Blackstone Group buys two office properties in India

MUMBAI--U.S.-based private equity firm Blackstone Group L.P. has bought two office properties in India from a unit of Indian financier IDFC Ltd., the company said in a statement.

IDFC said Blackstone has bought a property in Noida and another one in Pune from its private equity arm IDFC Alternatives Ltd.

Though the details of the deal was not known officially, a source close to the development said Blackstone has paid about $178 million for the two properties.

Real estate demand in India is expected to pick-up on the back of a recovery in the economy as the country's new government, which took charge in May, speeds up changes in economic policies.

Blackstone has been increasing its real estate investments in India in recent years. In May, it partnered with a local developer to buy Express Towers, an iconic business property in Mumbai. In December 2011, it bought an economic zone in Pune earmarked for promoting technology businesses.

Of making green and strong cement

CAMBRIDGE, Mass--Concrete is the world's most-used construction material, and also a leading contributor to global warming, producing as much as one-tenth of industry-generated greenhouse-gas emissions. Now a new study by scientists from Massachusetts Institute of Technology (MIT) suggests a way in which those emissions could be reduced by more than half — and the result would be a stronger and more durable cement. The findings come from the most detailed molecular analysis yet of the complex structure of concrete, which is a mixture of sand, gravel, water, and cement. Cement is made by cooking calcium-rich material, usually limestone, with silica-rich material — typically clay — at temperatures of 1,500 degrees Celsius, yielding a hard mass called "clinker." This is then ground up into a powder. The decarbonation of limestone and the heating of cement are responsible for most of the material's greenhouse-gas output. The new analysis suggests that reducing the ratio of calcium to silicate would not only cut those emissions, but would actually produce better, stronger concrete. These findings are described in the journal Nature Communications by MIT senior research scientist Roland Pellenq; professors Krystyn Van Vliet, Franz-Josef Ulm, Sidney Yip, and Markus Buehler; and eight co-authors at MIT and at National Centre for Scientific Research (CNRS) in Marseille, France. "Cement is the most-used material on the planet," Pellenq says, noting that its present usage is estimated to be three times that of steel. "There's no other solution to sheltering mankind in a durable way — turning liquid into stone in 10 hours, easily, at room temperature. That's the magic of cement." In conventional cements, Pellenq explains, the calcium-to-silica ratio ranges anywhere from about 1.2 to 2.2, with 1.7 accepted as the standard. But the resulting molecular structures have never been compared in detail. Pellenq and his colleagues built a database of all these chemical formulations, finding that the optimum mixture was not the one typically used today, but rather a ratio of about 1.5. As the ratio varies, he says, the molecular structure of the hardened material progresses from a tightly ordered crystalline structure to a disordered glassy structure. They found the ratio of 1.5 parts calcium for every one part silica to be "a magical ratio," Pellenq says, because at that point the material can achieve "two times the resistance of normal cement, in mechanical resistance to fracture, with some molecular-scale design." The findings, Pellenq adds, were "validated against a large body of experimental data." Since emissions related to concrete production are estimated to represent 5 to 10 percent of industrial greenhouse-gas emissions, he says, "any reduction in calcium content in the cement mix will have an impact on the CO2." In fact, he says, the reduction in carbon emissions could be as much as 60 percent. In addition to the overall improvement in mechanical strength, Pellenq says, because the material would be more glassy and less crystalline, there would be "no residual stresses in the material, so it would be more fracture-resistant." The work is the culmination of five years of research by a collaborative team from MIT and CNRS, where Pellenq is research director. The two institutions have a joint laboratory at MIT called the Multi-Scale Materials Science for Energy and Environment, run by Pellenq and Ulm, who is director of MIT's Concrete Sustainability Hub, and hosted by the MIT Energy Initiative. Because of its improved resistance to mechanical stress, Pellenq says the revised formulation could be of particular interest to the oil and gas industries, where cement around well casings is crucial to preventing leakage and blowouts. "More resistant cement certainly is something they would consider," Pellenq says. So far, the work has remained at the molecular level of analysis, he says. "Next, we have to make sure these nanoscale properties translate to the mesoscale" — that is, to the engineering scale of applications for infrastructure, housing, and other uses.

