Townsend Group Invests in KKR's Real Estate Lending Platform in India

The Townsend Group, a leading provider of global investment management solutions focused on real estate and real assets, has announced an investment in a KKR-sponsored and managed, Non-Bank Finance Company (NBFC) in India.  

This real estate sector focused NBFC, which includes Singapore's sovereign wealth fund GIC as a lead investor, provides credit solutions for property developers, filling the capital gap and contributing to the continued development of India's residential and commercial real estate sectors.

Townsend believes this to be a unique investment opportunity, within select emerging markets, that seeks to benefit from the lack of long-term capital and strong urbanization trends.  The NBFC will engage in senior-secured lending to the fast growing Indian real estate market.

Prashant Tewari, Principal of The Townsend Group, said, "Townsend is excited to invest alongside GIC in the KKR managed real estate lending platform.  The strong secular demand for middle market housing requires innovative credit solutions and long-term capital.  The KKR NBFC platform provides our clients a thoughtful framework to execute in India and a strong investment partner with specialized, local market and property expertise."

Sanjay Nayar, CEO of KKR India  said, "In addition to GIC, we are pleased to have Townsend investors joining the shareholder group of our real estate NBFC in India.  This additional long term capital allows the real estate NBFC to better fulfill a critical market need by assisting developers with solutions best suited to their needs.   KKR continues the strategic build out of its real estate financing platform, leveraging its local and global real estate expertise in structuring and underwriting real estate solutions."

Townsend Group

The Townsend Group is a leading provider of global investment management solutions focused on real estate, infrastructure, timber and agriculture. With a culture based upon service and success measured by investment performance, Townsend's clients include many of the world's leading institutional investors. As of December 31, 2014, Townsend had assets under management of approximately $12.5 billion and provided advisory services to clients who had real estate/real asset allocations exceeding $170.0 billion.

Maha's New Retail Trade Policy: A Boon To Retailers

Ashutosh Limaye

Considering retail to be an essential amenity, the Maharashtra state government recently shared the draft of a new retail trade policy. To help retailers achieve optimal potential, the state government has suggested making some exceptions and relaxations in the current regulatory framework. Among the key suggestions is the introduction of retail entertainment zones (REZs).

Why REZs Are Needed

The development control regulations (DCR) shall reserve spaces for retail and entertainment on the same lines as reservations for essential services and restaurants, in order to make retail more affordable. Currently, the urban policy does not clearly reserve spaces for shopping and recreational needs of citizens, so shops tend to be set up in a haphazard manner. More importantly, shops compete for spaces in commercial locations, which are extremely expensive and untenable for the retail industry.

Creating a zone for retail and recreation will help increase consumption and simultaneously raise the standard of well-being of citizens. With this new policy, the state government will aim to recognise the need for shopping and recreational areas to create a much-needed balance between residential, commercial, industrial, shopping and recreational areas in urban places.

Accordingly, efforts will be made to:

• Provide retail areas with direct access to mass public transport systems,
• Secure a traffic plan designed for the long term,
• Ensure year-round electricity, water, gas, sewage and IT connections.

REZs will be large retail developments where many big-box and other retailers will come together and give families an opportunity to spend an entire day out. The state government will consider such a ‘retail park’ concept under its master plans to give the advantage of choice to consumers, increase competition (which will help reduce prices for consumers) and also reduce vehicular usage by eliminating the need to travel to different parts of the city merely to compare retailers.

These retail parks would preferably be adjacent to highways and have an integrated public transport system. This will support connectivity, ease traffic in and around the city, provide customer convenience and result in cleaner cities.

Retail Zones To Figure In Regional / Town Planning

City master plans shall reserve land for retail development on the lines of Delhi, where they have been able to create specific centres in South and West Delhi for retail.

Benefits

1. Large malls of international standards require larger land parcels. Earmarked spaces in master plans will help them maintain high standards of development
2. The earmarked spaces for retail / entertainment development would also rationalise land prices
3. Infrastructure like roads, public transportation and power will be planned in advance.

Development Control Regulations

Requirements for retail and other businesses are different, and there is a need to incorporate such specific business needs. The following modifications will be done to enhance viability and quality of development for retail centres:

• Higher ground coverage: Malls house various retail components across floors but customer movement reduces on the higher levels, making them less productive. Retail development shall be allowed higher ground coverage up to 70% (subject to setback and fire safety regulations as also FSI norms being followed).

• Recreation ground: In a retail environment, organised players offer various types of recreational facilities and activities on a commercial basis. Such activities, within the applicable norms, should be allowed to set up in a ‘recreation ground’.

