Hindustan Chamber of Commerce: New President Mr. N.R. Dave

Mr. N.R. Dave has been unanimously elected as the president of the Chennai based Hindustan Chamber of Commerce for the year 2014 – 2015 at the Chamber’s 68th annual general meeting held on Monday

Smt. Nirmala Sitharaman, Honorable Minister of Commerce and Industry, Mr. Bharat Joshi, Deputy High Commissioner, British Deputy High Commission and Mr. R. Chandrasekaran, Executive Vice Chairman, Cognizant Technology Solutions India Pvt Ltd, Chennai, were also present in the function.


Hindustan Chamber of Commerce
Phone: +044.28294457

Greams Dugar, V Floor, South Wing 
149, Greams Road, 
Chennai, 
Tamilnadu, India
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CREDAI: Demands Reduction in Home Loan Interest Rates

Emphasizes the need to device a formula to make home loan rates independent of inflation
The Confederation of Real Estate Developers’ Associations of India (the apex body for private real estate developers in India) is disappointed with the status quo on the RBI policy rates and demands  a reduction in interest rates to facilitate lowering of entry barrier and spur demand for the real estate sector.  

CREDAI emphasizes on the need to device a formula to make home loan rates independent of inflation, keeping in view the mission to provide housing for all by 2022 & exponential impact of the real estate sector on triggering the GDP growth.

Speaking on the development Mr. C Shekar Reddy National President CREDAI said," The real estate sector has been dabbling with high cost of land, labor, material, funds & high rates of taxation along with the moderate demand over the last few months. The industry was looking forward to a reduction in interest rates and improved liquidity to usher growth and development. 

We were hopeful that RBI would follow the host of initiatives and budgetary allocation for the real estate sector ie. an allocation of Rs. 8000 Cr to rural housing fund run by NHB, Rs.7060 Cr. assigned for the development of 100 Smart cities, Rs. 4,000 Cr is allotted for low cost housing via NHB and Rs.50,000 Cr. for Urban Infra Projects besides relaxation in FDI norms for Real Estate and tax pass through status for REIT’s by softening the interest rates to reduce the cost of borrowing and stimulating housing and urban development. 

The developers are looking for a road map for the utilization of the funds allocated to trigger the demand and growth in the real estate sector. Clarity in policy along with a lowering of cost of borrowing will help developers to firm up their plans for bridging the existing housing shortfall of 18.7 million units in the urban areas and gear up to meet the expected demand for housing of 60 million units by 2030.”
 
C Shekar Reddy, President CREDAI-National
Adding to this Mr. Reddy said, “RBI had also allowed the banks to issue long term bonds with a minimum maturity of 7 years to raise funds for affordable housing projects and treat loans under the priority sector lending for project funding for affordable housing and home loans to individuals upto Rs.50 Lakhs for houses worth Rs. 65 Lakhs located in the 6 metropolitan cities and Rs. 40 Lakhs for houses of values Rs. 50 Lakhs for other centres for purchase /construction of dwelling unit per family. These initiatives along with the increased limits for tax deduction under section 80C and 24(b) of the Income tax act have enthused the people towards acquiring the residential property. 

However the lending rates are still very high and limit the eligibility of the home buyer. We are looking forward to devising a formula, independent for the prevailing inflation to provide home loans at reduced rates to ensure increased eligibility and a larger participation of the youths towards purchasing a home early in their career to stimulate the demand for housing, taking advantage of the long term tax benefits and the present low price of the real estate in the country”.

The housing sector is poised to grow manifold in the next decade and a half and will require a capital investment of about $1.2 Trillion. RBI should liberalize the norms, increase the lending to the real estate sector in line with the global exposure of 24-32% as compared to the present 12% and   lower the interest rates so that this sector with the high multiplier effect can propel the economy to the double digit GDP growth leading to accelerated capital formation not only in this sector but also in all the associated supply industries.    

For Media Contact
Nishanth
M: 98840 70861
Konnections


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ISHA HOMES: Lifestyle Apartments from 508 Sq. Ft in Trichy .

ISHA HOMES is a young and modern company that brings with it the dreams of the evolving young urban Indians. Founded in 2004, ISHA HOMES has redefined the construction space in Tamil Nadu. We are the youngest company that has been certified under the ISO 9001:2008, the ISO 14001:2004 and the BS OHSAS 18001:2007 standards for our sustainable construction methods, excellent work ethics and tight safety measures. We have over 800 customers who can vouch for our on-time delivery, transparent practices and peerless construction methods. 