MCHI's property fair begins from Oct 2

MUMBAI: Over 150 developers from Maharashtra and also from other states will display more than 1,500 properties at a four-day property fair slated to begin on October 2 at the MMRDA Grounds in Bandra Kurla Complex.

Organised by the Maharashtra Chamber of Housing Industry (MCHI), the property fair, besides showcasing projects in Mumbai and its metropolitan region, also will have pavilions displaying properties in Pune, Ahmedabad, Nashik, Baroda, Bangalore, Goa, Kochi and Chennai.

Over 22 banks and financial institutions such as ICICI Bank, State Bank, Bank of Baroda, Bank of India, LIC Housing Finance, Axis Bank and HDFC are participating in the property mega fair.

All the properties to be displayed in the expo will have requisite approvals, besides having clear titles and commencement certificates, said Bandish Ajmera, Chairman, MCHI-CREDAI Exhibition Committee.

Projects of Peninsula Group, Tata Housing, Indiabulls, Jaypee Group and Adani Group will be available for property buyers to choose from at the expo, organisers said.

Separate stalls will be there to highlight properties in central suburbs and extended areas and the island city.

MCHI- CREDAI has also developed a ‘virtual property expo’ in which all projects will be displayed online.

A journey from Madras to Chennai

For a city, transition is inevitable which goes along with the changes in its demographic status. Chennai has transformed into a modern city from what it was a few decades back, says K Ramanathan, who traces the city's journey from Madras to Chennai.

The southern metropolis has come a long way since the black and white era, registering all around development. Once a sleepy and conservative neighbourhood, the city is now full of life with liberal outlook coupled with vibrancy.  Chennai has become a city that ‘doesn't sleep’.

Chennai in 1960s

The development over the years has made visual changes on Chennai’s landscape. New settlements, roads, bridges, subways, high rises and business establishments have been added to cope with the rising demand. And one can’t deny the role real estate has played over the years in transforming Chennai into what it is today.

A look at Madras

Though the changes have made a paradigm shift to city landscape, it has brought in a host of inherent challenges as well. A few old-timers recalled that Chennai in those days was having less congested roads, quiet surroundings and blessed with fresh air and copious water, which gave the inhabitants a comfortable and quality life.

“In 60s and even earlier, though real estate was as vibrant as today’s in Chennai, only plot development was popular among realty developers. The Usman Road, which is now filled with jewellery, garment and other commercial establishments, was once occupied by real estate companies to sell plots - both within and outside city limits. The Corporation too encouraged residents to buy plots to construct individual homes. City Improvement Trust (CIT) was formed

Dr R Kumar

to develop plots. Today’s CIT Nagar and CIT Colony were the outcome of this Trust. Later, with the advent of Tamil Nadu Housing Board (1961), Ashok Nagar, Shastri Nagar, Indira Nagar, Besant Nagar, KK Nagar and Shenoy Nagar came into existence as plotted development. Anna Nagar was developed after the World Trade Fair in 1969 and Visvesvaraya tower (now know as Anna Nagar Tower), was built in the subsequent year. Later Tamil Nadu Housing Board developed residential plots, built apartments, roads, schools, commercial complexes, bus terminus and parks in Anna Nagar,” says Dr R Kumar, Managing Director, Navin Housing and Properties (P) Ltd, and one of the long-time residents of Chennai.

Loss and gain

Reminiscing about the replacement of several old landmarks due to the inevitable urbanisation, Dr Kumar, who is also the Chairman of Confederation of Real Estate Developers' Associations of India (CREDAI), Chennai, said, “We have lost very many buildings which were once the landmarks of the city to the rapid real estate and infrastructure developments. Popular yesteryears’ theatres like Saffire (1964 -1990), Gaiety (1914-2003), Wellington (1918 -2010),

Kamadhenu (1920- 2008), Nagesh, Chitra etc have been replaced with multi-storey shopping complex-cum-office structures. Hotels Oceanic, Aun, Dasaprakash and Ram Bhavan are no more now.  Breez and JW Marriott too are getting replaced with residential and commercial high-rises. But I feel that unless the buildings are architecturally important, we don’t need to worry about their non-existence anymore. Buildings, which are 30-40 years old, have to be redeveloped.”

