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New Delhi: Mindspace Business Parks REIT announced a Rs 284.6 crore distribution to unit holders on Monday, following a 22% increase in net operating income to Rs 455 crore for the quarter ended December. It reported a net operating income of Rs 373.7 crore in the year-ago period.
The company said in a regulatory filing that its gross leasing was noted at 1.3 million square feet in the third quarter of FY23, taking cumulative leasing from April-December to 3.5 million square feet.
The committed occupancy rate further increases to 88.3 percent.
Chief Executive Officer of Mindspace Business Parks REIT, Vinod Rohira said that despite the challenging economic environment, the committed occupancy of the portfolio jumped by 400 bps to 88.3 percent during the first nine months of FY23. Our strong performance further inspires to bring forward strategic supply and pursue another value accretive redevelopment opportunity in one of India’s top-performing micro-markets.
Mindspace REIT plans to enhance the growth pipeline by redeveloping a 1.6 million square feet area at Madhapur.
In the third quarter of this fiscal year, its total revenue increased from Rs 441 crore to Rs 544 crore in the year-ago period. Net profit decreased from Rs 145.6 crore to Rs 126.5 crore mainly on higher interest cost.
Mindspace Business Parks REIT, sponsored by K Raheja Corp Group, listed on the Indian stock exchange in August 2020. It owns office portfolios in the Mumbai Region, Pune, Hyderabad, and Chennai.
The portfolio comprises a total leasable area of 32 million square feet, including the completed area of 25.6 million square feet, 1.8 million square feet of area under construction, and 4.6 million square feet of future development. The portfolio consists of 5 integrated business parks and quality independent office assets.
Despite the regulator making it compulsory to register projects with RERA where the developed area exceeds 500 square meters, according to activists many builders are avoiding project registration, irrespective of the number of apartments built on it.
Since Delhi is primarily a low-rise building market, local builders renovate the property and sell the floors independently for as much as Rs 30 crore each.
Earlier, Section 3(2) (a) of RERA provided for an exemption from registration if the land proposed to be developed was less than 500 square meters or the number of apartments proposed to be developed did not exceed eight. Many developers in posh colonies in Delhi have been avoiding registrations using this loophole.
BS Vohra, a right-to-information activist, said that the situation remains the same after the order as there is no one to look over the construction activity. Even when the plot size exceeds 500 square meters, some under-construction buildings in West-end, Vasant Vihar, Anand Lok, and Panchsheel Park are being developed without RERA registration.
Vohra said that the RERA should ensure that the rule is being followed after making it mandatory. The RERA chief could not be reached for comment.
The entire city of Delhi has registered only 81 projects, which is the lowest number in the country. Several builders in South Delhi with plots ranging from 800-1,000 square meters have not registered their projects with the RERA.
The convenor of the CII-Delhi sub-committee on real estate, urban development, and infrastructure, Harsh V Bansal said, “We need to push for organized development in Delhi. There are no major projects in Delhi while Noida and Gurgaon are benefiting from organized development”.
The Delhi RERA had threatened to impose a fine that could be up to 10% of the estimated cost of the real estate project if it was not compliant with RERA guidelines.
The registration procedure should be transparent with regard to the funds received from the purchasers, the completion and conveyance of the property in favor of the allottees, and the assurance that the project has received the required approvals and sanctions.
Many properties in Delhi’s posh colonies are worth Rs 20-100 crore. Older people and NRIs make up the majority of the previous owners who either sold or worked with developers.
The RERA had said in its order that the authority also suggests the general public to avoid investing in any residential or commercial real estate project.
Gurugram: Residents of DLF 1 have written to the chief minister against the Haryana Shahari Vikas Pradhilkaran (HSVP)auctioning sites on the green belt for educational, medical, and residential use. The site falls between the E block of DLF 1 and Sector 42 under the Aravali plantation area.
Buildings, once allowed in the area, would impede traffic and lead to jams, apart from violating laws related to green spaces, said members of Qutab Plaza Enclave RWA in the letter.
HSVP auctioned the sites recently for the development of three nursing homes and seven residential plots. The letter stated, “It is learned that sites for a crèche on 932 square meters, two nursing homes on 640 square meters, another nursing home on 1,816 square meters, and seven residential plots have been auctioned.”
President of the association, Baljeet Rathee, said that there are no service lanes in the area, and the HSVP move would further complicate the situation for pedestrians and cyclists. He added, “There is also a possibility of encroachments, which might trigger unhygienic conditions due to an existing ‘nallah (drain)’ on the opposite side of the sector dividing road”.
