Date : 08.12.2007 Real Estate: Earth To Earth, Dust To Dust, Ashes To Ashes
That what is formed of Earth, gets consigned to Earth..there are detractors no doubt, especially those Investors who never saw the Real Estate Boom come. But there are bigger and stronger Buyers Emerging from the Middle East and Singapore who realise the Value of Earth.
Earlier this week an investment group from the United Arab Emirates said it had set up a joint venture in India that will invest $5 billion over the next five years to develop residential and commercial properties.The joint venture, Rakindo Developers Pvt. Ltd., plans to build independent townships closer to smaller Indian cities, where real estate is poised for high growth in the coming years, said Managing Director Prasad Koneru.That announcement underscores the changing preferences of investors from Arab countries, who are increasingly shifting their focus to emerging markets in Asia from traditional destinations like the United States.Rakindo is a joint venture whose ownership is split evenly between Chennai-based Trimex Group and Rakeen, the real estate arm of the UAE-based Ras Al-Khaimah Investment Authority.Rakeen plans to pump in about $200 million into the joint venture this year to support land acquisition and other expenses, said Khatar Massad, adviser to the crown prince of Ras Al-Khaimah, one of the seven emirates of UAE."As our projects take off, we will bring in more money as and when needed," Massad told reporters on the sidelines of the World Economic Forum.The company currently has plans for six projects, including a marina - India's first - along the southern coast, 44 miles off the southern Indian city of Chennai. The first project, a $1.5-billion township along with a special economic zone near Chennai, will kick off in the first quarter of next year, he said.Rapid economic growth, rising middle class incomes and increasing urbanization is boosting demand for new houses, shopping malls and hotels in India - one of the world's fastest growing economies.Real estate space has been a preferred business for Arab companies looking to invest in India.Separately, Dubai-based Emmar Properties, the world's largest real estate company by market capitalization, said Monday it is looking to list its joint venture in India on local stock exchanges. Emmar MGF Ltd., the joint venture, plans to offer about 10 percent of equity to investors in January, said Mohamed Alabbar, chairman of Emmar Properties.More and more funds from Proprietary Desks in the US, Private Equity from the Middle East-especially the Kingdom of Dubai, and from the Government of Singapore are flowing into Real Estate concerns, but this time action has moved from the Big League to mid-cap concerns like DS Kukarni, Lok Housing and Marg Construction.Unlisted entities like Vatika are drawing in fresh money from Goldman Sachs, and these fund transfusions are in addition to capital received by AnantRaj, Parsvnath, DLF, Unitech, Vijay Shanthi, HDIL and Omaxe-the last two finding Equity as unlisted entities.Now CapitaLand of Singapore is ready to put $ 250 mn into Malls...and possibly singalling the start of another innings in the Real Estate sector in India.Singapore's CapitaLand Ltd., one of Asia's largest listed property companies, has established a $600 million fund that will invest in retail mall developments in India, the company said.CapitaLand holds a 45 percent stake worth $272 million in CapitaRetail India Development Fund, and the remaining stakes are held by insurance companies, pension funds and corporations, it said in a statement late Thursday.CapitaLand did not identify the other stakeholders.India is one of the world's fastest growing economies, expanding at more than 9 percent a year, with a growing middle class that is eager to spend money as people seek to upgrade their lifestyle."We are conscious of the vast opportunities presented by India's retail real estate market, driven by the country's strong macro-economic growth and rapid urbanization," said CapitaLand Chief Executive Liew Mun Leong in the statement. "Over time, we expect to deepen our retail and fund management presence in India to become a significant long-term retail real estate player there."CapitaLand is 42 percent-owned by Singapore state investment company Temasek Holdings Pte. Ltd. Its key markets are Singapore, China and Australia. It is expanding with new developments in Vietnam, Thailand, India and the Middle East.Nothing in this article is, or should be construed as, investment advice.
That what is formed of Earth, gets consigned to Earth..there are detractors no doubt, especially those Investors who never saw the Real Estate Boom come. But there are bigger and stronger Buyers Emerging from the Middle East and Singapore who realise the Value of Earth.
Earlier this week an investment group from the United Arab Emirates said it had set up a joint venture in India that will invest $5 billion over the next five years to develop residential and commercial properties.The joint venture, Rakindo Developers Pvt. Ltd., plans to build independent townships closer to smaller Indian cities, where real estate is poised for high growth in the coming years, said Managing Director Prasad Koneru.That announcement underscores the changing preferences of investors from Arab countries, who are increasingly shifting their focus to emerging markets in Asia from traditional destinations like the United States.Rakindo is a joint venture whose ownership is split evenly between Chennai-based Trimex Group and Rakeen, the real estate arm of the UAE-based Ras Al-Khaimah Investment Authority.Rakeen plans to pump in about $200 million into the joint venture this year to support land acquisition and other expenses, said Khatar Massad, adviser to the crown prince of Ras Al-Khaimah, one of the seven emirates of UAE."As our projects take off, we will bring in more money as and when needed," Massad told reporters on the sidelines of the World Economic Forum.The company currently has plans for six projects, including a marina - India's first - along the southern coast, 44 miles off the southern Indian city of Chennai. The first project, a $1.5-billion township along with a special economic zone near Chennai, will kick off in the first quarter of next year, he said.Rapid economic growth, rising middle class incomes and increasing urbanization is boosting demand for new houses, shopping malls and hotels in India - one of the world's fastest growing economies.Real estate space has been a preferred business for Arab companies looking to invest in India.Separately, Dubai-based Emmar Properties, the world's largest real estate company by market capitalization, said Monday it is looking to list its joint venture in India on local stock exchanges. Emmar MGF Ltd., the joint venture, plans to offer about 10 percent of equity to investors in January, said Mohamed Alabbar, chairman of Emmar Properties.More and more funds from Proprietary Desks in the US, Private Equity from the Middle East-especially the Kingdom of Dubai, and from the Government of Singapore are flowing into Real Estate concerns, but this time action has moved from the Big League to mid-cap concerns like DS Kukarni, Lok Housing and Marg Construction.Unlisted entities like Vatika are drawing in fresh money from Goldman Sachs, and these fund transfusions are in addition to capital received by AnantRaj, Parsvnath, DLF, Unitech, Vijay Shanthi, HDIL and Omaxe-the last two finding Equity as unlisted entities.Now CapitaLand of Singapore is ready to put $ 250 mn into Malls...and possibly singalling the start of another innings in the Real Estate sector in India.Singapore's CapitaLand Ltd., one of Asia's largest listed property companies, has established a $600 million fund that will invest in retail mall developments in India, the company said.CapitaLand holds a 45 percent stake worth $272 million in CapitaRetail India Development Fund, and the remaining stakes are held by insurance companies, pension funds and corporations, it said in a statement late Thursday.CapitaLand did not identify the other stakeholders.India is one of the world's fastest growing economies, expanding at more than 9 percent a year, with a growing middle class that is eager to spend money as people seek to upgrade their lifestyle."We are conscious of the vast opportunities presented by India's retail real estate market, driven by the country's strong macro-economic growth and rapid urbanization," said CapitaLand Chief Executive Liew Mun Leong in the statement. "Over time, we expect to deepen our retail and fund management presence in India to become a significant long-term retail real estate player there."CapitaLand is 42 percent-owned by Singapore state investment company Temasek Holdings Pte. Ltd. Its key markets are Singapore, China and Australia. It is expanding with new developments in Vietnam, Thailand, India and the Middle East.Nothing in this article is, or should be construed as, investment advice.