ISHA HOMES specializes in creating next-generation homes that offer well ventilated, urban spaces in green surroundings, just right for families to make beautiful beginnings. Every ISHA HOMESproject comes with a brand value of superior quality, sustainable constructions using only the best-in-class products and building materials and making it an investment for life.  

Isha Aarambha Trichy…

Situated adjacent to the 60 feet road connecting Dindigul and Trichy, ISHA AARAMBHA is all that you wanted and more. A project with absolutely no deviation, ISHA HOMES is redefining the way homes are being built in Trichy.

Ideally situated near educational institutions and health centres, ISHA AARAMBHA is a new lifestyle apartment in Trichy, just 4 km from the Central Bus Stand. 164 apartments starting from 508 Sq. Ft to 1296 Sq. Ft are built in beautiful green surroundings.  Each home is well ventilated and airy, giving you beautiful views of the cityscape and gardens. And what is more, there is absolutely  no deviation in the construction- what you see is what you get. 
What does one look for in a home? - Beautifully designed spaces, necessary amenities, green open spaces and all this at a pocket friendly price. That is precisely what ISHA AARAMBHA is- starting at 17 Lacs, it is a dream buy for those looking for their first home and a best buy for those looking at investment.

Amenities:
Club House / Gym / Badminton & Basket Ball Courts / Children Play Area / Cricket Pitch /  Walking Track 

Essentials:
Gated Community/ Treated Water / Stand-by Generator / Lifts/ Sewage Treatment Plant / Round the clock Security

Details about the project are attached for your perusal.  
    Walkthrough Video…
   Please click below link….


 Wishing you beautiful beginnings…
I will expecting your reply, as soon as possible.


For Booking

Dominic Francis A
Executive-Marketing
Mobile: +91 97500-11244
Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: 10th anniversary_E-signature
ISHA HOMES  ( INDIA) PRIVATE LIMITED
MG Road, Eden Garden, Piratiyur West,
Trichy – 620009.

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DSM inaugurates Solar Technologies Demonstration Center in India

Showcasing the benefits of current & future solar technologies

Royal DSM, the global Life Sciences and Materials Sciences Company, today inaugurated its Solar
Technologies Demonstration Center at its DSM Engineering Plastics facility in Pune, India. This state- of-the-art solar technology center has been built to demonstrate and showcase the performance of DSM's innovations in solar technology and will also reduce the plant’s CO2 footprint by using the renewable energy generated by the solar plant to meet 25% of the site’s electricity needs.

Technology for solar energy will play a central role in a more renewable energy balance of the future – a role that will become even more critical and valuable as the technology becomes more efficient and  competitive.

DSM aims to help enable the penetration of solar energy by focusing on the development and  commercialization of technologies and materials solutions that increase the efficiency and yield of solar modules, thereby increasing the energy generation and reducing the cost of solar electricity.
Mr. Bharath Sesha, Mr. Roelof Westerbeek and Mr. Oscar Goddijn.

KhepriCoat®, an anti-reflective coating developed by DSM Advanced Surfaces, significantly increases the efficiency of solar panels by enabling more light to enter a solar device. At the demonstration center, the  coating is successfully applied to panels of different makes and models, validating its performance for the solar industry. The center will also test a new light trapping technology which DSM is developing, which gives solar panels a performance boost utilizing smart 3D structures in a thin plastic foil.

Oscar Goddijn, Vice President, DSM Advanced Surfaces said, “We aspire to be a world leader in materials  based solutions for solar photovoltaic technologies. Our newly commissioned solar energy plant in Pune is the first of our demonstration facilities to showcase our technologies to customers and stakeholders around the world. The demonstration center validates the performance of KhepriCoat®, DSM’s best-performing anti-reflective coating technology as well as our new light trapping technology and will test and demonstrate future technologies from our stable.”

