ate investment property in India.Deal In Rs 1,082-crore with K Raheja
Rakesh Real Estate, the first India-focused real estate fund listed in the Alternative Investment Market (AIM) in London, has acquired 40% stake each in eight real estate projects promoted by K Raheja Corp, for Rs 1,082 crore (£133 million). The properties in which the fund has invested include three IT parks, two Inorbit shopping malls and one hotel property. The Ishaan-K Raheja Corp’s deal could be the first investment by an AIM-listed property fund in the Indian realty space.
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Last November, Ishaan had raised about £180 million in its first phase from the AIM market of London Stock Exchange. The entire fund was to be invested in K Raheja’s property in india. It may look at raising further funds from AIM market , and may look at investing other properties in India, said sources.
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Ishaan picked up equity in K Raheja Corp’s Inorbit shopping mall in Hyderabad, Inorbit shopping mall and IT park in Pune, Mindspace IT park in Hyderabad, Mindspace IT park in Navi Mumbai, two Mindspace IT parks in Hyderabad, Commerzone IT park, hotel and retail development in Bangalore, and Viverea residential development at former Hindustan Spinning & Weaving Mills site in Mahalaxmi at Mumbai.
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Confirming the development, Ishaan Real Estate chairman Ian Hendersen said: “Investment in the initial portfolio of assets is being completed largely according to a plan and the increased net asset value reflects the strong demand for our properties and the enormous potential of the Indian property market.”
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Sources said Ishaan’s current portfolio in India covers a total of 15.4 million sq ft. Ishaan has also secured leasing agreements for over one million sq ft. Currently, in the AIM market , Ishaan shares are trading at around £104.
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From the beginning, Ishaan Real Estate works in partnership with K Raheja Corp entities in the western and southern markets. It has also secured leasing agreements with two leading multinational companies for 7,66,000 sq ft of the projects in the initial portfolio.
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Prakash Dhawan. A cynic is one who knows price of everything, but value of none!!!
This age old adage fits perfectly with the contemporary real estate valuation system in our country. Property valuation has been a matter of ambiguity and intricacies so far in India.
In India, the role of valuer is not linked in property deals involving small scale transactions. Whenever we purchase a property; say for commercial or residential purpose, we don’t even consider valuation as a procedural step in the transaction. They buyers don’t know if the price they are paying for the land is worth it. The buyers always will tend to think that the seller is overestimating the land value and the deal would be a loss. The seller on the other hand will think if he is getting the correct value for the land. He has this asset and whether he is underestimating the price and quoting non-profitable rate. This makes the seller overestimate the price and offer the property at much higher rates than it actually is.
In the current scenario both the buyer and the seller are certain that they are being taken advantage of, no matter what the conclusion of a deal -- the asking price of a property is rarely a straight forward reflection of comparable values. While comparables may be a starting point, the price at which a seller offers a property is often also based on wishful thinking, propaganda and ploy. To de-magnitude this, the buyer will fragment the quoted rates and tries to score over the seller’s vulnerabilities. The comparison of quoted rates with similar property, the seller’s authorative pose and the fluctuations as the bargain takes over will be the bottom line for the transaction.
The vital point here is that there is no government regulated or any autonomous authority governing the norms and parameters for property valuation. The property valuers are independent of any codes and ethics and function without any predefined set of parameters. This has been the prime factor for the biased valuation and overestimation or underestimation of property value; based on the partial inputs from the buyers or sellers.
The Royal Institute of Chartered Surveyors (RICS) is one of the most respected and high profile global ‘standards and membership’ organizations for professionals involved in land, property, construction and environmental issues. As a part of delegation committee, RICS wants to impart and instill its standards and practices in Indian market as well.
1.Today the good folks at Wall Street Journal Private Properties column and are reporting that hair challenged house hopping actor Cage has done sold his Newport Beach house for a whopping $35,000,000. Yes puppies, this is the very same house where Mister Cage recently awoke in the middle of the night to find a trying on his leather jacket.
2.Property records show that Mister Cage, who owns ten or more properties around the world, purchased the Newport Beach house in July of 2005. Records to not indicate a purchase price however it's rumored and reported that the real estate obsessed actor paid somewhere between $22-25,000,000 for the waterfront property.
3.Located on Drive in a private community overlooking Newport Harbor, property records indicate the house measures 4,404 square feet with 4 bedrooms and 4 bathrooms, which sounds a mite small to Your Mama when you look at the photo above. Out back there is a large dock where Mister Cage parks his pretty boat named Weston, after his teenage son.
4.The new owner of Cage's crib is reported to be a stunningly rich Vegas man who made his fortune from low brow casinos, slot machines, and gas stations that feature fast food outlets. Not very but seriously lucrative.
5.Mister Big Time mentioned in his discussion that Mister Cage and family have decamped back to their monstrous house on Road in Bel Air that they recently removed from the market where it was priced at a shiver inducing $35,000,000. But that's not what we hear from our always reliable informant Lucy who tells us that the Cage clan is actually holed up in a Santa Monica rental on Palisades Beach Road. Why Cage would rent a house on the beach when he owns so many? Well children, Your Mama has said it a thousand time before...who are we to sort out the strange real estate shenanigans of the rich and famous?
