Group of Minister in Favour of bare minimum GST on Housing: Goa CM 

Cheif Minitster Pramod Sawant on Friday said the recently reconstitu group of ministers on real estate sector were of the opinion that the Good and Services Tax  (GST) on redevelopment projects. The chief minister also said that another issue discussed was whether a minimum GST should be imposed on houses which have undergone redevelopment and that the state govt has been asked to provide data on housing societies and industrial plots. “West Bengal, Punjab and Maharashtra have submitted their proposals. All states have been asked to submit the redevelopment schemes and revenue losses for each state.” The chief minister on Thursday urged Union civil aviation minister Kinjarapu Ram Mohan Naidu to stop domestic airlines from shifting their operations from Dabolim airport to Manohar International Airport at Mopa. He asked the minister to authorise new international flights for Dabolim and to reduce parking fees as well as user development fees. These measures, Sawant told the minister, will help the airport sustain operations. 

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EFC acquries 49 556 sqft in Pune for rs 80 crore

EFC, a wholly-owned unlisted subsidiary of EFC (I), has acquired 49,556 sq ft office space in Pune worth over Rs 80 crore. The center has a seating capacity over 1,500. It recently acquired another property in the city. In its earning conference call 80,000 sq ft of property in Pune. This is an freehold property that we have acquired under ownership, which will be developing and leasing under our managed office businees model . This acquistion has the potential to generate an annual revenue of about rs 14.41 crore. The company recently acquired 51% stake in Bigbox Venture which has a portfolio of over 3,000 seats in Pune and is aggressively expanding into the National Capital Region (NCR), Ahmedabad and Kolkata.  EFC (I) was also awarded design and build contract with Tata Consultancy Services (TCS). The company is currently managing about 2.25 million sq ft of assets, with 57 sites under management across seven cities. It has sitting capacity of about 47,000 seats and all as on June 30, 2024. The rental segment generated approximately Rs 66.79 crore, accounting for about 63.44% of company's total revenue, the design and build turnkey contracting business contributed Rs 35.03 crore, representing approximately 36.56% of the total revenue. It increased the area under leasehold rights by about three lakh sq ft, adding over 7,000 seats across seven centers and four existing cities during Q1 FY25.
 

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Thirteen booked for irregularities worth rs 200 crore in MHADA building redevelopment plan

Thirteen persons have been booked for alleged involvement in irregularities concerning redevelopment of buildings on MHADA land, with Thane police on Friday claiming the amount involved may be upwards of Rs 200 crore. As per the FIR filed by Chitalsar police, a firm was given the contract to redevelop 18 buildings on land leased to these societies by the state run Maharashtra Housing and Area Development Authority, the official said. "The firm allegedly used a fake mortgage deed to obtain a loan of Rs 200 crore from another firm. However, this amount was not used for the redevelopment of the buildings. The firm obtained the loan by mortgaging the land on which the buildings stand to the lending firm. The NOC for this mortgage was allegedly given by the chairperson of one of the housing societies without taking the consent of residents or MHADA. Probe is underway to unravel the full details of the irregularities. No one has been arrested. 
 

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Developers Struggle to find Quality Contractors amid housing boom 

Real estate developers are finding it tough to get the right contractor for construction to ensure quality and timely delivery as the number of launches has doubled to approximately 1.25 lakh housing units across top seven cities every quarter from 60,000 before the Covid-19 pandemic. Many developers are boosting in-house capabilities while some are getting global contractors to ensure there is no delay in project delivery, industry insiders told ET. Some are also engaging construction tech companies. TARC Ltd recently appointed Abu Dhabi- headquartered Arabian Construction Company as the principal contractor for its luxury residential project TARC Kailasa in Central West Delhi and the upcoming TARC 63A in Gurgaon, while Trehan Iris said it is boosting in-house construction capabilities and partnering with global contractors. According to Anarock data, 2.36 lakh housing units were launched in the top seven cities in 2019, which dipped to 1.27 lakh in 2020 largely due to Covid and increased again to 2.36 lakh in 2021. The number rose to 3.57 lakh in 2022 and reached a record high of 4.45 lakh units in 2023. This year, it is expected to breach the 5-lakh mark.  Industry body Confederation of Real Estate Developers Associations of India (Credai) said appropriately skilling workers and developing a regulatory framework for them is the key to improve quality and speed of construction. 