With demand for energy increasing around the world, DSM recognizes the need to use alternative energy solutions for its own use. As an example of this approach, the DSM Engineering Plastics site in Pune now meets 50% of its total electricity requirements from renewable sources, of which 25% from the Solar Technologies Demonstration Center at the site and 25% already coming from wind power.
Mr. Sanjay Jain, Mr. Oscar Goddijn, Mr. Roelof Westerbeek,
Mr. Bharath Sesha and Mr. Ivo Lansbergen.
“The inauguration of the solar energy plant in Pune marks a milestone for DSM. This is a great example  of how we continuously work towards achieving our ambitious sustainability targets, and, set important  benchmarks in lowering our own environmental footprint. This is an excellent opportunity to encourage the use of sustainable Clean & Green Power and help support the ‘reenergizing’ of our environment,”  said, Bharath Sesha, President, DSM India.

“These latest improvements in Pune are a reflection of DSM’s ongoing efforts to reduce environmental footprints, both within its own operations and along its value chains. The Pune site is one of the first sites that uses 50% renewable energy and we are aiming to increase this ratio further in future. The site has also reduced its water consumption by two-thirds. With the commencement of this solar plant, we DSM Inaugurates Solar Technologies Demonstration Center in India aim to push our sustainability agenda – which in turn means boosting economic prosperity, environmental
quality and social responsibility for the benefit of people and planet. We have exactly the same drive behind our market positioning in engineering plastics; our innovation efforts are also focused on sustainable development,” said Roelof Westerbeek, President DSM Engineering Plastics.

ABOUT THE COMPANY..!

DSM – Bright Science. Brighter Living.TM Royal DSM is a global science-based company active in health, nutrition and materials. By connecting its unique competences in Life Sciences and Materials Sciences DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders simultaneously.

DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM’s 24,500 employees deliver annual net sales of around €10 billion. The company is listed on NYSE Euronext. More information can be found at www.dsm.com.

Or find on: DSM Advanced Surfaces is one of the three Emerging Business Areas (EBA) of the DSM Innovation Center.

These EBA’s are the growth engines for new business as part of the DSM in motion: driving focused growth strategy. DSM’s science-driven innovations help protect and improve the environment by improving energy and resource efficiency and by pioneering the development of alternative and renewable chemicals, materials and energy.

DSM Advanced Surfaces aims to accelerate the penetration of solar energy by focusing on the development and commercialization of technologies and materials solutions that increase the efficiency of solar modules, reducing the cost of the energy produced.

The flagship product on the market is its proprietary KhepriCoat® anti-reflective glass coating. The coating – a thin layer with a thickness of approximately 100 to 150 nm - is applied to the cover glass of solar modules and strongly reduces the reflection of sun-light. The result is an increase in the energy output of these modules of up to 4%.

The new light trapping technology being tested utilizes plastic foils with a smart 3D structure, consisting of so called “corner cubes”. These are tiny cubes pointing upwards. The cubes allow the light to enter the solar module, yet prevent the light from reflecting out of it. Effectively the light is trapped inside the module, with a result that it produces more energy.

Depending on the type, location and age of the module, the energy produced can go up by an additional circa 6 to 12%.

DSM Engineering Plastics is a global supplier of high-performance engineering thermoplastic solutions.

It has a focused portfolio of products; with each of them it has realized global leadership. In India, DSM Engineering Plastics has been directly selling and manufacturing engineering plastics since 1999 with the acquisition of Cenka Plastics. DSM Engineering Plastics India started greenfield operation in Jan 2009 with a world class manufacturing facility.

DSM continues to support its customer’ drive to achieve increasingly ambitious sustainability targets. The company offers polyamides, polyesters and high performance engineering plastics. These products are used in automotive, electrical and electronics, packaging and outdoor power equipment.

DSM Engineering Plastics India delivers the complete global portfolio of its products Stanyl®, Stanyl®Fortii®, Arnitel®, Arnite®, Akulon® and EcoPAXX®

DSM INDIA..!
DSM and its JVs in India functions under the sectors of Nutrition (DSM Nutritional Products, DSM Food  Specialties), Performance Materials (DSM Resins, DSM Engineering Plastics, and DSM Dyneema), Polymer  Intermediates (DSM Fibre Intermediates) and Innovation.

DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM has also committed itself to fight “hidden hunger” or micronutrient deficiency. As part of this commitment, DSM reaches out to over 100 million people in India through its nutrition intervention programs.

