Tag Archives: Embassy Group

2017 a defining year; bright prospects in 2018: Jitu Virwani

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View Point: Jitu Virwani, CMD, Embassy Group believes despite short term pains the year 2017 has been a defining year for Indian real estate sector. The year 2018 promises to have bright prospects. 

Jitu Virwani, CMD, Ambassy Group, Embassy Group, Embassy Office Spaces, Embassy Industrial Parks, Embassy Boulevard, Embassy Lake View, Bangalore real estate news, India real estate news, Indian realty news, Indian property market news, Real estate news India, Investment in Bangalore property, Track2RealtyA year back at the end of 2016, the doom mongers were out in force. In our office sector there were those who were predicting a slump in demand, uncertainty around the new Government in the US, the scare stories around automation and AI, the performance of the top 5 Indian ITeS companies, exaggerations around layoffs and even the dramas of corporate Boards of great Indian technology companies.

However, despite all attempts to talk down the continued positive trajectory, it has been yet another positive year for the Indian real estate sector.

From a macroeconomic perspective, 2017 was a good year. India’s pace of economic growth has continued to be among the highest in the world and various projections expect it to improve further. India’s ranking in the World Bank’s ‘Ease of doing business’ index has jumped to 100 in 2017 from 130 in 2016.

The last quarter saw the FDI investment of $85.79 billion – the highest-ever FDI in a single quarter. Recently, Global Rating agency Moody’s Investors Service has upgraded India’s sovereign rating to Baa2 from Baa3, while Morgan Stanley has estimated that India will grow to a $6 trillion economy and achieve upper-middle income status by 2026-27.

The start-up ecosystem also witnessed significant traction during the year. As per NASSCOM, India is now competing with Israel to be the third largest start up base with US and UK retaining the top two spots.

Bangalore is at the forefront of this action accounting for around 27% of the start-ups in the country. Bangalore was named as “The World’s #1 Dynamic City” in JLL’s City Momentum Index and was also cited as the leading “Agile High Value Emerging Cities” followed by Hyderabad and Pune.

The implementation of various game changing reforms such as demonetisation, GST and RERA have resulted in short-term pain in the nation’s real estate market, but will surely result in positive long-term gain and consolidation.

The Pradhan Mantri Awas Yojana Housing brought affordable housing to the forefront of the Indian property market. As per Colliers Research, private developers will increasingly show their interests in affordable housing owing to lower financing cost and income-tax exemptions for developers.

According to the CLSA India Pvt, this move by the government alone will unleash a $1.3 trillion wave of investment in housing, with 60 million new homes, 2 million jobs created annually over the next seven years, giving a tailwind of as much as 75 basis points to India’s gross domestic product.

The commercial real estate market has remained robust in 2017. Market reports indicate pan India office take up to be in excess of 35m sq ft, a similar level to 2016, certainly no sign of the slowdown in demand, as so many predictions only twelve months ago. Vacancies in all relevant markets continue to be sub 10%.

At Embassy, in 2017 we have signed new leases of around 2.8 mn sf out of which 1.5 mn sf was with 14 new clients and 1.3 mn sf with existing clients.

In the year 2017, co-working office space witnessed tremendous adoption. Initially pioneered by start-ups, entrepreneurs and freelancers to fulfill their need to work in a suitable cost-effective environment, we now see the trend extend to large occupiers using co-working office space for their transitional office requirement.  Embassy has brought the innovative New York based WeWork to India which has seen great demand since its launch in July. 

WeWork already has three operational centres in the country, two in Bengaluru and one in BKC Mumbai, with a cumulative capacity of 6,000 desks. WeWork is all set to expand further and has acquired nearly 1.7 lakh sq ft office space on lease, in Mumbai’s Andheri and Vikhroli suburb. In 2018, WeWork plans to launch in Delhi and other metros.

Another trend we have observed is the continuing gravitation of businesses to large integrated business parks which provide the full business ecosystem for staff and companies – hotels on the campus allow occupiers to minimise travel, host team lunches and attend on site product launches.

The Embassy Group is capitalizing on the growth by developing a hotel portfolio across luxury, midscale and budget brands, with focus on business hotels to enhance the value of our business parks.

