Author Archives: Rachna Ranjan

Propstack joins MIT Center For Real Estate as a partner

Commercial realty data information and analytics firm, Propstack has joined the Massachusetts Institute of Technology’s (MIT) Centre for Real Estate as an industry partner to explore new data technologies with the potential to transform the organization of cities and built environment.

Propstack is the first Indian company to join the MIT/CRE as an industry partner.

The MIT Centre for Real Estate (MIT/CRE) Industry Partnership Program serves to unite industry leaders with MIT’s distinguished researchers and students. Their selective industry partnership program advances the art and science of international real estate, and bridges the gap between theory and practice.

“By establishing this relationship between Propstack and the MIT/CRE, we intend to advance key operations in India and Asia Pacific by exposing Propstack’s research team to MIT’s experts in advanced methodologies in statistics, economics & data analytics,” said Raja Seetharaman, director of Propstack.

“With the ongoing digital revolution in India, this partnership presents a unique opportunity for innovatively using our data to reinvent the real estate business. We look forward to engaging with MIT to provide data driven insights by using technology to the real estate community.”

The MIT Center for Real Estate’s research investigates the real estate transaction from initial concept to market reality, providing breakthrough knowledge to help organizations capitalize on today’s dynamic markets and technologies.

“The relationships we cultivate with our Industry Partners are important to all of us — our faculty, researchers and students. Staying connected with the leaders and companies operating in the real estate industry is at the core of our mission — to serve as a global forum and network for intelligent discussion around issues relating to real estate development, investment, and finance,” said Albert Saiz, Director of the MIT/CRE and Daniel Rose Associate Professor of Urban Economics and Real Estate.

Founded in 2013, Propstack provides research on India’s commercial real estate sector and data relating property values, market conditions and current availabilities. In series A funding, the company had raised $3 million last year led by strategic investor DMG Information, the investment subsidiary of British media conglomerate Daily Mail & General Trust.

Source: Economic Times

Office realty in demand, but home sales fall

India’s office real estate market stayed positive while residential sales across the country fell sharply since early this year. Higher corporate demand and reduced Grade-A supplies have pushed upwards the rental of commercial properties across the country.

“Of the 36 commercial micro markets in the country, 10 have seen rise in rent by over 25% in the past one year. Certain micro markets in Hyderabad have even seen increase in rent by up to 40%. The recent regulatory changes make India more attractive for foreign investors and developers and will offer a level playing field,” said Sanjay Dutt, CEO for India Operations, Ascendas-Singbridge.

Read more: Economic Times

Malvinder and Shivinder Singh in talks with TPG Capital to sell 26% in Fortis

Cash strapped brothers Malvinder and Shivinder Singh are in active discussions with private equity group TPG Capital to sell a significant minority stake in Fortis Healthcare. The transaction may also see the folding back of the Singapore listed business trust into the listed Indian entity, said four sources aware of the transaction.

The quantum of stake sale is yet to be finalised but sources said it will be a minimum of 26%. Beyond that, the acquisition will trigger an open offer for an additional 25% equity. The current market cap of the Fortis Healthcare is Rs 7909 crore.

Read more: Economic Times

PE/VC invesments fall 50% to $908 million in November: EY report

Private equity and venture capital investments plunged 50% to $908 million in November from $1.82 billion in the year earlier, according to data compiled by accounting firm EY. Deal activity in November was led by structured or debt deals, which contributed to more than a third of the total deal value. The month witnessed five structured or debt deals worth $326 million of which more than 75% was recorded in the real estate sector.

The top three structured/debt deals recorded in November included Piramal Fund Management Pvt. Ltd’s $112 million investment in seven projects of Adarsh Developers and another $75 million investment in renewable energy company ACME Cleantech Solutions Pvt. Ltd.

CPPIB to invest in India’s largest realty deal

In the largest deal brewing up in the commercial real estate space in India, Canada Pension Plan Investment Board (CPPIB) is leading the negotiation to acquire private equity firm Everstone Group’s industrial and logistics real estate development platform, IndoSpace, as part of private real estate investment (REIT), said two people familiar with the development. The entire deal is pegged at Rs 15,000 crore making it the largest commercial real estate transaction in the country, they added.

