Reforms by Narendra Modi’s government to allow more foreign investment in India’s property sector appear to be bearing fruit.
Piramal Realty, the Mumbai-based real estate developer, said the US investment bank Goldman Sachs had agreed to invest US$150 million for a minority stake in the company.
It is the second private equity investment that Piramal Realty has attracted over the past six weeks. Last month, US private equity firm Warburg Pincus paid $285m for a minority stake.
These are the latest of several institutional investments in India’s property market since rules over the size of investments were relaxed in October last year.
The minimum level of capital investment for property projects was dropped to $5m from $10m, and the minimum floor area reduced to 20,000 square metres from 50,000 sq m.
In the second quarter, private equity funds invested $946m in India’s property market, up 16 per cent from the first quarter – a record level since 2008, according to Cushman Wakefield, a consultancy.
Piramal Realty, set up four years ago, has developed commercial and residential properties in Mumbai that exceed a total of 10 million sq ft of space.
Its parent, the $5 billion Piramal Group conglomerate, started business in textiles but later expanded into glass packaging, health care and life sciences.
Piramal Realty’s board members include Robert Booth, the former chief executive of Emaar Properties, and Nitin Nohria, the dean of Harvard Business School.
“We have quite a strong Middle Eastern connection,” said Anand Piramal, an executive director of the Piramal Group, adding that the group was working with several former employees of Emaar Properties and Limitless, a real estate developer in Dubai.
“Some are working full time and some as consultants, but they are all helping us to build a great real estate company in Mumbai.”
India’s property sector has undergone a rocky patch recently, with new development starts falling 40 per cent and sales dropping 20 per cent because of the supply glut.
But Mr Piramal said he and his investors were confident of the outlook of India’s property market.
“I think the [property] cycle has bottomed out in India, and now with a new government in place – government that is pro-business, progressive and wants to simplify regulation – they think it’s a good time to buy land parcels when times are still a little bit bad,” he said.
“India is actually the most exciting place to invest,” said Mr Piramal, adding that Warburg Pincus and Goldman were saying that China and Brazil were “going through a tough time”.
He said: “People say that residential prices will fall, but quality developments are so few in Mumbai. For a country of our stature, it’s very disappointing when you see the poor quality of construction. I think that for quality projects there will be good demand.”
Meanwhile, Arthveda Fund Management, a Mumbai-based asset management firm with an office in Dubai, has launched Star Fund II, a $250m real estate fund for GCC investors.
The fund will be invested in mid-market residential properties in 11 cities in India over a five-year period.
Arthveda is planning to make between 35 and 40 investments in cities including Mumbai, Bangalore, Chennai, Kolkata and Jaipur.
Bikram Sen, Arthveda’s chief executive, said the fund was made possible by the reforms made last year, adding that India’s government had taken a greater interest in the country’s property market with a view to creating more affordable housing.
Speaking in Abu Dhabi yesterday, Mr Modi said he wanted to see 50 million low-cost housing units built in India within the next seven years. These are part of $1 trillion worth of investment opportunities that he said were available to UAE investors in the Indian market.
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The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
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Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
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Director: Hasan Hadi
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Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
UAE currency: the story behind the money in your pockets
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Engine: Two permanent-magnet synchronous AC motors
Transmission: two-speed
Power: 671hp
Torque: 849Nm
Range: 456km
Price: from Dh437,900
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Day 5, Abu Dhabi Test: At a glance
Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.
Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.
The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
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What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
BUNDESLIGA FIXTURES
Saturday
Borussia Dortmund v Eintracht Frankfurt (5.30pm kick-off UAE)
Bayer Leverkusen v Schalke (5.30pm)
Wolfsburg v Cologne (5.30pm)
Mainz v Arminia Bielefeld (5.30pm)
Augsburg v Hoffenheim (5.30pm)
RB Leipzig v Bayern Munich (8.30pm)
Borussia Monchengladbach v Freiburg (10.30pm)
Sunday
VfB Stuttgart v Werder Bremen (5.30pm)
Union Berlin v Hertha Berlin (8pm)
How to register as a donor
1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention
2) There are about 11,000 patients in the country in need of organ transplants
3) People must be over 21. Emiratis and residents can register.
4) The campaign uses the hashtag #donate_hope
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
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Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Pieces of Her
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Race card
6.30pm: Handicap (TB) $68,000 (Dirt) 1,200m
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8.15pm: Firebreak Stakes – Group 3 (TB) $130,000 (D) 1,600m
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A new relationship with the old country
Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates
The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:
ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.
ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.
ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.
ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.
IN WITNESS WHEREOF the undersigned have signed this Treaty.
DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.
Signed
Geoffrey Arthur Sheikh Zayed
