Amrapali, Unitech & deferred dreams: SC ensures defaulters will have to pay

On Tuesday, the Supreme Court came out with two rulings that sound the bugle against the directors and promoters of defaulting real estate firms. In the first case, the Supreme Court said it would first sell the personal assets of the promoters and directors of Amrapali group to secure over Rs 50 billion for construction of pending projects. The construction will be done by the National Buildings Construction Corporation India Ltd (NBCC). In the second case, it ordered auction of Unitech directors' unencumbered assets to refund money to home buyers.

The SC's latest ruling may come as a relief for the homebuyers who would hope it either fetches them their refund or the house they have already paid for.
Supreme Court on Amrapali

The Supreme Court on Tuesday said that the only way to secure over Rs 51.12 billion from real estate major Amrapali Group for construction of pending projects by the NBCC (India) Ltd is to sell the individual properties of the directors of the company, news agency IANS reported.

SC orders attachment of bank accounts, movable properties of Amrapali Group

 The Supreme Court  pulled up the Amrapali Group for "defrauding investors" and playing "dirty games" with the court and ordered attachment of all bank accounts and movable properties of 40 firms belonging to the real estate major.

A bench of Justices Arun Mishra and U U Lalit directed the Amrapali Group of companies to place before it details of all its bank accounts from 2008 till today and ordered freezing of bank accounts of all the directors of its 40 firms.

The apex court summoned secretary, Ministry of Housing and Urban Affairs, and chairman, National Buildings Construction Corporation India Ltd, for proceeding with matters of the group without its approval.

On May 17, the apex court had given its nod to three co-developers to complete the 12 stalled projects of the embattled Amrapali Group in the next six months to 48 months time period.

The top court had asked the Amrapali Group to deposit Rs 2.5 billion in four weeks in an escrow account to be paid to the co-developers on completion of the projects.

To survive Trump's trade war, take refuge in a humble Singapore shophouse

As a hiding place from President Donald Trump’s trade war against China, a cozy corner of Singapore’s real estate holds much appeal.

A two- or three-story terrace close to the city’s central business district, home quite often to a wine bar or gastro pub at street level with a massage spa or music lounge tucked away upstairs, has been in bigger demand this year than industrial sheds.

Shophouses are mixed-use buildings constructed between the 1840s and the 1960s that formed the majority of the pre-World War II urban fabric of the old city center. Deals of more than S$5 million ($3.7 million) for these conservation dwellings increased 281 percent from a year earlier to a record S$478.6 million in the first quarter, according to Colliers International Group Inc. The broker attributes the surge to strong demand from local and foreign high-net-worth individuals, as well as property funds and investment firms.

Brookfield Property to purchase US mall owner GGP Inc for $15.3 bn: Sources

Commercial real estate company Brookfield Property Partners LP said on Monday it would acquire the 66 percent of GGP Inc that it does not already own in a cash-and-stock deal that values GGP, one of the largest owners and operators of U. S. shopping centers, at about $15.3 billion.
The deal comes as many malls struggle to retain tenants amid the brick-and-mortar retail sector's downturn. The acquisition will strengthen Brookfield Property's negotiating power with retailers and allow it to repurpose some GGP properties.

"Having Brookfield’s expertise in offices, hotels and multi-family residential properties will allow the combined company to draw more value from the GGP mall assets," Brookfield Property Chief Executive Brian Kingston told Reuters in an interview. The agreement comes four months after a special board committee of GGP rejected a $14.8 billion cash-and-stock offer from Brookfield Property as inadequate.
Brookfield Property, which is also a major owner of US office properties, is currently GGP's largest shareholder with a 34 percent stake.

Under Brookfield Property's latest offer, which was first reported by Reuters earlier this month, GGP shareholders can elect to receive $23.50 in cash per share, or either one Brookfield unit or one newly created share that trades as a real estate investment trust (REIT). GGP shares ended trading on Monday at $21.21.

World Bank arm to pump $23 mn into Ashiana affordable housing projects

The World Bank's investment arm IFC will pump in $23 million in projects by Ashiana Housing Limited (Ashiana) meant for affordable / mid-income housing as well as retirement homes for the elderly.

The total project cost of the project is estimated at about $267 million.

IFC is one of the few financiers of affordable/mid-income projects in India.

IFC said that its long-term capital is not readily available to the real estate sector. IFC's equity investment is a structured 8-year equity investment, which would provide capital with a tenor that matches the project's life.

Ashiana's projects will be located across various cities in India, but primarily in Jaipur, Pune and Chennai.

 The project would involve the construction of about 5,000 to 6,000 mid-income/affordable housing units, including senior living units (with care homes) mostly targeted at active adults, across 5 to 7 projects over 6 to 8 years (the Project). The projects may be developed in a single or via multiple Special Purpose vehicles (SPVs) promoted by AHL.

IFC is considering an 8-year structured equity investment of $23 million in one or more newly-created SPV promoted by AHL.

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