Connect with us

Real Estate News

India Ratings Sees A Worrying Sign For Evergreen Commercial Real Estate

Published

on

When the pandemic hit the Indian coast last year, stalling economic activity and prompting work from home, it posed a threat to an evergreen market – commercial real estate. These fears have come true.

According to India Ratings and Research Ltd. the occupancy rate of a large real estate investment trust with a focus on office properties fell to 86.8% in the quarter to March from 92.2% in the previous year. The figures do not take into account the effects of the acquisitions.

At another listed REIT, it fell from 87.1% in September to 81.8% in March. For other such trusts and commercial real estate companies, occupancy has declined about half a percentage point over the past four quarters.

India’s commercial real estate flourished before the pandemic, even if the apartments suffered from an overnight cash ban, tough real estate regulation bill and a credit crunch. Investors are counting on the demand for office space, which is being driven by IT companies, start-ups and data centers. However, the slow-down corner could not escape the disruption of the pandemic. And the decline in occupancy came even before a devastating second wave of the virus.

The trend is sending “worrying signals” for the commercial property market, India Ratings said, reiterating its negative outlook on providers of office space under construction.

In terms of portfolio size, Embassy Office Parks REIT is India’s largest, followed by Mindspace Business Parks and Brookfields Trusts. Of course, India Ratings did not identify any REITs or companies in its report.

BloombergQuint awaits responses to inquiries by email to Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield REIT, DLF Ltd., Oberoi Realty Ltd., Brigade Enterprises Ltd., Phoenix Mills and Macrotech Developers Ltd.

Private office providers rated by India Ratings have generally shown deterioration in occupancy and new leases, the report said.

  • A Hyderabad-based developer building 8.12 lakh square feet (developer’s portion) of office space sales decreased to 9,500 square feet in FY21. That compares to 1.43 lakh sqft in FY20.

  • An office space provider based in Navi Mumbai with 2.08 million sq. Feet of lettable space recorded a decrease in occupancy to 86% in FY21 from almost 100% in FY20.

  • Another project developer based in Hyderabad, who completed 1.25 million sq. Feet of office space a few years ago, recorded stagnating occupancy of around 76% in FY21 and, contrary to the expectation of full occupancy, could not find any new tenants.

  • A Mumbai-based office space provider with 0.8 million sq. Feet of lettable office space saw occupancy decrease by around 10%, mainly because they bought additional space from a seller who decided to move to new premises.

  • The occupancy rate of a tier 1 office space provider based in Pune with 0.87 million sq. Feet of lettable space decreased in FY21 from almost 100% in FY20 to 74%, as a large IT company vacated its premises.

Remote work stroke

India Ratings listed remote working as one of the key factors affecting occupancy during the pandemic. And its effect could be lasting.

“A negative demand caused by the work-from-home culture, together with a decline in new letting activities due to a weaker economy, could easily reduce annual demand by 40% over the next few years and lead to an increase in vacancy of more than 500 basis points Levels above FY21-FY23, “it said.

Moving to remote working can enable companies to use hot desking – the same desk could be shared by many employees who come to work on different days, it said.

If 2.5% of total employees are asked to report to work on other days under this policy, it could result in a net 1.25% reduction in office space required in the country, the report said. On a basis of 635 million square feet of office space in India’s eight largest cities in FY20, that would translate into negative demand of 7.9 million square feet, it said. That is 21% of the average annual demand in FY19-FY20.

According to India Ratings, hot desking can reduce demand for several years in the short term.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Real Estate News

Crow Holdings Announces Closing of Ninth U.S. Diversified Value-Add Real Estate Fund with Approximately $2.6 Billion of Investable Capital

Published

on

DALLAS – (BUSINESS WIRE) – Crow Holdings, a leading national real estate investment and development firm, today announced the definitive closing of Crow Holdings Realty Partners IX, LP (“Fund IX” or the “Fund”). Managed by Crow Holdings Capital, Crow Holdings’ investment management company, the fund invests in value-adding real estate investments in the United States, primarily in industrial and multi-family homes and specialty sector opportunities.

Fund IX was oversubscribed with approximately $ 2.3 billion in commitments, above its original ceiling of $ 2.0 billion, and received strong support from existing investors and significant participation from new investors, including global banks and Insurance companies, pension plans, family offices and high net worth individuals. The fund has also co-invested a total of $ 265 million in equity, resulting in total investable equity of approximately $ 2.6 billion for the strategy. Fund IX marks the company’s largest fundraiser to date and is a significant increase over the $ 1.3 billion pledges raised for the previous fund.

