Author Archives: Rachna Ranjan

Office real estate in demand, but home sales fall in 2016

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

Mumbai’s Bandra-Kurla Complex office rentals market going strong despite demonetisation

Demonetisation has not slowed down the commercial property market, at least in Bandra-Kurla Complex (BKC). Consider this fact: In the past one month, several office lease transactions have been concluded in the business district. Most of these deals have taken place in Maker Maxity, the 18-acre office complex which is a joint venture between Mukesh Ambani and Maker Group.

Apple, the American technology giant, will shift its offices to Maker Maxity complex in BKC; it recently concluded a lease deal for 12,000-square-foot space on two floors of the complex.

Read more: Economic Times

Piramal Fund Management invests Rs 700 crore in two Mumbai commercial projects

Piramal Fund Management, the financial services arm of Ajay Piramal-led Piramal Group, has deployed Rs 700 crore collectively against two commercial properties, Reliable Tech Park and Empire Towers in suburban Mumbai. The funding suggests a possible revival in demand for real estate despite demonetisation that was seen as a dampener for the sector. The lender would release the fund in tranches as the projects near completion. Piramal Fund’s managing director, Khusru Jijina, confirmed sanctioning of the amount.

Reliable Tech Park and Empire Towers, together spread over 2.2 million sq ft at Airoli, are part of a complex called Cloud City Campus that extends to 2.7 million sq ft of leasable area. The proposed investment is in the form of flexible LRD (lease rental discounting) against 0.8 million sq ft that is fully leased, with the proceeds going towards completion of the remaining area, according to Piramal Fund Management.

Read more: Economic Times

Coworking space firm InstaOffice forays into Bengaluru; to open 2 offices

Coworking space provider Instaoffice has forayed into the Bengaluru market by announcing their plans to launch two offices in Indiranagar. With one office at 100 Feet Road, the other at Double Road in Indiranagar, the company will offer over 150 seats in total to the city known for its startup culture.

“Indiranagar is an ideal location for current InstaOffice members eager to have workspaces in Bengaluru, and for companies of all sizes who are seeking a new way to work,” said Vikas Lakhani, co-founder, InstaOffice. InstaOffice, based out of Gurgaon at present, have five offices in total, with a total area of 15,000 sq ft.

Read more: Economic Times

India net office absorption to surge 9% to 32.4 million in 2017

Growth momentum in office absorption, witnessed over the last two years, is expected to continue in 2017 too. India’s top 8 property markets are likely to witness 10% surge in office space net absorption in 2017 to 32.5 million sq ft, the highest level seen over the last six years, said a report.

Strengthening business confidence, stabilizing global concerns and an optimistic economic outlook are likely to infuse confidence into occupiers, steering net office absorption across property markets. Net absorption will gather pace in last quarter of this year and is expected to close around 30 million sq ft driven at the end of 2016 and is expected to continue to gain momentum for the next four years. These property markets include Mumbai, Delhi-NCR, Bengaluru, Pune, Ahmedabad, Hyderabad and Chennai.

Read more: Economic Times

Barclays to lease office space in Canary Wharf to British government

Barclays said on Tuesday it has agreed to lease office space in London’s Canary Wharf district to the British government in an effort to save about 35 million pounds ($45 million) annually. The Cabinet Office will lease about 540,000 square feet of space in 10 South Colonnade, according to a statement. The handover is expected to be completed by the end of next year.

As part of the move Barclays staff in the building will transfer to existing sites nearby and no employees will lose their jobs as a result of the move, the statement said. ($1 = 0.7839 pounds)

Read more: Economic Times

Brexit could delay half of central London commercial property developments: Savills

Up to half of planned commercial developments in central London could be delayed over the next few years due to concerns about Brexit, and overall investor returns will be flat in 2016, estate agents Savills said on Tuesday. Commercial property was one of the first sectors to be hit in the immediate aftermath of the June 23 public vote to leave the European Union, with investors pulling cash out of funds and forcing many to be temporarily suspended.

Savills said that across Britain there could be a decline of up to 40 percent from 2017 until 2021 in development activity of retail, office and industrial property, with up to 50 percent delayed in central London. “This would definitely be Brexit-related – a mix of lender, developer and occupier risk-aversion,” Head of Commercial Research Mat Oakley told Reuters.

Read more: Economic Times

Canadian commercial real estate hits highs as Calgary gains

Canada’s commercial real estate market hit a record C$11.16 billion ($8.41 billion) in quarterly transaction volumes and is on track to reach new highs for the year, as investors’ hunt for yield and gains in the oil-producing province of Alberta bolster activity, real estate services firm CBRE Limited said on Monday.

A recovery in oil prices and a few large transactions helped Calgary post its best third quarter in over two years with C$1.2 billion ($904.23 million) in investment and a rise in activity in the hard-hit, commodity-driven city, CBRE wrote in a report to be published on Monday.

Read more: Economic Times

Blackstone Plans India’s First REIT

A venture including private-equity giant Blackstone Group LP is poised to launch India’s first real-estate investment trust in an initial public offering that could raise more than $600 million and mark a milestone in the development of a modern commercial real-estate industry in India.

For Blackstone, the deal would do a lot more than simply make history. It would also enable the world’s largest private real-estate owner to start cashing in on a contrarian bet that it made on India after some foreign investors had exited from the country.

Phoenix Property Investors keen on boosting investments in SE Asia and Singapore

HONG KONG-BASED Phoenix Property Investors, a private equity real estate firm with assets managed and under management in Asia of over US$6.7 billion, is looking to increase investments in South-east Asia property markets including Singapore.

“The company is expanding its investment footprint from North Asia, particularly Hong Kong, Japan and China, to the South-east Asia region,” Phoenix said in a news release on Monday. In South-east Asia, the group is setting its sights on Jakarta and Manila, cities where it believes the demographics are strong fundamental drivers for real estate, as well as selectively in Singapore.