Government increase guideline value by upto 10 percent in Chennai

Owning a home in the city will get pricier. Governmnet has increased guideline values for land by upto 10% in the city and a few old corporations, effective July 1, reverting to March 2023, values, but with a slight increase is some areas. The guideline value per square foot on Alandur Road, Rs 5,500 until June 30, is now Rs 6,100. In Okkiyam-Thuraipakkam, it rose from Rs 6,000/sqft to Rs 6,600/sqft and on Abhiramapuram 3rd Street from Rs 16,000/sqft to Rs 17,600/sqft. The revision, covers 2.19 lakh streets and 4.46 crore survey numbers and subdivision numbers. While values in core Chennai and old corporations such as Coimbatore, Trichy, Salem, and Vellore rose significantly, those in other areas remain unchanged. Some builders said this will raise premium FSI (floor space index) charges that will have to be passed on to buyers. The revision, covers 2.19 lakh streets and 4.46 crore survey numbers and subdivision numbers. While values in core Chennai and old corporations such as Coimbatore, Trichy, Salem, and Vellore rose significantly, those in other areas remain unchanged. Registration department offcicials say TN Stamp Rules of 2010 formed sub-committees for each district to revise guideline values. This was implemented in 2012 and in 2017, when guideline values were cut by 33%. A March 30, 2023, circular increased value by 33%, effective April 1, 2023, while reducing registration fee and other charges.

 

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Government to reconstruction 28643 dilapidated flats Tamil Nadu CM

The state government will reconstruct 28,643 dilapidated flats of the Tamil Nadu Urban Habitat Development Board in the next three years and 6,746 apartment will be reconstructed in the first place, Cheif Minister MK Stalin told the Assembly on Friday. The first phase work will be taken up at a cost rs 1,146 crore. The board currently maintains 1.94 lakh flats across Tamil Nadu and among them, 28,643 dwellings have been found to be dailpaidated, the cheif minister. In the first phase during 2024-2025 finacncial year, East Cemetery Road, Kodungaiyur, and VOC area in Chennai, besides the project area in Thanjavur and Tiruchirapalli will be reconstruction at a cost of rs 1,146 crore. After the DMK took up the resins, the government accoded prioprity to the works of the Board and expedited the construction of 29,439 flats and 1.70lakh individual houses in three years, Stalin informed. The construction of 79,094 apartments and 89,429 individuals houses was under variours stages of completion and a total of rs 6,685 crore has been spent on these projects. 

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India Cement in talk with Bank of America and Nomura to raise rs 500 crore

India Cements is in advanced talks with Bank of America (BofA) and Nomura to raise up to ?500 crore in bonds, with each investing ?250 crore. The bonds, which could be raised at more than a 15% coupon, will be used to fund both working capital and capital expenditure, said two sources aware of the development. India Cements had mandated ICICI Bank and EY to arrange for the debt from lenders including private credit funds, as reported earlier and they have been in talks with lenders including private credit funds. India Cements could not be reached for a comment. Nomura and BofA did not respond to requests for comment. On Thursday, UltraTech Cements announced its plans to acquire more than 70 million shares in India Cements. The deal was struck at a price of up to ?267 per share. This non-controlling investment constitutes around 23% of the equity share capital of India Cements.
 

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Smartworks secures Rs 168 crore in funding round led by Keppel 

Smartworks has successfully raised rs 168 crore in its lastest funding round this year. According to a press release, the investment comes from a consortium of investors including Keppel Ltd., Ananta Capital Ventures Fund I, Plutus Capital, family trusts, and high-net-worth individuals. The promoters of Smartworks retain a majority shareholding in the company following this funding infusion. Keppel Ltd., Mahima Stocks Private Limited, and Deutsche Bank A.G. London Branch are among the notable investors supporting Smartworks, underscoring their confidence in the company's growth and leadership in the managed office and campus space sector. Louis Lim, CEO, Real Estate of Keppel Ltd., remarked on the strategic partnership, noting that since Keppel's initial investment in 2019, Smartworks has evolved into India's foremost managed workspace platform. In the fiscal year 2024, Smartworks expanded its footprint with new centres, including Golf View Corporate Towers in Gurgaon, Logix Cyber Park in Noida, Amar Tech Centre and 43EQ in Pune, and Olympia Pinnacle in Chennai. 
 

