US firm picks 15% in Vipul for Rs 234 cr

Wachovia Corporation, one of the largest diversified financial institutions in the US, has picked up about 15 per cent stake in realty firm Vipul Ltd for Rs 234 crore and plans to invest up to one billion dollar (about Rs 4,100 crore) in real estate India market this year.

"WDC Ventures Ltd has subscribed to 14.95 per cent equity capital for Rs 233.92 crore under preferential allotment," Vipul Ltd Managing Director Punit Beriwala said.

Wachovia has invested in Gurgaon-based Vipul Ltd through its company WDC Ventures Ltd. The promoter's share would come down to about 62 per cent after the stake sale. Vipul would deploy the funds in projects being developed by the company, besides setting aside some fund for acquiring properties, he added. Elaborating its India Plan, Wachovia Director-Real Estate Capital Markets Sandip Kundu said: "In 2007, we plan to deploy two billion dollars in Asian real estate market." "In India opportunity is huge. We may end up putting over

50 per cent in India," Kundu said. Funds were not a constraint and the company had enough money to invest in Indian real estate market, he added. Kundu said the company was in India for the last 11 months and this was its first investment in a listed company.

It had earlier invested money in 6-7 ventures, Kundu said but refused to divulge the amount and the name of the firms. Wachovia is the largest bank in South-East US with assets of 700 billion dollars and market value of over 100 billion dollars. It provides retail banking, brokerage, asset and wealth management, and corporate and investment banking products and services in the US.
Source://indiatimes.com

Real Estate counters back on bulls` list

Real Estate stocks had been on the receiving end in recent times following increase in interest rates by RBI over last two months. On March 30, RBI had unexpectedly increased its overnight lending rate by a quarter percentage point to a 4 1/2 year high of 7.75% to tame rising Inflation rates.

The RBI decided to keep key lending rates unchanged to support slowing economic growth, taking in consideration that five increases in the past year were enough to tame inflation. This decision brought the Real Estate stocks back in action.

Further, India’s central bank announced that it had asked the banks to charge less from individuals for home loans, as cost to buy a house has risen after five interest-rate hikes in the past year. It declared that they would reduce risk-weighting on individual loans to 50% from current 75%. So by taking such measures rising loans rates could be controlled making it more affordable for the buyers, especially first time buyers to purchase property.

Source://indiainfoline.com

Stop Renting! Go For A Home!

There is a major misconception that homes are unattainable by many people. With the amazing variety of mortgages that are available in today's financial world it has become easier for people to get that first home that they have always dreamed about.

But, no matter what your financial situation is, you will need to do some research and investigate the mortgages that are available to you. Only then can you make an educated choice about what will be right for you now and in the future.

Some of the facts that you will have to consider are things like monthly payments. How much can you make without putting other bills and responsibilities in jeopardy? You need to carefully plan your financial future to be ready for any emergencies or expenditures without affecting your ability to make your mortgage payments. Now, take some time and really shop the market for a mortgage that is right for you. Beware of mortgages that sound like they are too good to be true, they usually are.

Think of this in terms of how long you plan to be in the home. A longer mortgage, amortized over 30 years will end up costing more in interest but should make the monthly payments more manageable then a shorter term mortgage.

One of the most important things that you should remember in setting up financing for a home purchase is that it should be done long before you start looking for a home. There is nothing worse than having your heart set on a home only to have it snatched out from under you by another buyer who had their home loan ready to go while you still needed to get yours. Don't let this happen to you, get out there and get approved for a mortgage and get the home of your dreams.

Indian Realty Fund to invest $100m

India’s IL&FS Realty Fund said on Tuesday it would invest $100 million in a start-up property developer QVC Realty Ltd that would build hotels, homes and townships.

IL&FS Realty, the real estate india fund of private equity firm IL&FS Investment Managers Ltd, will own 100 per cent of QVC. As the projects come up, founders of QVC will get equity stakes for an undisclosed amount, a top official said.

“We have committed $100 million and the management will take a stake on delivery,” Shahzaad Dalal, vice chairman & managing director of IL&FS Investment Managers, told reporters.

QVC will develop 100 acre township in Gurgaon, near New Delhi, and is tying up 100 acres in the technology hub of Bangalore for a similar project, Prakash Gurbaxani who founded the firm in January said.

The combined market value of the two projects could be Rs30 billion ($699 million), said Gurbaxani, a former executive at the Indian joint venture of Tishman Speyer and ICICI Venture.

Source://thenews.com