• Floor to floor heights: Retail developments, being public spaces, get crowded. The availability of higher floor-to-floor height allows the common areas and shops to look spacious and provide a relaxed and comfortable shopping environment to customers. The floor-to-floor height limit shall be raised to 5.5 meters, as is allowed in several other states.

• Parking norms: Malls, depending on their sizes and locations, receive a large number of vehicles. Limited parking space not only reduces the number of people visiting malls but also creates traffic hassles in and around them, leading to public inconvenience. The parking rules, which currently consider parking in excess of regulation as FSI, will be changed to allow larger numbers of car parks – without FSI implications.

• Services: Unlike office spaces, retail spaces need more services due to movement of goods and customers throughout the day. Retailers need to replenish their stocks in the store to service customers’ needs, and thus require higher storage space in a mall. Moreover, to cater to large numbers of customers and to provide ease and comfort of movement, high capacity air-conditioning, escalators and lifts are required. 15% of development will be allowed as services including storage areas in the basements, etc.

• Changes: Space requirements of retailers and demographic profiles of customers both keep changing. Changes in use of spaces – for example, from fashion retailing to restaurants to entertainment or vice versa, are frequently seen. To address these needs, spaces for retail and other uses will be allowed to amalgamate, divide or interchange with simplified approval processes.

• Building height: Currently, there is a height restriction of 30 meters for buildings that house a multiplex or auditorium. Retail developments generally do not work at higher levels. Therefore, to use the entire eligible FSI of the land, alternate commercial use like hotels, service apartments, offices, etc. are required to be developed on upper floors. Restrictions on building heights will be relaxed as done in neighbouring states.

• Additional FSI for retail zones: To enhance the viability and quality of development for retail centres, up to 50% additional floor space index (FSI) will be admissible over and above the base FSI subject to payment of full applicable premium, as per the prevailing ready reckoner rates.

By Ashutosh Limaye, National Director – Research, JLL India

SolarTown Installs Solar PV Rooftop Systems at RBL Bank Branches in Chennai

CHENNAI: SolarTown Energy Solutions, a pioneer in installation of solar rooftop systems for residential, commercial and industrial customers in India, has installed solar rooftop systems at an initial ten branches of RBL Bank. 

RBL Bank, formerly The Ratnakar Bank Limited, is estimated to save Rs 146,000 annually by opting for solar PV rooftop systems at ten of its sites in Chennai. Each branch will feature a minimum 3 kW system which will offset a major part of the business’ energy consumption and more than 70 tonnes of carbon dioxide over the lifetime of the solar installation.

“It’s a privilege to provide our solar PV systems to one of the fastest growing commercial banks in India,” said Vikram Dileepan, founder and CEO of SolarTown, who further added, “It gives us immense satisfaction to know RBL Bank will generate clean power and also save on electricity costs.”

RBL Bank entered into a no upfront costs, 10-year lease agreement with SolarTown. The installations will enable an uninterrupted supply of clean power at a fixed cost over the length of the lease, which also includes maintenance services. SolarTown installed the rooftop solar power systems including inverters and batteries, as a backup for brownouts.

SolarTown is one of the first to offer a zero-down lease and unique purchase options for residential and commercial customers in the 1 kW to 300 kW size in India, ideal for homes and small commercial buildings with monthly usage between 400 kWh and 40,000 kWh. 

SolarTown’s solar PV rooftop systems completely eliminate the dependence on diesel-based generators, the hassle of maintaining the systems, and pollution derived from burning diesel fuels. The fixed monthly lease option, lower than DISCOM rates, shields the customer against increasing electricity and diesel prices. SolarTown’s lease option makes solar PV systems highly accessible and empowers customers to take control of their power generation without straining their bottom line.

E-commerce Boom May Spell a Doom for Malls in India

In the wake of unprecedented surge in e-commerce, shopping malls already under huge pressure due to large vacant spaces are expected to see a sharp decline in the footfalls, could be to the extent of 55.58 per cent, during the ongoing festive season this year, reveals an ASSOCHAM recent survey.

According to the survey, Delhi-NCR has recorded the highest decline in footfalls at city malls. As per the study, about 120-150 malls were launched in the past two years but close to 65-70% of the spaces in many of the malls still remain empty. Several malls, unable to attract the shops are even shutting down.

The major factors attributed to this situation are economic slowdown, online shopping, high interest rate and inflation of consumer good items, the steep drop in shoppers have hit the malls which are already suffering from large vacant spaces, said ASSOCHAM paper.