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Hiranandani Greenbase to develop industrial, logistics parks on 391 acres in Chennai

Greenbase Industrial and Logistics Parks, realty major Hiranandani Group and US based private equity firm Blackstone Group’s joint venture, is set to acquire three land parcels spread over 211 acres across Southwest Chennai’s Oragadam area and in North Chennai, said a top official of the company. This land acquisition is expected to take the company’s total land holding to 391 acres in Chennai and Greenbase is planning to invest over Rs 700 crore to develop these land parcels into industrial parks in the current financial year itself. These new parks with total space of 7.5 million sq ft will take the company’s portfolio in Chennai alone to 11 million sq ft. The company remains bullish on India's logistics infrastructure sector, driven by existing shortages and emerging new demand catalyzed by geo-political realignment, the China-plus-one policy, the production linked incentive (PLI) scheme, and the Make in India programme. The region is witnessing robust demand due to favorable macroeconomic conditions, strategic policy reforms, government initiatives, high-quality infrastructure, and the availability of Grade A assets.
 

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JSM Cement files draft papers with Sebi to raise rs 4000 crore via IPO

JSW Cement, part of Sajjan Jindal promoted diversified JSW Group, on Friday filed a draft red herring prospectus (DRHP) with the capital markets regulator Sebi to raise Rs 4,000 crore through an initial public offer. The initial share sale comprises a fresh issue of equity shares worth Rs 2,000 crore and an offer for sale (OFS) of Rs 2,000 crore by investor shareholders, according to DRHP. As a part of the OFS, AP Asia Opportunistic Holdings Pte Ltd and Synergy Metals Investments Holding Ltd will offload shares worth Rs 937.5 crore each, and State Bank of India (SBI) will divest shares valued at Rs 125 crore. Its financial liabilities include a borrowing of Rs 1,678.90 crore, Rs 1,184.40 crore dues of creditors (other than micro and small enterprises) and other financial liabilities of Rs 842.02 crore. Its revenue from operations for FY24 stood at Rs 6,028.10 crore. This was Rs 5,836.72 crore in FY 23 and Rs 4,668.57 crore in FY22. JSW Cement is the sixth largest player in the segment led by Aditya Birla Group flagship firm UltraTech Cements.  Gautam Adani-led group owns ACC Ltd and acquired Sanghi Industries and ACCPL and is currently the second largest cement maker. It announced the acquisition of Hyderabad-based Penna Cement in June at an enterprise value of Rs 10,422 crore, taking its capacity to 93 MTPA. JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Private Ltd, DAM Capital Advisors Ltd, Goldman Sachs (India) Securities Private Ltd, Jefferies India Private Ltd, Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd are responsible for managing the company's IPO process.
 

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Tamil Nadu Government appoints Shiv Das Meena as RERA Chairman

Tamil Nadu govt on Sunday appointed chief secretary Shiv Das Meena as chairman of Tamil Nadu Real Estate Regulatory Authority (TN RERA). Chief minister's secretary 1 N Muruganandam would replace Meena as chief secretary. The official order on Muruganandam replacing Meena is expected on Monday, sources said. The position of RERA chairperson had been vacant for six months, after K Gnanadesikan completed his tenure on Feb 10. The housing and urban development department, in an order issued Sunday, said the selection committee recommended eligible candidates for appointment to the post of chairperson. DMK govt had retained Murugananadam to lead the industries department initially assigned to him by the previous Edappadi K Palaniswami regime. He served as finance secretary as well in the DMK regime. In the Union Ministry of Ports, Shipping, and Waterways, he had served as director general of the lighthouses and lightships. "Muruganandam is the only officer from Tamil Nadu in the senior rank as others moved to Central deputation. He is a fine officer to steer the administration," said an official source, privy to the developments. One of the frontrunners for the next chief minister's secretary I post is K Phanindra Reddy, who is currently transport secretary.
 

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Puducherry CM hikes subsidy given to Kamaraj Housing Scheme beneficiaries 

Chief Minister N Rangasamy announced in the assembly on Tuesday that the subsidy given to beneficiaries of the Kamaraj Housing scheme has been hiked to Rs 5 lakh. While wrapping up the debate on the demands for grants to departments looked after by him, he said that the beneficiaries would also get 5 lakh additiobnally under a central government housing scheme. In all, each beneficiary would get Rs 10 lakh. The purpose of granting the subsidy is to replace huts with concrete structures. The scheme is named after former chief minister of Tamil Nadu K Kamaraj. The chief minister also announced that the monthly assistance given to retired reporters would be increased from the present Rs 10,000 to Rs 15,000, and that presspersons currently working would be issued free laptops. House sites would also be distributed to journalists who are have not been covered under the scheme so far. He said a few more reporters have applied for monthly pension and this would be sanctioned soon.
 