Read more: Economic Times

Developers, funds target China demand for co-working space amid startup boom

Real estate developers and financial investors are capitalising on fast-rising demand for leasing of “co-working” spaces in China, as Beijing encourages startups and small businesses in a bid to offset slowing growth at traditional industries. Developers, including China Vanke, Soho China and Singapore’s CapitaLand, are renting out property space that hordes of self-employed persons or small-sized companies then share, company executives said. The lease deals with the startups are usually short-term and are done mainly through specialised operators.

Financial investors are also jumping in on the bandwagon, amid a growing belief that shared spaces deliver greater synergies by driving up innovation and productivity. Citic Capital, whose seven-storey shopping mall “Shanghai 189 Lane” is due to open later this month, will rent its top two floors to a co-working space operator.

Read more: Economic Times

75% Indian companies not disaster ready

Nearly 75 per cent of Indian companies are not prepared for disaster management, a recent survey by real estate consultant CBRE says. According to the study, which includes over 100 top corporates in the country and over 350 respondents found out that 75 per cent of the Indian firms are not disaster ready.

It said that 96 per cent of the respondents agreed that majority of losses from disaster occur as a direct result of damage to the built environment, lack of foresight and planning. Nearly 97 per cent agreed that an integrated and comprehensive approach is necessary to improve the safety of buildings from disasters, the survey said.

Read more: Economic Times

Abbott inks 15-year lease deal in Mumbai to set up its R&D centre

Abbott, one of the largest healthcare product companies in India, has picked up an entire under-construction building with over 1.60 lakh sq ft built-up area in the Andheri suburb of Mumbai to set up an innovation & development centre, said two persons familiar with the development.

The deal assumes significance as the lease will run for over 15 years, being the first time an occupier offering commitment for such a long tenure. Also, this is for the first time, a pharmaceutical company is setting up an innovation centre in a prime locality of Mumbai or any other metropolis, while most prefer peripheral areas or tier II cities. The built-to-suit standalone building is expected to be ready over the next one year. Abbott India will be paying monthly rental of over Rs 120 per sq ft, taking it to annual lease of over Rs 23 crore.

Read more: Economic Times

Coworking spaces keep startups in Tier-II cities in the loop

A growing number of coworking spaces in tier-II cities like Indore, Ahmedabad, Rajkot, Udaipur, Jaipur, Kota, Surat, Pune and other cities has boosted the startup ecosystem. Startups who seek an ecosystem are able to create cocoon communities within this coworking spaces.
“Mushrooming of coworking spaces in smaller cities is due to the rise of startup aspiration and a sign of healthy and growing ecosystem,” says Jatin Chaudhry , founder, eChai, an Ahmedabadbased startup community that has presence in 40 Indian cities, with major presence in smaller cities.

Currently, more than 10 coworking spaces like LiveSpaces, Project Café, DoubleO, 5B Colab, Working Company , Daftar, Felxi Business Hub, Venture Café, Uncubate, Open Xcell Technology Centre, 1947, Cohere and CIIE’s Ideapad are operational in Ahmedabad. While one Glocal Coworking Space is operational in Rajkot and another, Spaceplexx, recently started in Surat.

Read more: Economic Times

DLF may split 40% stake sale in rental arm between GIC & Blackstone

Promoters of DLF, India’s largest realty developer, are actively considering a split of the proposed 40% stake sale in the company’s rental commercial property arm between two contenders — US private equity major Blackstone Group and Singapore’s sovereign wealth fund GIC — said three persons familiar with the development.

Under this structure, Blackstone and GIC may pick up stakes of 20% each in the rental arm. Billionaire KP Singh and his son own 40% in the company’s rental arm, DLF Cyber City Developers while DLF holds the rest. The promoter family is expected to fetch around Rs 12,000 crore through the proposed sale of their stake in the rental arm. However, both Blackstone and GIC are keen to acquire the entire 40% stake individually.

Read more: Economic Times