January 22, 2008
GIC Real Estate is partnering with Russia’s PIK Group to develop a large township in the city of Mytischi in Russia.
The 114-hectare site is located in the Moscow region to the northeast of the capital.
GIC Real Estate will acquire a 25 per cent stake in the project for US$233 million (S$336 million).
A CB Richard Ellis appraisal carried out 12 months ago valued the site at over US$1.3 billion.
The township will contain 50 high-rise apartment buildings and 13 low-rise commercial buildings.
There will also be five schools, seven kindergartens, two polyclinics and over 17,000 parking lots.
When completed in 2013, the development can house about 50,000 residents.
January 22, 2008
General Electric Co. may bid for Inmobiliaria Colonial SA, the Spanish real estate company that’s lost about 60 percent of its market value in six months.GE’s plan, disclosed by the Fairfield, Connecticut-based company in a regulatory filing today, would be the second potential offer in a week for Colonial. The developer rose 1.3 percent, valuing the company at 2.5 billion euros ($3.6 billion). The shares have climbed 17 percent in the last three trading sessions.
By acquiring Colonial, GE would gain 12 billion euros of assets including offices and malls in Madrid, Barcelona and Paris. Luis Manuel Portillo last month quit as Colonial’s chairman after a slowdown in the property market caused shares of developers to slump.
December 12, 2007
India’s second-largest real estate developer, Unitech has major plans up its sleeves, which look beyond real estate.
After announcing its plans of entering the telecom business, Unitech now wants to concentrate on positioning itself as a full fledged infrastructure development company with interests in power, roads, airports, in short wherever it sees an opportunity.
Besides, it also plans to enter the international market, talks for which are on with a number of foreign players. Unitech wants to own and operate these infrastructure projects unlike contractual work which it used to take up in the past for developing captive power projects or even some road projects.
Infact, it would not be dependant only on real estate for its future growth. “Infrastructure has a fantastic scope. We have aggressive plans for infrastructure development business in addition to expanding our existing road and highway construction business,” Unitech chairman Ramesh Chandra told SundayET.
This would help the company grow at over 50 % over the next three years. “Over the next five years, we plan to grow 5 to 6 times our current size of around Rs 3,388 crore,” he said. The realtor’s recent initiative to bid for airport development rights falls in line with this larger gameplan. But it’s not just infrastructure development which is on their mind.
Commenting on the proposed international business Mr Chandra said that though things are yet to develop, it will first look at the hospitality sector on foreign shores. The real estate player already has plans to go into hospitality in a big way in the domestic market with a target of as many as 28 hotels by 2010.
Having been more involved in luxury and niche projects, Unitech also doesn’t rule out moving into the mass housing sector in the near future. “Mass housing accounts for nearly 30-35% of the market. Hence it is necessary to build projects for this segment. We will be seriously thinking of building projects for them as well,” added Mr Chandra. Unitech, meanwhile, is already involved in the finance market and operates two real estate funds. Besides, it is also developing a couple of SEZs, one of which is in partnership with the Salim group.
December 12, 2007
GE Real Estate Central and Eastern Europe (GE Real Estate), one of the owners of Mall of Sofia and Mall of Plovdiv, might open an office in Sofia or in Bucharest in 2008, Karim Habra, company’s managing director for Central and Eastern Europe, said.
Habra said that GE Real Estate saw favourable business opportunities in Romania and Bulgaria, especially in the retail sector. GE Real Estate would seek cooperation with local partners to penetrate the market.The company had already partnered with Romanian entrepreneur Helios Phoen in 2007. GE Real Estate had also teamed up with the US-based Tishman International for the development of Bulgaria’s Sofia Airport Centre, a multi-purpose project comprising office, logistic, retail and hotel space, propertywisebulgaria.com said.
GE Real Estate was currently studying new investment opportunities in the region and was likely to open an office in Bulgaria or Romania as long as it would succeed to strike a few more deals in the two countries over forthcoming months.Bulgaria and Romania offered good opportunities, especially in the retail properties markets, investor.bg quoted Habra as saying. GE Real Estate planned to look for partners on the local markets, he said.
The company was planning projects in the residential property markets of Bulgaria and Romania too. Its first projects in this market segment were in Poland and Czech Republic, through the acquisition of local construction companies, propertywisebulgaria.com said.
GE Real Estate intended to carry out parallel investments in Russia over the first quarter of 2008, most probably in warehouse areas and retail units. The company arrived on the Russian market in October 2007, when it invested 50 million dollars in the investment fund Heitman Russia Property Partners (HRUPP).
December 12, 2007
IL&FS Investment Advisors on Wednesday said it has raised USD 578 million through its second real estate fund and targets to close the fund at USD 750 million. IL&FS India realty Fund-II will invest in an entire gamut of real estate spaces across tier-I and tier-II cities, a press release issued here on Wednesday said.
IL&FS Investment Advisors is a wholly-owned subsidiary of IL&FS Investment Managers Limited (IIML). IIML had raised USD 525-million through its first real estate fund in April 2006, the company said. “The investment team has seen investment opportunities across various sectors ranging from residential, retail, commercial and has the confidence to access prudent investments across all sectors in this space,” IIML’s Vice- Chairman and Managing Director Shahzaad Dalal said in the release.
IIML is currently managing investments in excess of USD 1.5 billion across various sectors, it said.
Cousins Properties Inc. (NYSE:CUZ PRB) said Tuesday it formed a joint venture with Prudential Financial’s (NYSE:PRU) Prudential Real Estate Investors to develop, own and lease Terminus 200, a 565,000-square-foot office building under construction in the Buckhead district of Atlanta.The capitalization of the venture, including debt, will be $172.5 million, which is the expected construction cost of the building.
The joint venture has closed on a $138 million construction loan.Prudential Real Estate Investors is acting on behalf of institutional investors, Cousins said.Shares of Atlanta-based Cousins fell 2.1% to $24.27.
December 12, 2007
Shares of Xinyuan Real Estate Co., which develops real estate in China, will begin trading Wednesday after the company’s initial public offering priced at $14 per American Depositary Share, the midpoint of expectations.According to Securities and Exchange Commission filings, Xinyuan expected the IPO, which totals 17.5 million ADS, to price between $13 and $15 each. Each ADS represents 2 common shares.
Xinyuan is a Cayman Islands holding company that operates through a subsidiary in China.The company raised about $224.9 million in net proceeds from the IPO, after fees and expenses. Xinyuan plans to use the proceeds to acquire land-use rights for future development projects. Remaining proceeds will be used for working capital and other general corporate purposes.
Xinyuan focuses on residential real estate development in China’s larger, more developed cities with above-average gross domestic product and population growth. The company was founded in 1997 by Chairman and Chief Executive Yong Zhang, who previously worked at construction and property-development companies in China.