Tag Archives: Equinox Realty

Equinox Realty seeks $200 mln from asset sale

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Delhi NCR real estate, Mumbai Real Estate, Bangalore Real Estate, Pune Real Estate news,Track2Media, Track2Realty, ravi sinha Equinox Realty,an arm of oli-to-steel conglomerate Essar Group,plans to sell a minority stake in its biggest commercial asset in Mumbai to raise between 7.5 billion rupees and 10 billion  rupees, sources close to the development said.

Equinox is in talks with several international and domestic investors, including an arm of Singapore’s Government Investment Corp (GIC) GIC.UL and India’s Infrastructure Development Finance Corp to sell a stake in Equinox Business Park, sources said.

“We are exploring opportunities with private equity players who can bring in strategic inputs and partner in our growth and expansion plans,” Equinox said in a statement, declining to comment on a potential deal size or buyers.

International private equity firms, mainly from the United States and Europe, have invested $13 billion in the Indian real estate sector since 2005 and are expected to exit from up to $5 billion worth of investments over the next couple of years, according to property consultancy Jones Lang LaSalle.

A GIC official could not immediately be reached for comment. An IDFC official declined to comment.

Equinox’s 1.2 million square foot business park will be fully developed by the end of the year, and the company is looking to use proceeds from a partial sale to invest in other opportunities, the company said in a statement.

The park is 45 percent occupied by tenants paying rents between 175 and 200 rupees a square foot a month, the company said.

Domestic private equity firms like Indiareit Fund Advisors and Red Fort Capital, which are on the road to raise funds to invest in the Indian property sector, have said they are looking for opportunities to invest in income-producing assets like commercial offices.

Rate hike may hit realty sector hard

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Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India Property, Equinox Realty, Essar GroupThe Reserve Bank’s decision to raise key policy rates by 25 basis points today is likely to have a negative impact on the real estate sector, so say industry insiders.

Real estate developers, already reeling under the pressure of increasing input costs, feel that rate hike by RBI will help increase inflation rather than curbing it.

Lalit Kumar Jain, national president, Confederation of Real Estate Developers’ Associations of India (CREDAI) said, “Rate hike will only give rise to inflation rather than curb it. Unless proper reforms are brought in housing, the result will be chaotic urbanisation.”

Naveen M Raheja, chairman, Assocham real estate committee and CMD, Raheja Developers said, “As the cost of money goes up, the cost of construction and production will also go up. This will lead to further inflationary pressures.”

With financial institutions predicting further rate hikes in future, the developers are worried.

Anuj Puri, Chairman and Country Head, Jones Lang LaSalle India says, “The RBI’s hiking of the repo rate by 25 basis points is far from good news for the real estate sector, especially in terms of housing. Purchasing activity had already dropped visibly during the last tranche of interest rate hikes, and we will see a further drop in buyer interest now. As for developers coming down on their prices to counter the negative effects of this hike, a lot depends on the financial ability of individual developers to hold on to their current pricing and risk losing sales till the situation improves. Developers with enough capital bases are less likely to relent on their pricing than smaller developers with an urgent need to sell their stock.”

NAREDCO has also reacted on the hike. In a release the association says rising inflation, primarily due to rise in food and commodity prices, is showing no sign of possible upward revision in fuel prices and higher support prices of food grains. In fact inflationary trend has enveloped the manufactured goods as well, which is visible from the rise in its prices in last 2-3 quarters.

Demand for property which is already on decline in almost all markets is further going to go down, because of high cost and buyer apathy. In fact there is no sign, as yet that interest rates will not rise further and come down to comfortable level in near future. This uncertainty will lead to drastic slow down in construction activities and possibly a reduction in employees’ strength of real estate companies.

Equinox Realty to invest Rs. 4000 crore in residential project

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Equinox Realty, Essar Group, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyEquinox Realty, the property development arm of Essar group, has announced plans to invest around Rs.4,000 crore to develop residential units across the country. The company will launch 1.4 million square feet residential project in Bangalore in the last quarter of calendar year 2011 and a one-million housing project in Thane near Mumbai in the next one year. The company also intends to develop an information technology park in Bangalore and a mixed -use project in Nagpur in Maharashtra.

At present, its 1.2-million sq ft business park is operative in Kurla area of Mumbai, bought by the Essar Group from Ashok Pirmal Group three years ago for Rs.1,200 crore.

“We have committed around Rs.3,500 crore to Rs.4,000 crore across various projects and already pumped in a sizeable chunk of that,” said Cherag Ramakrishnan, Chief Executive Officer, Equinox Realty Holdings, has said.

Equinox is also developing townships for the Essar group of companies in Gujarat, Jharkhand and Madhya Pradesh, spread over 8 million sq ft.

“The idea was to be operationally capable before launching big projects. The captive projects are not the big revenue earner for us, they are more for our engines to get oiled before we set out,” he said. Aiming to tap the demand for homes, many corporate houses have announced housing projects in the country.

However, Equinox is not in a hurry to launch property projects, Ramakrishnan added. “We are going slow on the launches. The idea is that within 12 months, we want to launch one project every year. We are here to build small volume, reasonable value and good quality properties.” After Mumbai, Pune and Bangalore, the company will be looking at Ahmedabad, Vadodara and Hyderabad, he added.