So far, a civil writ petition regarding the land is pending before the high court. DLF 1 residents had approached the court after HSVP allotted the green belt land for a fuel station in 2016. The then director of town and country planning, SS Dhillon, had given an undertaking during the pendency of the writ that green areas in DLF 1-4 would not have any other land use except to widen roads.
The RWA requested a reversal of the auction and the preservation of the green belt. Rathee said, “In case HSVP does not take urgent action, we reserve the right to seek appropriate legal action”.
A DLF 1 resident, Sunil Goswami, said the HSVP move would adversely affect the green cover, which is already shrinking. The government should stop HSVP and save the area from concretization, said Goswami.
He added that it would also affect the residents by adding to the traffic chaos and putting a huge load on the existing civic infrastructure. HSVP officials did not comment on the matter despite repeated attempts.
Indore: To examine civic amenities available amenities and the completion of pending works, the Indore district administration has sent Nazul NOC (no objection certificate) of 93 out of a total of 210 illegal colonies to Indore Municipal Corporation (IMC).
According to Indore collector Ilayaraja T, the issue has been taken up by the administration to legalize 210 illegal colonies and therefore detailed report of the status of its lands like encroachment on government land and lack of required permissions including that of T&CP.
He said, “There is no encroachment on government land or on water bodies in a total of 93 illegal colonies and thus, Nazul NOCs of the same has been sent to IMC to proceed with remaining formalities to legalize the same”.
In the remaining cases, most of the illegal colonies have encroached upon government land partially or completely, and thus, the administration is contemplating to seek guidance from senior officials to help find a way out.
IMC has received Nazul NOC, and will now seek NOC from IDA, T&CP, and other departments concerned.
IMC Commissioner Pratibha Pal said, “We will then publish development layouts of the illegal colonies and will float tenders to develop civic amenities including roads, water, streetlights, and drainage, whichever would be pending/incomplete there”. IMC will ensure that there would be no legal hurdle before pushing the files for the legalization of the colonies, she added.
As per the process, the cost of developing the incomplete basic amenities will be charged from the residents. The senior officials concerned said that the charges should not be seen as a financial burden on the residents as after legalizing the colonies, rates of the properties situated there will increase while the owners will also be able to mortgage the same. local administration and IMC have meanwhile launched a crackdown against newly-developed illegal colonies, mostly by encroaching upon government land or not acquiring requisite permissions.
On Wednesday, the government proposed a raft of changes, to strengthen the insolvency law regime, including fast-tracking the process, widening the pre-packaged framework scope, and developing an electronic platform with minimal human interface.
The code came into force in 2016 to provide market-linked and time-bound resolution of stressed assets. The Insolvency and Bankruptcy Code (IBC) has already undergone various amendments.
The ministry said in a notice “To strengthen the functioning of the IBC, changes to the code are being considered in relation to the admission of corporate insolvency resolution process (CIRP) applications, streamlining the insolvency resolution process, recasting the liquidation process, and the role of service providers under the Code”.
The corporate affairs ministry has suggested developing a state-of-the-art electronic platform along with other changes to handle several processes under the Code with lesser human interface.
The notice said, “It is being considered that this e-platform may provide for a case management system, automated processes to file applications with the Adjudicating Authoritys, delivery of notices, enabling interaction of IPs (Insolvency Professionals) with stakeholders, storage of records of CDs (Corporate Debtors) undergoing the process, and incentivizing participation of other market players in the IBC ecosystem”.
Redesigning of the Fast-Track Corporate Insolvency Resolution Process (FIRP) has been proposed by the ministry to allow financial creditors to drive the insolvency resolution process for a Corporate Debtor outside of the judicial process while retaining some involvement of the Adjudicating Authority (Adjudicating Authority) to improve the legal certainty of the final outcome.
It is being considered that the provisions dealing with FIRP may be amended to provide that unrelated FCs of a Corporate Debtor may select and approve a resolution plan through an informal out-of-court process and involve the Adjudicating Authority only for its final approval.
The notice said, “through this procedure, insolvency resolution will be available for Corporate Debtors with such asset size as notified by the central government. Further, the resolution plan approved through this procedure will have the same sanctity as a regular plan approved during the CIRP (Corporate Insolvency Resolution Process)”.
