The chairman of the Securities and Exchange Board of India (Sebi) M Damodaran on Wednesday said the regulator was considering proposals to allow real estate investment trusts (REIT) in India.
Speaking at a conference on capital markets organised by the CII, the Sebi chief also said the rules on listing and trading of securitised debt market instruments will be finalised by December.
The regulator had put out a consultative paper on securitised debt in June this year. The draft regulations proposed a system of registration of special purpose distinct entities which were planning to offer securitised debt instruments to the public or seeking the listing of such instruments issued earlier. Damodaran further said that select companies could opt for fast track issuances.
According to the fast track share issuance programme allowed by Sebi in August this year, companies with a 3-year track record on NSE and BSE, and with free-float market capitalization of at least Rs 10,000 crore, can raise funds through rights and follow-on issues, without having to wait for the market regulator’s clearance.
Sebi, at its board meeting in June 2006, had approved guidelines making it mandatory for REMFs (real-estate mutual funds) to be listed on the stock exchanges. But the absence of valuation norms delayed the introduction of REMFs in the country.
The Institute of Chartered Accountants of India (ICAI) was looking into the valuation issue and once it clears the norms, Sebi will be ready with the rules, M Damodaran said.
“It is not going to be a REIT versus REMF issue. Consultations with people who have a better understanding of these products have commenced and we will shortly write the first set of proposals,” said Damodaran. REIT is a better product, but we will ensure that both products are introduced over time, he added.
The Sebi move comes amid plans by a clutch of companies to raise funds from the Indian market for listing REIT-like vehicles on the Singapore Stock Exchange (SGX).
The Bangalore-based developer Embassy group, Ascendas, provider of business space in Asia and the Delhi-based DLF and Unitech have announced plans to list their fund structures, mainly REITs, on the SGX, banking on its recent easing of norms.
REMFs will be close-ended funds and will invest directly in real estate properties in India, mortgage (housing lease) backed securities, equity shares/bonds/debentures of listed/unlisted companies which deal in properties and undertake property development, and in other securities.
Following the curbs on participatory notes (P-notes), Sebi has received a large number of applications from overseas investors seeking FII registrations, Damodaran said, without providing figures.
The regulator is planning to launch a nationwide campaign for investor education in 2008 and encourages the market participants to take their role as self-regulatory organisations (SRO) seriously.
Nimesh Kampani, Chairman, CII National Committee on Capital Markets and the head of JM Financial Group also stressed on the need to develop SROs for financial intermediaries.
Spread the word: related/bookmark it/readit
Comments (0)
November 21, 2007
Fortis Invest eyes Japan pension funds
Filed under: India Real Estate News Updates, Real Estate Funds, New Development — Administrator @ 3:05 am
TOKYO, Nov 21 (Reuters) – Fortis Investments, the global assets management arm of the Fortis group, is eyeing Japan’s multi-billion dollar pension funds as key investors for its two new investment funds next year worth a combined $745 million, its real estate chief said on Wednesday.
Fortis Investments, which has about 130 billion euros ($190 billion) in assets under management, will launch two new “funds of funds” — funds that hold a portfolio of other investment funds — focused on European and Asian property.
“We were very Europe-specific when we started two years ago but have diversified outside of Europe since,” Bart Coenraads, chief investment officer and head of real estate for Fortis Investments, told Reuters at the sidelines of a conference in Tokyo.
The firm currently has two Europe-focused fund-of-funds vehicles and a third invested in Asian assets.
Coenraads said he was particularly keen to attract Japanese pension fund investors as their allocations for real estate were minuscule relative to other asset classes.
“A lot of Japanese pension funds already invested in Japanese real estate now see opportunities in Asia ex-Japan,” he said, adding that Fortis Investments had already obtained a $40 million commitment from a Japanese pension fund investor for an existing fund of funds focused on Asia ex-Japan property.
Japan’s pension funds have traditionally parked their money in low-risk corporate and government bonds but are raising their investments in riskier assets such as equities and property to boost returns for the country’s ageing population. Fortis Investments has about 2.5 billion euros in global real estate exposure — 25 percent of which is run through its fund-of-funds vehicles. The remaining 75 percent of its property-related holdings are in publicly traded securities.