ASSOCHAM Research team interacted with about 720 leasing managers, representatives of malls’ management, strategist, marketers and supervisors in Delhi-NCR, Mumbai, Ahemdabad, Chennai, Kolkata, Hyderabad, Bangalore, Chandigarh and Dehradun. 

In the nine major cities, more than 59 percent of the total mall space remains vacant, with Delhi-NCR top the list with 68.5 percent, followed by Mumbai at 65 percent, Ahmedabad at 61 percent and Chennai at 60 percent. According to the survey, several developers have already started giving rent-free period of up to six months for big brands to lure retailers.

While some malls are operating at 40 percent occupancy, others struggle with less than 20 percent, mainly due to poor location, poor design and poor parking facilities, the survey found.

Both retailers and consultants seem convinced that the mall magic seems to have disappeared in a puff of smoke on the back of the economic slowdown, poor revenue model, low footfalls-to-sales conversion and lack of special purpose malls, adds the survey.

For some malls, even the design and construction quality is poor. The remaining malls lie somewhere in between good performing and bad performing malls– average performers, adds the survey.

A meager 8-10% of these shopping malls are running successfully in India and facing tough competition from online retailers such as Flipkart, Amazon, Jabong, Snapdeal, which hand-delivers goods to the front door for minimal cost.

The festival season this year has triggered a huge rise in online shopping and may cross the Rs. 55,000-crore mark, resulting in the halving of footfalls in malls in places like Delhi, Mumbai, Chennai, Ahmedabad etc. apex industry body ASSOCHAM.

The study reveals that there may be a five-fold increase in the revenue clocked in by the eCommerce websites in categories such as include mobile phones, electronics, designer furniture, home decorations, apparel, accessories, jewellery, footwear etc.

The most popular among the e-commerce websites - Snapdeal, Myntra, Flipkart, Amazon, Jabong etc have been doling out massive price cuts or discounts on purchase of popular brands of apparels, footwear, electronic goods, coinciding with the upcoming festive month.

The growing trend is being attributed to the fact that all reputed Indian and international brands have tied-up with these websites and are being offered to the consumers at a much lower price than their retail prices.

What are the 5 common types of roommate problems?

Guest Post by Avantika Laxman

There are very few lucky individuals who get to share houses for rent in Bangalore with their friends. In fact there are some that find good roommates who eventually become friends for lifetime. But majority of the times we hear about the problems faced while sharing an apartment with a stranger or a bad roommate.

Housing price has gone high

Since the price rates of the housing property has gone so high in the past few years that it is becoming a compulsion for the young employees as well as the students to share their expenses with a flat mate. But unfortunately there are many who are struggling with roommate problems each and every day. Let us get into the brief of some of the common types of such issues.

What are the 5 common issues?

1.      Variable sleeping schedule

Often it is found that two individuals sharing the same flat or house have different sleeping schedules. This often leads to problems and arguments among the roommates. If one is an early riser and the other a late sleeper, there is bound to be differences in their way of living. This is a very small issue that can be dealt with easily if both the individuals respect each other’s life styles. But arguments and quarrels pop up.

2.      He or she makes use of your things without your permission

It is absolutely not advisable to use things of your roommates without his/her permission. Such an act will definitely bring up arguments and quarrels and might get ugly as well. Don’t you think it is always better for asking permission before you use the items belonged to your roommate? Why to bring up problems when there is a way to avoid it?

3.      Poor personal hygiene maintenance

A roommate with poor personal hygiene is perhaps one of the unfortunate things that can happen to anyone. It is true that sharing the apartment becomes a challenging and a tough job. On one hand you don’t want to offend him/her and at the same time it becomes impossible for you stay with your roommate in an unhygienic environment. How about gifting her basket of shower gels and also bringing up a casual conversation regarding the stale odor of the room?

4.      Your roommate is too noisy

When your roommate hears the music loudly, watches television on loud volume levels or talking over the phone at high pitch, it can create problems for you. You will be disturbed while studying, reading or sleeping or even if engaged in a very important work that needs you to focus. Don’t get into fights for it but ask your flat mate to be less noisy in a soft tone.

5.      Too frequent visitors

Often you find that your roommate is bringing over her/his group of friends or boyfriend/girlfriend. This can be even more challenging if they are visiting at odd hours of the day and night. You can have a conversation with your flat mate regarding it and say him/her clearly about your discomfort about the frequent visitors.

By being polite, you can sort out many issues without spoiling the situation. If nothing works, it’s better for you to look for alternate house with understanding roommate/s.

