An asset management firm has entered into a definitive agreement with a real estate developer to acquire office space spread across two floors in a commercial tower located in Mumbai’s Lower Parel business district for ?486 crore. The firm plans to shift its headquarters to this 52,162 sq ft office from its current location in the same vicinity.

In a regulatory filing, the asset manager stated that it has no shareholding relationship with the seller and that the transaction does not qualify as a related-party deal. However, the filing did not mention the shift of its headquarters to the new premises.

As part of the agreement, the buyer will receive exclusive signage rights for the space situated on the 29th and 30th floors of the 36-storey commercial tower.

The asset management firm handles a wide range of investment products, including mutual funds, exchange-traded products, managed accounts, alternative investment structures, pension funds, and offshore mandates. It was also the first asset management entity to be listed on the Indian stock exchanges in 2017.

The average ticket size of homes sold across seven major cities reached approximately ?1.23 crore in H1 FY25, compared with ?1 crore in the same period of FY24, according to industry data.

Data shows that over 2,27,400 units worth around ?2,79,309 crore were sold across the top seven cities between April and September 2024. In comparison, about 2,35,200 units worth ?2,35,800 crore were sold during the corresponding period of FY24. Despite a 3% decline in overall unit sales, the total value of homes sold rose by 18%, reflecting strong demand for higher-priced and luxury properties.

Among the seven major markets, the National Capital Region recorded the highest growth in average ticket size — rising from approximately ?93 lakh in H1 FY24 to over ?1.45 crore in H1 FY25. While the value of inventory sold increased by 55%, the total number of units sold declined by 1%.

The Mumbai metropolitan region saw no change in average ticket size during this period. The region recorded around 76,410 units worth ?1,12,356 crore sold in H1 FY24, compared to about 77,735 units worth ?1,14,529 crore in H1 FY25.

Bengaluru witnessed the second-highest increase in average ticket size at 44%, rising from ?84 lakh in H1 FY24 to ?1.21 crore in H1 FY25.

Hyderabad saw the average ticket size rise from ?84 lakh in H1 FY24 to ?1.15 crore in H1 FY25, marking a 37% increase.

Chennai experienced a 31% rise, from ?72 lakh in H1 FY24 to ?95 lakh in H1 FY25.

In Pune, the average ticket size increased by 29%, from ?66 lakh in H1 FY24 to ?85 lakh in H1 FY25.

Kolkata recorded a 16% increase, with the average ticket size rising from ?53 lakh in H1 FY24 to ?61 lakh in H1 FY25.

A national insolvency tribunal has ordered the initiation of insolvency proceedings against a real estate firm following a petition filed by homebuyers of one of its housing projects in Gurgaon. The tribunal stated that the firm has a “debt due and in default” toward the allottees, who had made substantial payments but did not receive timely possession, and therefore referred the matter for the Corporate Insolvency Resolution Process (CIRP).

The tribunal admitted the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against the real estate developer. A two-member bench also appointed an interim resolution professional to oversee the process.

Possession of the units was originally promised between 2012 and 2014, with an additional grace period of six months, but the handover was further delayed. The tribunal noted that the delay and the outstanding dues were acknowledged in multiple communications, and the default continues.

The case pertains to a residential project located in Sector 109 of Gurugram, where over 40 homebuyers have claimed a default of ?112.90 crore by the developer. Petitioners stated that they had paid more than 95% of the total sale value and fully complied with all payment demands issued to date.

Previously, insolvency proceedings were initiated against the same developer in 2019 over delays in another housing project. However, the proceedings were set aside in early 2020 after it was determined that the delays were due to pending approvals from competent authorities, which were beyond the developer’s control.

The average cost of construction is estimated to have increased by up to 11% over the past year. While average cement prices have declined by 15%, and steel prices have seen a marginal 1% decrease over the last 12 months, the overall rise in construction expenses has persisted. The combined impact of price changes in four major construction materials—cement, steel, copper, and aluminum—has remained relatively modest.

According to industry estimates, labour costs have been the key driver of rising construction expenses. With labour accounting for more than one-fourth of total construction costs, a 25% annual increase in labour wages has placed pressure on construction budgets and operational spending. The growing need for skilled workers, along with expenses related to training, safety, and regulatory compliance, has further contributed to escalating labour costs.

As of October 2024, construction costs in the residential segment recorded an estimated 11% year-on-year increase. Among all real estate categories, cost escalation has been most significant in the residential sector.

A rising emphasis on higher building quality and the increasing demand for well-equipped gated communities have encouraged developers to upgrade their projects, leading to higher construction expenses in the housing segment.

To address challenges arising from fluctuations in skilled labour availability, developers are increasingly investing in training programs and automation, which can aid in improving project planning and scheduling.

The capital markets regulator has directed an entertainment company to pay ?26 crore in fines for failing to clear penalties previously imposed in a case related to illegal diversion of funds. The regulator also warned that the firm's assets, including bank accounts, would be attached if payment is not made within 15 days of the notice issued on Thursday.

The notice was issued after the entity failed to pay the earlier penalty of ?25 crore imposed in August. In its demand notice, the regulator ordered the firm to pay ?26 crore, which includes interest and recovery charges.

In August, the regulator barred an industrialist and 24 others from the securities market for five years over allegations of fund diversion from a financial services company. A penalty of ?25 crore was also imposed on the individual, who was further prohibited from serving as a director or key managerial personnel in any listed entity for five years.

In early November, the regulator issued demand notices to six entities, including the promoter group of the financial services firm, directing them to pay ?154.50 crore. Last week, six entities—including the financial services firm and several former officials—were instructed to pay ?129 crore in penalties.

On Tuesday, the regulator also ordered two additional entities to pay ?52 crore in fines related to the same fund diversion case.

Several global financial institutions and an investment fund on Wednesday acquired a total of 1.77 crore shares, amounting to 6.82% equity, in a listed housing finance company through open market transactions worth ?1,664 crore.

According to bulk deal data available on the stock exchange, one major global investment firm, through its regional subsidiary, purchased over 1.42 crore shares (5.4% stake) in two separate trades. Another investment fund bought 17.90 lakh shares, while a European financial institution acquired 17.09 lakh shares, as per the data.

The shares were purchased at an average price of ?939.30 per share, bringing the combined deal value to ?1,664.55 crore. The shares were offloaded at an average price of ?939.42 per share.

Following the transactions, a prominent US-based private equity investor saw its stake in the company fall to 10.44% from 19.87%. Details of the other buyers were not disclosed.

Earlier in July, the same private equity investor had divested an additional 12.8% stake in the housing finance company for ?2,578 crore.

Shares of the housing finance company closed 6.90% lower at ?915.35 on the stock exchange.