“Many pension funds don’t have the internal capabilities to get the sort of exposure that they can get by buying into a fund of funds,” Coenraads said.Coenraads plans to raise about $300 million for the new Asian fund of funds, about half of which will be invested in Japanese funds. The remaining portfolio will be invested in China, Malaysia, Vietnam, India and Singapore assets.
Spread the word: related/bookmark it/readit
Comments (0)
Omaxe may tap West Asia as Indian real estate market cools
Filed under: India Real Estate News Updates, Commercial, Residential, New Development — Administrator @ 1:26 am
Source: http://www.livemint.com/2007/11/21005026/Omaxe-may-tap-West-Asia-as-Ind.html
New Delhi: Real estate company Omaxe Ltd has decided to develop properties overseas in places such as Dubai in the United Arab Emirates (UAE) as the real estate market in India starts to cool and profits get squeezed.The developer plans to build commercial and residential properties in Dubai.
“Last year was very bad for developers,” Rohtas Goel, chairman and managing director, Omaxe, said. “Prices declined by 10% and even by 30% in some locations, which has forced developers to look at overseas markets for expansion,” he added.
The company has decided to enter the Dubai real estate market as the average yearly return on an investment in Dubai is slightly better than in India, Goel said. “It is also easier to do real estate business in Dubai compared to India,” he added.
Omaxe will float an offshore development company to enter the Dubai market. Goel declined to say how much money Omaxe had earmarked for overseas development.
The company will develop real estate through joint ventures with a local real estate developer. Omaxe has to find a local developer to market property in Dubai in keeping with regulations of the UAE government. “We can acquire the land on our own, but to market the property we need a local partner,” Goel said.
Omaxe is in talks with several developers from Dubai for a possible tie-up. But nothing has been finalized yet, Goel said. In the last seven to eight months, the real estate market in New Delhi and its suburbs has seen a decline in demand mostly because of the high interest rates on home loans, which are at a five-year high. The interest rates have increased to 12%, compared with 9% just a year ago. That, coupled with the rising value of land, is making homes more expensive and less affordable—keeping buyers at bay.
“A few developers might be looking at overseas markets because of the high cost of land in India,” said Ganesh Raj, head, real estate practice at audit and consulting firm Ernst & Young India. “As return is a function of price of land, given the present cost of land, developers probably feel that returns in the overseas markets will be better. However, very few developers have actually started real estate development in offshore markets,” Raj added.
Omaxe’s plans to go global comes in the wake of similar efforts by other developers. Parsvnath Developers Ltd has decided to venture into real estate development in the UK, Singapore, UAE, Muscat and Mauritius. DLF Ltd is looking at international acquisitions, and Ansal API Ltd has a partnership with Malaysia’s UEM Group to bid for government projects in Malaysia.Investors are not willing to buy residential properties any more as the interest rates have shot up and it is costlier to buy homes on borrowed money.
Investors are gradually exiting the real estate market, say developers. While investors constituted 70% of the buyers last year, it is now the reverse, Goel said. “Now the actual end-users constitute 70% of the buyers,” he added. Omaxe is present in 30 cities and nine states in India. The company operates across residential, commercial and retail verticals. Omaxe made an initial public offering of shares in July and raised around Rs600 crore.
Watch the video related to real estate
Here’s part 9 of “The Cocoanuts”
Help answer the question about real estate
Real estate?Currently I am a mortgage loan underwriter for a huge financial institution. I want to maybe become a real estate agent. My aunt is making killer money. Now is there any way not to take the class and take the test since I already know a lot of real estate? Or what exactly is the whole process to make this career change?
stay out of the mainstream area;
that is, listing houses for sale.
become an exclusive buyer's agent.
Rep middle income and upper income
black women as a niche.
Also poke into doing commercial
and industrial purchases.
and maybe business brokerage
plus, interview different agencies–
most are Realtor focused; which
means they take listings. YOU can
choose not to do that via being
an exclusive BUYER's agent.
[they don't sell RE--they help
buyers buy, and that is a different
approach].
plus u can find those offices that
have 100% approaches [where
the agent pays for desk space and
does not split the commission.]
available to help -though I am not
in TN.
Hi Jeannie!