DSM and its JVs employs over 900 people in India across nine locations. In India the production locations  include Toansa (Punjab), Ranjangaon (Pune), Ambarnath (Mumbai) and Vadodara (Gujarat). DSM has the Shared Services Center based in Hyderabad which is a strategic project of the company to handle finance and accounting activities.

For more information:

DSM India Communications
Pankaj Sudan
+91 9810923666
Pankaj.Sudan@dsm.com

Reena Chaudhary
+91 9717854442
Reena.chaudhary@dsm.com
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Thales & Bharat Electronics form a joint venture in India

Navratna Defence Public Sector Undertaking Bharat Electronics Limited (BEL) and Thales announce that the Ministry of Corporate Affairs, Government of India, has approved the incorporation of their joint venture company, BEL-THALES Systems Limited, in late August this year. This joint venture (JV) Company will primarily focus on the design, development, marketing, supply and support of civilian and select defence radars for India and the global markets. The first board meeting of BEL-THALES Systems Limited took place on Friday 26 September.

BEL holds a 74 % stake while Thales holds 26% of the equity in the JV Company. The initial product portfolio of BEL-THALES Systems Limited will comprise innovative solutions for air surveillance, including Air Traffic Management radars, and select ground-based military radars. The ultimate objective of the JV is to expand its scope in other fields than radars, in the defence electronics domain.

BEL-THALES Systems will seek to work closely with Government laboratories and the Indian industry and will consequently become a decisive contributor for innovation in various fields of defence electronics.


Expressing his confidence in this JV, S. K. Sharma, Chairman and Managing Director of BEL, said, “We have always valued our partnership with Thales. We are confident that our JV Company will benefit from the significant technology transfers and support from Thales, and from the extensive industrial and design skills of BEL.”

Commenting on the joint venture, Eric Lenseigne, Managing Director of Thales in India, said, “The incorporation of this joint venture company marks an important milestone in our 60 year-old association with BEL, and takes it to the next level. We will constantly support BEL-Thales Systems to become a centre of excellence, offering solutions specifically aimed at meeting the needs of both Indian and export customers – in line with the government’s ‘Make in India’ approach.”


About Bharat Electronics Limited (BEL)
BEL was established in Bangalore, India, by the Government of India under the Ministry of Defence in 1954 to meet the specialized electronic needs of the Indian defence services. Over the years, it has grown into a multi-product, multi-technology, multi-unit company serving the needs of customers in diverse fields in India and abroad. BEL offers products and services in a wide spectrum of technology like Radars, Military Communications, Naval Systems, Electronic Warfare Systems, C4I Systems, Telecommunications, Sound and Vision Broadcasting, Electro Optics, Tank Electronics, Solar Photovoltaic Systems, Embedded Software and Electronic Components. With its expertise developed over the years, the company also provides turnkey systems solutions. For more information, visit www.bel-india.com


About Thales
Thales is a global technology leader in the Aerospace, Transportation and Defence & Security markets. In 2013, the company generated revenues of € 14.2 billion with 65,000 employees in 56 countries. With its 25,000 engineers and researchers, Thales has a unique capability to design, develop and deploy equipment, systems and services that meet the most complex security requirements. Thales has an exceptional international footprint, with operations around the world working with customers and local partners. For more information please consult: www.thalesgroup.com


Thales
Pawandeep Kaur, Thales India
Communication Manager
+91 11 665 10 430

Chase India

Krishna Moorthy – 9442191717
Avian Media, Chennai


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LIC's Online Term Insurance Only For Indians..!

LIC's e-Term is a regular premium non-participating "on-line term assurance policy" which provides financial protection to the insured's family in case of his / her unfortunate demise.

This plan will be available through on-line application process only and no intermediaries will be involved.

The applicant should be a Resident Indian residing in India.




He / she must have own earned income.

He/she should in good health and willing to undergo any medical tests required by the Corporation.

Any One requested to kindly complete the proposal & make payment towards the premium as displayed through net banking.

If you need any further assistance regarding ONLINE PURCHASE of e- Term plan, please mail us at online_dmkt@licindia.com  or call at following phone numbers from  10.30 a.m. to 05.30 p.m.  during week days and 10.30 a.m. to 2.30 p.m. on Saturdays:

022-67819 282
022-67819 284
1800-22-7717

LIC TEAM DIRECT
                                                                                                                                                LIC Direct is a business vertical of  LIC of India. 
Insurance is the subject matter of the solicitation
  
SYNOPSIS OF THE PLAN

LIC's e-Term is a regular premium non-participating "on-line term assurance policy" which provides financial protection to the insured's family in case of his/her unfortunate demise. This plan will be available through on-line application process only and no intermediaries will be involved.