Agreeing to Kumar, Sanjay Chugh, Head–Residential Services–Chennai, Jones Lang LaSalle (JLL) India, says, “Redevelopment has indeed changed Chennai’s landscape considerably. Egmore was the first to experience the trend in 1970s. Even today, several bungalows and independent houses are getting redeveloped to multi-storey and commercial complexes.  The trend has spread to other areas as well.”

But there are a few landmarks which withstood the time such as LIC building, which was once the tallest tower in Chennai, Fort St. George, Amir Mahal, SBI building, Chennai Central and Egmore Railway Stations, Bharat Insurance building, Chepauk Palace, Ripon building, Presidency College, Parrys Building, Theosophical Society, Madras High Court, General Post Office, Anna University, Higginbotham's, Victoria Public Hall, etc.

Madras vs Chennai

Comparing old Chennai with the modern metro city, old timers feel that in those days, the quality of life was better though they did not have technology at their disposal. The infrastructure set up available was enough to meet their civic and sociological needs.

N Nandakumar

“Though we didn’t have much motors on roads in 60s or 80s, the city landscape was filled with full of greenery and hence the air was fresh. We had sweet ground water. Though we didn’t have adequate transport connectivity, visiting far-off places was never a burden for residents. But today, even people have swanky cars, visiting a place just few kilometers away has become an arduous task. The city has grown exponentially, no doubt, but sans basic infrastructure. Hence the quality of life has gone substandard. We depend on obsolete infrastructure and sanitary system. Chennai still has open drainage at several places, which is appalling. We have acute water and power shortage. In short, the city is yet to become self-sustainable even decades after the Independence,” says N Nandakumar, President, CREDAI, Tamil Nadu.

Countering that the redevelopment of old buildings and construction of new high-rises have indeed helped to meet the city’s growing housing demand, Sanjay opines, “Such large development has narrowed the demand-supply gap. Old buildings must be redeveloped, which not only increases housing stocks, these buildings can be better planned incorporating modern facilities.” Agreeing that the increase in population density has put pressure on city infrastructure, he says, there is still room for the planners to improve the living condition of denizens.

He says, rapid transport systems like Chennai metro and mono rail would go a long way to connect far-off areas to the Central Business District (CBD). “As far as real estate in Chennai is concerned, one thing that has changed over the years is the home buyers’ conservative mind-set. Thanks to the improved connectivity, people, who once refused to think beyond Mylapore, Mambalam, T Nagar, Triplicane, Adayar, or Nungambakkam, are going beyond Ponnamallee, Kottivakkam, Kelambakkam Thiruvottiur or even Chengalpet. For instance, home buyers in those days used to give importance to location than other things like amenities and infrastructure. This has changed now. For buyers, distance is not a matter anymore.

“In those days, people even dare to think beyond Adyar River for habitation purpose. Plots on the   other side were sold for pea-nuts as no one would want to invest money there. But those who had invested in land there saw rapid development within few years. People are no more conservative as far as choosing the place for dwelling is concerned. Their outlook has changed. Even Tindivanam and Thiruvallur look nearer now,” says Kumar.

Advent of high-rises

LIC building on Anna Salai was the first skyscraper of Chennai, built in 1961. The building marked the transition from lime-and-brick construction to concrete columns. LIC remained the tallest for over 35 years before it was replaced by Hyatt Regency in Anna Salai and Arihant Majestic Towers in Koyambedu, in the mid-1990s.  TVH Ouranya Bay 1 is presently the tallest building in Chennai with 30 floors.

