06-dec-2019 10-oct-2019 13-mar-2020 - credai · 2020. 3. 13. · based real estate developer...
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10-Oct-2019
06-Dec-2019
13-Mar-2020
https://www.credaibengalhomes.com/developers/login/
CREDAI Bengal Daily News Update | 13.03.20
Covid-19 is expected to delay commercial real estate deals
“It is a Black Swan event that comes with implications for the world economy. The
disruption to business cycles is bound to impact commercial real estate decision-making as
well,” said Gautam Saraf, managing director at Cushman & Wakefield in Mumbai.
The worldwide spread of the coronavirus is expected to delay commercial real estate deals across
India due to travel restrictions and lack of clarity on its impact on global economic growth.
Commercial space deals in India were earlier estimated to remain robust in 2020 after hitting a
record of over 60 million sq. ft. in 2019. However, deals could be pushed back by three to six
months as key decision makers may not visit India in the backdrop of travel restrictions, according
to transaction advisors.
A final assessment of the impact of the coronavirus epidemic on the global economy may lead to
changes in expansion plans and therefore space requirements.
“It is a Black Swan event that comes with implications for the world economy. The disruption to
business cycles is bound to impact commercial real estate decision-making as well,” said Gautam
Saraf, managing director at Cushman & Wakefield in Mumbai.
Demand remains intact, although decision-making for corporate real estate could face delays due
to travel restrictions and as businesses scramble to cope with the larger economic impact, he said.
Saraf expects delays of 2-3 quarters in decision making that could defer office space transactions.
Sustained robust demand for office space had pushed leasing activity across the country in 2019
to a record. Demand was expected to remain strong this year, too, with occupiers preferring to
pre-lease commercial real estate to future-proof their portfolios and hedge against rental
escalations.
The Indian office market has been setting new benchmarks in an otherwise gloomy economic
climate. The pre-leasing of office space grew threefold to 18.4 million sq. ft. from 5.64 million
sq. ft. in 2016, according to data from Jones Lang LaSalle India.
“There will be some impact of coronavirus on commercial leasing for sure. Decisions will get
delayed for some time, which means if a company was taking some space in March, they will
postpone it for few months to see the impact of disruption due to the virus,” said Anshuman
Magazine, chairman for India, South East Asia, Middle East and Africa at CBRE.
At least three large deals involving over 500,000 sq. ft. each in Bengaluru and Mumbai, which
were expected to be concluded by March end, have been deferred as occupiers sought time to
assess the impact of the epidemic.
Newspaper/Online ET Realty (online)
Date March 12, 2020
Link https://realty.economictimes.indiatimes.com/news/commercial/covid-19-is-expected-to--
commercial-real-estate-
deals/74593883?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-03-13
“It’s a global scare and one is not so clear of its implications on the business yet. Occupiers are
seeking more time before they get into any long-term commitment for space,” said a Mumbai-
based real estate developer negotiating one of these large deals.
Apart from deferring large space lease commitments, many companies are considering utilising
co-working centres to tide over their immediate requirements until the scenario gets clear.
________________________________________________________________
DHFL to face transaction audit on Yes Bank links
The bank subscribed to bonds sold by the home financier, which in turn allegedly lent to
companies owned by former Yes Bank promoter Rana Kapoor or his family members.
The central bank appointed administrator at Dewan Housing Finance (DHFL) has ordered a
transaction audit at the non-bank lender after allegations of money laundering surfaced in the
aftermath of the regulatory action on Yes Bank.
Grant Thornton has been asked to submit a report within a month, sources aware of the
development told ET. The bank subscribed to bonds sold by the home financier, which in turn
allegedly lent to companies owned by former Yes Bank promoter Rana Kapoor or his family
members. DHFL did not respond to ET’s email. Grant Thornton could not be contacted
immediately for comments.
“Grant Thornton has already started scrutinising documents related to transactions,” said one of
the persons cited above. “The existing administrators want to make things transparent so that the
matter does not impact the valuation of DHFL assets.”