The fund focuses on diversified value-add investment and development opportunities in multiple property types in major US markets. Today these possibilities exist mainly in industrial and multi-family houses as well as in special sectors such as prefabricated houses, comfort and gas, self-storage and student dormitories. The fund was fully launched during the Covid-19 pandemic and began investing during this challenging time as well. To date, more than 63% of the fund’s capital has been invested in 62 investments, primarily in the high-growth regions of the Southwest, Southeast and Mountains of the United States

“We appreciate the trust our investment partners have in the continued ability of our team to deliver results to them,” said Michael Levy, CEO of Crow Holdings. “This successful degree shows recognition for our company’s long-standing track record, real estate expertise and, in particular, for our early recognition of the considerable tailwind behind the demand for logistics and e-commerce, the changing population demographics and changing housing preferences as an integral part of our differentiated investment strategy . ”

“With more than 63% of the capital employed in Fund IX, we are already achieving strong investment results, including the repatriation of capital at the beginning of the fund’s life cycle through rapid realizations. This achievement is recognition of the team who have worked hard during this unprecedented and challenging time to continue fulfilling our commitment to all partners, ”said Bob McClain, CEO of Crow Holdings Capital. “We believe that our pipeline – particularly in the industrial, multi-family and specialty sectors – will continue to offer attractive opportunities to grow results throughout the life of the fund.”

Hodes Weill Securities, LLC acted as placement agent for Fund IX.

About Crow Holdings

Crow Holdings is a leading national real estate investment and development company with 70 years of operations and $ 21 billion in assets under management. With a strong track record across property types and market cycles, Crow Holdings pursues unique investment opportunities through a range of strategies and risk-return profiles, creating value for its investors, partners and communities. Operating out of 17 offices in the United States, Crow Holdings has extensive industry reach with expertise in multi-family, industrial, office and specialty sectors and has developed or acquired more than 225 million square feet. Our core principles of partnership, collaboration and reconciliation of interests remain central to Crow Holdings today. More information is available at www.crowholdings.com.

Continue Reading

Real Estate News

Black real estate developer breaks ground on new housing project in his Southcrest neighborhood

Published

on

Developer DaSean Cunningham broke ground for his first residential project in the neighborhood he grew up in. Seven new houses are to be built in Newton Gardens.

SAN DIEGO – Real estate developer DaSean Cunningham is thrilled to have broken ground for the Newton Gardens residential project in the Southcrest neighborhood where he grew up.

“Yes, we’re African-American men, but we do it. I’m good at real estate because I’ve seen someone who looks like me,” said Cunningham of Paradigm Commercial Group.

The search for a builder led to a chance meeting of Joseph Lewis with Cunningham’s mother.

“I met her at Home Depot when she asked my opinion on a color and I gave her a card and she said, ‘I think you could help my son,'” said Lewis, owner of Llewellyn Group, LLC . a real estate development company.

Lewis will oversee the entire construction of Newton Gardens at 4066 Newton Avenue.

Black property developer DaSean Cunningham from Paradigm Commercial Group is excited to break ground for a new 7-unit residential project in the neighborhood where he grew up in Southcrest #SanDiego Congrats @ CBS8 @DeskEight 🏡https: //t.co/gwfvMtrazO pic .twitter.com / 8bfQ88Oa58

– Heather HOPE (@ HopeNEWS8) September 22, 2021

“I have this equipment behind me, so tomorrow I’ll flatten this land and then we’ll dig the foundations the next day,” said Lewis.

Lewis led six other projects in the same southeastern area of ​​San Diego’s 9th Ward, and said getting from the planning stage to getting funding and construction can often be a struggle.

“I had never built a house before 2017, but I had to figure out how to make plans, how to get the money, and how to get around town because that is really a trip around town. I can’t be the only one going through this drama and then DaSean came into my life and I’m determined to get him through this project ahead of time, ”said Lewis.

The all-African American group takes to the ground while breaking barriers. The residential project plans consist of seven units including three bedroom / three bathroom villas. Cunningham invested $ 200,000 of his own money, received a $ 400,000 loan for construction, and has to pay for city fees, water and sewer permits, and school and architecture fees totaling about $ 800,000.

“The main source of wealth in the United States is real estate. He’s black like me and we need to support each other in this area as we represent 0.25% of the industry, ”said Demetre Booker Jr., managing partner for Elevate Commercial, a minority owned commercial real estate company.

Booker Jr. said Cunningham’s project stands out in a community where black real estate owners are severely underrepresented.

“This is already a success for him. The average net worth of African Americans is $ 17,000, compared with Hispanics at $ 23,000 and Caucasians at $ 170,000. The majority of affordable housing developers don’t look like they live in the communities where they help or where they do business.

Newton Gardens is just a filthy place now, but Cunningham said the project embodies a lot more.

“I love what that symbolizes. Like these African American men in San Diego who are driving developments and models for what is possible in the communities they live in, ”said Cunningham.

The Newton Gardens development is expected to be completed by autumn 2022.

Continue Reading

Real Estate News

Brad Pitt and Angelina Jolie vie for $ 164 million French real estate

Published

on

Angelina Jolie and Brad Pitt’s divorce ended in 2019, but the former couple are still fighting over luxury real estate in France, according to Fox News court records. Increase.