“People from nearby districts and states, who used to come to Chennai, never missed the opportunity to visit LIC in those days. So, when the fire broke out in July 1975 which destroyed a few levels of the building, the incident saddened everyone in the state and also made the city planners think about fool-proof fire safety methods for high-rises, says Muralidharan, a retired government teacher from Royapuram.

The CMDA building in Egmore was the second skyscraper in Chennai built in 1972. “Multi-storey buildings for residential purposes were not preferred due to non existence of demand and no private developer wanted to do a project on such a large scale. Also, buildings with sustainable features were not known to many. We built the first multi-storey ‘intelligent’ (green) building of South East Asia in Chennai at Egmore for Madras Metropolitan Development Authority (MMDA) now known as CMDA. With 12 floors, the building was made sustainability in mind. This was followed by several such buildings across the country,” says Dr Kumar, who was the Planner In-Charge of the building.

Future scenario

For Chennai, urbanization is now at its zenith, growing in all sides. Thanks to the industrialization which made the southern metropolis a major hub for automobile, IT and ITeS, Education, Engineering and allied industry and Manufacturing and Service sectors, housing needs have gone up manifold. The realty in city has no option but to grow vertically, providing homes in multi-storey and community environment. Homes are getting smaller to make affordable. “However, over the years development did not go hand-in-hand with the quality of life,” says Nandakumar, who is also the Managing Director of DevinarayanHousing and Property Developers.

The IT boom has brought in a lot of changes in terms of real estate development along OMR, ECR and GST Roads in 90s and early 2000. The rise in housing demand has produced realty hotspots along these corridors and new places were added frequently along west and north Chennai. But still, experts believe that the city planners need to do a lot of groundwork to make the city self-sustainable.

“We need to improve the basic infrastructure in Chennai to make it a developed city.  Bad roads, inadequate drainage and drinking water facility, faulty drains, frequent power outages, non-dependable public and private transport systems are some of the deterrents we need to address to make the city progressive,” Nandakumar adds.

“Chennai’s demographic picture is changing quite rapidly with multi-cultural and community living becoming the accepted norms for home seekers. The ambitious Chennai Metro Rail and Mono Rail projects will take Chennai to a new level of development in the coming years. The MRTS will bring far off places, which are now on the outskirts of the city, within the reach of Chennai’s CBD. We will see rapid reality development along the corridors of the metro and mono rail routes and this will increase the housing stocks,” adds Sanjay.

Celebrity speaks

S Ve Shekher, Actor and Playwright

“Growth without infrastructure is what I see Chennai from 60s to today. People don’t have space to park their vehicles. Roads which were once turning as ‘U’ bends have became ‘V’ bends now, thanks to encroachments. The classic example is Santhome to Thiruvanmiyur road. Subsequent governments did not bother to address this issue and the ultimate sufferers are the road users. Roads are the same today as it was a few decades back. Though we have more bridges, flyovers and subways, they failed to address the traffic congestion. Over the years, buildings have replaced the greenery and people have to fight for their basic needs.”

Chennai Corporation to bar contractors who drag projects

K Ramanathan

Chennai: Delay in completing infrastructure projects by private contractors in Chennai will become a thing of the past as the Corporation in a recent stricture made them liable for delays in completion of works and even threatened to blacklist them if the works drag on for more than three months from the scheduled date of completion.

Accordingly, the Chennai Corporation has included a separate clause in the tender for any future projects.  “The civic body has made provisions in the tender that a contractor who delays work for more than three months will be blacklisted and will not be given any further contracts,” Chennai Mayor Saidai S Duraisamy announced.

Welcoming the move, property consultants, builders and residents opined that such move will strengthen the infrastructure status of the city. A few also pointed out the importance of maintaining quality in civic works being carried out in many parts of the city.

