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[alpa_sheth]

Hi,


I thought the related piece below published today may interest all of us.


Regards
Alpa

Rera impact: Stressed realtors seek buyouts or JVs with big players
Rera makes it mandatory for developers to keep 70% from a project sales in an escrow account
Raghavendra Kamath | MumbaiMay 16, 2017Last Updated at 01:12 IST


With the Real Estate (Regulation and Development) Act, or Rera, in place in many states, leading developers or those promoted by corporates are seeing a surge in requests for buyouts and joint ventures from smaller and stressed companies.

Big players say there has been a jump of 25-200% in the number of such proposals in recent months.

L&T Realty, part of construction giant L&T, has seen a three-time jump in the proposals for joint ventures or buyouts, said its chief executive officer, Shrikant Joshi.

“随着Rera, deliv已经成为一个严重的问题er any project. The law is very strict. Even if 15 people have bought into your project, you have to complete it. For that you have to have financial resources, execution skills and so on. Not many people have that,” Joshi said.

L&T Realty would carefully tread in selecting proposals and developing new projects, he said, adding that now developers who were seeking joint ventures were more accommodating.

Godrej Properties has seen a 25-30% increase in proposals in the past three months.

'After Rera, people have realised that property development is not everybody's game. Many land owners who got into property development business want to go back and leave the development business to serious property developers,' said Mohit Malhotra, managing director at Godrej Properties.

Mumbai-based Hiranandani group, led by Niranjan Hiranandani, says that in the past six weeks, they had got five to six proposals for buyouts.

Like L&T, Hiranandani is also cautious. 'We want to do one or two good opportunities. We are not in a hurry,' said Hiranandani.

Hiranandani说康索尔idation in real estate was going to happen because of the new law. 'If a company is stressed today, after RERA, it will continue to be stressed. In fact, stress will go up. It is equally due to liquidation (bankruptcy) law as it is due to Rera,' he said.

He said that until now, the leveraged companies need not worry and could wait it out. 'But with the Bankruptcy law, the foreclosure is immediate.'

Rera makes it mandatory for developers to keep 70% from a project sales in an escrow account, which is expected to curb their habit of diverting funds from a project to other. The Act also says developers have to get all approvals before launching a project, thereby prohibiting all prelaunches.

Sunteck Realty, backed by Ajay Piramal, has also seen over 50% jump in the joint venture or buyout requests in recent weeks, said its chairman and managing director, Kamal Khetan.

Khetan said they had got five to 10 such requests from a couple of developers. 'In the current market conditions, they think they won't be able to complete the projects,' Khetan said, adding that Rera is one of the key reasons for that.

However, he said the company would be choosy and take up only two or three proposals. 'We will take up only those which match our DNA and brand values,' he said.

Sharad Mittal, director at Motillal Oswal Real Estate Investment Advisors, said, 'The number of developers in business needs to come down significantly.'

他说Rera将导致更少的新发射到the industry settled down over the next 12-18 months. 'There is no reason for prices to go down due to Rera and consolidation, if not for case for prices to firm up due to increased regulations,' he said.

Posted via Email

[mehboob_jindani]

Thank you for sharing.

Enlightened about the impacts of RERA. This is huge.


Is this the beginning new Era for building construction?? And Structural engineers?


Also, what are your thoughts on the prices of the property post RERA?? Will it come down?


Regards,
Mehboob Jindani


On 16 May 2017 6:34 p.m., "alpa_sheth" forum@www.buonovino.com)> wrote:

[sangeeta_wij]

Alpa.
Thanks for sharing; it makes a lot of practical sense to have only specialists delivering all the key Projects, to be able to deliver quality on time.
It maybe worthwhile for SEFI to conduct econference next, on important changes in 13920, and i893, and also NDMA guidelines for Hospitals to create awareness and familiaritiy with the documents.IAStructE has already made a beginning in this respect and will be happy to work with SEFI.

Best Regards
Sangeeta Wij
Managing Partner
SD Engineering Consultants LLP
Vice President(North),Indian Association of Structural Engineers,
Fellow and Chartered Engineer, Institution of Engineers
H333 New Rajinder Nagar(Lower Ground Floor),
New Delhi-110060
Ph:9811776210;01145128530


From:alpa_sheth [mailto:forum@www.buonovino.com]
Sent:16 May 2017 05:04
To:econf@www.buonovino.com
Subject:[E-CONF] Rera impact: Stressed realtors seek buyouts or JVs with big players



Hi,


I thought the related piece below published today may interest all of us.