Earlier, the home financier appointed Grant Thornton India LLP as the transaction auditor for the
whole corporate insolvency resolution process (CIRP).
A number of loans granted to stressed non-banking financial companies by Yes Bank have come
under the scanner of investigative agencies, ET reported on March 11.
Cofounder Rana Kapoor was arrested by the Enforcement Directorate earlier this month after he
was booked by the Central Bureau of Investigation (CBI). Investigators are examining whether
kickbacks were paid through shell companies. The embattled home financier received about 23
bids across four categories including whole company, retail, slum rehabilitations and project
loans.
DHFL was the first financial services company to be admitted to the bankruptcy courts after the
central bank superseded its board and appointed former Indian Overseas Bank chief, R
Subramaniakumar, to resolve the outstanding ₹85,000-crore debt at the NBFC.
The administrator and DHFL’s advisor EY are in the process of assessing bids based on the
Newspaper/Online ET Realty (online)
Date March 13, 2020
Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfl-to-face-
transaction-audit-on-yes-bank-
links/74604219?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-03-13
eligibility criteria, after which they would be given access to the balance sheet and books of the
company for due diligence.
State Bank of India (SBI) has an exposure of about Rs 10,000 crore to DHFL. Other state-owned
lenders to DHFL include Bank of India, Canara Bank and Punjab National Bank. Union Bank of
India leads the consortium of lenders, while the steering committee includes nominees from the
SBI, Syndicate Bank and Canara Bank.
________________________________________________________________
Rajasthan Housing Board (Amendment) Bill passed in assembly
Urban Development and Housing Minister Shanti Dhariwal said nearly 23,000 houses
constructed by the board were unsold and the government has taken initiative to sell them
by giving 25-30 per cent discounted rates.
The Rajasthan Assembly on Thursday passed the Rajasthan Housing Board (Amendment) bill-
2020 by voice vote.
In the amendment bill, four new sections have been included which are for the recovery of sum
due to the Board as arrears of land revenue, encroachment or obstruction upon premises or
property belonging to the Board, call for records of the board etc.
Replying to the debate on the bill, Urban Development and Housing Minister Shanti
Dhariwal said nearly 23,000 houses constructed by the board were unsold and the government
has taken initiative to sell them by giving 25-30 per cent discounted rates.
He said the board was trying to improve quality of construction.
Earlier, during the Question Hour, Energy Minister BD Kalla informed the House that the state
government has so far given appointments on 35,209 posts and 19,778 recruitment are under
process at various stages.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 13, 2020
Link https://realty.economictimes.indiatimes.com/news/regulatory/rajasthan-housing-board-
amendment-bill-passed-in-assembly/74604248
BMC plans to renew plot leases, earn Rs 600 crore
The BMC expects to earn a one-time revenue of Rs 500-600 crore from 213 plots, measuring
over 125 sq ft and, that will be given on lease at 62.5% of the ready reckoner rates.
In a major boost for revenue, the civic general body on Wednesday cleared a vacant land tenancy
(VLT) policy. The BMC expects to earn a one-time revenue of Rs 500-600 crore from 213 plots,
measuring over 125 sq ft and, that will be given on lease at 62.5% of the ready reckoner rates.
These include gymkhanas, cricket pitches, community centres and godowns located mostly in
Dadar, Sion and Parel.
There are a total 3,600 VLT plots in Mumbai that were given on lease prior to Independence. As
the lease is in the range of Rs 100-30, the BMC earns a measly rent of Rs 3.5 lakh annually. Civic
officials said education institutions, petrol pumps, religious organisations, banks and private
companies have come up on most of these plots.
A senior civic official said VLT plots that have been reserved as recreation grounds, or
playground, or public amenity space and which the BMC can develop, will not be given on lease
again. "In addition, the lease of plots that have encumbrance on them will also not be renewed.
