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Team iPropUnited

Team iPropUnited
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Delhi’s Efforts to Expand Sewer Network to Illegal Colonies Shared with NGT by Chief Secretary

The report highlighted discussions held by the high-level committee for the rejuvenation of the Yamuna regarding unauthorized colonies lacking connections to the sewage network.

Chief Secretary Naresh Kumar of Delhi has informed the National Green Tribunal (NGT) that a significant portion of the city’s sewage is treated, with 82% undergoing treatment, while the remainder originates from unauthorized colonies. Out of Delhi’s 1,799 unauthorized colonies, 1,031 are presently linked to sewage treatment plants.

Naresh Kumar revealed, “Of the total 1,799 unauthorized colonies in Delhi, sewer lines were laid and operationalized in 747 colonies for sewage treatment in STPs or decentralized sewage treatment plants (DSTPs) by January 2023. Over the past year, sewerage networks have been extended to an additional 284 unauthorized colonies, bringing the total number of colonies with sewerage networks to 1,031 out of the total 1,799.”

The chief secretary submitted a detailed report to the NGT, stating that efforts are underway to provide sewerage networks to the remaining 768 unauthorized colonies, which are currently in various stages of progress.

Additionally, the report highlighted discussions held by the high-level committee for the rejuvenation of the Yamuna regarding unauthorized colonies lacking connections to the sewage network.

“At a meeting on January 10, the committee instructed the Delhi Development Authority (DDA) to furnish the status of four unauthorized colonies falling under the ‘O zone’ to the Delhi Jal Board (DJB). DJB has been directed to accelerate the installation of sewerage networks in remaining unauthorized colonies, including those for which No Objection Certificates (NOCs) have been issued by the forest department, those approved by the Archaeological Survey of India (ASI), those not under ASI jurisdiction, and 22 colonies identified by DJB,” the report outlined.

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Hong Kong Private Home Prices Plunge 6.8% in 2023, Market Braces for Further Declines

Hong Kong’s private home market faces a significant downturn as prices plummeted by 6.8% in 2023, with forecasts anticipating continued decline amidst economic challenges and high interest rates.

In a setback for Hong Kong’s property market, private home prices endured a sharp decline of 6.8% throughout 2023, marking the eighth consecutive month of downturn, driven by a combination of fragile market sentiment, elevated interest rates, and a bleak economic outlook.

Official data unveiled on Monday revealed a staggering 1.4% drop in home prices in December compared to the preceding month, following a revised 1.9% decrease in November, underscoring the persistent downward trend.

Projections for the current year paint a gloomy picture, with UBS and Citi anticipating a further 10% decline, building upon the 20% drop witnessed since the market peaked in 2021.

Knight Frank’s outlook aligns with this sentiment, forecasting an additional 3-5% dip in prices during the initial half of the year, foreseeing stabilization only in the latter half as the impact of the interest rate hike cycle diminishes.

Martin Wong, the Greater China head of research and consultancy at Knight Frank, remarked, “The market obviously lacks confidence in the short term; the housing prices will appear to be a ‘L’ shape this year,” attributing additional pressure to developers slashing selling prices to liquidate inventory.

In a move reflecting the market’s sluggishness, the Hong Kong government announced in early January its decision to abstain from selling any residential or commercial land in the first quarter of 2024, citing tepid market sentiment and high vacancy rates. This decision marks the first time the government has refrained from rolling out any residential sites in a quarterly sale.

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Sebi Proposes Guidelines on REITs and InvITs Issuing Subordinate Units

Sebi unveiled additional proposals aiming to regulate the issuance of subordinate units by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The proposals encompass limitations on the number of subordinate units, uniformity in granted rights, and specific conditions for issuance.

NEW DELHI: In a consultation paper released on Wednesday, Sebi outlined recommendations addressing changes in terms and conditions post-issuance of subordinate units by REITs or InvITs. The paper also presented suggestions for the proposed framework concerning the issuance of subordinate units by these entities.

Last December, Sebi had invited public comments on the subordinate unit issuance framework, focusing on sponsor entities, associates, and sponsor groups. The primary objective of subordinate unit issuance is to address valuation gaps resulting from differences in asset perception between sponsors and REITs/InvITs.

The additional proposals seek to impose a ceiling on the number of subordinate units issued during the acquisition of an asset, limiting it to 10% of the asset’s acquisition price. Furthermore, Sebi suggests that the total outstanding subordinate units should not exceed 10% of the total outstanding ordinary units at any given time.