Under this plan, there are two categories of premium rates namely (1) Aggregate lives & (2) Non-smoker lives. For Sum Assured upto Rs. 49 lacs Aggregate category rates only would apply. For Sum Assured Rs. 50 lacs and above there is an option to choose differential premium rate for Non-smoker category. However, the application of Non-smoker rates shall be based on the findings of the Urinary Cotinine test. In all other cases the Aggregate premium rates shall be applicable
 
KEY FEATURES:
  Available through Online mode (www.licindia.in)
  Pure Term plan
  Differential premium rates for Smoker/Non-Smoker lives
  Proposal on own life ONLY will be considered.
KEY BENEFITS..!
Death Benefit
In case of unfortunate death of the Life Assured during the policy term Sum Assured shall be payable.
Maturity Benefit
On survival to the end of the policy term, nothing shall be payable.
ELIGIBILITY..!
Minimum Sum Assured
Rs. 25,00,000 for Aggregate category

Rs. 50,00,000 for Non-smoker category
Maximum Sum Assured
No limit
Minimum age at entry
18 years (completed)
Maximum age at entry
60 years (nearest birthday)
Maximum cover ceasing age
75 years (nearest birthday)
Minimum policy term
10 years
Maximum policy term
35 years
Mode of payment
Premiums are to be paid annually.
Eligible life
The person should be Resident Indian residing in India.

He/She should  NOT BE  Non-Resident Indian(NRI), Overseas Citizen of India(OCI)or Person of Indian Origin(PIO).

He/she must have own earned income.

One cannot propose for anyone other than self. Key Man Insurance (KMI)/ Partnership/ Employer-Employee Cover will not be allowed.

  
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Mutual Fund Investment: Dual Advantage of Equity & Debt..!

by Mr. A. Balasubramanian, Birla Sun Life AMC

Since the results of the general election came out, we have seen a lot of change in the capital market & in expectations for India Inc. What has changed in the recent past is the outlook towards India - which now is one of high hope and optimism. Optimism and hope not only drives everyone to deliver the best possible, but also helps improve the situation.

Equity as an Asset Class..

Coincidentally, this is also being echoed by the hope in the revival of the global economy. Whenever the hope of revival of economy rises combined with optimism, equity as an asset class does well.

Ultimately, it is consumer sentiment that fuels economic growth. This combined with focus on stepping up capital allocation towards building infrastructure helps create opportunities for new jobs, more demand for raw materials, increased labour activities and so on. 
 A. Balasubramanian,
Birla Sun Life AMC

This ultimately drives profitability of companies that operate in the market; which in turn improves the confidence of companies to either reward shareholders or look at making fresh commitment to take the business to the next level. Indian industry today is at the cusp of such a level. I would imagine a phase of consolidation where we prepare ourselves for only greater growth as we go forward.

There is a widespread belief that Indian companies will do far better than the last few years. We used to say that India has grown despite the challenges. Now when government policies and execution focus changes seriously, there will be a greater need to believe in a better outcome as we move forward.

Therefore, the probability of earnings upgrade for Indian companies go up tremendously under these circumstances. Whenever there is a probability of rise in earnings, markets remain firm with less volatility combined with higher predictability.

Risk-adjusted return..!

If government finances improve on the back of moderation in inflation, overall growth momentum will further get a fillip through monetary policy action in the form of an interest rate cut.

Under these circumstances, it is imperative to have capital allocation in various asset classes. Just as corporates allocate capital in various businesses on an ongoing basis, investors, too, have to look at allocation into various asset classes to generate better risk-adjusted return on their investment.

One of the asset classes in a rising economic growth and falling inflationary scenario that does badly is gold. Gold as an asset class does not carry any big merit to be part of the investment portfolio of investors. Any investment in this class needs to be made keeping in mind ‘future needs’ towards specific purposes such as weddings, etc.