I suggest you first learn the difference between Real Estate Companies. Some charge desk fees, some do a split with commissions (find out what other monthly fees they have), some are flat fee brokers. Find out if they have retirement, residuals, if they offer profit sharing how long does it take to get that profit, training, what programs do they offer and do they cost? Do they have a training schedule? Do they have a mentor program? Do they have a new agent training course? Do they have health insurance?
Then go meet the Broker. If you can't relate with them, then it's not a good fit! If you have any questions, email me! Good luck and make us all proud!
Vicki Watzlawick
Broker Owner
Exit Platinum Realty
http://www.ExitPlatinumRealty.com
Russ Whitney has a great coaching program you may want to take a look at.
Good Luck
Sheldon Moylan of Dominion Lending Centres
my fav place in la… miss it so much!!
My favorite place to vacation. If I win the lottery, I’m moving right on the beach.
Awesome show!
You have a LEGAL AND BINDING CONTRACT. all disclosures within the contract should be what the seller knows about the property. Now the other agent cannot FORCE you to sign anything. Basically what the agent is trying to do is cover his clients ass- if the selling side has a problem with it you can always take it before arbitration (see how they like that). Either way the selling agent is not within his rights to present other docs. for disclosures, nor do you let them off the hook. You will have no recourse if you do. Hope this helps.
One doesn't eliminate the other one. My broker is a Lawyer and his experience/practice is in Real Estate. After 10 years of practicing law, he decided to be a Broker.
Go ahead!
i live here! i love mb!
I am a real estate agent in Australia with my own independent office.
I am not sure what courses are like through franchises, however, here, the courses with regular real estate schools are very good.
When you are looking to find an agency to work for, consider the following:
- do they regularly pay for training for their employees? what kind of training and how frequently?
- does management get regular training and upgrade their knowledge on changes in legislation etc (here we have special annual education to attend to stay in the know)
- what internal systems and procedures do they have that will assist people who are just starting out? for example, a good computer software and training resources in the office for when you get stuck on something.
- is there someone more experienced in the office that can mentor you?
I believe that a franchise is not necessarily the best, often all the training that they attend is in house, and they are not open to external training providers (which can be very beneficial).
You need to look at the individual operator of the office to decide if it will be a good environment to start your career or not.
Depends on the licensing requirements in your state. Check with the Department of Real Estate for their requirements. Most states require some basic courses, but there may be exemptions or partial exemptions for experience in the field. The only exception in California is that licensed attorneys, regardless of their field of practice, can go straight to the Broker level exam. Afterwards, most states also require a certain amount of continuing education for license renewal at either the Agent or Broker level…so you might as well get used to taking classes…and who knows, despite all your experince, you may learn just the thing you needed to know…
I am a real estate agent and I think it's a wonderful career choice. If you have self determination, love working with people, think it's fun to show houses and don't want a regular 9-5 job, you will love it too.
I don't know what state you are in, but in California you are required to have three classes and then pass a test that is different from the three classes you take. So you have to study hard for the test, which is like taking an extra class.
One wonderful thing about real estate is that you can choose how many clients you want to work with. If you work a lot, you can make a good living. Or you can do it part time while you continue to go to school and your real estate income will help you get through college.
I don't think real estate is ever too risky to get into if you are self motivated. Even in a bad market, there are people who still want to buy and sell and they are looking for an agent who cares about their needs and will do whatever it takes to make their real estate sale go as smoothly as possible. If you like that idea, go for it.
Wow! what a great question from a 14 year old. a LLC (Limited Liability Company) is incorporated with the Attorney Generals office in the state it is established in. The best way to do that is to go to an Attorney. A holding company and a Development company may be combined into one, have different division or groups to do the different objectives, or even the same people.
You can never have too much money to start a company, it's the too little that matters. Your best bet is to save as much as possible, write up a business plan, go to friends and family for investment in the company before you start out and hope to have a minimum of $50,000 to $500,000 to start your company. Then you can go to a bank and borrow, usually 2 to 3 times that much more to make your first purchases.
Yes there are Capital gains even for companies to pay with investment properties.
When you are ready, have your board of directors vote to take your company public by registering with the Securities and Exchange commission, with the assistance of a Stock Brokerage Company.