Besides, plots measuring under 125 sq ft are considered as too small to be redeveloped," said the
official. "But as the plots continue to be occupied by the lessees, they would get the first right for
refusal." Plots on which slums have mushroomed have also not been included under the policy.
In the BMC Budget 2020-21, municipal commissioner Praveen Pardeshi had mentioned the VLT
policy which would fetch additional revenue. On Wednesday, when the policy was tabled before
the civic general body meeting, Shiv Sena corporator Yashwant Jadhav said all proposals to
renew lease will be tabled before the civic standing committee for approval, and if the municipal
commissioner rejects a particular proposal, the administration should provide reason why it was
rejected.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 12, 2020
Link https://realty.economictimes.indiatimes.com/news/regulatory/bmc-plans-to-renew-plot-
leases-earn-rs-600-
crore/74593591?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-03-13
Nagpur civic body seizes properties over unpaid tax
All the five godowns were owned by one Sangita Gopichand Sahare, stated a press note
issued by zone assistant municipal commissioner Ganesh Rathore.
Ashi Nagar zone of the cash-strapped NMC on Monday seized godowns of five domestic cylinder
gas agencies in Sahare Layout for defaulting on property tax to the tune of Rs7,41,300 since last
many years.
Apart from this, the zone has also seized movable properties like television sets, sofa sets, two-
wheelers, refrigerators, ceiling fans etc of five other property tax owners in default, who had
together not paid tax to the tune of over Rs1.41 lakh.
All the five godowns were owned by one Sangita Gopichand Sahare, stated a press note issued
by zone assistant municipal commissioner Ganesh Rathore.
“If these defaulters fail to clear their property tax dues within 15 days, NMC will auction the
properties,” he warned.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 12, 2020
Link https://realty.economictimes.indiatimes.com/news/regulatory/nagpur-civic-body-seizes-
properties-over-unpaid-
tax/74586957?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-03-13
List action against 1,137 buildings in Besa-Beltarodi: Bombay HC
According to him, even Development Control Regulations (DCR) was not followed and
there was massive violation of floor space Index (FSI) by greedy builders.
Expressing deep anguish over delay of over a decade in acting against 1,137 buildings flouting
norms in Besa-Beltarodi area, despite its specific orders in 2010, the Nagpur bench of Bombay
high court on Wednesday sternly directed the collector to submit a detailed action taken report.
A division bench comprising justices Sunil Shukre and Avinash Gharote told the collector to
provide details of builders involved in the violations and also names of civic officials who failed
to act against the illegal structures. While adjourning the hearing for four weeks, the collector
was asked to complete formalities before next date.
The directives came while hearing a plea by social activist Anil Wadpalliwar through counsel
Shreerang Bhandarkar alleging rampant violations of basic rules and regulations by hundreds of
high-rise buildings and townships in Besa-Beltarodi. According to him, even Development
Control Regulations (DCR) was not followed and there was massive violation of floor space
Index (FSI) by greedy builders.
Earlier, Bhandarkar had filed a civil application citing HC order of January 27, 2010, where the
collector was directed to start survey of all buildings and other constructions in Besa-Beltarodi
and report on whether those are built as per the norms.
He was also directed to examine whether those structures had permission from the competent
authority and, if not, to stop their construction.
He was further told to issue notices to all such buildings and conduct a thorough inspection, either
himself or though an officer not below the rank of a deputy collector. All these directives were
issued by then division bench comprising justices Sharad Bobde (now, Chief Justice of India) and
Vasanti Naik.
At the same time, the petitioner was allowed to add other areas where the city is growing like
Hudkeshwar and Wanadongri, along with Kamptee, Wardha, Koradi and Bhandara Road.
Subsequently, the collector constituted a panel of senior officials from his office, who submitted
a report to him after inspecting all buildings.
The collector in his affidavit of October 27, 2010, through then government pleader Nitin Sambre
(now HC judge) came out with shocking revelation that as many as 1,460 constructions, including
high-rise buildings and townships in Besa-Beltarodi, were in complete contravention of rules and
regulations due to ignorance of concerned authorities.