2017 was an important year for industrial and warehousing real estate as well, the GST regulation providing a critical impetus for the sector. Embassy Industrial Parks, our partnership with Warburg Pincus, is looking to cater to the booming needs for logistics and warehouses space from sectors such as e-commerce, pharma, healthcare, FMCG, apparels and telecom, among others. Embassy Industrial Parks recently invested Rs. 350 crores for a project in Pune and Rs. 140 crores in Gurgaon.

In the Residential sector, a big development in the upscale/premium residential housing business is the growing demand for Private Branded residences. The year-on-year growth of ultra-luxury homes in the city is at an all-time high and the estimated total value of ultra-luxury housing projects in various stages of construction in Bengaluru are valued at Rs 6,000 Crores. The Four Seasons Private Residence at Embassy One has seen the highest home sale of Rs 50 crores, marking the highest price ever fetched for a branded residence in India.

Moreover, the housing sector is also undergoing a steady transformation with the developments of integrated townships as more of the urban population is moving from independent homes to gated communities and integrated townships, which provide a holistic ecosystem and lifestyle.

Overall, the year 2017 has been a positive year despite the short-term turmoil, but is surely part of the positive long-term transformation of the Indian business ecosystem. It is imperative that we continue to have a larger vision of 3-5 years to see significant outcomes, of the key measures being implemented this year. This time horizon will help businesses, investors and consumers to continue investing in the India growth story.

There has been strong absorption in commercial space with a clear decline in vacancy rate in all four Southern metros to less than 10% across the board. The office space take-up continues to be driven by technology intense businesses whether captive or outsourced or Global R&D centres. This is very encouraging for the Commercial sector, which depicts the reality of India being favoured as a marquee destination for global business operations.

The establishment of SEZ in India is as an important strategic tool to expedite the growth of International trade. With the leverage of economic liberalization and introduction of SEZs on a wide scale, India has witnessed unprecedented growth in its exports – Embassy’s SEZ’s are estimated to have generated over $20bn of exports since inception and employ over 200,000 people.

Industrial space is set to emerge as the next organised property asset class in India, giving a decentralisation push, which should unlock land values in areas outside major cities and stimulate business activity.

The Residential sector has seen a build-up of micro markets across locations. The micro markets have shown high potential for investment leading to capital appreciation for homebuyers. There has been great response from home buyers at the pre-launch stage of projects and for ready to move in homes. Resale and ready to move in homes are not impacted by the GST, which is a very positive parameter for homebuyers.

We also continue to believe that Grade A projects offering differentiated products, Green homes which are relevant for the future will see very good traction. It is important to stay cautious with project launches and to ensure development in planned phases, to avoid the problem of oversupply and unsold inventory.

In terms of reforms, compliance to RERA will reinforce the trend for timely delivery, accountability and transparency. It will certainly add costs and in the short-term, delay project completions and also launches, however once this supply/demand mismatch catches up, RERA compliant homes will boost consumer confidence in the sector.

As the real estate market continues to evolve, the impact of the regulations unfolded in 2017, the sector’s future growth prospects in 2018 look bright.

The year 2018 brings forth the continued positive outlook for our Commercial Office business which today stands at over 20m sq ft and approximately 95% occupancy and a development pipeline in excess of 15 m sq ft across South India.

We see continuing demand for good quality commercial office and industrial space, as well as a continuing recovery and growth in the residential sector. By way of example, at Embassy we’re currently in discussion with 22 major clients, which will lead to an expansion of our office space portfolio in excess of 3.2 mn sq. 

From an investment perspective, we would expect to see REIT’s coming to the market and transforming the way in which real estate is funded in India. Liquidity coming through REITs either from local or international capital, will add efficiency and velocity to the market, drive greater transparency and trust in established top tier developer/investors.

ESG (Environment, Social, Governance) will continue to rise up the agenda – the rise of plentiful renewable power – Embassy is commissioning 100MW of solar plant in Q1 2018 – the attention to air quality and its influence on location decisions, the use of sustainable materials and tread away from plastics will move higher up the agenda, along with infrastructure, focus on safety and security will continue to increase and overall best practice in Governance and Compliance will continue to trend up in 2018.