“The planning of storm water drains should be streamlined as in many areas residents let sewage into these drains. The quality of blue metal toppings on roads is another source of concern. We can’t lay a road every year as it will, not only put pressure on state’s exchequer, but also increase the height of the roads and make houses on both sides vulnerable to water logging. Milling is not being followed to relay roads. We have to improve the drainage facility also keeping in mind the needs of the residents. Officials should regularly inspect the project sites to ascertain the quality of construction by private contractors,” said Mohan Ram, a property consultant and retired civil engineer from CMDA.

At a recent Council meeting convened by the Chennai Corporation, the Mayor told the members that many contractors were delaying road works. “Delays of seven to eight months have been reported in several areas. Henceforth, contractors will only get three months more to complete their designated road works. The defaulters will be penalized for the delay,” he averred.

As a warning to other habitual defaulters, the civic body has blacklisted a contractor who failed to complete work on storm water drains connecting Chetpet Lake and Cooum River. The delay was for more than two years which has affected the monsoon preparedness of the city.

As on February 2014, the Corporation had issued work orders for 5,146 bituminous roads costing Rs 748.66 crore and 794 cement concrete roads worth Rs 116.90 crore.

However, in a setback to city’s infrastructure plans, Tamil Nadu Power Finance and Infrastructure Development Corporation (TUFIDCO), the agency that provides funds for civic works across the city, has decided to release only half of the funds needed for the road projects.  

According to sources, the agency would only release Rs 432.78 crore for projects. Official sources said that lack of funds has forced the civic body to drop a few road work plans. But, a Corporation official requesting anonymity said they would use the funds from Chennai mega city development mission to complete all road projects.

REITs bring new hope for realty sector

K Ramanathan

Is it a new dawn for the real estate sector in India? The struggling construction industry and its offshoot realty sector have got a new reprieve recently when the country’s top market regulator Securities and Exchange Board of India (SEBI), ending a seven-year-long hiatus, approved the rules and regulations to be followed for RealEstate Investment Trusts (REITs). Infrastructure Investment Trusts were also included by SEBI.

Once the REITs become a reality, investors can buy small virtual units of the commercial establishments and part their profits. Though approval has been granted to only for commercial real estate, where the income generation is likely to be more, real estate experts and builders suggest that such option should be available for residential side too.

With over 300 million sq ft of prime commercial space being available across India, the real estate sector would look for a whooping $6-7 billon inflow of funds in the next two to three years, feel realty pundits.

If all goes well with REITs, India will have more commercial complexes and malls across the nation, with tier II and tier III cities too vying for spaces to have their own multi-storey commercial complexes or multiplexes.

Will REITs really make a paradigm shift in the otherwise lackluster real estate market in India? What are the benefits and precautions to be followed to safeguard medium to small investors and also the taxation policy? We asked a few real estate experts and leading builders their opinion on the viability of such trusts in India.

What are REITs?

Realestate investment trusts (REITs) allow individuals to invest in income-generating real estate assets. These may include shopping malls, office buildings, multiplexes, mixed-use developments, self-storage facilities, hotels, resorts and warehouses. Unlike other real estate companies, REITs do not develop real estate properties to resell them. Instead, REITs buy and develop properties primarily to operate them as part of its own investment portfolio.

So, how does it work?  REITs provide a way for individual investors to earn a share of the income produced through commercial real estate ownership – without actually having to go out and buy a property. For example, if one wants to construct a mega commercial complex or mall, he or she can float a trust on its name and get it listed on leading stock exchanges subject to fulfillment of certain pre-requisite conditions laid down by SEBI and finance ministry.

If the cost of construction comes to about Rs 2000 crores, then the REIT would, through Initial Public Offer (IPO) call for investors to invest in the project with each one of them being offered minimum of one unit whose basic cost would be decided by SEBI. Once the construction of commercial complex is completed and let out to tenants or occupants, the income generated will be shared among shareholders by way of dividends.  The rule states that REITs should distribute not less than 90 per cent of their net distributable cash flows to investors at least once in every six months to benefit the tax pass through.

For making an IPO, the value of assets owned or proposed to be owned by REITs should be worth at least Rs 500 crore. The minimum issue size for the initial offer has been fixed at Rs 250 crore. The minimum subscription size for the units of REITs will be Rs 2 lakh.