Certain changes have also been proposed with respect to the resolution process for real estate projects. “When an application is filed to initiate the CIRP in respect of a Corporate Debtor who is the promoter of a real estate project, and the default pertains to one or more of its real estate projects; the Adjudicating Authority, at its discretion, shall admit the case but apply the CIRP provisions only with respect to such real estate projects, which have defaulted. Such projects shall be recognized as distinct from the larger entity for the limited purpose of the resolution.
Another proposal is to enable a resolution professional to transfer the ownership and possession of a plot, apartment, or building to the allottees with the consent of the CoC (Committee of Creditors).
“It is observed that allottees may request ownership and possession of a complete unit of the real estate during a CIRP or a project-specific resolution process as being considered herein, which is not authorized during the moratorium under the code”, the notice said.
In addition, the ministry said that it is considered that the right of a Corporate Debtor to propose an IRP should be done away with, and in such instances, the IRP concerned should be appointed by the Adjudicating Authority on the recommendation of the IBBI.
Proposed amendments to the Code are a step in the right direction, said Mani Gupta, Partner at Sarthak Advocates & Solicitors.
He added, “Keeping the Fast-Track CIRP outside the judicial process may help in quicker disposal of the CIRP, however, care will have to be taken to ensure that interests of stakeholders other than the financial creditors are duly protected within the framework provided in the IBC. A limited role for adjudicating authority in approving the final plan is perhaps intended for that”.
The cabinet note states that regulations’ provisions will relax certain clauses including those governing the minimum plot sizes and maximum coverage areas.
To implement government policies, including land development for inclusive and affordable housing for economically weaker sections (EWS), the cabinet granted approval to amend the Goa (Regulation of Land Development and Building Construction) Act, 2008 on Monday.
This amendment will allow the state government to implement housing schemes for EWS.
Building construction and land development are regulated by the provisions of the Goa Land Development and Building Construction Regulations, 2010 which are revised over time.
According to the cabinet note the provisions in the regulations allow for relaxation such as minimum plot size, and maximum coverage area while developing housing for EWS. However, it does not include relaxation for categories like low-income groups, middle-income groups, etc.
There are various schemes floated by the Centre like Pradhan Mantri Awas Yojana, affordable housing schemes, and other inclusive housing schemes. The cabinet note said that the regulations need to be relaxed or modified with respect to minimum plot size, setbacks, etc to implement them successfully.
Section 8 of the act mandates that “on and from the date” of the regulations framed under Section 7 coming into force, any land development and building construction in the state must adhere to the provisions of such regulations, said a senior official.
Delhi recorded an AQI of 343, suggesting that air pollution is ameliorating, therefore, the Centre’s air quality panel ordered the authority to remove curbs imposed on construction work in Delhi-NCR.
On Wednesday the Centre’s air quality panel directed authorities to repeal the restrictions imposed in Delhi-NCR under stage III of the Graded Response Action Plan, including a ban on non-essential construction and demolition work, as air pollution is getting better in Delhi-NCR.
Delhi recorded an average air quality index (AQI) of 343 in 24 hours improving from 385 on Tuesday. An AQI between 201 and 300 is considered ‘poor’, 301 and 400 ‘very poor’, and 401 and 500 ‘severe’.
the Commission for Air Quality Management (CAQM) said in an order that the forecast by the India Meteorological Department and the Indian Institute of Tropical Meteorology shows that the AQI would not increase into the severe category in the upcoming days.
The order said that it is advisable to relax the stringent restrictions and roll back Stage III of the Graded Response Action Plan (GRAP) with immediate effect in the entire national capital region (NCR).
A report by Cushman & Wakefield said that in 2022 and 2023, commercial office space leasing volumes can probably touch 60 million sq. ft. because of the aggressive hiring plans in the IT, ITeS.
Data showed that the gross leasing of commercial space in eight major cities has increased to 52.57 million sq. ft. in 2021. It was 49.42 million sq. ft. in the previous year.
Badal Yagnik, MD, Tenant Representative India said “India’s journey towards a sizable $5 trillion economy holds within itself a plethora of opportunities for growth of commercial office market,”
“India’s journey towards a sizable $5 trillion economy holds within itself a plethora of opportunities for growth of the commercial office market,” he added.
Reports explained that demand for six-feet offices would result in almost 25-30% more demand for commercial space occupied by the same number of companies.
Another major reason behind the increasing demand and growth is the continuous institutionalisation and influence of PropTech.
In 2021, $5.6 billion worth of private investment was received by the real state sector. Reports said one-fourth of investment was alone for the office sector.
