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22nd
& 23rd April, 2007
NATIONAL
NEWS
PLACE: MUMBAI
NRI group plans biggest FDI in Indian real estate
A US-based infrastructure company on Thursday unveiled plans
to invest $1 billion in Indian real estate in what is being
billed as the largest foreign direct investment (FDI) in the
newly liberalized sector. Royal Indian Raj International Corporation
(RIRIC), a Nevada-based company promoted by people of Indian
origin, is firming up plans to build integrated townships
and planned cities in the country.
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=36e86772-398c-4a82-a080-
e2d46b9db0ef&ParentID=1a5192b1-1e10-4437-9418-c2de5a19b5d2&
PLACE: MUMBAI
RBI likely to stop overdraft under LAF
Prudential requirement for commercial real estate loans may
be further tightened through a hike in risk weight or higher
provisioning requirements. The RBI is also reviewing the sectors
under commercial real estate and possibly may take out hotels
and hospitals. These sectors will be clubbed under infrastructure
and will not form part of the commercial real estate. Further,
the Foreign Exchange Management Act (FEMA) may be tightened
to restrict non-resident Indians’ exposure to real estate
market in the country.
http://www.businessstandard.com/banking/storypage.php?tab=r&autono=282059&subLeft=1&leftnm=2
PLACE: NEW DELHI
Private placement to be treated as FDI in realty
The government has decided to go with the Reserve Bank of
India (RBI) and refuse FII status to foreign direct investment
(FDI)
received by real estate companies through private placement
of equity. Real estate companies, which want to encash on
the investors’
increasing appetite for realty sector stocks, have been seeking
FII status for their pre-offer placements as many of their
existing projects
do not meet tough FDI norms. The RBI has argued that the Foreign
Exchange Management Act (FEMA) needs to be amended if FDI
in real
estate has to be given the status of portfolio investment.
http://www.businessstandard.com/economy/storypage.php?leftnm=3&subLeft=1&chklogin=N&autono=282139&tab=r
PLACE: MUMBAI
RBI likely to maintain hawkish stance
Though bankers are not ruling out another round of rate hike
in the future, they don’t expect the central bank to
press the hike button this week as the banking system is yet
to fully reflect the past actions of the RBI. According to
a banker, the RBI is likely to tighten bank exposure to the
real estate and capital market segments further. It had increased
the provisioning norms for exposure to commercial realty,
personal loans and credit cards three months ago. The finance
minister has already asked the public sector banks to moderate
credit flow to real estate and capital market.
http://www.indianexpress.com/story/29057.html
PLACE: HYDERABAD
New-age sectors now turning gurukuls
Sectors like infrastructure, real estate, microfinance, animation
and organized retail have witnessed phenomenal growth in the
recent past, but the number of people trained to work in these
sectors has not grown much, resulting in huge talent crunch.
Australia-based real estate franchising company LJ Hooker,
which recently begun Indian operations, is planning to offer
training in real estate franchising in association with a
university. Retail giant Pantaloon Retail India has already
entered a tie-up with Welingkar Institute of management to
offer a two-year PG diploma in retail management with assured
placement guarantee.
http://economictimes.indiatimes.com/Newage_sectors_now_turning_gurukuls/articleshow/1940625.cms
PLACE: MUMBAI
Sebi wants realty cos to revalue land banks
The Securities and Exchange Board of India (Sebi) has asked
all merchant bankers associated with real-estate IPOs to re-work
valuations and strengthen their disclosures on‘land
banks’ in the draft red herring prospectus (DRHPs) already
filed with the regulator. Sebi is currently working out the
modalities of the disclosures.
http://economictimes.indiatimes.com/Markets/Stocks/Stocks_News/Sebi_wants_realty_cos_to_revalue_land_banks
/articleshow/1940503.cms
PLACE: CALCUTTA
Dunlop ready to roll out of BIFR
International real estate firm Jones Lang LaSalle (JLL) has
valued the company’s real estate assets at over Rs 900
crore. Dunlop’s
prized assets include the Bombay House in Worli, Mumbai and
a plot at Ambattur.The associate companies of Dunlop to which
some of
the properties were transferred issued shares of equal worth
to the company instead of paying in cash. The value of these
shares has been
taken as ‘other income’ in Dunlop’s balance
sheet. This method was followed because the BIFR.
http://www.telegraphindia.com/1070423/asp/business/story_7683789.asp
PLACE: NEW DELHI
Is targeting asset prices through monetary tools ok?
In the case of real estate market bubbles, because of the
lags in the transmission of monetary policy, Savioz and Bengui
argue that
interest rate increases are unlikely to be very successful,
and may in fact reinforce a recession after the bubble has
burst. Instead, they
favour special regulatory measures aimed at reining in the
excesses. As for equity market bubbles, they argue that domestic
interest rates
are unlikely to have an impact in a timely fashion, owing
to the integration of global financial markets and the reliance
of listed firms on
international demand conditions.
http://economictimes.indiatimes.com/articleshow/1940553.cms
PLACE: MUMBAI
Hedge funds feast on pre-IPO placements
Private equity funds will soon have competition from hedge
funds in the booming domestic market. Hedge funds, which are
private
investment funds typically open to only a limited number of
investors, have in recent months become quite active in pre-initial
public
offer placements. The hedge fund promoted by billionaire investor
George Soros, Quantum Fund, has bought minor stakes in real
estate developers Ansal Properties and Anant Raj Industries.