Operationally, Automation and Process improvement will continue to be a key focus for the industry with consequent improvements in product offering, efficiencies and innovation.

Taken together, we will continue to see the long-term trend towards larger more experienced and compliant developers, backed by strong domestic and international capital – the institutionalisation of the industry will continue in 2018 for the good of our investors, and customers across India.

Embassy wins British Safety Council’s Sword of Honour

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News Point: Three of Embassy’s Office Parks receive this prestigious honour in 2017 for the highest award for excellence in Health and Safety management standards

Embassy Sword of Honour Award, British Safety Council, Best practices in real estate, Best practices in health & safety, Embassy Group, Jitu Virwani, India real estate news, Indian realty news, Real estate news India, Indian property market, Investment in real estate, Track2RealtyEmbassy Group has been conferred the prestigious ‘Sword of Honour’ by the British Safety Council for three of its business parks – Embassy Manyata Business Park, Embassy TechVillage in Bangalore and Embassy TechZone in Pune.

Embassy is the only Real estate developer in India to receive this prestigious honour this year.  The award was presented to the company at the Drapers’ Hall, London on 24th November 2017.

The ‘Sword of Honour Award’ is widely recognized as the pinnacle of achievement in safety across the world, and is instituted to reward best practices in this field.

To achieve the Sword of Honour Award, organizations should be fully committed to both excellent standards and continuous improvement. Earlier this year, the above-mentioned Embassy Office Parks received the 5-star rating from the British Safety Council for Occupational Health and Safety, which was a prerequisite for receiving the Sword of Honour accolade.

An external adjudication panel of chartered professionals awarded 57 Swords, to commendable organizations from across the globe. Among the other companies from India that received this prestigious award were Mumbai International Airport Pvt Ltd, Reliance Industries Ltd, Larsen & Tubro Ltd, raising the bar for Health & Safety management standards in the country.

On receiving the Sword of Honour Award at the Awards ceremony in London, Jitu Virwani, Chairman and Managing Director, Embassy expressed “It was a wonderful experience participating in the Awards ceremony and receiving this prestigious Award. The certifications are a validation of our unwavering commitment to our clients, ensuring that our workplaces are not only the most efficient, but also the greenest and safest anywhere in the country. Embassy is committed towards creating world class Grade A real estate projects, for the rising India. We are honored that our dedication and commitment across all our spheres of operation is being recognized”

Mike Robinson, Chief Executive of the British Safety Council, said: “On behalf of the trustees and staff of the British Safety Council, I would like to congratulate Embassy Office Parks for their huge commitment to keeping their workplaces safe and healthy and minimising risks to the environment from their organisations’ day-to-day activities. All of the Sword winning organisations share a commitment and resolve to achieve the highest standards of health and safety management. We are delighted that they are partners in helping achieve our vision that no one should be injured or made ill at work.”

The 2017 awards mark the 38th consecutive year that the British Safety Council has awarded the Sword of Honour for health and safety management excellence and the seventh year of awarding the Gobe of Honour for excellence in environmental management. The winners achieved the maximum five stars in the British Safety Council’s independent Five Star helth and safety and/or environmental management audits in the period 1 August 2016 – 31 July 2017.

They also demonstrated to an independent adjudication panel that they had a proven track record and culture of best practice for excellence in health and safety or environmental management that runs throughout the business, from the shopfloor to the boardroom.

Segment & geography defining consumer confidence: Jitu Virwani

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View Point: In a business that by and large lacks consumer confidence, Jitu Virwani, CMD of Embassy Group maintains that the challenges to meet consumer expectations leads to better quality and enhanced value. In an exclusive interview with Ravi Sinha, Virwani nevertheless disagrees about sector’s overall reputation and points out that consumer confidence is segment specific and geography specific.

Jitu Virwani, CMD, Ambassy Group, Embassy Group, Embassy Office Spaces, Embassy Industrial Parks, Embassy Boulevard, Embassy Lake View, Bangalore real estate news, India real estate news, Indian realty news, Indian property market news, Real estate news India, Investment in Bangalore property, Track2RealtyRavi Sinha: What has been the bigger challenge for the sector – market dynamics or the poor consumer confidence?