A welcome trend

Anuj Puri

Commenting on the approval of rules by SEBI for REITs in India, Anuj Puri, Chairman and Country Head, JLL India, said, “With the stamp of approval, REITs are finally a formalized concept in India. This is a big change from the uncertainty and ambiguity that prevailed about this very important instrument for the last few years. It is gratifying to note that SEBI fully intends to deliver on its assurances of bringing better and faster funding into Indian real estate.”

Pressing for more clarity on taxation eligibility norms before the first listing, he said this would increase the interest of foreign investors.

Currently, Grade A office space across major Indian cities amounts to about 376 million square feet, and approximately 50% of this space would likely to get listed in the next 2–3 years. The valuation of these assets is around $10-12 billion, and this accounts for a fairly massive influx of funding waiting in the wings to hit the Indian real estate market via REITs, says Puri.

Industry experts welcomed the rules formulated by SEBI, saying that realty and infrastructure trusts will provide a new source of funding for investors and developers in infrastructure projects.

Calling it as a good step that will bring in organised funding and transparency to the sector, T Chitty Babu, Executive Committee Member, CREDAI and Chairman & CEO of Akshaya Pvt Ltd, however, 

wants the current proposal to have REITs for commercial sector should be extended to the residential sector too. “But the point is that we had to make a beginning somewhere and this is a good way to set the ball rolling. As with every new initiative, this will also go through the learning curve to refine the policy, regulation and implementation processes as we go along.”

T Chitty Babu

“To the developer it means that he can plan large integrated, commercially viable projects that can attract quality funds. Though in the initial phase we expect only a few large developers to launch REIT’s, three years down the line, more quality assets will be created. Also, the government’s commitment to boost manufacturing sector and also to create100 smart cities will make REITs playing a big role to achieve these target,” Chitty Babu said.

The Associated Chamber of Commerce and Industry of India (ASSOCHAM) too welcomed the introduction of Real Estate Investment Trust (REIT's) which would eliminate the double taxation of built assets with an established rental yield.

“REITs have the potential to attract $15bn to $20bn to finance established assets, which will free up capital for new developments”, said D S Rawat, Secretary General ASSOCHAM, adding, “REITs are important sources of funding across world and there is potential of raising about US$15 billion through this”.

He also emphasized the importance of having clarity over taxation such as stamp duty, VAT etc before the first listing. Suggesting that the ratio of completed property and under construction needs to be modified from 90:10 to 70:30, he said if any project which is about to complete within a year of floating REITs and income generation starts within 12 months should be included.

Under the rules, at least 80% of the value of REIT's assets must be in properties that are completed and generating revenue. A REIT can invest only 10% of the value of its assets in properties that are under construction. It can also invest a small portion in other securities like mortgage-backed securities and money market funds.

Benefits and risks of REITs

Though they are new to Indian investors, REITs are prevalent in USA since 1960, and now successfully functioning in about 20 countries including Australia, UK, France, Singapore, Japan, to name a few.

D S Rawat

It has its own advantages and disadvantages. Apart from providing investment portfolio and offering high dividend compared to other investment options, there are some risks, especially with non-exchange traded REITs.

Though SEBI has set the guidelines on how REIT should be regulated, it is too early to predict its success. As we go along, there will be clarity on many issues like taxation, property valuation, listing price, etc. We need to go through the learning curve, and since RIET is being allowed in commercial sector and that too only for large sized assets, we will see an initial spurt and with that the policy and regulation will get refined and fine-tuned. One can expect the flow of funds at around $10 billion every year for commercial space. Considering the fact that this is only from commercial space, one can understand the potential of REITs when it is introduced to residential and retail sectors, says Chitty Babu.  

Also, most REITs will focus on particular types of commercial development, such as apartments or office buildings. This concentration leaves them vulnerable to a downturn in this particular section of real estate.  Investors should also examine where the REITs projects are located. A high concentration of development in one community or geographic region may leave it vulnerable to a downturn or saturation in that area’s economy.   

