Thane Cluster May set Template for Maharashtra, says Guardian Minister Eknath Shinde

 9 February 2022

THANE:

The first-ever cluster redevelopment project to be executed in Maharashtra's Thane will set a template for the state to replicate in the future, urban development department minister Eknath Shinde said on Tuesday.

Shinde was addressing the media following the groundbreaking ceremony of a transit camp to be constructed for the first phase of the project to be executed at the densely populated Kisan Nagar which is dotted with several illegal and derelict structures.

“The pilot project will be executed by Cidco that will be helpful for all future projects and will give clarity on the business model for developers who are presently shying away from the same. This is the first project to be executed in the state on a massive scale where nearly 1,500 hectares of land will be developed,” Shinde said.

Civic officials said the transit camp is being developed at an amenity plot in Vartak Nagar spread over 1,645 sq metre and will have 243 tenements of 300 sq feet each for temporary accommodation of residents. Once the building is ready, residents will be relocated and their existing structures razed to construct the highrise as per the plans.

“The construction will cost Rs 35 crore and will be expedited to ensure timely relocation and subsequent completion of the first phase of the brownfield project,” said officials.

Source: timesofindia.indiatimes.com

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ADIA-backed Lake Shore acquires Viviana Mall from Ashwin Sheth, GIC for Rs 1,900 crore

 11 February 2022

In the largest ever transaction for any retail asset in India, the Abu Dhabi Investment Authority-backed Lake Shore India Advisory has acquired Viviana Mall in Thane from Singapore’s sovereign wealth fund GIC and realty developer Ashwin Sheth Group for over Rs 1,900 crore, said people with direct knowledge of the development.

The acquisition of the operational retail property is also this year’s first single-largest real estate transaction in the country.

In June, ET was the first to report that Lake Shore India Advisory was in advanced discussions to acquire this nearly 2-million-sq-ft retail mall.

The deal assumes significance as it indicates global investors’ unabated interest in Indian mall developments and confidence that retail consumption will rebound once the Covid-19 pandemic is over.

Viviana Mall occupies a 13-acre plot of land on Thane's Pokhran Road and has a total lease area of 1.7 million square feet. It houses one of the largest multiplexes with 14 screens, including an Imax experience.

"Lake Shore India’s subsidiary Salsette Developers is acquiring the property from Sheth Developers & Realtors (India) that owns and operates Viviana Malls. Salsette Developers is funding the acquisition with equity and debt, including non-convertible debentures (NCDs)," said one of the people mentioned above.

Salsette Developers raised Rs 450 crore by issuing NCDs on Tuesday, showed the NSDL’s data on debt trade repository for foreign portfolio investors’ (FPI) investment in such instruments.

ET’s email queries to Lake Shore India, GIC remained unanswered. Transaction advisor JLL India declined to comment for the story.

"As a corporate striving to engage and drive value for our investors, we constantly look at opportunities that would drive both investor and customer excellence and returns. However, we downright deny this current speculation coming from the markets. We would be glad to announce any such developments in the coming future," said a Viviana Mall spokesperson.

The mall is so far jointly owned by the Ashwin Sheth Group with a 51% stake and the balance with GIC. The Singapore sovereign wealth fund had picked up a stake in this retail property from Sheth Group in early 2016 at a valuation of Rs 900 crore. Both entities have now sold their entire respective stakes to Lakeshore India.

ET had reported earlier that institutional investors including Blackstone Group, Warburg Pincus, and Canada Pension Plan Investment Board (CPPIB), through their joint platforms or Indian partners, apart from Lake Shore, had shown interest in picking up the property.

Given the increased residential development in and around Thane, the city has also emerged as a major hub for retail consumption, prompting a rise in interest among major retail property developers.

Private equity major Xander Group’s retail arm, Virtuous Retail South Asia (VRSA), has acquired a nearly 20-acre prime land parcel in Thane from textile major Raymond for $100 million, or over Rs 710 crore. It plans to spend an extra $240 million, or more than Rs 1,700 crore, to build the site, making its total investment more than Rs 2,400 crore.