Jitu Virwani: The Indian real estate market is not a single homogenous entity. There are seven major metro markets, each behaving differently, with different supply and demand dynamics. There are many different verticals within real estate – residential, commercial, retail, hospitality – and within those there are segments focused on different customer bases. With so many permutations, there is no ‘one size fits all’ answer. The urban southern markets in commercial office sector, has seen consecutive years of positive sentiment, take up and consequently rental growth.

Ravi Sinha: This sounds more like an aberration. Why the developers are not seen as professional in the collective consciousness?

Jitu Virwani: The Indian real estate market has gone through a significant change over the last decade. Some of the largest developers have corporatized their business, strengthened corporate governance, identified lower cost of capital financing, increased customer focus and applied higher levels of transparency.

Continued focus on international best practices, technical advances particularly in the field of environmental and energy efficient design, improvements in construction management practices and people management are some of the changes which have had a positive impact on consumer confidence.

Ravi Sinha: What about the consumer confidence index?

Jitu Virwani: Well informed consumers and modern homebuyers continue to trust Grade A developers across cities. Today consumer’s confidence rests mainly on credibility of developers established over a period of time, often over decades. At Embassy, for the last thirty years, we have consistently focused on providing world class projects around the aspirations of both our corporate clientele from over 175 international corporations, as well as our residential homebuyers. Timely delivery, exceptional quality and locational advantages are some of the key USP’s of our products, making it a unique choice for our clientele.

Ravi Sinha: But isn’t the poor consumer confidence index affecting the market transactions today?

Jitu Virwani: Just as sentiment is linked to the industry vertical, and we have very positive sentiments in the commercial office markets; sentiment is also specific to geographies. The extent of oversupply in the residential market in the NCR region is not mirrored in the major South Indian cities in which Embassy operates, and hence sales volumes have quickly recovered to pre-demonetarization levels by mid-2017.

With the regulations and corporate governance that is being followed by most Grade A Developers in South India, it is clear that the old practices of small scale real estate developers are receding, as the top Tier players have been professionalized over the years. Focus on quality, timely delivery and transparency are among the best practices that are gaining ground in the sector.

Ravi Sinha: How do you cope with the changes in market dynamics?

Jitu Virwani: Change management, implementation of compliance and governance frameworks, attracting and retaining appropriate talent are all critical aspects of building a top class professional real estate organization. It is very encouraging that many developers have progressively started implementing these initiatives, and this also gets fast tracked with the participation of globally significant equity partners, who bring learning and best practice as well as more efficient capital frameworks.

Ravi Sinha: Do you feel recent policy changes like GST & RERA (despite of grey zones) would instill the confidence back into the minds of consumers?

Jitu Virwani: The Real Estate (Regulation and Development) Bill is an initiative to protect the interest of consumers, to promote fair play in real estate transactions and to encourage timely execution of projects. The proper implementation of the Bill will ensure accountability of all stakeholders, projects would be time bound, reduce delays in completion of projects and boost customer satisfaction. RERA will also establish a mechanism for speedy redressal of disputes and is expected to see renewed interest from buyers.

This will certainly reduce the number of developers who are in the market, properly funded and organized developers will deliver to the requirements of the regulations. This will surely enhance quality and support pricing as supply will reduce. Property pricing will firm up, quality will increase, and institutional funds will gravitate towards the well-established, trusted and proven developers such as Embassy.

With the implementation of GST, we have been able to further rationalize the tax structure for our customers, leading to an increase in consumer confidence. Overall, the unified tax regime is a positive sentiment booster for the industry, as it will revive both buyer and investor interest by bringing in more transparency.

Ravi Sinha: Will the new financial instrument like REIT help revive the consumer sentiment, despite of expected moderate ROI?

Jitu Virwani: The likely advent of Real Estate Investment Trusts (REITs) will be a watershed for all forms of real estate in urban India. A publicly listed REIT is an entity which distributes 90% of its income in the form of regular dividends to investors, it has strict limitations on any development in that 80% of its value must be in completed and income producing assets such as leased offices. The units in the trust are freely tradable, in a similar manner to units in mutual funds and so the investment is liquid for the investor, and provides liquidity for the original property developer/owner.

