Carlyle Group plans to divest a 6.4% stake in PNB Housing Finance via an open market transaction on Tuesday, aiming to sell 1.66 crore shares at INR 775 each, potentially raising INR 1,256 crore. This floor price is 5% lower than Monday's closing price of INR 794.90. Despite holding a 32.68% stake as of June 30, 2024, PNB Housing Finance's stock has only grown 1.2% this year, underperforming compared to the Sensex's 13% rise. This sale reflects Carlyle's strategic adjustments amid market challenges, impacting investor sentiment in the housing finance sector.Read more

Mindspace Business Parks REIT reported a robust 9% increase in net operating income (NOI) to INR 496 crore for Q1 FY25, alongside an 11% revenue rise to INR 620 crore. The REIT announced a distribution of INR 300 crore to unitholders, marking a 5% year-on-year increase. Notably, the company leased over 1 million square feet and achieved a 91.1% occupancy rate. With ongoing projects and new SEZ space approvals, Mindspace is expanding its footprint, including a 1.5 million square feet addition at Airoli East Park. The REIT also issued INR 650 crore in sustainability-linked bonds, underscoring its commitment to sustainable finance.Read more

From January to June 2024, Millennials and Gen Z accounted for over 60% of property purchases in Bengaluru, marking a significant shift in the real estate market. Data from NoBroker reveals that Gen Z, aged 11-26, made up 16% of these sales, while Millennials, aged 27-42, dominated the rest. Properties ranged from INR 70 lakh to INR 1.1 crore, reflecting young buyers' willingness to invest significantly. Notably, 67% of these buyers are from dual-income households. The trend includes increasing female participation and a preference for under-construction projects, signalling a transformative phase in the housing market driven by younger generations.Read more

Bengaluru tops India's residential real estate market, with JLL Research reporting 18,548 housing units sold and 16,537 new homes launched between April and June 2024. The city represents 21% of national new launches and 23% of home sales. The majority of new launches are in the upper-mid segment, priced between INR 1 - INR 3 crore. Whitefield and areas like Hosur Road have driven much of this activity. The average property price rose by 15%, and unsold inventory dropped by 21% year-on-year. Bengaluru's robust performance underscores its strong demand and dynamic real estate sector.Read more

Nexus Select Trust reported an 8% YoY increase in net operating income for Q1 FY25, reaching INR 412.7 crore. Revenue from operations rose 6% to INR 553.8 crore, driven by rental-escalations and increased retail occupancy. Tenant sales hit INR 3000 crore, with malls' occupancy at 97.4%. The REIT signed term-sheets for two acquisitions totaling 8 lakh square-feet and plans to acquire five more assets, aiming to double its retail NOI by FY29. The board approved raising INR 1700 crore through debt-securities. A distribution of INR 325.3 crore was declared, with a record-date of August 7, 2024.Read more

Embassy Office Parks REIT reported 3% increase in net-operating-income to INR 757.5 crore for Q1 FY25. The board declared a INR 531 crore distribution, or INR 5.60 per-unit. Leasing activity rose 70% YoY, totaling 1.9 million sq. ft. Key areas like Bengaluru, Noida, Chennai show strong demand, driven by Global Capability Centres. The company reaffirmed its NOI guidance of INR 3,210-3,350 crore for FY25. The portfolio includes 51 million sq. ft. across major cities, with strategic amenities like hotels and a solar park. Debt raised totaled INR 1,450 crore at an 8.06% rate.Read more

The WSB Real Estate Partners has raised over INR 700 crore through its fourth SEBI-registered Category II Alternative Investment Fund (AIF) to invest in mid-income and affordable housing projects in tier I and select tier II cities. The fund aims for a INR 1,000 crore corpus, expandable by another INR 1,000 crore. It has a six-year term, extendable by two years. Key investors include family offices, corporates, offshore investors, and HNIs. WSB has initiated two investments and has a strong pipeline. The fund focuses on structured debt, secured by collateral, with an aim to deliver favorable risk-adjusted returns.Read more

Last week, SEBI banned real estate company Omaxe, along with its Chairman Rohtas Goel, Managing Director Mohit Goel, and three others from the securities market for two years due to discrepancies in financial statements. The ban includes prohibitions on serving as directors or holding key managerial roles in any publicly traded company. Additionally, a fine of INR 47 lakh was imposed on 16 entities, with penalties ranging from INR 1 lakh to INR 7 lakh, payable within 45 days. SEBI's 126-page order revealed that the company engaged in fraudulent activities, misrepresenting financials to stabilise its stock price while misleading investors.Read more

Singapore's Vantage Point Asset Management has acquired the financially troubled Alchemist Infra Realty for approximately INR 470 crore through a bankruptcy process. The National Company Law Tribunal (NCLT) approved the acquisition, with lenders unanimously supporting the revival plan. Initially triggered by a default on INR 401 crore in dues, the resolution plan aims to address INR 1,293 crore in claims. Experts suggest that takeovers are crucial for reviving stalled real estate projects. Despite legacy challenges, rising property values and investor interest indicate potential recovery for the Indian real estate sector.Read more

The Income Tax (I-T) Department has clarified new guidelines for calculating long-term capital gains (LTCG) taxes on real estate acquired before April 1, 2001. Property owners can now choose between using the fair market value (FMV) as of that date or the original purchase price to determine their acquisition cost. For properties acquired before April 1, 2001, the FMV cannot exceed the stamp duty value. The indexed acquisition cost, calculated using the 2024-2025 Cost Inflation Index (CII) of INR 363, impacts taxable gains and LTCG tax, which is 20% on gains exceeding this indexed cost. This flexibility allows property owners to select the lower taxable amount, potentially reducing their LTCG tax liability. As property transactions rise, investors can use these guidelines to optimise their tax outcomes.Read more