VRSA is planning to build a 3.7 million sq ft mixed-use city centre project anchored by a 2.4 million sq ft VR retail flagship development. The proposed 2.4-million-sq-ft VR flagship retail mall will offer retail, dining, lifestyle, and entertainment options.

Ashwin Sheth Group is also looking to set up a strategic platform to develop and operate retail malls across the country. In December, the developer entered into a joint venture with Nagpur-based Sethi Group to develop a 1 million sq ft mall, Viviana Nagpur, in the city’s south western region near Pratap Nagar.

Recently, GIC too entered into a strategic partnership with The Phoenix Mills to set up a joint venture to develop, own, and operate retail-led mixed-use developments in India.

In 2019, Lake Shore bought a majority stake in a retail mall project in Hyderabad from the city-based Phoenix Group for around Rs 1,000 crore, inclusive of construction funding.

Source: economictimes.indiatimes.com

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Which Are The Most Popular Areas To Buy A House In Mumbai area?

 13 February 2022

Mumbai Metropolitan Region’s Thane and Mumbai Western Suburbs formed 45 per cent of the total new residential units launched in 2021. But other pockets also saw an uptick, shows Square Yards data

Navi Mumbai has emerged as a prime residential market in the last 10 years thanks to it being well planned and higher availability of relatively affordable options compared to Mumbai. Inexpensive localities such as New Panvel, Khargar, Khamothe and Ulwe offer properties within an average value of approximately Rs 4,000-7,000 per sq. ft and have become top picks for homebuyers. According to Square Yards research, during Q4 2021, more than 60 per cent of the online searches and the supply in the market were concentrated for properties in the budget brackets of Rs 30-60 lakh and Rs 60-100 lakh. Smaller configurations remained popular throughout 2021.

In the Mumbai Metropolitan Region (MMR), Thane and Mumbai Western Suburbs housed a significant portion of the new project launches. The zones collectively contributed about 45 per cent of the total new residential units launched in 2021. However, the last quarter of the year had a different story to tell.

SOUTH MUMBAI, NAVI MUMBAI SEE UPTICK

Though MMR continued to hold its dominant position as a city, contributing about 26 per cent to the total new launches across the top six cities, the zone-wise split in Q4, 2021 differed visibly, according to Square Yards data. Unlike the third quarter of 2021, Navi Mumbai and the Central Suburbs together accounted for about half of the total share of the new launches in Q4, 2021. The October-December 2021 quarter also saw project launches in South Mumbai. The zone attracted about 16 per cent of the total new launches in the quarter, indicating a revival of the luxury real estate segment.

DEMAND FOR 2BHK, 3BHK; BUT SUPPLY IS OF 1 BHK

MMR's supply and demand dynamics were not aligned, as the increased demand for big homes became very obvious in search trends. In contrast to previous quarters, a significant 63 per cent of searches were for two- and three-bedroom homes, while the market's availability remained skewed toward one-bedroom units. As a result, the developers' inventory was still being offloaded, and their offerings did not reflect changing consumer preferences. Apartments were, without a question, the most popular property type among both suppliers and house buyers. Q4 2021 accounted for 90 per cent of all online queries, while 97 per cent of the overall inventory was geared toward apartment buildings.

Source: www.outlookindia.com

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PM Modi to Inaugurate Rail Lines Between Thane and Diva on Friday

 17 February 2022

These two additional railway lines have been built at an estimated cost of ₹620 crore and features a 1.4 km long rail flyover, three major bridges and 21 minor bridges.

Prime Minister Narendra Modi will inaugurate two additional railway (fifth and sixth) lines connecting Thane and Diva on February 18 via video conferencing. He will also flag off two suburban trains of the Mumbai Suburban Railway.

Kalyan is the main junction of Central Railway. The traffic coming from the northern and southern side of the country merges at Kalyan and moves towards CSMT (Chhatrapati Shivaji Maharaj Terminus). Out of the four tracks between Kalyan and CSTM, two tracks were used for slow local trains and two tracks for fast locals, mail express and goods trains. To segregate suburban and long-distance trains, two additional tracks were planned.

The fifth and sixth line between Thane and Diva is a part of the Mumbai Urban Transport Project (MUTP 2B) and got approval in 2008.

