ASK Property Fund, part of Blackstone-backed ASK Asset & Wealth Management Group, is investing INR 190 crore in a residential project in Mumbai's Borivali (West). This investment will fund the redevelopment of a 6-acre site by Kalpataru Group, creating 310 new residential units across a 6.5 lakh square feet saleable area. The project targets the upper-middle segment and benefits from Borivali West's excellent connectivity to roads, railways, and metro networks, along with robust social infrastructure. This marks ASK Property Fund's second collaboration with Kalpataru Group, reinforcing their strong partnership. The area has seen a property sales increase of 18-20% year-on-year in 2023.Read more

Motilal Oswal Alternates (MO Alts) has allocated INR 190 crore to enhance India's affordable housing sector. The investment is split between Chennai's Radiance Realty (INR 100 crore) and Pune's Mantra Properties (INR 90 crore), supporting land acquisition for new residential projects. This strategy aligns with growing demand due to urbanization and an expanding middle class across major cities like Mumbai, Delhi, and Bengaluru. Part of MO Alts' larger India Realty Excellence Fund VI, which targets INR 2,000 crore, this move underscores confidence in the market's recovery and future growth prospects.Read more

The Mumbai Metropolitan Region saw a 10% year-over-year growth in average registered home sales value in the second quarter of 2024. The analysis conducted by the Square Yards suggests that there is a demand for high valued homes. Developers have observed significant growth of bulk sales in peripheral regions while the suburbs ask for luxury and ultra-luxury projects. The Lodha Group remains on top of the board in total registered transactions and total value sales. Peripheral suburb areas like Kalyan-Dombivali are leading the market while Mumbai's southern micro market dominated the region with the highest record for average sales.Read more

Embassy REIT, India's first listed REIT, is considering the sale of its Quadron office campus in Pune's Hinjawadi suburb as part of a strategic move to optimize its portfolio. The Quadron property has significantly lower occupancy at 54% compared to the REIT's other Pune assets, Embassy Tech Zone and Embassy Qubix, which are performing exceptionally well. The REIT is expected to fetch over INR 1,200 crore for the 1.9 million square feet Quadron asset, which commands standard Grade-A office rents in the area. The planned sale comes as the REIT looks to finance the acquisition of new projects, particularly from its manager, the Embassy Group.Read more

The Union Budget 2024-25 prioritizes urban development under the Viksit Bharat initiative, aiming to enhance infrastructure and reshape urban living. Mumbai's western suburbs are benefiting from significant infrastructure improvements, with these areas accounting for 31% of the city's registered home sales value-INR 14,467 crore out of INR 46,833 crore from April to June 2024. Enhanced connectivity and amenities are driving demand, especially in Borivali, Kandivali, Malad, and Goregaon. CREDAI-MCHI and CRE Matrix report a 13% increase in housing sales but a 35% decline in new launches for FY 2024. Key projects like Metro Line 3 and the Coastal Road are expected to boost property values and attract further investment.Read more

The Securities and Exchange Board of India (SEBI) has introduced a new unit-based employee benefit scheme for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), effective July 12, 2024. Instead of cash bonuses, employees will receive units in their respective trusts, with their value tied to market performance. The scheme will include a dedicated Employee Benefit Trust (EBT) to manage these units, which must come from existing units, not new issuances. This move aims to align employee interests with the trust's performance, enhancing both attraction and retention of talent. SEBI has set rules to ensure transparency and prevent insider trading.Read more

Altem Capital has unveiled the JIRAAF AU INDIA REAL ESTATE FUND - I (IREF I), targeting INR 250 crore (about USD 30 million) to support India's real estate sector, with a greenshoe option for an additional INR 100 crore (around USD 12 million). The fund aims to invest in plotted developments and provide last-mile funding up to INR 100 crore for developers nearing project completion. As a Category II Alternative Investment Fund (AIF), IREF I offers investors access to diverse real estate opportunities with a four-year investment horizon.Read more

India's real estate sector is witnessing a notable shift in investment trends. According to Knight Frank, private equity (PE) investments in real estate surged by 15% in the first half of 2024, reaching nearly USD 3 billion (INR 23,400 crore). Residential properties have seen a significant increase in investment, totaling USD 854 million (INR 6,650 crore), compared to USD 277 million (INR 2,150 crore) in H1 2023. Despite this shift, commercial real estate, particularly office space, remains robust with USD 579 million (INR 4,500 crore) in PE investments. Analysts predict that total PE investments could exceed the 2021 high of USD 6.2 billion (INR 48,600 crore) by year-end. Alternative Investment Funds (AIFs) also play a growing role, with USD 2 billion (INR 15,600 crore) still available for investment. Challenges such as high global interest rates may impact future investments, but overall, the market shows strong recovery signs and a shift towards residential assets.Read more

Japanese conglomerate Shinryo Corporation is entering the Indian market by acquiring an 85% stake in Mumbai-based GMP Technical Solutions for an equity valuation of INR 185 crore (USD 22 million). This move aims to capitalise on the growing demand for clean room technology in India's electronics and pharmaceutical sectors. Clean rooms, crucial for manufacturing sensitive products, require controlled environments. GMP, India's second-largest clean room equipment maker, specialises in partitions and will benefit from Shinryo's HVAC expertise. This acquisition is driven by India's booming electronics and pharmaceutical industries, valued at USD 70 billion and USD 45 billion in 2023, respectively.Read more

Incuspaze, a flexible workspace provider, has raised USD 8 million (INR 67 crore) in its inaugural funding round, led by the India Inflection Opportunity Fund (IIOF) and other financial institutions. This investment aims to enhance Incuspaze's ability to deliver top-tier workspace solutions for enterprises, MSMEs, and startups. The company, with a portfolio of 3 million square feet across 44 locations in 18 cities, is poised for significant growth. Experts anticipate that the flexible workspace market in India will expand from 55 million square feet in 2024 to 100-140 million square feet by 2030, driven by increasing demand across various sectors.Read more