Quantum and another hedge fund Blue Ridge invested $33.33
million in the
Delhi-based Fortis.
http://www.businesstandard.com/smartinvestor/storypage.php?leftnm=0&subLeft=1&chklogin=N&autono=282054&tab=r
PLACE: NEW DELHI
For Shahid Group, way to the bank is lined up with homes
“Life’s battles are not always won by the stronger
and faster, But sooner or later, the man who wins, is the
man who thinks he can,”
says a wall, painted in soothing green. Shahid Group of Companies,
the flagship group owning The Home Store (THS), Sabkaa Bazaar
and Store 99 retail chain, traces back its origins to a small
Bartan Store (utensils shop) on Mohammad Ali road in Mumbai.
We plan to
raise some money through debt and diversify into real estate
and travel businesses.” The Group was earlier averse
to debt, partly due to
the Islamic way of banking (which prohibits usury - payment
of interest).
http://economictimes.indiatimes.com/articleshow/1940759.cms
INTERNATIONAL NEWS
PLACE: ARIZONA
Real estate careers lure top women
As Arizona 's claim to fame has morphed from its five C's
to growth, opportunities in the real estate industry have
exploded. Slowing
housing market aside, commercial opportunities remain strong,
and real estate will continue to be a key industry as the
state's population
increases. Meet five Arizona women in a range of professions
who are making their mark, from a newcomer learning the ropes
of residential
real estate to a seasoned corporate executive shaping Scottsdale
's latest upscale project.
http://www.azcentral.com/arizonarepublic/business/articles/0422biz-azw-dealmakerr0422blomo.html
PLACE: AUSTRALIA
Real Estate Agents A Necessary Evil
As for things that go up, up, up, we turn to the property
market. There can be few more maligned and disrespected professions
than being a
Real Estate Agent. They are commonly grouped with Politicians
as being among the least trustworthy people on the face of
the planet.
http://www.dailyreckoning.com.au/real-estate-agents-a-necessary-evil/2007/04/23/
PLACE: BAHAMAS
Cohen targets $ 1bn for real estate fund
Sir Ronald Cohen, co-founder of buyout group Apex Partners,
wants to raise as much as $1bn (€740m) for Portland Capital,
a real estate
securities hedge fund and has started talks with potential
investors. Portland Capital will take short as well as long
positions in property
stocks. After the sustained rise of recent years, a growing
number of investors believe the next move in property values
will be downwards.
Jeremy, chief executive of the UK’s Grosvenor Group,
warned that the real estate market could be overheating, while
European asset
managers Kempen and Fortis are understood to be planning real
estate hedge funds capable of going short on the sector.
http://www.financialnews-us.com/?page=ushome&contentid=2447611209
PLACE: AUSTRALIA
ING Real Estate enters Canadian market
ING Real Estate Community Living Group (ILF) has entered the
Canadian seniors housing market for the first time, acquiring
a 50
per cent stake in eight long-term care facilities in Toronto
for about $136 million. The facilities, known as the Regency
portfolio,
have been acquired in conjunction with ILF's joint-venture
partner, Chart well, who will manage the portfolio on behalf
of the joint venture.
Hartwell is the largest manager of seniors housing in Canada.ILF
also announced on Monday that it had acquired three retirement
villages in
Western Australia and one in Queensland, for $47 million.
http://news.ninemsn.com.au/article.aspx?id=262517
PLACE: BEIJING
Soho to help cool the real estate sector
SohoChina Ltd, a Beijing-based property developer, said its
concentration on the commercial market will shield the company
from
government measures to cool the real estate sector. "Further
macroeconomic controls will not affect us at all in our current
focus on
commercial developments," Chairman Pan Shiyi said in
an interview in southern China at a gathering of business
and government leaders.
"Tightening measures typically clamp down on the residential
market, where the government's afraid of speculation."
The Chinese
government aims to slow a surge in property prices and investment
as it strives slowly the economy, which expanded 11.1 percent
in
the first quarter. China has restricted land supply, curbed
loans to real estate companies and imposed new taxes.
http://news.xinhuanet.com/english/2007-04/23/content_6014708.htm
PLACE: NEW YORK
Real Estate Dreams can come true
They sat through 70-minute lectures titled "Home Buying
101" then split up for smaller classes on credit management,
grant programs
and the like, filing into a row of classrooms near the SUNY
Orange gym. On the floor of the gymnasium, meanwhile, dozens
of vendors hawked mortgages, real-estate and legal services.