To ensure clarity, Sebi proposed that subordinate units should have either inferior voting rights, inferior distribution rights, or a combination of both. The regulator outlined three possible scenarios for the rights associated with subordinate units, including no distribution or voting rights, limited rights up to 10%, or a combination within a specified range.

Sebi emphasizes the need for uniformity in the nature of rights conferred by subordinate units, proposing that inferior rights on all subordinate units issued by a REIT/InvIT should be similar without multiple classes.

The proposed guidelines also discourage alterations to the terms and conditions of subordinate units after issuance, aiming to maintain the certainty of sale transactions and prevent disruptions.

Public comments on these proposals are invited until January 31, marking a step toward enhancing the regulatory framework for REITs and InvITs in the Indian financial market.

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UP-RERA Facilitates Possession with Delay Interest in Devaika Gold Homz Project

The forum provides mediation by the conciliator, involving both allottees and promoters, who make concerted efforts to resolve disputes amicably.

NEW DELHI: The Uttar Pradesh Real Estate Regulatory Authority’s (UP-RERA) conciliation forum has successfully secured possession, including interest for the delay period, for allottee Rajeev Aggarwal in the Devaika Gold Homz project in Greater Noida.

Following mediation, the demands of both parties have been consolidated into a new agreement between the promoter and the allottee. As per the agreement, the allottee will pay Rs. 2.50 lakh to the promoter and receive the unit with all amenities outlined in the agreement for sale. Additionally, advance maintenance charges will be applicable from the actual date of possession.

Sanjay Bhoosreddy, Chairman of UP-RERA, emphasized, “Promoters and allottees can opt for the conciliation forum for mutual settlement of matters. The forum provides mediation by the conciliator, involving both allottees and promoters, who make concerted efforts to resolve disputes amicably.”

The allottee, Rajeev Aggarwal, had booked a unit in the project with a cost of Rs. 16.76 lakh. Despite paying Rs. 16.49 lakh following the agreement for sale, he faced delays in possession with no response from the promoter regarding the delay period. Frustrated by the slow pace of development and discrepancies in the last demand letter, which included Rs. 8 lakh, along with interest for the delay period, Aggarwal officially lodged a complaint with the authority.

The conciliation forum of UP-RERA has successfully resolved over 1,300 matters, settling disputes related to properties worth Rs. 510 crore.

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Adani Group’s Dharavi Project Funding Strategy Unveiled: Internal Accruals and SPV Equity Sale

The company recently appointed three key players, including renowned architect Hafeez Contractor, as city planners to craft a draft development plan for Asia’s largest slum cluster. The group, committing an investment of Rs 21,000 crore to the project, has enlisted design firm Sasaki and consultancy firm Buro Happold as design planners, along with experts from the Singapore Housing Development Board.

Mumbai-based Adani Group, spearheading the ambitious redevelopment of Dharavi slums, has unveiled its funding strategy for the entire project. According to reliable sources, the conglomerate plans to finance the Dharavi redevelopment through internal accruals and potentially by selling equity in the Special Purpose Vehicle (SPV) established for the project.

The company recently appointed three key players, including renowned architect Hafeez Contractor, as city planners to craft a draft development plan for Asia’s largest slum cluster. The group, committing an investment of Rs 21,000 crore to the project, has enlisted design firm Sasaki and consultancy firm Buro Happold as design planners, along with experts from the Singapore Housing Development Board.

Although the statement released by the group did not specify a timeline for the project, it reaffirmed the commitment to investing Rs 21,000 crore. Adani Group secured the bid for the Dharavi redevelopment in November 2022, with an initial equity investment of Rs 5,069 crore.

Hafeez Contractor, known for groundbreaking social housing and slum rehabilitation authority projects in the city, joins forces with Sasaki, a multidisciplinary design firm from the US, and Buro Happold, a renowned English consultancy specializing in creative and value-driven infrastructure solutions.

Addressing reports about financial closure with lenders, sources within the project clarified that tender conditions prohibit raising debt to fund the project at this stage. The group intends to leverage internal finances and explore innovative financial instruments instead of tapping into markets for funds.

Emphasizing a human-centric approach, sources revealed that the project envisions fostering the existing businesses and entrepreneurs in Dharavi. Beyond safeguarding residents’ livelihoods, the initiative includes the establishment of a skill development center. This center will particularly focus on women and youth, aiming to equip citizens with enhanced skills for a more promising future. As of now, the group has not reached a stage requiring external market fund procurement.

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Telangana Chief Minister Asserts Commitment to Redesign Airport Metro and Pharma City Initiatives

Chief Minister Revanth Reddy assured that the central government is open to funding Metro projects based on commuter feasibility. He emphasized that the proposed lines would garner significant patronage, unlike the route envisioned by the previous government, as the new plan caters to a broader demographic.