In his latest application, Bhandarkar pointed out that no action has been taken till date by the
Newspaper/Online ET Realty (online)
Date March 12, 2020
Link https://realty.economictimes.indiatimes.com/news/regulatory/list-action-against-1137-
buildings-in-besa-beltarodi-bombay-
hc/74586938?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-03-13
respondents to remove or regulate illegal constructions, which has led to massive problems in the
locality. The buildings also pose a big threat to life and security of the residents. While attaching
several media report of blatant violations, he contended that none of the authorities had taken care
to submit any report for over 10 years since 2010 in HC, and also failed to reply on similar
structures in other fast growing areas on city’s outskirts.
________________________________________________________________
Telangana government readies Warangal master plan
Officials informed that while the government had sanctioned 3,900 houses, 900 houses were
completed and ready for inauguration, and 2,200 are under construction.
In a boost to development of Greater Warangal, the Telangana government on Wednesday
approved a master plan for the Kakatiya Urban Development Authority (KUDA). The plan has
been readied for 2020-2041. Since the draft was prepared after consultations with stakeholders,
municipal administration department has approved it.
Apart from this, 15-km mono rail connectivity will also be taken up, and works for 29 km of total
68km outer ring road (ORR) will be launched by June this year. The decisions were taken at a
meeting headed by municipal administration minister, KT Rama Rao, along with ministers
belonging to erstwhile Warangal district, Errabelli Dayakar Rao and Satyavathi Rathod, with
officials on Wednesday.
KTR said the Centre has in-principle agreed to develop Warangal airport at Mamnoor, on the
outskirts of the city. Since Warangal is the second-biggest city in Telangana, KTR said all
developmental works taken up under Smart City and heritage conservation works should be
completed at the earliest.
“All the promises made by chief minister K Chandrasekhar Rao during his visit to Warangal a
few years should be completed on war-footing basis, especially 2BHK houses,” he said. Officials
informed that while the government had sanctioned 3,900 houses, 900 houses were completed
and ready for inauguration, and 2,200 are under construction. Remaining 800 were not taken up
due to local issues, officials informed the minister.
“To make the city clean and improve sanitation works, 1,000 public toilets will be constructed,
and four dumping yards will be developed for disposal of waste. Currently there is only one
dumping yard at Madikonda on the outskirts of the city,” KTR said.
He asked the officials to develop Kaloji Kala Kshetram, Eka Shila Park development, road
widening, and junction improvement in the city. Another meeting on Warangal city development
will be held on March 16, the minister said.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 12, 2020
Link https://realty.economictimes.indiatimes.com/news/infrastructure/telangana-government-
readies-warangal-master-
plan/74593787?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-03-13
Asian Games Village residents accuses SDMC of harassment over
property tax
"Whereas, as per available record, self-assessment property tax returns, as required u/s 123
A and 123 B of the DMC Act has not been found filed by you, for the period of 2002-05 &
2006-07 to 2010-11."
In a case of alleged mismanagement by officials in South Delhi Municipal Corporation (SDMC),
residents of Asian Games Village have accused the civic body of destroying records of property
tax collection to harass house owners.
"From what we learnt is that some mischief has taken place in SDMC office of the Assessor and
all old records have deliberately been destroyed to harass house owners," Ajay Agnihotri, retired
Indian Revenue Service officer, told IANS.
Agnihotri claimed that several others in the society and near-by areas have also received such
letters.
In one such letter accessed by IANS dated February 26, 2020, the civic body writes, "Whereas,
as per available record, self-assessment property tax returns, as required u/s 123 A and 123 B of
the DMC Act has not been found filed by you, for the period of 2002-05 & 2006-07 to 2010-11."
However as per Agnihotri, he shifted to his Asian Games Village residence in 2010 and when
checked on SDMC site, there were no arrears of property tax.