Realty experts suggest that one should invest in more than one REIT (from different geographic locations) and choose absolutely different real estate sectors.

Hoping that RIETs will be more of custodians and value creators for investors, ChittyBabu said, “Realty did have any investment option to small retail investors with surplus funds. They had an option to buy residential property for investment purposes and sell it once their capital investments go up to certain percentage. REIT will be able to channelise all these retail investors who were avoiding the realty sector due to lack of a regulatory norms and clarity. One can invest in REIT with as minimum as Rs 2 lakh. The model works well for investors who will earn from long term lease/rentals and as aggregators of quality realty stock, REIT holders will be able to offer better returns as they won’t have tax binding on them if they give out 90 per cent of the earnings as dividends to investors.”

Air India to be the first REIT

In a move that could give the company significant tax breaks and also improve its finances, ailing state-owned airliner Air India is planning to convert its non-core real estate assets into a Real Estate Investment Trust (REIT) and list it on the stock exchanges. Air India has about 800 properties at prime locations across the world, which include several acres of land, office buildings, sports stadiums and residential colonies. Its Mumbai headquarters on the high street of Marine Drive alone is estimated to be worth about Rs.2,250 crore. “If it works out, we will hold 51% in the REIT; the properties will remain ours but be leased out at the best prices,” an Air India executive, who did not want to be named, said.

Pride Group launches ‘Pride World City’ at Charholi in Pune

Pune: Leading real estate developer Pride Group today launched mega city township ‘Pride World City (PWC)’ at Charholi, near Lohegaon airport, Pune. The world-class integrated township is being developed on a sprawling 400 acres land at one of the most promising real estate locations in the city, the company said in a release.

Being developed with investments of Rs. 6,000 crore in construction and an additional Rs. 500 crore in infrastructure, PWC falls within the jurisdiction of the PCMC, the most progressive municipal corporation in Maharashtra, and will be the largest real estate development in the region to date.

Apart from its proximity to Pune Airport, this mega city also benefits from its location along the proposed Ring Road, which abuts the north area of the project.

Arvind Jain

“This project is being created against a backdrop of picturesque mountains and valleys and bracing greenery,” says Arvind Jain, Managing Director, Pride Group, adding, “The view is further enhanced by this township’s multiple water collection ponds and an unbroken vista of open skies. At Pride World City, we have created the ultimate integrated township with cutting-edge independent infrastructure and ultra-modern facilities and amenities in the midst of an unpolluted environment. In fact, it was Charholi’s unmatched environmental attributes that prompted us to create Pride World City here.”

Pride World City’s nature-inspired integrated master plan is divided into 14 Sectors offering a wide range of residential homes and commercial properties. The project includes an IT Park and offers IT as well as non-IT office spaces to provide a self-sufficient economic dynamo as well as the ultimate walk-to-work lifestyle. In addition, Pride World City will include best-in-class social Infrastructure via modern retail, leisure, sports facilities, schools, hospitals and spiritual spaces.

The world-famous D Y Patil Knowledge City is located right besides PWC; with the addition of more educational institutes, PWC is all set to become the definitive education hub of Pune. 

PWC encompasses 25 million square feet of built-up area. 20 million square feet have been allotted to residential property developments consisting of 20,000 units.

The residential offerings include 1-4 BHK ultra-modern apartments in towers ranging from 12-30 storeys, as well as lavish Marina-facing bungalows. The balance five million square feet will account for commercial spaces that will include a Business and Tech Park, a mall and multiplex, a 5 star hotel and IT SEZ, among others. PWC’s first phase will be ready for possession in two years’ time. Simultaneously, two phases will be constructed every year, and the project is scheduled for completion within 12-15 years.

“PWC will generate employment for 15,000 people per year and will house 1.5 lakh people, of whom 80,000 will be residents while 70,000 will be working professionals”, explains Arvind Jain. The current sale price is Rs. 4,500/sq.ft. and is expected to rise to Rs. 10,000 per sq.ft. over the duration of the project, the company claimed.