These two additional railway lines have been built at an estimated cost of ₹620 crore and features a 1.4 km long rail flyover, three major bridges and 21 minor bridges. “These lines will significantly remove the interference of long-distance train’s traffic with suburban train’s traffic in Mumbai. These lines will also enable the introduction of 36 new suburban trains in the city,” the Railways said in a statement.

This new railway line will facilitate the Railways to launch 80 to 100 more local train services by the year end, enabling a reduction in the crowds between Chhatrapati Shivaji Maharaj Terminus (CSMT)-Kalyan/Karjat and Kasara.

The new line will also help the Railways to operate both suburban local and outstation trains on separate tracks between Thane and Diva enabling improvement in the punctuality of trains.

Source: www.hindustantimes.com

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Maharashtra: 419 Developers Opt for E-Registration in Four Months

 17 February 2022

Mumbai

As many as 419 developers have applied for e-registration of their projects from their offices since October last year when the online facility for first-sale properties was initiated to ensure less crowding at sub-registrar offices in the state.

Of these 419 applications, 347 have been approved by the registration and town planning authorities and nearly 300 documents have been registered.

State registration department officials said after the teething troubles, the process has been streamlined for the benefit of developers registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA).

Deputy Inspector General of Registrations (IT) Suhas Mapari told TOI they were getting a good response from the developers who were trained in this regard. “Of the 419 applications, 347 have been approved after due process, while 291 have been submitted to the National Informatics Centre (NIC) and nearly 120 projects are already live,” he said.

On the process, registration officials said the developer could apply on the website of the registration department and then submit the required documents to the Joint District Registrar (JDR) of the town planning department. The JDR has to clear it within two working days after checking the valuation of the project, after which the application is forwarded to the NIC for the template of the e-registration application.

With the e-registration process picking up in the state, the registration department has also reached out to banks to accept digitised property documents in case of loan sanctions. “As of now, the e-registration process is voluntary. Developers and buyers can opt for online process. However, if they want to continue with offline, they can do that as well,” a registration official said.

The officials said to get more developers to warm up to the online process, they have reached out to developers’ bodies. “There were initial hiccups regarding the applications, however, they have been ironed out and our members are registering for the process,” Sunil Furde, President of state Credai, said. The association has 3,500 members, leaving Mumbai.

Work on RR rates in process: Officials

State IGR officials on February 16 said the process of Ready Reckoner (RR) rates’ evaluation was in process after receiving suggestions and objections from all the districts. While the rationalization of rates for every area is being discussed, developers have demanded that there should be no increase in the RR rates this year.

Source: content.magicbricks.com

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Good Time to Invest in Commercial Realty as Firms Bring Employees to Office

 18 February 2022

Leasing of space is likely to rise as Covid-related uncertainties reduce and hybrid work model becomes the norm

With the third wave of the coronavirus (Covid-19) pandemic ebbing, the near-term prospects of commercial real estate are set to improve. The long-term prospects of this segment are tied to the pace of economic growth. Since India has among the fastest-growing economies globally, commercial real estate offers sound long-term prospects as well.

IMPROVING OUTLOOK

Work From Home (WFH) had marred the prospects of commercial real estate as companies let go of leased spaces to reduce their rental expense. “The uncertainty that office as an asset class witnessed since the start of Covid is now reducing with corporates inviting their employees back to office,” says Vishal Ahuja, head-private wealth group, India, JLL.

India’s position within the global economy is likely to strengthen in the future. “India’s value in the global market has increased steadily. From being an outsourcing destination, it has turned into a research and development hub for global companies. It is also a critical consumer market for products and services,” says Viral Desai, executive director, transactions, Knight Frank India.

According to JLL, the Indian office sector saw net absorption of 11.56 million sq. ft in October-December 2021, the highest in the last eight quarters, and up by 86 per cent quarter-on-quarter. Net absorption was up 26 per cent year-on-year for the half-yearly period of July-December 2021.

TIME TO ENTER

Experts believe this is a good time to invest in commercial real estate. “WFH had created uncertainties in investors’ minds. However, companies are now looking at a hybrid work environment which means the office is an integral part of their plans. This has led to resurgence in investor confidence,” says Ahuja.