REITs have been in existence across the world for many decades and are a proven investment medium well known to international investors, both institutional and retail. This, in combination with international perceptions of India’s strong macro-economic status, makes future REIT listings attractive to international investment capital, and we are also seeing strong domestic interest in future listings. The potential for new REITs in India runs into billions of dollars, and this liquidity into the real estate market has the potential to kick start stalled projects, generate new growth and jobs while also continuing to encourage the trend towards a transparent, compliant framework for the industry.

Ravi Sinha: Has demonetization completely shattered the consumer confidence in the sector or has it just been affecting the cash investors?

Jitu Virwani: Bangalore, Embassy’s HQ, has one of the highest proportion of income tax payers of any urban center and demonetization would have had a limited impact. In addition, we are now close to a year down the road from the demonetization move and its effects have now been absorbed and the market has moved on. Sales are back to pre-demonetization levels since April 2017, and Bangalore being an end user market has been an added advantage.

Established players in the real estate industry were already moving towards increased transparency and governance, with demonetization being another step in the same direction. Several steps taken by the government combined with this announcement, will further improve transparency and increase investor confidence in the real estate market in the long run.

Ravi Sinha: What has been the learning of the last 5 years of market uncertainties?

Jitu Virwani: The learning is that the Indian market is resilient, it recovers quickly and the consistent upward trajectory is the trend for the next few years.

Ravi Sinha: Have the developers learnt the most important lesson of relationship management with the consumers?

Jitu Virwani: No business will thrive without an appropriate balance in the relationship between buyer and seller across all parameters – price, product, timeliness, quality and so on. The top Tier of the Indian real estate market players have known this for many years, and work to make long term customer relationships at the heart of their overall execution strategy.

Ravi Sinha: What is your market differentiator?

Jitu Virwani: Embassy Office Parks also runs the “Energize” programme which is a park user outreach programme, aimed to engage the 205,000+ park users throughout the year. The range of events include – Sports, Cultural, CSR and Lifestyle. The initiatives driven under the Energize Programme helps in engaging the workforce and providing a fun work environment, leading to better productivity, lower levels of attrition and a strengthened sense of community within the business parks.

Ravi Sinha: To what extent the confidence of PEs and other organized segment of investors has shaken with Indian real estate? 

Jitu Virwani: The various reforms and sector-strengthening measures adopted have been welcomed by international PE funds and the PE investments have been steadily increasing. The Institutional private equity capital committed to Indian Real Estate in 2016 is close to USD 7.2 bn depicting strong confidence from global players.

FDI inflows in the construction development sector are expected to increase in the medium term with the government’s easing of FDI policy, increasing focus on affordable housing, implementation of the RERA, smart cities plan, and the introduction of Real Estate Investment Trusts (REITs).

Ravi Sinha: Which are the segments of real estate where you feel meeting the consumer expectations is most challenging?

Jitu Virwani: If there is no challenge, we are not pushing ourselves hard enough for our customers. We work to deliver quality premises to our residential, commercial, industrial and hospitality occupiers across all our spheres of operation. We will continue to challenge ourselves to produce better quality and enhance value in a safe and productive manner, in our endeavor to delight all our stakeholders.

Embassy Group sells most expensive home in South India

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News Point: Single Level Unit Four Seasons Private Residence at Embassy ONE Bengaluru sold at INR 50 crores. 

EmbassyONE, Embassy Group, Four Seasons Residence, Bangalore luxury property, Costliest property in South India, Costliest property in Bangalore, India real estate news, Indian realty news, Real estate news India, Indian property market, Track2Media Research, Track2RealtyLuxury living has a new price tag in Bengaluru, with Embassy Group closing the sale of one of its iconic branded Private Residences, at its flagship luxury integrated development – Embassy ONE.

The 30th-floor single level unit of the new Four Seasons Private Residences at Embassy ONE has been sold for a record-breaking INR 50 crores, the highest price ever fetched for a branded residence in South India.

The buyer who spends a considerable amount of time overseas has chosen to remain anonymous and Embassy Group, as part of their buyer’s confidentiality privacy policy, would not be disclosing the name.