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Land record management digitised in Tamil Nadu

Residental need not longer run from pillar to post for land boundary measurements, and  village maps. Now they are just a click away as the survey and settlement directorate has digitsed land record managemengt. Earlier the process was cumbersome for the buyers and seller, and requried a compulsory visit to the taluk office for patta transfer, requesting  a campulsory visit to the taluk office for patta transfer, requesting measurement of land and for all land record based services. Now the entire process is online cuts short the time required to get the documents and weeds out corruption to an extent. The automatic mutation or transfer of patta that does not involve subdivisions is one of the key outcomes of the integration. The title change in the patta is made within a minute after the buyer registers the the property he purchased without any subdivision.

This is called fulfilled patta and can be downloade from https://eservices(dot)tn(dot)gov(dot)in by entering the relevant details. one person is subdividing his land parcel and selling it to many, the application will land in the login of the village administrative officer or surveyor. The patta will be issued within 30 days. 

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Mindspace REIT raises rs 650 crore from International Finance Corporation

Mindspace Business Parks REIT (Mindspace Reit) has raised rs 650 crore from International Finance Corporation (IFC) the private sector arm of the World Bank Group, through Sustainbility Linked Bond Issurance. The coupon of the bond is linked to the company's commitment to achieve certain ESG targets towards building a greener eco-system. These bonds are issued for a tenure of seven years. This issuance has been rated [ICRA] AAA(Stable) by ICRA. Shardul Amarchand Mangaldas & Co served as the legal counsel of the Issuer for this transaction. This partnership aligns with India's net-zero ambitions and demonstrates the viability of climate finance in the real estate sector. Our support aims to attract more diverse and long-term funding at a time when private capital is critical to build a greener, more resilient future. The coupon of these bonds is fixed in nature, and shall be stepped down, in a staggered manner, basis achievement of the set targets. The company has put into place its maiden sustainability-linked financing framework under which Mindspace REIT and/or its SPVs can undertake issuances of sustainability linked instruments.
 

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Ambuja Cement bags 24 limestones mines in FY24

AdaniGroup firm Ambuja Cements  https://www.ambujacement.com/ which is aggressively pushing for expansion, has won 24 nids for new linmestone mines estimated to have a total resources of 587 millions tonnes of limestone, according to the company's annual report. This is in addition to 1 billion tonnes of reserve of Sanghi Industries, a Saurashtra based company which billionare Gautam Adani owned  firm acquried last November at an enterprise value of rs 5,185 crore. The Adani group has an ambition to have a capacity of 140 MTPA by 2028. It has sufficient cash to reach there through a combination of brownfield expansion and acquisitions. Adani Group announced the acquisition of Hyderabad  based Penna  Cement https://www.pennacement.com/ at an enterprise value of rs 10,422 crore which will add 14 MTPA to growth-hungry  ACL taking its total capacity to 89 MTPA. Over the Indian cement industry,ACL said it is the second largest producer globally, and in FY 2022-2023, the Indian cement market reached a substantial size of 397 MTPA, helped by robust growth in the housing sector and ongoing investments in infrastructure development. For the finanical year ended on March 31,2024,ACL's consolidated revenue from opertaions,which includes ACC also, was at 33,159 crore. 

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General Atlantic, Asia Opportunities V to sell 4 percent stake

worth rs 830 crore in PNB Housing Finance

US based General Atlantic and Asia Opportunities V (Mauritius) are likely sell shares worth Rs 830 crore in the housing finances firm PNB Housing Finances https://www.pnbhousing.com/ through open market transactions on Thursday, according to the term sheet issued by the bankers. These two funds propose to sell 1.08 crore shares, or 4.16% of the total equity, according to the term sheet. General Atlantic is expected to sell shares worth Rs 420 crore, while Asia Opportunities V (Mauritius) will sell shares worth Rs 410 crore. BNP Paribas and UBS Securities are the bankers for the deal. Last month, US based General Atlantic and Asia Opportunities V (Mauritius) divested a 4.46 per cent stake for Rs 843 crore through open market transactions. 

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Noida Authority issues notice to 13 builders for dues worth over rs 8510 69 crore 

The Noida Authority has served notices on real estate developers, including ATS, Supertech, Logix, seeking their proposal within 15 days for resettlements of their dues worth hundreds of crores, officials said no Friday. He notices, issued on Thursday, are in line with an order of the Uttar Pradesh government concerning legacy stalled real estate projects that offered waivers on interest and penalties to developers as part of a campaign to address homebuyers' distress. According to the Noida Authority, ATS, Supertech and Logix group companies together owed the highest share of Rs 7,786.06 crore (or 91.48 per cent ). Others on the list were Three C with Rs 572.51 crore in dues, followed by Celerity Infrastructure Rs 178.65 crore, Elicit Realtech (Rs 73.28 crore) and Explicit Estates (Rs 51.17 crore), Abet Buildcon (Rs 27.67 crore), as per the official notices. Authority said the UP government had issued an order on December 21, 2023, concerning legacy stalled real estate projects (following recommendations of waivers in interest and penalties by the Amitabh Kant Committee on stressed housing projects). At the Centre-level, too, a panel headed by Amitabh Kant had made recommendations to end the distress involving homebuyers, builders and the local authorities. Pending registries and delayed possession of flats have been a pressing issue in Noida and Greater Noida for a long time, with the UP government also pushing for resolution of homebuyers' woes.

