Wednesday, 17 January 2018

Blackstone in Talks to Buy Commercial Property Portfolio from L&T for Rs 2.3k Crore

MUMBAI: US-based private equity player Blackstone Group is in advanced talks to acquire two commercial properties of L&T Realty, totalling 1.7 million sq ft, in a deal valued at Rs 2,300 crore, said two persons familiar with the development.
Blackstone Reuters 
This portfolio of the real estate arm of engineering major Larsen & Toubro includes about 8 lakh sq ft of fully-leased commercial tower at the L&T premise in Powai suburb and another 9 lakh sq ft office block at the company's commercial project at Seawoods, in Navi Mumbai.
The Seawoods office tower — yet to be completely leased — will be acquired in phases, the people cited earlier told ET. 
 "The deal is expected to be inked by late February as due diligence is currently in its final stages," said one of the persons cited above, adding that L&T Realty will assist in further leasing at Seawoods commercial block. 
 Both L&T Realty and Blackstone Group declined to comment. 
In 2016, Blackstone had bought a 1-million sq ft retail mall, adjacent to the office tower in Seawoods, from L&T Realty for over Rs 1,400 crore. L&T Realty's office block in Navi Mumbai is part of India's largest Transit Oriented Development Seawoods Grand Central, a mixed-use development area over 40 acres that includes the mall and other commercial spaces.
The persons cited earlier said Blackstone is acquiring these assets directly and not through existing joint ventures with Bengaluru-based Embassy Group and Pune's Panchshil Realty. The New Yorkbased institutional investor has acquired assets and stake in portfolios independently earlier too. The commercial tower in Powai is completely leased and has JP Morgan Chase, Colgate-Palmolive and L&T Infotech among its tenants. Being a fully-leased property with long-term contracts, the Powai asset is valued at Rs 1,500 crore and has a capitalisation rate of about 8.5%
Cap rate is ratio of net operating income of the property to its asset value. 
Over the past few years, Blackstone has emerged as the most aggressive institutional investor in India's real estate sector, picking up properties across major cities in deals that are turning out to be benchmarks in the sector. The company owns India's biggest portfolio of incomeproducing office assets, totaling over 31 million sq ft across key property markets of Noida, Mumbai, Pune and Bengaluru. 
The private equity player established its India office in August 2005, and since then has committed over $6 billion to companies in the country. In its real estate portfolio, Blackstone has over total 19 companies that own 31 million sq ft across 18 operating office parks, and it has invested $2.7 billion in these assets. It also has 11 million sq ft of commercial space under development across the country. 
Large global institutional investors including Blackstone Group, Asset Management, GIC, Canada Pension Plan Investment Board, Goldman Sachs and Qatar Investment Authority have been investing aggressively in Indian real estate assets over the past few years.

Source :

Wednesday, 20 December 2017

Dwarka E-Way Connector to Get Extra Lanes

GURUGRAM: MCG will be converting the stretch connecting Daulatabad flyover and Dwarka expressway into a four-lane road to ease traffic congestion on the route. The move will bring relief to hundreds of residents living in sectors along the expressway and areas such as Rajinder Park and Daulatabad.
dwarka expressway four-lane road
"This junction has always faced problems in terms of traffic congestion during peak hours. We have often received complaints regarding the traffic mess at this point and hence, we are making some changes in order to cut down on the snarls on the route," a senior MCG official told TOI on Saturday.

According to officials, the tendering process for the work has started and an estimated Rs 4.5 crore has been sanctioned by Chandigarh for the project.

The work on the project is expected to be completed in the coming year. There is a one km stretch between Daulatabad flyover and Dwarka Expressway. The widening of this stretch will be a big relief to people living in the new sectors along the expressway, including sectors 109, 110, 103 and 106, since in the absence of another approach road, they take this route.

"The area has a lot of societies and there are no proper roads and the approach from Daulatabad is almost always congested. The road widening project would bring some relief for the people living in the area," said Sushil Kumar, a resident of Sector 109.
Additionally, the service lanes along the Daulatabad flyover will also be widened to streamline the traffic under the flyover.

A slip road will also be built near the entry point of the flyover that will take the traffic directly from Daulatabad to Rajinder Park residential area.

"The widening of the service lane and construction of the slip road will benefit residents in areas such as Rajinder Park, Vishnu Garden, Mahalakshmi Garden, Jai Vihar and Daulatabad Industrial Area," said another MCG official.

Source :

Monday, 20 November 2017

Government Invites Bids for Consultant for 4-km Tunnel from Dwarka Expressway

NEW DELHI: Delhi will get its biggest tunnel road, about four kilometers long, to link Gurugram and Dwarka to the International Airport. The government invited bids on Friday for appointing a consultant for this ambitious project, proposing to complete the same in the next three years.

Dwarka-Expressway project

The present approach to the airport from the Millennium city is a highly congested one through the National Highway-8, also known as the Delhi-Gurugram Expressway. An under-construction ‘Dwarka Expressway’ will act as a by-pass of NH-8 from Gurugram to Dwarka. The plan finalized now is to build a 4-km tunnel road from the Dwarka Expressway straight to the T3 terminal of the Delhi Airport.

