Developers
Suntech Realty
Unitech
242.00
96.50
115.95
280.80
191.80
83.90
68.90
82.25
59.25
229.00
334.40
422.00
45.70
166.05
35.30
45.05
172.75
52.10
40.10
25.00
32.45
29.10
149.15
185.25
242.00
17.45
1534.45
2602.78
2360.84
37839.50
6683.58
5028.75
547.58
1895.21
1608.19
2926.69
2806.64
2120.16
9680.31
7.09
18.49
7.16
40.09
7.61
84.46
7.11
21.99
5.91
32.07
14.18
287.86
16.37
0.84
0.14
0.08
1.04
0.50
0.15
0.74
0.83
0.34
0.10
1.20
0.22
1.17
184.05
59.15
89.10
207.30
86.30
65.75
55.45
56.40
34.05
204.55
329.90
379.80
29.20
Prev Close*
INR
52 WeeksHigh Low
INR INR
Market Capitalization P/E Ratio Debt Ratio
%%Cr INR
Group
A
S
B
A
A
A
B
B
B
B
B
B
B
India: PE Deals and Exits
Developers continued to raise funds from Private Equity (PE)
and Non-Banking Finance Corporations (NBFCs) in Q1 2012.
Nearly 12 deals were closed in this quarter with most of
funding happening either at the project completion stage or
at the initial land acquisition stage.
Key Private Equity (PE) deals in real estate sector during Q1
2012 include:
IN THIS ISSUE
India: Economic Indicators
India: Capital Markets
India: PE Deals and Exits
India: Real Estate Market Trends
l The largest PE investment announced during Q1 2012 was GIC’s INR 500 crore investment in a Godrej Properties office project in Mumbai`s Bandra Kurla Complex.
l Kotak Realty Fund has invested INR 120 crore for a 20%
stake in Parsvnath Developers' SPV, which will develop
township project in Gurgaon. The 100-acre project is an
integrated township on Sohna Road and will be largely
l ASK Property Investment Advisors invested INR 40 crore in
Paranjape Scheme’s residential project in Pune.
l Madison India Real Estate Fund Limited has invested in
Bangalore based real estate developer Shriram Land
Development India Ltd. INR 30 crore will be invested in two
ongoing residential projects including a 30-acre gated
community in Sarjapur and 12-acre plotted-development at
Meesaganahalli in Bangalore.
l Xander Finance, the NBFC arm of global investment firm
Xander Group has invested INR 70 crore in Ajmera Group's
office and retail project Times Square in Mumbai. The mixed
use project is located on the Andheri - Kurla Road with built-
up area of 850,000 sqft.
l Red Fort Capital has invested INR 150 crore in 3C
Company's premium residential project in Gurgaon; this is
Red Fort Capital's fifth investment in 3C Company's
residential project.
l Sheth Developers Private Limited has raised INR 450 crore
from Morgan Stanley to refinance its debt it had taken to by
18-acre land parcel (Borosil Glass Works) in Andheri.
Other deals in pipeline include:
l Bangalore-based, Embassy Group is planning to raise
funding from either PE funds or strategic investors for its INR
3,000 crore integrated township development project in
Bangalore. The project spread across 300-acres is located
near Bangalore International Airport.
l Bangalore-based DivyaSree Developers is planning to raise
150 crore for developing a mixed use project in Bangalore.
residential with mixed commercial and retail developments.
Bangalore: Real Estate Market Trends
IN THIS ISSUE
India: Economic Indicators
India: Capital Markets
India: PE Deals and Exits
India: Real Estate Market Trends
Office Market
Retail Market
Residential Market
Bangalore witnessed fresh supply of 1.1 milllion sqft of office space in Q1 2012. Absorption for the quarter stands at 2.3 million sqft of which close to 0.8 million sqft was pre-committed. Peripheral areas of Whitefield and Electronics City accounted for 49% of the total absorption this quarter. As of Q1 2012, nearly 7.7 million sqft of office space is likely to enter the market in 2012.
Brigade Orion Mall (0.8 million sqft) at Malleshwaram was completed in Q1 2012. High-street rentals across micromarkets witnessed an average increase of 15% while malls commanded 10% higher rentals as compared to the previous quarter. 1 MG Road (0.25 million sqft) at MG Road and Inorbit Mall (0.5 million sqft) at Whitefield are prominent malls scheduled for completion in Q2 2012.