HYDERABAD: Dispelling speculations surrounding the fate of Hyderabad’s Airport Metro and Pharma City projects, Chief Minister A Revanth Reddy emphasized on Monday that the projects are not being scrapped but rather restructured for increased cost-effectiveness and commuter convenience. The Congress government aims to optimize the projects, shorten the Metro rail distance to the airport, and strategically lay lines through areas with high potential patronage.

Contrary to the plans laid out by the previous BRS government for the Raidurg-Shamshabad Airport Metro line, Chief Minister Revanth Reddy explained, “Despite L&T representatives advising the previous government that the Raidurg-Shamshabad airport stretch will not be commercially feasible, the then government asked the firm to execute the project to serve the real estate interests of the friends of the previous government.”

Instead, the Congress government proposes to extend the Metro rail from Mahatma Gandhi Bus Terminal at Gowliguda to Shamshabad airport, passing through the Old City and Chandrayangutta. Additionally, plans include extending the Metro from Nagole to Chandrayangutta via LB Nagar and Owaisi Hospital, connecting it at Chandrayangutta to the Metro from the Old City en route to the airport. Possible extensions from Mindspace junction to the Financial District and from Miyapur to Ramachandrapuram near Patancheru via BHEL are also under consideration.

Chief Minister Revanth Reddy assured that the central government is open to funding Metro projects based on commuter feasibility. He emphasized that the proposed lines would garner significant patronage, unlike the route envisioned by the previous government, as the new plan caters to a broader demographic.

Addressing concerns about the Pharma City project, the Chief Minister clarified that it will not be abandoned. Instead, the government intends to promote the establishment of 10 pharma clusters, each spanning 1,000-3,000 acres, strategically located near highways within the Outer Ring Road and the Regional Ring Road. The aim is to provide residential colonies and essential facilities within proximity to these clusters, reducing the need for daily commuting to the city. The government also pledges efforts to ensure pollution-free units in these pharma clusters.

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Greater Noida Industrial Plot Prices Surge by 12% in Recent Authority Decision

In a recent board meeting held on Tuesday, the Greater Noida development authority approved a 12% increase in the prices of industrial plots measuring up to 20,000sqm. This marks the second adjustment of its kind within the past year.

According to the revised rates, plots up to 1,000sqm (a quarter of an acre) will now be priced at Rs 29,238 per sqm, while land parcels spanning 1,001-20,000sqm will cost a minimum of Rs 23,975. Notably, there is no alteration in the pricing for plots larger than 20,000sqm.

Officials attribute this rate hike to a shift in the land allotment process. Previously conducted through e-auctions, the Greater Noida Authority has now opted for interviews based on objective parameters.

Both Noida and Greater Noida authorities have granted industrial, IT, and ITES plot owners an extension until December of the next year to complete their projects. This decision applies to projects allocated several years ago with an initial completion deadline of 2022. The Noida Authority, however, will assess plot inspections on a case-by-case basis before deciding on deadline extensions.

Similarly, Greater Noida has extended the deadline for owners of institutional plots to register until December 2024. Project map approvals and completion deadlines have been pushed to December 2025.

Additional decisions made at the Greater Noida board meeting include a requirement for group housing societies to allocate 5% of their areas for visitor parking. The introduction of an OTS scheme aims to clear water dues, with the Authority seeking to collect Rs 34 crore from defaulters.

In a bid to enhance infrastructure, the Authority plans to collaborate with the Central Road Research Institute to implement modern road construction technologies, ensuring increased transparency and quality. This initiative encompasses the use of footpaths made from waste material-based tiles, third-party assessment of roads, and comprehensive traffic planning.

Furthermore, the Authority board has endorsed a proposal to allocate 10% of developed abadi plots to farmers who have received 64.7% additional compensation. The final decision rests with the state government.

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Delhi LG Sets Swift Course: Unveils Time-Bound Roadmap for Unauthorised Colonies Regularisation

Saxena directed officials to formulate a concrete time-bound plan for registering, verifying, and subsequently regularising unauthorized colonies, emphasizing a simplified and hassle-free approach. He sternly warned against dereliction and corruption, underscoring a zero-tolerance policy.

NEW DELHI: In a decisive move, Delhi Lieutenant Governor VK Saxena has mandated a time-bound plan for the regularisation of unauthorized colonies, emphasizing the need for simplicity and efficiency in the process. This directive unfolded during a meeting at Raj Niwas on Monday, where Saxena assessed the progress of works related to the regularisation and rehabilitation of slum dwellers under PM-UDAY and PMAY (Urban).