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Tamil Nadu registration department install fingerprint scanners to combat fraud 

Now forging Aadhaar details like fringeprints during the registration of property will become impossible in Tamil Nadu, as the registration departments has implemented a new security measure to combat fraud during the document registration process. All 582 sub-registrar offices in the state now have fingerprint scanner facilities, and the buyers sellers biometrics will be matched again the one crore plus sample date bank they have. This will serve as an additional safety measure to prevent fraud while registering documents. Sinces 2018, the registraion department has collected fringerprints from buyers and sellers, amassing a database of one crore fringerprints. For individuals whose fringerprints are not in thje database, the existing Aadhaar verification process will be used. We are already doing Aadhaar verification for registration , but some people are forging the Aadhaar documents. Commercial taxes and registration minister P Moorthy inaugurated the facility in Chennai on Thursday. Property consultants point out that this a good move. "This will prevent registration of unclaimed property using forged documents. This will protect buyers, but this should be monitored properly," said S Ramprabhu, CMDA and DTCP committee chairman, Builders Association of India (BAI).
 

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Housing rents growns by 2 to 4 percent in top seven cities in Q2 2024

Average monthly rent for residential properties has risen 2-4 per cent so far this quarter compared with the January-March period across seven major cities, according to Anarock. Real estate consultant Anarock said that the growth in housing rent across the top seven cities -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Pune, Hyderabad and Bengaluru -- has moderated because of improvement in housing supply. The data is based on average rent for a 2-BHK flat of 1,000 square feet. The average rent for a standard 1,000 square feet 2-BHK apartment in Bengaluru's Whitefield rose by 4 per cent to Rs 35,000 per month in Q2 2024 to date from Rs 32,500 per month in January-March this year. Anarock data shows that the top 7 cities are set to deliver 5.31 lakh new units in 2024 as against 4.35 lakh units in the last year. This denotes a 22 per cent annual supply increase this year if delivery schedules remain on tracks. As per the data, the average rents in Noida's Sector 150 rose by a mere 4 per cent to Rs 25,000 per month in the April-June quarter from Rs 24,000 per month in January-March 2024. The quarterly hike stood at 9 per cent in January-March 2024 as against the October-December period of 2023. Average housing rent in MMR's key markets Chembur and Mulund rose by just 2 per cent against the preceding quarter (Q1 2024). In January-March 2024, it rose by over 4 per cent against Q4 2023. Hyderabad's HITECH City and Gachibowli saw average rents rising by 3 per cent each in April-June 2024 to date over the preceding quarter. In January-March 2024, the quarterly average rent hike in both these markets was 5 per cent.

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 ESR Group buys 27-acre land in Chennai for Rs 276 crore 

ESR Group has acquired an additional 27 acres of land to expand its existing industrial and logistics park at Oragadam in Chennai The enlarged area of ESR Oragadam Industrial and Logistics Park now spans 107 acres with a development potential of 2.5 million square feet. ESR Oragadam Industrial & Logistics Park is strategically located in the heart of the Oragadam-Sriperumbudur cluster, which has witnessed robust growth in demand for Grade A assets. This latest expansion builds upon the success of ESR Oragadam's first two phases, which have welcomed many high-quality customers, such as electromechanical solutions provider CUBIC, automotive research and development firm A2Mac1, and speciality labelling company CCL. By upgrading the supply chain with modern infrastructure, he said the ESR Group is empowering a new era of advanced manufacturing and logistics for customers and communities.  ESR Group is Asia-Pacific's leading new economy real asset manager and one of the largest listed real estate investment managers globally. Its fully integrated fund management and development platform extends across Australia/New Zealand, Japan, South Korea, Greater China, Southeast Asia, and India, including a presence in Europe and the US. ESR Group focuses on new economy real assets and offers customers modern solutions for logistics, data centres, life sciences, infrastructure, and renewables. ESR Group is listed on the Stock Exchange of Hong Kong.

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