Bangalore witnessed launch of 5,700 residential units in Q1 2012 with apartments accounting for 90% of the total supply and close to 4,700 units were absorbed in this quarter. As compared to the previous quarter, residential prices witnessed an increase in the range of 10 – 20% across the micro-markets. Bangalore North and established micro-locations including Whitefield and Outer Ring Road (Sarjapur) are the most preferred micro-locations for real estate activities; Old Madras Road is also expected to emerge as favored micro-location in medium term.
Rental & Capital Values in Key Micro Locations
HSR layout, ORR (between Silk Board & Marthahalli), Haralur Road, Kasavanahalli Road
Sarjapur Road,
Whitefield,Brookefield, Mahadevpura, ORR (Marthahalli to K. R. Puram)
Jalahalli, HMT layout, Yeshwanthpur, Peenya, Hesarghatta Main Road
Vijayanagar, Kengeri, RR Nagar, Uttarahalli, Mysore Road
ORR (Banashankari to JP Nagar), Kanakapura Road
Banaswadi, HRBR layout, Hennur Road, Thanisandra Main Road, Bellary Road, Yelahanka, Kogilu, Bagalur
KR Puram, Old Madras Road, Battarahalli, Avalahalli, Budigere, Hoskote
2,200-8,740
3,300-8,000
2,500-11,500
3,200-5,500
2,600-3,590
2,800-7,450
2,800-5,200
2,200-8,000
4,750-10,700
4,500-10,500
-
4,200-9,310
5,300-6,430
3,900-4,500
Note: Indicates Grade A Warm Shell rentals for office space. The retail rentals mentioned are on carpet areas with 85% efficiency for high street and 62%-65% efficiency for mall spaces and for Line Stores in GF only.
10,000-25,000Lavelle Road, Brunton Road, Kasturba Road, Ulsoor Road, RC Road, etc.
-
Indiranagar, Koramangala, Jayanagar, J.P. Nagar, Malleshwaram, RMV Extn, Old Airport Road, etc.
Sanjay Nagar, BTM layout, Vijaya Bank Colony, Arekere, Gottigere, Bilekahalli, Bannerghatta Road
Begur Road, Bommanahalli, Electronics City,Bommasandra, Chandapura, Jigani, Anekal
5,700-20,000
3,000-6,500
2,250-4,700
8,000-13,000
4,250-5,000
3,250-5,200
Apartments Villas
Capital Value (INR/Sqft/Month)Key Locations
ORR
CBD
SBD
McGrath Road
VM Road
Koramangala
Malleshwaram
Koramangala 80’ Road
Indiranagar 100’ Road
Jayanagar 11th Main
450
205
295
130
235
M.G. Road, Kasturba Road, Lavelle Road, V.M. Road, Ulsoor Road, Residency Road, Infantry Road
CBD70
SBDIndiranagar, Koramangala, Inner Ring Road, Old Airport Road, Bannerghatta Road
55-70 50-53
ORR
Stretch from Hebbal to Silk Board junction 50-55 48-50
Grade A Grade B
Rental Value (INR/Sqft/Month)
Key LocationsMicro Location
Office
ORR
Bannerghatta Road
Yelahanka
95
100
90
Whitefield
Bannerghatta RoadMysore Road
350
210
385
425
200
175
120
Retail* Rental Value(INR/Sqft/Month)
Rental Value(INR/Sqft/Month)
Mall SpaceHigh Street
PBDWhitefield, Electronics Ciity, Mysore Road, Bellary Road, Sarjapur Road
25-38 22-35
Sarjapur Road
Whitefield
Bangalore North
Tumkur Road
Mysore Road
Kanakapura Road
Old Madras Road
Central
Off Central
Banneraghatta Road
Hosur Road
Residential
90-100
Brigade Road
Commercial Street
Chennai: Real Estate Market Trends
IN THIS ISSUE
India: Economic Indicators
India: Capital Markets
India: PE Deals and Exits
India: Real Estate Market Trends
Chennai witnessed marginal supply of 0.56 million sqft in Q1 2012. Absorption for the quarter stands at 0.82 million sqft with Off-CBD locations of Adyar, Guindy and Tharamani accounting for 41% of total absorption. Rentals across the micro-markets witnessed no change as compared to the previous quarter.