"We are supposed to pay Rs 2200 per year as property tax, but when I bought this premises the
website showed zero arrears. It means the tax was paid then. Now all of a sudden after ten years,
you claim tax has not been paid," Agnihotri added.
Agnihotri now demands a CBI inquiry into the matter as he claims there could be a huge scam.
The SDMC has chosen not to respond on the matter, as call made to the PRO of the civic body
went unanswered while message left on his Whatsapp number was also left unreplied.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 12, 2020
Link https://realty.economictimes.indiatimes.com/news/residential/asian-games-village-
residents-accuses-sdmc-of-harassment-over-property-tax/74586988
Gurugram: Over 450 PGs, hotels & lodges without permit face
closure
If the property owners can’t produce relevant documents — such as title deed, permission
of conversion of land use, sanctioned building plan or a court order — within a week, Atri
said, the MCG may raze the illegal structures and recover the cost from them.
More than 450 paying guest accommodations, hotels and lodges operating mostly in the city’s
upscale areas — DLF phases, Sushant Lok, South City and Suncity — without a permit are staring
at closure if they fail to produce relevant documents in a week.
MCG’s joint commissioner Hari Om Atri told TOI a total of 650 properties in zone 3 have been
found to be used for commercial purposes in contravention of Haryana Municipal Corporation
Act 1994, in a survey carried out by the civic body. Zone 3 is home to the maximum number of
PGs in the city.
“To start with, we have served notices to around 450 such illegal properties in DLF phases I-V,
Sushant Lok, South City and Suncity. We have asked these owners to either stop commercial
activities or produce permissions to carry out the same,” he said.
If the property owners can’t produce relevant documents — such as title deed, permission of
conversion of land use, sanctioned building plan or a court order — within a week, Atri said, the
MCG may raze the illegal structures and recover the cost from them.
Meanwhile, local residents allege that the corporation staff hardly check if anyone is constructing
buildings, flouting the norms or using it for commercial purpose illegally. “They are hand-in-
glove with property owners,” a resident claimed.
“MCG officials are helping property owners go ahead with illegal construction as no action has
been initiated against them despite repeated complaints,” said another resident.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 12, 2020
Link https://realty.economictimes.indiatimes.com/news/regulatory/gurugram-over-450-pgs-
hotels-lodges-without-permit-face-
closure/74604145?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-03-13
Lodha Developers International repays Rs 2,550 crore towards
bond
Last week the company raised about Rs 1,470 crore (USD 200 million) in Senior Secured
Notes due 2023 last week, which was managed by JP Morgan, UBS and CLSA.
Lodha Developers International has completed all requirements and payments for the redemption
of its March 2020 US dollar bonds in full along with accrued interest, the company said in a
media release.
Lodha had raised the money by selling high-yield bonds, rated below investment grade. Those
bonds, subscribed in two tranches, had offered coupons of 12% and 8.9%, respectively.
Last week the company raised about Rs 1,470 crore (USD 200 million) in Senior Secured Notes
due 2023 last week, which was managed by JP Morgan, UBS and CLSA.
On March 9, the size of the new bond was further increased by about Rs 180 crore (USD 25
million) due to the increased demand from investors.
Abhishek Lodha, MD & CEO, Macrotech Developers said, “We were always confident of being
able to meet our $325 million bond repayment obligations and have completed all requirements
and payments for the bond to be repaid in full along with accrued interest.”
Recently Moody's had said that even if the bond goes ahead as planned, significant debt maturities
and unfavourable industry conditions will keep refinancing risk high and liquidity weak.
"Near-term liquidity risk will ease but refinancing risk will remain significant with around an
additional one billion dollars of debt maturing by March 2021," Moody's said.
In 2019, Fitch had also downgraded the long-term default rating of Macrotech Developer to 'B-
minus' from 'B' citing tight liquidity conditions for infrastructure companies.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 12, 2020
Link https://realty.economictimes.indiatimes.com/news/industry/lodha-developers-
international-repays-rs-2550-crore-towards-bond/74594239