Hiranandani Group Unveils One Hiranandani Park in Thane

Niranjan Hiranandani and Surendra Hiranandani

Hiranandani Group, a leading Mumbai-based real estate developer, unveils its luxurious private apartment’s project, “One Hiranandani Park”. 

Located in the heart of Thane’s Ghodbunder Road, with the picturesque backdrop of the Yeoor Hills and an overlooking river view, the project redefines majestic luxury living.

“One Hiranandani Park” (OHP) is a super-premium-luxury segment residential development, and ‘Palatial Living’  would be an apt description for this exclusive project, which boasts global standards and offers 1,2, 3 and 4 BHK premium-luxury apartments.

The splendid launch of OHP has caught the eye of discerning buyers looking for the latest in high-end living, in one of the most desirable cities in the neighbourhood of Mumbai, THANE, a company release said.

Niranjan Hiranandani, CMD, Hiranandani Group endorses the overwhelming response to the grand launch of OHP, a project comprising 8 high-rise spacious living towers. 

“The project offers huge, open green spaces situated on exclusive space of 21 acres. It reflects discerning home seekers’ desire for the most stylish and well-appointed residences on Ghodbunder Road. The admirably styled interiors will take premium living to a whole new level. We have seen high interest levels from both, international clientele and existing customers, who recognize the intrinsic value of a limited edition collection of elite homes,” Niranjan Hiranandani adds.

For the global citizen, used to plush locales the world-over, OHP offers the same exacting international standards. Premium super luxury home seekers can choose ‘Palatial Living’ ranging from 1 BHK, 2 BHK, 3 BHK and 4 BHK apartments. OHP is strategically located on Ghodbunder Road, Thane. Possession of the first phase is expected around 2019. “One Hiranandani Park is all set to enhance Thane’s status as high-end real estate destination,” says Niranjan Hiranandani.

One Hiranandani Park, Thane is being developed in the scenic background of hills which augments calmness, serenity and quietude in living. The ‘Palatial Living’ at One Hiranandani Park, Thane will be well ventilated and the apartments are designed to let in natural light, while ensuring privacy. The project’s architecture has been designed to offer an opulent, lavish and global lifestyle. It also offers excellent infrastructure connectivity across Mumbai city and the peripheral areas. Within Thane, it has linkages with the City Centre as also the commercial and IT hubs.

One Hiranandani Park, Thane as an apt example of palatial living, offers contemporary facilities including a luxurious podium clubhouse, nestled in lavish, landscaped gardens, a swimming pool, gym, indoor games & kids play area, magnificent entrance lobbies; lush, green lawns and open spaces that provide a view of the Yeoor Hills – these will all be the highpoints of the project. Eco-friendly and sustainable initiatives, like rainwater harvesting and STP have been incorporated into the design to make the project eco-friendly.

“One Hiranandani Park offers lavish, yet thoughtfully designed residences. We are happy to formally launch bookings at One Hiranandani Park, Thane, our latest high-end, super-premium, project which will redefine Thane’s status as a high-end, premium luxury home destination,” said Niranjan Hiranandani. “From Hiranandani Gardens, Powai and Hiranandani Meadows as also Hiranandani Estate in Thane, we have built landmark projects which have redefined the location’s potential and made it a real estate ‘hot-spot’. In the Mumbai Metropolitan Region (MMR), Thane is among the important locations for our growth milestones. We look forward to delivering an outstanding project, offering Palaces in the Sky to discerning home seekers at One Hiranandani Park, Thane,” concludes Surendra Hiranandani, Founder & Director- Hiranandani Constructions Pvt Ltd.

Navin Raheja Bags Green Man Award

‘The Rise and Fall of Ustad’, a short film on tiger reserves produced by Navin M. Raheja, chairman of Raheja Developers, has bagged  “Justice BP Banarjee Green Man Award” at the prestigious Kolkata International Wildlife & Environment Film Festival, which held here recently.

The coveted trophy was given by the festival Chairman Sri Soumitra Chattopadhay, a noted actor, a release said. The film festival committee has lined up a series of awards to be given on various categories.

Navin M Raheja, the CMD of Raheja Developers is known for his philanthropies for the tiger reserves and he is known as a successful wildlife enthusiast. The film is about a Photogenic Ranthambore tiger ‘Ustad’ who has 4 deaths to his credit.

Apart from his passion of wildlife, Raheja is known for his philanthropies for poor and less fortunate. He successfully steered 2800 families and rehabilitated them to better living. Raheja group has changed the life of 20,000 people by providing them better sanitation facilities. The award function was attended by Governor of West Bengal Keshari Nath Tripathi.