Real Estate

Market rumors indicate that DLF Assets may soon float a Real Estate Investment Trust in Singapore packaging its IT and SEZ space to raise upto USD 2 billion. Indian market news leader CNBC-TV18 indicates that the REIT may be launched in June, and that DLF Assets had delayed earlier plans to list the same due to Volatile Asian Markets.

It was celebrated as the biggest land deal in India and was worth The Rs 5,000-crore land deal, when a small time realestate developer BPTP outbid its competition including DLF and Omaxe to win the 5006 crore land deal in Noida.

According to officials and the grape vine in the realty sector, BPTP is finding it difficult to raise the funds that it needs to pay off the land deal. BPTP was unable to even raise funds for the first installment of this deal and has been granted a 2 month extension to live up to its end of the bargain.

Milestone capital advisors limited has announced a new development fund named Milestone Domestic Scheme II in response to the huge market demand for such products. Prospectus indicates that the investment focus will be on Tier II and Tier III cities which are relatively untapped markets and hence have good potential for professional investing

To invest in a decent sized real estate venture in India today, you either have to be ultra rich and even if you are, you have to plunk down a ton of money and wait for a long term to see the returns trickle in. Things are about to change in the Indian Real Estate Investment Trusts / Funds space with a number of funds dropping the minimum investment required to take advantage of these options.

IL&FS-Milestone Fund-I, India’s first REIT like structure, has achieved first closing with its targeted initial subscription of over Rs 500 crore. The Fund has now exercised its Green shoe option of raising additional capital.

“On the Investment side, the Fund has already commenced operations, committing approximately 13 per cent of the funds raised and has a healthy pipeline of investment opportunities” said Mr Ved Prakash Arya, Managing partner and chief investment officer of IL&FS- Milestone Fund-1.