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Axis AMC and Tishman Speyer acquries 1.5 acres plot in Fintech City, Chennai 

Axis Asset Management Company (Axis AMC) and Tishman Speyer said that Axis Commercial Real Estate Fund, a category II AIF, has acquired 1.5 acre plot in Fintech City, Nadambakkam, Chennai. The acquisition was made through a bid cum e-auction process conducted by the Tamil Nadu Industrial Development Corporation (TIDCO).  The plot will be transformed into a four lakh sq ft Grade A office building within the next three years. In June 2024, the fund concluded its fundraising with a corpus of around Rs 550 crore. Over the last seven years Axis AMC has raised Rs 6,000 crore across its PMS and AIF businesses while Tishman Speyer has acquired, developed, and operated 557 properties, totaling 226 million sq ft, with a combined value of over $128 billion. 

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NCLT approves Oberoi Constructions acquisition of Nirmal Lifestyle Realty

The National Company Law Tribunal (NCLT) has approved the resolution plan proposed by an affiliate of listed property developer Oberoi Realty to acquire real estate development firm Nirmal Lifestyle Realty. The resolution plan of Oberoi Constructions involves paying around Rs 273 crore to financial, operational, and other creditors. The company was admitted into the corporate insolvency resolution process (CIRP) in December 2021 with claims amounting to over Rs 748 crore. 
The NCLT has also mandated that the scheme of arrangement and amalgamation between Nirmal Lifestyle Realty and Oberoi Constructions be filed separately for formal approval. Although elements of this scheme are incorporated into the resolution plan, it must undergo distinct procedural scrutiny. The ruling also includes provisions for the transfer of records and documents to Oberoi Constructions and the continuation of the monitoring committee. The committee will oversee the resolution process to ensure compliance and smooth transition during the takeover period. This decision by the NCLT not only addresses the immediate financial distress faced by Nirmal Lifestyle Realty but also sets a precedent for corporate restructuring under the Insolvency and Bankruptcy Code (IBC). By approving the resolution plan, the tribunal emphasises the importance of regulatory adherence and structured resolution processes in managing corporate insolvency.
 

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India Cements posts rs 58.47 crore profit in Q1 FY25

India Cements Ltd on Friday reported a consolidated net profit of rs 58.47 crore in June 2024 quarter even though its sales volume declined 26 per cent as capacity utilisation was severely hit due to continuous liquidity crunch. The Chennai-based company sold its grinding unit at Parli, Maharashtra in April and included the gain of Rs 240.68 crore from the sold unit as an exceptional item in the quarterly profit. Before the exceptional items and tax, India Cements Ltd (ICL) had a loss of Rs 147.97 crore in the quarter under review. The company, in which the promoters are selling their stake to rival Aditya Birla group firm UltraTech Cement, had reported a net loss of 87.40 crore during the April-June quarter a year ago. Its revenue from operations was down 28.53 per cent to Rs 1,026.76 crore during the period under review as against Rs 1,436.74 crore in the corresponding quarter, according to a regulatory filing from ICL.  
The N Srinivasan-led company could not take advantage of the reduced fuel cost as operating margins further shrunk on account of low volume. Cement and clinker volume for the quarter was 19.61 lakh tonnes as compared to 26.66 lakh tonnes in the same quarter of the previous year with a drop of more than 26 per cent, it added. ICL's total income in the June quarter was down 27.81 per cent to Rs 1,042.27 crore. Shares of India Cements on Friday settled 0.34 per cent lower at Rs 366.90 apiece on the BSE. 
 

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Tender released for TIDEL park constructions in Madurai

TIDEL Park Limited has released a tender for the construction of an IT park at Mattuthavani in Madurai on Wednesday. According to the tender, the project will include a ground floor, 12 additional floors and a terrace, along with civil construction, interior finishing work, and other allied development tasks. The deadline for the online submission of tender documents is September 7, 2024. In a significant development for the proposed TIDEL park in Madurai, the Madurai Corporation Council passed a resolution on June 28 to lease 5.6 acres of land to TIDEL Park Ltd for a period of 45 years. The lease facilitates the construction of the Rs 600crore TIDEL park, which was announced by the state government in the 2022 budget. The district administration and the Madurai Corporation have jointly set the land price at Rs 89 crore. According to the lease agreement, 50% of this amount will be paid as lease rent over a 45-year period. The TIDEL park project announced by chief minister M K Stalin aims at transforming Madurai into a technology hub. The project is expected to generate 10,000 jobs, significantly boosting the local economy. MP Su Venkatesan expressed his gratitude on X on Wednesday. He thanked the state government and Stalin for their efforts in establishing the TIDEL park in Madurai.
 

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