A complaint filed in Luxembourg on Tuesday did not allow the “Maleficent” star (46) to capture a 50% stake (57) of the 1,000 hectare, $ 164 million Chateau Miraval in Corin, France. He accuses him of trying to dump. The first option to buy them.

The huge property is owned by separate limited liability companies managed by both parties, according to court documents stating that Mirabal was owned by Kimikam-Pitt, originally 60% owned by his company Mondobongo. I owned a share. Jolly now held 40% through her company Nouvel.

“Nouvelle has been worth mentioning for four years. [Jolie’s company] Due to the systematic delay in the approval of the annual financial statements and the appointment of new executives, we have not acted in the best interests of Quimicum, ”it said in the proceedings.

Angelina Jolie says she did not divorce Brad Pitt “lightly”: “There is not much I can say.”

An aerial photo taken in Leval, southeastern France on May 31, 2008, shows Chateau Miraval, a vineyard mansion owned by Brad Pitt and Angelina Jolie.
(Michel Gangne ​​/ AFP via Getty Images)

“I understand the real purpose of Nouvel and its shareholders behind this systematic obstruction. [Jolie] The shares of Château Miraval SA were sold by circumventing Mondobongo’s first veto (as described in the Kimikam Authorization Article), which resulted in capital gains thanks to Mondobongo’s investment and no Nouvelle contribution. “

Pitt and Jolly married in a luxury apartment in 2014 in a top-secret ritual that only had six children in attendance. According to the document, three years before they rolled the ball in a long divorce lawsuit, Pitt transferred 10% of his stake in Jolly, making both 50/50 co-owners with nine-figure landmarks. Bottom.

Court disqualifies Angelina Jolie’s judge, Brad Pitt’s divorce case

According to sources reporting Fox News Tuesday, Jolly had allegedly been involved in real estate when the actress tried to move the goal post and evade her duty to box. They wanted to get out of business.

Meanwhile, Jolly’s camp points to Pitt, who allegedly used his celebrity to sympathize with the ongoing Exe custody battle.

Brad Pitt filed a lawsuit in court alleging Angelina Jolie attempted to sell her stake in Château Miraval’s estate without giving her the first option to buy it in full.
(Michel Gangne ​​/ AFP via Getty Images)

“This type of gamemanship is the final attempt by a prominent party seeking special treatment, not the purpose of the court’s limited review resources,” Jolly’s attorney told Page Six on Tuesday. ..

“There is nothing to see or to evaluate here. It’s okay to meet this court’s strict standards for review or review, ”she added.

Brad Pitt requests review of Angelina Jolie’s custody battle after private judge’s disqualification

Jolly filed for divorce in August 2016 because of “irreconcilable differences” in five of her six children (Pax 17 years old, Zahara 16 years old, Shiro 15 years old, twins Vivienne and Knox 13 years old). Custody requested. ..

Earlier this month, Pitt moved to re-examine her custody battle after Jolly won the disqualification of the private judge overseeing her case.

Angelina Jolie and Brad Pitt were married for two years before the actress filed for divorce.

Angelina Jolie and Brad Pitt were married for two years before the actress filed for divorce.
(Getty)

In a statement to Fox News, Pitt’s attorney Theodore J. Boutros Jr said: After lengthy trials by multiple witnesses and experts, he was disqualified after presenting detailed fact-based custody decisions.

“The judgment of the inferior court rewards the party who loses the custody case and allows them to await possible instructions on the case before moving to petition for the disqualification of the judge, their gambling art. Enables this type of strategy to be used. The “wait and see” objection to disqualification is involved in this case by unnecessarily prolonging the settlement of these disputes in an already overloaded judicial system. It does irreparable harm to both the child and the family, and in other cases, other families. The strategy will take away irreplaceable time with their children for parents as judges who allow such wise action will be disqualified for minor reasons during the trial.

Brad Pitt receives joint custody of children in Angelina Jolie’s divorce case

“The lower court ruling is bad for children and for California’s obese judicial system,” said Boutrous Jr. of Gibson, Dunn & Clutcher LLP. Closed.

Jolly’s attorney did not immediately respond to Fox News’ request for comment, but in a statement at the time, actress Robert A. Olson’s attorney told Entertainment Tonight: When the judge heard the question of imprisonment, he overturned the order of the Richter correctly.

Click here for the Fox News app

“Mr. Pitt’s attorney’s petition to the California Supreme Court reveals their hold on to this private judge who has shown prejudice and denied legally necessary evidence. In a financial relationship, Mr. Pitt’s attorney attempted to revive a private judge.

“Jolly wants Pitt to be with her instead of focusing on the children’s needs, voice, and healing,” the statement concludes.

Jolie representatives did not immediately respond to Fox News’ requests for comment.

Melissa Roberto of Fox News contributed to this report.

Source link Brad Pitt and Angelina Jolie vie for $ 164 million in French real estate

Continue Reading
Advertisement

Trending