IN THIS ISSUE India: Economic Indicators India: PE · PDF file · 2016-07-03IN THIS ISSUE India: Economic Indicators India: ... Hesarghatta Main Road Vijayanagar, Kengeri, RR Nagar,

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.


IN THIS ISSUE





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: 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


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





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





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





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


Office


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




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

-


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


Hyderabad: Real Estate Market Trends

IN THIS ISSUE





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



Apartments

Capital Value (INR/Sqft/Month)

Grade A Grade B



Office




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





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

Documents

IN THIS ISSUE India: Economic Indicators India: PE · PDF file · 2016-07-03IN THIS ISSUE India: Economic Indicators India: ... Hesarghatta Main Road Vijayanagar, Kengeri, RR Nagar,