Following the recent passage of the National Capital Territory of Delhi Laws (Special Provisions) 2023 by Parliament, Saxena convened a meeting with key officials from various stakeholder departments/agencies, including the chief secretary, officials of urban development, PWD, the vice-chairman of DDA, and the commissioner of MCD.

During the meeting, Saxena urged officials to provide specific timelines for the full implementation of PM-UDAY, PMAY, and the Land Pooling Policy of the DDA. He expressed concern over the prolonged ambiguity in the boundaries of unauthorized colonies and the uncertainties in notified slum clusters. This prompted the formulation of the PM-UDAY and PMAY schemes in 2019.

Despite facing constraints due to the COVID-19 pandemic, Saxena expressed surprise at the prolonged operation of the Act since December 2006 and the delayed resolution of the matter.

In response, Saxena directed officials to formulate a concrete time-bound plan for registering, verifying, and subsequently regularising unauthorized colonies, emphasizing a simplified and hassle-free approach. He sternly warned against dereliction and corruption, underscoring a zero-tolerance policy.

Saxena also instructed the DDA to promptly identify alternate sites within a five-kilometer radius for in situ rehabilitation where applicable by law. Slum dwellers are to be relocated to dignified living spaces in flats/houses constructed under various schemes. The lieutenant governor emphasized that the entire plan should be implemented within a month, with concrete actions commencing immediately. Stressing the urgency of the matter, Saxena underscored the goal of completing all tasks at least a year earlier than the 2026 outer limit provided by the recently passed Act in Parliament.

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Indian Bank Offers Rs 610 Crore Bad Loans for Sale

Indian Bank has provided interested investors with the flexibility to submit bids on individual accounts. Notably, some banks have adopted an open bidding process, inviting bids above the reserve price as the industry navigates through the complexities of distressed asset management.

In a strategic move to bolster its financial health, the state-run Indian Bank has unveiled plans to offload bad loans totaling ₹610 crore, aiming to streamline its books before the conclusion of this fiscal year.

The portfolio of distressed loans encompasses exposures to key entities such as real estate firm Ashvi Developers, LMJ International, and ACCIL Corporation. With an optimistic outlook, the bank anticipates recovering a minimum of one-fourth of the total loan value.

Prospective bidders keen on participating in this significant opportunity have until December 14 to submit their expressions of interest. The bank has scheduled an e-bidding event for December 27, as outlined in the bid document.

Breaking down the loan accounts, the offering includes ₹351 crore associated with Ashvi Developers, with a set reserve price of ₹97 crore. LMJ International’s dues of ₹162 crore are up for sale, featuring a reserve price of ₹12 crore, while ACCIL Corporation’s ₹88 crore liabilities come with a fixed reserve price of ₹30 crore.

Indian Bank has provided interested investors with the flexibility to submit bids on individual accounts. Notably, some banks have adopted an open bidding process, inviting bids above the reserve price as the industry navigates through the complexities of distressed asset management.

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Sebi Introduces Framework for Net Distributable Cash Flows Calculation by REITs and InvITs

Sebi Implements Unified Framework for Net Distributable Cash Flows Calculation by REITs and InvITs, Effective April 1, 2024

NEW DELHI: In a bid to enhance the ease of conducting business, the Securities and Exchange Board of India (Sebi) has decided to standardize the calculation framework for available net distributable cash flows by Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and their respective holding companies. This new framework is slated to be enforced starting April 1, 2024, according to two separate circulars released by Sebi.

The rules stipulate that the Net Distributable Cash Flow (NDCF) will be computed at the level of REITs, InvITs, and their associated holding companies (HoldCo) or special purpose vehicles (SPVs).

Under this framework, a minimum distribution of 90% of the NDFC at both the Trust and the HoldCo/SPV levels is mandated, adhering to the relevant provisions in the Companies Act or the Limited Liability Partnership Act.

Sebi emphasizes that the computation of the option to retain 10% distribution must consider both the retention at the SPV level and Trust level. Additionally, the Trust, in collaboration with its SPVs, is required to ensure a minimum 90% distribution of NDCF on a cumulative periodic basis for a given financial year.

Furthermore, any restricted cash is expressly excluded from consideration in the NDCF computation by the SPV or InvIT, as per Sebi’s directives. This move is anticipated to streamline and standardize the calculation process, contributing to a more transparent and efficient financial framework for REITs and InvITs in the capital markets.

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