This deep 4-km long tunnel for vehicles is proposed to run along the alignment of the existing underground Delhi Airport metro line from T3 Terminal to Dwarka Sector 21 Metro station. Passengers destined for the International airport from Gurugram by 2020 will be able to take Dwarka Expressway and then the tunnel road to reach the airport, bypassing the entire NH-8 road.

Residents of the bustling Dwarka area will have the same faster option. The technical consultant to be engaged for the project has been asked to advise on the feasibility of the said tunnel and other pre-construction activities like having its junction with Dwarka Expressway.

The tunnel, one built, will offer “western connectivity” to the International Airport. Both the Dwarka Expressway and the new tunnel road will be executed by the National Highways Authority of India (NHAI). This comes out of the urge of the government to decongest NH-8, where the intensity of traffic has increased significantly and there is urgent requirement of augmentation of capacity for safe and efficient movement of traffic, as per the bid document floated on Friday.

“The standards of output required from the appointed consultants are of international level both in terms of quality and adherence to the agreed time schedule. NHAI has assigned works of consultancy services for DPR of Dwarka Expressway to the technical consultant M/s AECOM. The consultant (of tunnel road project) is required to co-ordinate with M/s AECOM as well as other stakeholders viz. AAI, DAIL, DDA, DMRC and finalize the alignment & configuration of Tunnel Road accordingly,” the bid document says.

It has also been mentioned that since it is envisaged that the tunnel road project “would be completed and opened to traffic after 3 years”, the traffic demand estimates should be made accordingly.

The Centre has been pushing aggressively for projects in and around Delhi, including fast-tracking of the Delhi-Meerut expressway which is set to be built in record time. The first phase of India’s maiden 14-lane highway will be completed next month, road transport and highway minister Nitin Gadkari had said on Tuesday.

The entire 96-kilometre expressway will be completed by 2019, the minister had said.
Source :

Wednesday, 15 November 2017

NRIs Switch to Commercial Realty as Residential Stutter

Non-resident Indians (NRIs) from the US and West Asia are now diversifying their asset exposure and investing more into commercial properties rather than residential due to high risk and the imminent slowdown in the segment.

The preference is also being driven by better returns from the office assets and a fixed income that is being generated by such investments.

“Its returns outperform those of traditional fixed deposits (FDs), mutual funds and Sensex, with an average rental return of 7-8% and overall returns of 18-22%.

Currently, 40% of our NRI clients are investing in Indian commercial real estate through fractional investment,” said Kunal Moktan, co-founder of Property share.

Commercial office space vacancy has almost halved in the past six years due to robust demand from corporates. Office space absorption is not only strong, but pre-leasing is at an all-time high, which is an indication of sustained demand and occupiers’ interest in commercial spaces.

“Over the last one year, we have sold around 1 lakh sq ft of small offices in Navi Mumbai. Of this, 15-20% have been bought by NRIs and this is a significant jump compared to our earlier experience. ,” said Ashok Chhajer, CMD, Arihant Superstructures.
Source :

Thursday, 9 November 2017

Dwarka Expressway Gets National Highway Status

Dwarka Expressway’s wait has finally come to an end. The National Highway Authority of India (NHAI) has issued a notification which grants the national highway status to the 28 Km long Dwarka Expressway. The Dwarka Expressway starts from Delhi's Shiv Murti and ends at Kherki Daula in Gurugram. Union Minister Nitin Gadkari had made the announcement of giving this status to Dwarka Expressway a year ago.

When the road will reach completion it will become an alternate route between Delhi-Gurgaon, it is expected to reduce traffic significantly on the Delhi-Gurgaon expressway. NHAI has also specified the speed limit of 80kmph on the Dwarka Expressway. This is being seen as a move which will push the much-delayed project near completion.

Taking note of the request of Manohar Lal Khattar, Chief Minister of Haryana, during Global Investor Summit the Union Minister has announced to give NH status to the road. Ministry of Road Transport and Highway has given in-principal approval to Dwarka Expressway, now finally NHAI has issued a notification regarding this.

Developers are happy with this development. “We welcome the move as this will allow a positive drift in the momentum for Gurugram’s real estate market. NH status will boost infrastructure development of the area and likely to promote investment in new Gurugram,” said the director of Mapsko, Rahul Singla.

According to the NHAI’s notification the Dwarka Expressway which is 28 Km long starts from Shiv Murti in Delhi on NH-8 and passes from the parallel of Terminal-3 of Delhi Airport up to the junction of sector 25 and 26 in Dwarka, named as Barthal Chowk, from where it will take a left and go straight to Kharki Daula in Gurugram

An official of the NHAI said that the land acquisition process has been initiated in the villages of Bamnauli and Bijawan, with a total of 24 hectares of land which is needed to be acquired.
The horizontal alignment of the Dwarka Expressway is designed for a speed of about 80 Kmph. The main roadway is proposed to be of eight lanes with three-lane service road on either side. At the intersections, flyover has been proposed. It has been proposed to have four-lane underpasses so that in future the crossings and junctions do not face jams.