Located at the gateway to North Bengaluru, the sale of this spectacular 16,000 sft 30th floor residence is now on par with prices in the ultra-luxury market segments in Mumbai and NCR.

Reeza Sebastian, Senior Vice President, Residential Business, Embassy Group said, “We are elated to have sold Bengaluru’s most expensive residential property. Luxury homeowners are more specific about the legacy of brands, quality of construction, the promise of delivery and re-assurance of continued impeccable levels of service. The Embassy Group, Four Seasons Hotels and Resorts and Blackstone being leaders in their own spaces, have recognized these aspirations of residential homebuyers and partnered to create this coalescence of 109 iconic homes that are among the most desirable in the city. Embassy ONE is the emergence of an elevated, integrated lifestyle.”

James Price, Vice President, Residential, Four Seasons Hotels and Resorts said, “The sale speaks of the value and benefits that Four Seasons brings as a brand, and is a vote of confidence in the project. We are excited to have partnered with the Embassy Group to create this remarkable lifestyle opportunity in one of the fastest growing cities in the world – Bengaluru”.

Bengaluru is among the top three cities to have witnessed unprecedented growth in demand for ultra-luxury homes in the last two years. The year-on-year growth of ultra-luxury homes in the city is at an all-time high and the estimated total value of ultra-luxury housing projects in various stages of construction in Bengaluru are valued at INR 6,000 crores. (source: JLL report)

Developed by Embassy Group, Embassy ONE houses lifestyle residences representing exquisite engineering, cutting-edge design and dedicated service matching international standards. India’s first Four Seasons Private Residences in Bengaluru, are a part of this marquee destination.

The community of private residence owners at Embassy ONE span across industries and countries and represent a niche lifestyle desired by many, but acquired by only those with a true penchant for world-class hospitality within the comforts of their curated luxury homes.

Embassy & Taurus form JV for SEZ in Trivandrum

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News Point: Embassy marks its foray into Kerala in joint venture with Boston-based Taurus Investment Holdings for developing SEZ.

Embassy Group, Embassy One, Embassy JV, Embassy SEZ, Embassy commercial real estate, Embassy in Kerala, Taurus Investment with Embassy Group, Track2Media Research, Track2Realty, India real estate news, Indianrealty news, Real estate news India, Indian property marketEmbassy through its entity Embassy Property Development Pvt Ltd, has entered into an agreement with Taurus Investment Holdings, a real estate private equity investment and development company headquartered out of Boston, Massachusetts, US to form a joint venture called Winterfell Realty Private Limited to develop an SEZ property in Trivandrum, Kerala.

This will be Embassy’s first project in the State and it will be known as Embassy Taurus World Technology Centre, Trivandrum. Embassy will have an equity commitment of 49% while Taurus Investment Holdings will hold the remaining 51%.

The partnership entails an economic interest of 50: 50 for both entities in the Joint venture. This partnership strengthens Embassy’s commercial office space portfolio and development of SEZs in key strategic locations.

Commenting on the formation of the Joint venture, Jitu Virwani, CMD, Embassy, said, “The establishment of SEZ in India has been envisaged as an important strategic tool to expedite the growth of international trade and services. We are committed to be a part of this significant growth, with our exclusive SEZ project developments across locations. Our partnership with Taurus Investment Holdings fosters this vision, and marks our foray into the state of Kerala.”

“Embassy Taurus World Technology Centre is strategically located and has tremendous potential, with well-known firms planning major developments in the region. The great synergy we share with Taurus Investment Holdings, will help us nurture a longstanding relationship with them,” he added.

Ajay Prasad, Country Managing Director, India, Taurus Investment Holdings LLC said, “Taurus has a legacy of more than four decades of successful investments across countries. Real estate is a focused play and we have been on the constant lookout for a suitable strategic partner for this venture. We are excited to begin a new chapter in our history in partnership with Embassy, which is a well-established developer in India with unmatched expertise in office development as well as a class- leading client portfolio. Together, Taurus and Embassy will develop a landmark project in a very exciting new market.”

Embassy Taurus World Technology Centre will be constructed within the existing Techno Park primarily on a 10-acre SEZ land parcel, as part of a mixed-use development spread across a total of 20 acres. The office component will encompass 2.3 mn sq feet i.e. 65% of the total area of the larger project, with the rest to be developed as retail and a hotel.