Chennai saw no fresh supply of malls in Q1 2012. While the mall rentals in the city remained same as the previous quarter, high-street rentals across the city witnessed an increase in the range of 6 – 15%. Close to 3 million sqft of mall space is expected to enter the Chennai market in the year 2012; key malls under-construction include Prestige Forum (0.7 million sqft) at Vadapalani, Gold Souk Grande Mall (0.6 million sqft) at Vandalur and PS Grand Mall (0.3 million sqft) at Velachery.
Growth in commercial activities, influx of IT professionals and enhanced urban infrastructure have pushed the residential demand in the city. The city witnessed launch of several residential projects in Q1 2012; Prestige Constructions and Sobha Developers announced its foray in to Chennai residential market. Prestige Bella Vista, an apartment complex with over 2,500 apartments is spread across 25-acres in Porur while Sobha Developers has launched two projects Sobha Merrita and Sobha Serene at Kelambakkam and Porur respectively in this quarter.
Residential Market
Office Market
Retail Market
-
Apartments Villas
Capital Value (INR/Sqft/Month)Key Locations
Key LocationsMicro Location
Office
Rental & Capital Values in Key Micro Locations
Central
Off Central
Residential
CBD
Off-Central
Suburban
OMR
GST
Anna Salai
Velacherry, Guindy, Poonamallee
Ambattur
Madhya Kailash, Perungudi, Sholinganallur, Siruseri IT Park
Shriram, L&T Estancia, Mahindra World City
CBD
SBD
Retail* Rental Value(INR/Sqft/Month)
Rental Value(INR/Sqft/Month)
Mall SpaceHigh Street
Khadar Nawaz Khan Road
Numgambakkam High Road
RK Salai
Pondy Bazaar
Adyar Main Road
Annanagar II Avenue
Velachery
Purusuvakam High Rd
Nelsanmanickam Rd
Whites Road
RK Salai
Mount Road
OMR
GST
NH-4
Boat Club Road, Poes Garden, Besant Nagar, Annanagar, T. Nagar, R.A. Puram
Vadapalani, Saligramam, KK Nagar, Porur, Ambattur, Pallavaram, Medavakkam
Madhya Kailash, Perungudi, Thoraipakkam, Sholinganallur, Navalur
Poonamallee to Sriperumbudur
Tambaram, Vandalur, Potheri, Guduvancherri, Mahindra World City
-
Note: Indicates Grade A Warm Shell rentals for office space. The retail rentals mentioned are on carpet areas with 85% efficiency for high street and 62%-65% efficiency for mall spaces and for Line Stores in GF only.
80 - 90 50 - 60
45 - 50 25 - 35
28 20 - 25
30 - 45 20 - 30
30 NA
175 285
135 160
120 200
160
130 240
105
90
80
9,000 - 26,000
3,200 - 8,500
3,500 - 10,000 3,000 - 7,000
2,300 - 4,000 3,500 - 5,000
2,500 - 3,500 2,500 - 3,500
Grade A Grade B
Rental Value (INR/Sqft/Month)
Hyderabad: Real Estate Market Trends
IN THIS ISSUE
India: Economic Indicators
India: Capital Markets
India: PE Deals and Exits
India: Real Estate Market Trends
Hyderabad witnessed fresh supply of 0.6 million sqft in Q1 2012 and nearly 1.1 million sqft of office space was absorbed in this quarter. Absorption in Q1 2012 in Hyderabad was driven by IT/ITeS and telecommunications industries.
Hyderabad saw no fresh supply of mall space in Q1 2012 thereby keeping the total available mall space limited to 1.5 million sqft. With limited mall space, high-streets locations of Banjara Hills and Jubilee Hills were preferred locations by retailers for expansion; the city witnessed an absorption of 0.1 million sqft of retail space in Q1 2012. Manjeera Trinity mall (0.45 million sqft) at Kukatpally is expected to be operational in H2 2012.
Growing urban infrastructure (Hyderabad International Airport and Hyderabad Metro Rail) has provided traction in the residential market across the city despite Telangana agitation. Several national and regional developers launched their residential projects in the city in Q1 2012. Areas including Gachibowli, Kukatpally and Miyapur continue to be most preferred residential micro-markets, followed by peripheral micro-market of Hi-tech City. Mahindra Lifespace Developers, realty arm of Mahindra Group announced a residential project; the project spread across 10-acres in Kukatpally is scheduled for a launch in H2 2012. The city also witnessed launch of Ramky Elite Towers at Hi-Tech City and Ramky Discover City a plotted development this quarter.