Anuj Puri, chairman, ANAROCK Group agrees. “The market is definitely looking upbeat with leasing activity gaining momentum across the top seven cities in 2021. While many offices have already opened, many more are likely to open sooner or later. Hence, this is a good time to invest in commercial real estate,” he says.

Grade-A office space in a good location can fetch 7.5-10 per cent annual rental yield. In addition, there is scope for capital appreciation.

Returns from this asset class also tend to be stable.

LOCATIONS TO BET ON

Investors can look at any of the busy corporate and business centres across the country. “Bengaluru continues to see high demand from not just the IT/ITeS sector but also from start-ups. Outer Ring Road, Electronic City and Whitefield are some of the favoured locations in this city. In Hyderabad, HITECH city and Gachibowli are top favourites. In Gurugram it is MG Road, Sohna Road and the DLF IT parks. In Chennai, it is mostly OMR. In the Mumbai Metropolitan Region (MMR), the BKC area and Worli are favoured destinations,” says Puri.

Adds Ahuja: “Besides Mumbai and Pune in the West, Bengaluru and Hyderabad in the south, and NCR in the north, Kolkata and Chennai are also gaining momentum with investors examining opportunities in these cities.” He adds that micro markets that are witnessing strong infrastructure development in the vicinity have attractive prospects.

KEY FACTORS TO CONSIDER

To earn attractive returns, investors must select the property carefully. “Location, occupier profile and entry and exit prices should be the key considerations. The property should be in a high-demand location and must have a stable occupier profile,” says Desai.

Proper due diligence is a must. “Ensure that the property title is clean and there are no uncertainties in the documentation process. If the project is under construction, it must be RERA-registered,” says Ahuja. He too emphasises the need to check tenant quality. “A good tenant profile ensures stable returns,” he adds.

Sometimes, exiting from an investment in commercial real estate can pose a challenge. According to Desai, “REITs are, therefore, a good option for investing in commercial real estate. All the REITs available in India belong to companies with strong portfolios,” says Desai.

PROS AND CONS OF INVESTING IN COMMERCIAL REAL ESTATE

Pros

• * Rental yield can range from 7.5-10 per cent in commercial realty, compared to 2-3.5 per cent in residential space


• * Long-term lease agreements result in predictable cash flows

Cons

• * Demand gets affected by economic downturn


• * If a tenant vacates, that leads to uncertainty regarding when rental flows will commence again


• * High capital outlay required


• * Investing at high prices leads to poor rental yield

Source: www.business-standard.com

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Mumbai: 1% Metro Cess on Property Purchase Likely from April 1, Stamp Duty to Go Up

 21 February 2022

Meanwhile, on March 11 the state government will table the budget for the financial year 2022-23. Therefore, the incentives for real estate stakeholders and homebuyers are being looked at.

One per cent Metro cess on property purchase is likely to be imposed from April 1. The existing Maharashtra government resolution (GR) restricts the imposition of Metro cess till March 31. The decision was taken amid the pandemic situation. Now, if no new GR is issued then the Metro cess will come into force, said Shravan Hardikar, Inspector General of Revenue (IGR), Maharashtra.

Metro cess is a transport surcharge. It is one per cent of the property value, and is intended to be used for funding transport infrastructure projects in the cities such as Metros, bridges and flyovers.

Following this additional cess, the stamp duty will increase further. Currently, the stamp duty on property purchase is five per cent, and four per cent for women homebuyers. Meaning, the Metro cess will increase stamp duty to six per cent and five per cent subsequently.

Meanwhile, on March 11 the state government will table the budget for the financial year 2022-23. Therefore, the incentives for real estate stakeholders and homebuyers are being looked at.

The Free Press Journal had reported that property registrations in Mumbai city alone bring in a huge wealth. According to the data with the IGR and Controller of Stamps, Maharashtra, in the last 20 days of February, a total of 6,741 housing conveyance sales have been registered in Mumbai. This has led to a revenue generation of Rs 372.81 crore through five per cent stamp duty charges. Similarly, across Maharashtra, around 88,630 conveyance sales were recorded and while the revenue generated stood at Rs 1,362.43 crore.

Source: www.freepressjournal.in

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