PWC’s Features At A Glance

·   Multi-specialty hospital and diagnostic centers

·   Smart city infrastructure and solutions

·   Wi-Fi hotspots across the city

·   Convenience shopping Bus terminus

·   Child daycare, play school & Higher secondary school

·   Master Club

·   5 star hotel

·   Business & Tech Park

·   IT SEZ

·   Playgrounds

·   Cycle track around the city

·   Waterfront restaurants

·   ATMs

·   Fuel station

·   Fire station, police station and post office

·   Bank

·   Mall, multiplex & departmental stores

·   Meditation pavilion

·   Amphitheatres

·   Cultural and Performing Arts Centre

·   Waterfront restaurants

 “Today’s home buyers are more aware and discerning than ever before. They expect more from their homes than just four walls - they want a lifestyle driven by world-class infrastructure, classy ambience and a convenient location. Pride World City meets the aspirations of customers with a global mindset, offering a quality life that sets the highest benchmark for Pune so far. Charholi is going to become the most happening location in the city," adds Arvind.

Not In My Backyard - NIMBYism In Indian Real Estate

Kishor Pate

NIMBY is not a term we often hear in India, though it is quite a popular word (and a dynamic concept) in the West. That said, NIMBY - an acronym for 'Not In My Back Yard - is definitely an unspoken mind-set when it comes to residential real estate in India.

Basically, 'Nimbys' are residents of a locality of project who are opposed to the implementation of a certain initiative by the Government, industries or private developers in their neighbourhood. Classic examples in the Indian context are flyovers, chemical factories, power plants and in fact any kind of development that could conceivably obstruct the view, disrupt the peace or pollute the air.

 

‘Nimbyism’ does exist in the Indian real estate space, but the choices of opponents to certain developments within their neighbourhoods is generally quite restricted. The Indian real estate space is still largely unorganized, and problems such as encroachment, unauthorized structures and lack of scientific town planning are still the order of the day in most of our cities.

 

The concepts of regulated real estate development and macro-level town planning are beginning to take hold and are, in fact, already operational in cities like Chandigarh, Navi Mumbai and even in Pune. While this evolution is happening against a large backdrop of damage that already been done and is difficult to undo, this does not mean that 'Nimbyism' is a futile and impotent concept in India.

 

In Indian residential real estate, middle-class housing societies – administrative bodies comprised of residents within a registered housing complex – have the right to refuse unscheduled construction within the complex premises. That said, they have little or no control over what happens beyond the compound walls. In cities like Mumbai and Delhi, upscale housing complexes continue to co-exist cheek-to-jowl with slums and slapdash tenements. This is more or less accepted as a reality of life, since slums are often under the political protection.

 

The ultra-luxury segment presents a rather different picture. Indian cities do have their elite pockets, such as Lutyens Zone in Delhi, Nariman Point in Mumbai, Sahakar Nagar in Pune, Jubilee Hills in Hyderabad, and so on. In these areas, residents have a stronger voice over what happens in their immediate neighbourhoods – and they do raise them. This level of influence derives from a combination of factors - including the financial clout of the residents, the fact that the zones themselves are under the purview of stricter-than-usual zoning guidelines.

 

As such, Nimbyism is definitely not a negative concept - in fact, cities like Pune need a larger dose of it. Residents should have a say in what happens in their neighbourhoods. This is especially true if the developments they are opposing are taking place outside of the existing zoning laws and are serious threats to the health, harmony and safety. What is needed is more exacting city planning, which should ideally be part of the overall development plan for the city. Likewise, developers also have a responsibility towards ensuring the sanctity of the residential projects they create.

Article by Kishor Pate, CMD - Amit Enterprises Housing Ltd.

 

About The Author:

 

Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Limited, is the driving force behind one of the country's most successful real estate development firms in Pune and beyond. AEHL's many projects in Pune include its signature luxury homes towers and premium gated townships in Sahakarnagar and Ambegaon