Regards
Alpa









Rera impact: Stressed realtors seek buyouts or JVs with big players
Rera makes it mandatory for developers to keep 70% from a project sales in an escrow account
Raghavendra Kamath | MumbaiMay 16, 2017Last Updated at 01:12 IST







With the Real Estate (Regulation and Development) Act, or Rera, in place in many states, leading developers or those promoted by corporates are seeing a surge in requests for buyouts and joint ventures from smaller and stressed companies.

Big players say there has been a jump of 25-200% in the number of such proposals in recent months.

L&T Realty, part of construction giant L&T, has seen a three-time jump in the proposals for joint ventures or buyouts, said its chief executive officer, Shrikant Joshi.

“With Rera, it has become a serious issue to deliver any project. The law is very strict. Even if 15 people have bought into your project, you have to complete it. For that you have to have financial resources, execution skills and so on. Not many people have that,�Joshi said.

L&T Realty would carefully tread in selecting proposals and developing new projects, he said, adding that now developers who were seeking joint ventures were more accommodating.

Godrej Properties has seen a 25-30% increase in proposals in the past three months.

“After Rera, people have realised that property development is not everybody’s game. Many land owners who got into property development business want to go back and leave the development business to serious property developers,�said Mohit Malhotra, managing director at Godrej Properties.

Mumbai-based Hiranandani group, led by Niranjan Hiranandani, says that in the past six weeks, they had got five to six proposals for buyouts.

Like L&T, Hiranandani is also cautious. “We want to do one or two good opportunities. We are not in a hurry,� said Hiranandani.

Hiranandani说康索尔idation in real estate was going to happen because of the new law. “If a company is stressed today, after RERA, it will continue to be stressed. In fact, stress will go up. It is equally due to liquidation (bankruptcy) law as it is due to Rera,â€�he said.

He said that until now, the leveraged companies need not worry and could wait it out. “But with the Bankruptcy law, the foreclosure is immediate.�

Rera makes it mandatory for developers to keep 70% from a project sales in an escrow account, which is expected to curb their habit of diverting funds from a project to other. The Act also says developers have to get all approvals before launching a project, thereby prohibiting all prelaunches.

Sunteck Realty, backed by Ajay Piramal, has also seen over 50% jump in the joint venture or buyout requests in recent weeks, said its chairman and managing director, Kamal Khetan.

Khetan said they had got five to 10 such requests from a couple of developers. “In the current market conditions, they think they won’t be able to complete the projects,� Khetan said, adding that Rera is one of the key reasons for that.

However, he said the company would be choosy and take up only two or three proposals. “We will take up only those which match our DNA and brand values,�he said.

Sharad Mittal, director at Motillal Oswal Real Estate Investment Advisors, said, “The number of developers in business needs to come down significantly.�

他说Rera将导致更少的新发射到the industry settled down over the next 12-18 months. “There is no reason for prices to go down due to Rera and consolidation, if not for case for prices to firm up due to increased regulations,â€� he said.

Posted via Email

[anand0]

I too agree on Sangeeta Wij’s proposal.� Econf on important changes in 13920 & 1893 is highly desirable at this juncture.

My best regards,
Anand Shah - Director
DELFConsultingEngineers (India)PvtLtd
(ISO 9001:2008 Certified Company)
Tel: +91 79 26309993 / +91 9725005564
Fax: +91 79 26309992
Cell: +91 9879430400
This e-mail and any files transmitted with it are confidential and intended solely for the use of the individual or entity to which they are addressed. If you have received this e-mail in error please notify the sender - mailto:info@delfengineersindia.com(info@delfengineersindia.com). Any views or opinions expressed in this e-mail are those of the sender and do not necessarily coincide with those of DELF Consulting Engineers (India) Pvt Ltd.
Please consider the environment before printing this e-mail


From:sangeeta_wij [mailto:forum@www.buonovino.com]
Sent:Wednesday, May 17, 2017 11:35 AM
To:econf@www.buonovino.com
Subject:[E-CONF] Re: Rera影响:强调房地产经纪人寻求buyouts or JVs with big players



Alpa.
Thanks for sharing; it makes a lot of practical sense to have only specialists delivering all the key Projects, to be able to deliver quality on time.
It maybe worthwhile for SEFI to conduct econference next, on important changes in 13920, and i893, and also NDMA guidelines for Hospitals to create awareness and familiaritiy with the documents.IAStructE has already made a beginning in this respect and will be happy to work with SEFI.