The 1st Phase of office development comprises of 1.4 mn sq feet office space, and is expected to be completed within 24- 30 months. The land parcel will be leased from Techno Park for a period of 90 years, with an additional renewal option of another 90 years.

The 2nd phase will be launched subsequently based on the leasing velocity, with a projected total completion period of 60 months. Brookfield Financial advised on the transaction.

Piramal Finance lends INR 1100 crore to Embassy Group

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News Point: Piramal Enterprises Limited through its subsidiary Piramal Finance Limited (PFL) has financed the Embassy Group for an amount of  INR 1100 crore.

Piramal Fund Management, Lodha Group, Private Equity in Indian real estate, PE Fund in real estate, India real estate news, Indian property news, NRI investment, Track2RealtyPiramal funding to Embassy Group has been done sequentially across both residential and commercial projects in Bangalore, Chennai and Hyderabad over a span of the last six months.

PFL first funded INR 360 crore towards Embassy Residences in Chennai – a premium residential project spread over 25 acres with 0.3 million sq. ft. of built up area. This has been followed up with an investment in Phoenix-Embassy which is a joint venture between Embassy and Phoenix Group of Hyderabad.

The JV is developing 1.5 million sq. ft. of grade-A commercial space in the financial district of Hyderabad with a potential to develop a further 4 million sq ft. Subsequently, PFL has provided INR 650 crore of growth capital to the Embassy Group in Bangalore.

Khushru Jijina, Managing Director, Piramal Finance Limited said, “We are pleased to have extended our relationship with the Embassy Group and look forward to a long and mutually beneficial association. I have always admired Jitu Virwani’s vision, track record and execution capabilities and we are happy to provide them with customized financial solutions as they scale up their presence across both residential and commercial. ”

Jitu Virwani, Chairman and Managing Director, Embassy Group said, “We are delighted to be working closely with a large diversified conglomerate like the Piramal Group who is known for their structuring capabilities and quick turnaround time. We look forward to leveraging their capabilities as we partner with them on our growth capital requirements going forward.”

The Embassy Group has already delivered 30 million sq. ft. of marquee commercial office space and 6 million sq. ft. of premium residential developments. The Group has a pipeline of 17 million sq. ft. of commercial developments across Bangalore, Hyderabad and Chennai.

Embassy Industrial Parks signs 1,910 crore MoU with Government of Haryana at Global Investors Summit 2016

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The project is intended to support the booming E-commerce as well as the retail and FMCG companies to consolidate in a post GST scenario.

Embassy Group, Warburg Pincus, Bangalore real estate, Bengaluru property, Haryana inviting real estate investments, Haryana Investor Summit, Track2RealtyEmbassy Industrial Parks, a joint venture between Embassy Group and Warburg Pincus signed an MoU with the Government of Haryana at the Happening Haryana Global Investors Summit 2016, for the development of 3 industrial parks around Gurgaon with a projected investment of Rs 1,910 crore and an employment potential of 4,000 people.

Anshul Singhal, Chief Executive Officer, Embassy Industrial Parks, said, “We are happy to see the proactive and professional approach of the Haryana government to help private companies like Embassy Industrial Parks, grow operations in the state of Haryana. Embassy Industrial Parks is confident of achieving its goals in the state with the support of the government. With this support, we promise to host world class infrastructure that will help both multinational and domestic companies’ set-up factory operations in the state.”

The proposed warehousing project will span the development of integrated Industrial and Logistics Parks with support facilities and also target industrial light manufacturing clients to set up build to suit manufacturing facility/ready built factories in these parks.

The project will be developed in the outskirts of Gurgaon, on NH-8 or within 10 – 15 kilometers from NH-8. The Government of Haryana will help Embassy Industrial Parks acquire this land and get approvals for the projects, apart from providing incentives to ensure their sustainability.

Though the warehousing sector has been largely unorganized and fragmented, the demand for modern warehouse infrastructure has seen a surge in recent times. Rapid growth of retail, manufacturing and related industry segments coupled with an influx of investment will only push this sector to new heights.