Residential Market
Office Market
Retail Market
Rental & Capital Values in Key Micro Locations
Note: Indicates Grade A Warm Shell rentals for office space. The retail rentals mentioned are on carpet areas with 85% efficiency for high street and 62%-65% efficiency for mall spaces and for Line Stores in GF only.
Apartments
Capital Value (INR/Sqft/Month)
Grade A Grade B
Rental Value (INR/Sqft/Month)
Key LocationsMicro Location
Office
Retail* Rental Value(INR/Sqft/Month)
Rental Value(INR/Sqft/Month)
Mall SpaceHigh Street
205
205
CBD
SBD
PBD West
EastPBD South-
Begumpet, Somajiguda, Raj Bhavan Road, SP Road
Banjara Hills, Jubilee Hills
Madhapur, Gachibowli, Raidurgam, Manikonda, Hi-Tech City
Poocharam, Uppal, Shamshabad
38 - 48
35 - 45
36 - 42
18 - 28
30 - 35
30 - 40
28 - 35
NA
CBD
SBD
PBD
MG Road
Begumpet
Banjara Hills
Punjgatta
Jubilee Hills
AS Rao Nagar
Kukatpally
Madhapur
100
90 - 95
130
100
130
75
110
90
NTR Gardens
Banjara Hills
Madhapur
150
240
225
Residential
Banjara Hills
Jubilee Hills
Himayathnagar
Begumpet, Somajiguda
Madhapur, Gachibowli
Kukatpally
Kompalli
Maredpally (West and East)
3,000 - 5,500
3,500 - 4,500
4,000 - 8,000
4,000 - 7,000
2,500 - 4,500
2,800 - 4,500
2,900 - 4,900
3,000 - 5,500
IN THIS ISSUE
India: Economic Indicators
India: Capital Markets
India: PE Deals and Exits
India: Real Estate Market Trends
Bangalore
Hyderabad
Key Project Launches - Residential
Chennai
Project Location Developer Type No. of Units
Clover Greens 1 Sarjapur-Dommasandra Assetz Homes Apartment 67
77 Degree East Old Airport Road Divyasree Developer Villas 78
Brigade Caladium Hebbal Brigade Developers Apartment NA
Sobha Habitech Whitefield Sobha Developers Apartment 318
Seasons C V Raman Nagar Purvankara Apartment 660
Suncity Thiruvallur Amarprakash Villa 200
Pallazo Medavakkam Antony Group Apartment 31
Serene Porur Sobha Apartment 176
Baba's Gardens Velachery Indu Housing Apartment 82
Epica Nungambakkam Casa Grande Apartment 12
Ramky Elite Towers Hitec city Ramky Developers Apartment 580
Ramky Discover city Hitec city Ramky Developers Gated Community NA
Serene Pragati Shankarpally Covai Property Gated Community 328
Bangalore
Hyderabad
Key Lease Transactions - Office
Chennai
Company Building Developer Location Area
Infosys E City-1 Scrips & Scrolls Electronic city 352,000
Net App Embassy Golf Links Embassy Group Koramangala 112,029
Atos Origin India Pvt. Ltd Goplan Millennium Towers Gopalan Estates Whitefield 125,000
Inmobi Embassy Tech Quare Embassy Group Outer Ring Road 350,000
VM ware Kalyani Magnum Kalyani developers JP Nagar 350,000
Aricent Technologies ASV Chandilya ASV Construction Thoraipakkam 100,000
Bereo ASV Chandilya ASV Construction Thoraipakkam 50,000
Mafoi Tanmaya Towers Individual Nungambakkam 30,000
SRM Technologies The Lords Ramaniyam Ekkattuthangal 50,000
ABB Jayanth Tech Park Vishranti Manapakkam 50,000
Dupont Wave Rock Tishman Speyer Gachibowli 200,000
Genpact Mindspace East K. Raheja Corp Pocharam 150,000
UHG Phoenix SEZ Phoenix Hitec City II 188,900
150,000Value Labs Phoenix Info City SEZ Phoenix Hitec City