Best Regards
Sangeeta Wij
Managing Partner
SD Engineering Consultants LLP
Vice President(North),Indian Association of Structural Engineers,
Fellow and Chartered Engineer, Institution of Engineers
H333 New Rajinder Nagar(Lower Ground Floor),
New Delhi-110060
Ph:9811776210;01145128530


From:alpa_sheth [mailto:forum@www.buonovino.com (forum@www.buonovino.com)]
Sent:16 May 2017 05:04
To:econf@www.buonovino.com(econf@www.buonovino.com)
Subject:[E-CONF] Rera impact: Stressed realtors seek buyouts or JVs with big players



Hi,


I thought the related piece below published today may interest all of us.


Regards
Alpa









Rera impact: Stressed realtors seek buyouts or JVs with big players
Rera makes it mandatory for developers to keep 70% from a project sales in an escrow account
Raghavendra Kamath | Mumbai May 16, 2017Last Updated at 01:12 IST







With the Real Estate (Regulation and Development) Act, or Rera, in place in many states, leading developers or those promoted by corporates are seeing a surge in requests for buyouts and joint ventures from smaller and stressed companies.

Big players say there has been a jump of 25-200% in the number of such proposals in recent months.

L&T Realty, part of construction giant L&T, has seen a three-time jump in the proposals for joint ventures or buyouts, said its chief executive officer, Shrikant Joshi.

â�‚��“With Rera, it has become a serious issue to deliver any project. The law is very strict. Even if 15 people have bought into your project, you have to complete it. For that you have to have financial resources, execution skills and so on. Not many people have that,â�‚��Joshi said.

L&T Realty would carefully tread in selecting proposals and developing new projects, he said, adding that now developers who were seeking joint ventures were more accommodating.

Godrej Properties has seen a 25-30% increase in proposals in the past three months.

â�‚��“After Rera, people have realised that property development is not everybodyâ�‚��„�s game. Many land owners who got into property development business want to go back and leave the development business to serious property developers,â�‚��said Mohit Malhotra, managing director at Godrej Properties.

Mumbai-based Hiranandani group, led by Niranjan Hiranandani, says that in the past six weeks, they had got five to six proposals for buyouts.

Like L&T, Hiranandani is also cautious. â�‚��“We want to do one or two good opportunities. We are not in a hurry,â�‚�� said Hiranandani.

Hiranandani说康索尔idation in real estate was going to happen because of the new law. â�‚��“If a company is stressed today, after RERA, it will continue to be stressed. In fact, stress will go up. It is equally due to liquidation (bankruptcy) law as it is due to Rera,â�‚��he said.

He said that until now, the leveraged companies need not worry and could wait it out. â�‚��“But with the Bankruptcy law, the foreclosure is immediate.â�‚��

Rera makes it mandatory for developers to keep 70% from a project sales in an escrow account, which is expected to curb their habit of diverting funds from a project to other. The Act also says developers have to get all approvals before launching a project, thereby prohibiting all prelaunches.

Sunteck Realty, backed by Ajay Piramal, has also seen over 50% jump in the joint venture or buyout requests in recent weeks, said its chairman and managing director, Kamal Khetan.

Khetan said they had got five to 10 such requests from a couple of developers. â�‚��“In the current market conditions, they think they wonâ�‚��„�t be able to complete the projects,â�‚�� Khetan said, adding that Rera is one of the key reasons for that.

However, he said the company would be choosy and take up only two or three proposals. â�‚��“We will take up only those which match our DNA and brand values,â�‚��he said.

Sharad Mittal, director at Motillal Oswal Real Estate Investment Advisors, said, â�‚��“The number of developers in business needs to come down significantly.â�‚��

他说Rera将导致更少的新发射到the industry settled down over the next 12-18 months. â�‚��“There is no reason for prices to go down due to Rera and consolidation, if not for case for prices to firm up due to increased regulations,â�‚�� he said.

Posted via Email