For much of they day, the room was packed with newlyweds and
nearly-weds and the occasional older couple — people
like Maureen and Charles Hildebrandt of Port Jervis, married
28 years with five kids.
http://www.recordonline.com/apps/pbcs.dll/article?AID=/20070423/NEWS/704230317
PLACE: FLORIDA
Block a reckless subsidy for real-estate speculators
State lawmakers should kill a transportation bill in the Florida
Senate that would ease the way for major, unneeded new toll
roads through
Central Florida . Backed by real-estate speculators, Senate
Bill 2804 would drop financial safeguards and authorize an
unconscionable $9 billion - doubling the amount the state
Turnpike Enterprise can borrow - to build major new expressways,
known together as the Heartland Turnpike.
http://www.palmbeachpost.com/opinion/content/opinion/epaper/2007/04/23/a14a_leadedit_heartland_0423.html
PLACE: UAE
Billion dollar transactions dominate Dubai real estate expo
International Property Show 2007, the biggest transactional
real estate expo in the Middle East which concluded on April
5 in Dubai
attracted billions of dollars in sales over a 3-day run, according
to Strategic Marketing & Exhibitions, organizers of the
event. This year’s exhibition, which witnessed increased
participation from leading international real estate and property
developers, ended with a resounding success with record sales
and 70 per cent of exhibitors confirming for bigger participation
in next year’s edition scheduled for February 17 to
19, 2008.
http://www.gowealthy.com/realestate/news/2237/detail.asp
PLACE: USA
Landlord’s newest real estate investor
With home prices retreating from fever-pitch highs, a new
breed of real-estate investor is eclipsing the speculator:
the landlord. More Americans are hanging out "for rent"
signs. Some were forced into the business after buying investment
houses or condos at top dollar during boom times that they
now can't sell. But many are discovering their inner landlord
on purpose, often buying properties well below prices from
a year or two ago.
http://www.dailyherald.com/realestate/story.asp?id=391947&s
PLACE: VEITNAM
Real estate sales pick up at low end of market
Tastes on the HCM City real-estate market have made an about-face
in less than a month time as buyers now prefer moderation
to luxury. Market experts blame stock exchange volatility.While
housing sales and prices rose early this month, last week
saw a dramatic drop in both aspects. Last week, buyers sought
high-grade houses and apartments in spite of sky-high prices,
but this week they have shifted their focus to inexpensive
houses and land, said market analysts.
http://vietnamnews.vnagency.com.vn/showarticle.php?num=02ECO210407
PLACE: ORLANDO
Man pleads guilty to real estate swindle
A man who operated a Florida real estate company that investors
say was a classic Ponzi scheme has pleaded guilty to fraud.Aleem
Hussain told a federal judge in Orlando Thursday that he had
swindled investors in his company, Main Street USA Inc., the
Orlando Sentinel reported. In a Ponzi scheme, early investors
are paid with money taken from later investors.Hussain brought
more than 10 Orange County sheriff\'s deputies and other employees
into his company as investors and, in some cases, employees.
He wooed them by paying for meals and stays at resorts and
by promising to double a $100,000 investment in six months.
http://www.jaxnewsonline.com/article/2007-04-21/6604.php
PLACE: CALIFORNIA
Keeping Napa's real estate market active
Are the 88 notices of foreclosure in the first quarter of
this year in Napa -- nearly twice as many as a year ago --
a time for doom and gloom in the Napa real estate market?People
in the local real estate business say no. Instead, local industry
sources view this a period of correction in the housing market.
Coldwell Banker's Doug Fowler, said the 88 foreclosure notices
is not a major issue -- except for those homeowners impacted
by the experience. He estimated no more than five to eight
would end in foreclosure sales on the courthouse steps.
http://www.napavalleyregister.com/articles/2007/04/22/news/local/iq_3919341.txt
PLACE: KUWAIT
Kuwait witnesses sharp rise in real estate prices
Kuwait witnesses a sharp rise in its real estate prices, mainly
due to an unreasonable high price of lands, the official KUNA
news agency reported on Saturday. The Professional Real Estate
Company said in a weekly report that all the lands in Kuwait
are considered unreasonably high compared with other member
countries of the Gulf Cooperation Council (GCC). Lacking of
lots that are authorized for construction and development
results in the fact that the supply of real estate is much
less than the demand, it said. In addition, the prices of
construction materials have also been rising over the past
few years. As a result, Kuwaiti investors will face high prices
of both land lot and construction material.
http://english.people.com.cn/200704/22/eng20070422_368680.html
PLACE: CALIFORNIA
Local real estate a mixed bag: Prices still down, but picking
up
Mixed signals, and trends that aren't all pointing in the
same direction - that's what many observers see in the Davis
real estate market this spring. The pace of home sales in
Davis, after a big slowdown in 2006, is picking up. A total
of 114 homes were sold in Davis between Jan. 1 and April 15
- a nearly 10 percent increase over the 104 homes sold during
the same period last year, but still short of the torrid pace
in the first 31/2 months of 2005, when 150 homes changed hands.
http://www.davisenterprise.com/articles/2007/04/22/news/253new1.txt
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