We have seen real estate as an investment also delivering the best possible returns in the last decade or so. While the government on one side looks to lift the economy, it may also focus on increasing the supply of housing projects, increasing the state governments' revenue in the form of tax and stamp duty and, finally, setting up of a real estate regulator to bring in uniform treatment across the country. Therefore, it has to make investors look at this asset class more on a need basis rather than only as an investment opportunity.

 Equity and Fixed Income..

This leaves two other asset classes to be part of the investment portfolio, that is Equity and fixed income. It is believed that both the asset classes should do well going forward. On one side, earnings of companies are likely to rise on the basis of improved economic conditions, both globally and locally.

On the other side, efforts to control inflation will yield result in lowering of interest rate as we move forward. This obviously makes a compelling case for investing in both these asset classes.

The change in long-term capital gain tax period from one year to 3 years brought about in the recent Budget, has changed the outlook for investing in both these asset classes keeping in mind the tax applicability on such investments.

While one needs to look at both debt and equity asset classes in the portfolio, the underweight exposure to equity needs to be corrected upward, by increasing the allocation to diversified equity mutual fund schemes.

Most of the time, investors have questions on how to go about choosing a scheme. While it is good to ask these questions, it is also to be remembered that no one asset class performs in a linear fashion, that is in a single straight upward graph. That being the reality, investment in various equity products needs to take into account this behaviour by having exposure to large cap, multi-cap, mid-cap and balanced funds.

Each of these categories focus on investing in a certain segment of the market and all of them are in businesses poised to deliver long term return to shareholders/investors. Therefore, investing in equity should also be in a basket of schemes either within the same mutual fund, or across a basket of multiple mutual fund schemes.

As far as fixed income goes, given the interest rate view, there is a need to look at open-ended fixed income schemes right from short-duration funds to medium-duration funds.

The choice of getting stable income through fixed maturity plans (FMPs) has now shifted to three years from one year previously. When we know very well that the tax benefit has now shifted to three years, it makes all the more sense to increase the allocation towards open-ended fixed income schemes such as Liquid Plus, Short and Medium Term Plan and Dynamic Funds.

Invest in Installments or Lumpsum..!

 
Debates around valuation, the right time to invest, whether to invest in installments or lumpsum can be addressed by first making a beginning and then continuing the discipline of investing at all periods.

The overall outlook for better days ahead has increased strongly, supported by commitment to take the Indian economy to the next level of growth. This warrants us to have faith in our asset allocation, so as to benefit reasonably well from such allocations.

About the author..
The author Mr. A Balasubramanian is CEO at Birla Sun Life Asset Management Company


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Indian REITs – The Retail Opportunity

 By Mr. Suvishesh Valsan, JLL India

The draft guidelines for trading in REITs in India have been introduced and allowed. For the very first time, there exists a tool to channel small savings into the Indian real estate sector. Not surprisingly, several owners of income-generating properties are now considering setting up REITs.

While commercial real estate projects have been popular assets to securitise worldwide, market dynamics in India currently suggest that the retail sector could be a beneficiary as well. Factors underpinning the potential success of REITs in retail include:


Low Vacancies In Superior Grade* Malls

Over the past few years, developers slowed down the supply of mall space in India because of rising vacancy rates following the economic slowdown. Prior to that, developers were churning out malls at a breakneck pace in response to a spurt in the organised retail business. Back then, few developers understood what the right ingredients for a successful mall are.
  
The overall vacancy rate today stands high at about 20% in retail malls across major Indian cities, while Superior Grade malls have vacancy rates averaging at only 10%. Given that international retailers will prefer to take up space in these malls, the shortage of quality space is evident and will be felt for some time.

 Opportunity For Discounted Asset Purchases

For REITs to provide attractive yields, they have to purchase assets at a reasonable price, which then fetch attractive rents. This is particularly important for retail - an asset type that is perceived as riskier due to the lower predictability of income.

While upcoming Superior Grade malls will offer lucrative investment opportunities, some of the existing stock of lower-grade malls could be up for sale at a discount. For instance, of Mumbai’s 65 existing malls, only 20 are of a size suitable for securitisation in a REIT. Of these, five or six could be considered distressed assets.

Suvishesh Valsan,
JLL India.
These low-grade malls are underperforming due to poor design elements and the financial distress of their developers. Other factors such as location, catchment area and retailers’ interest are favourable in many cases. While REITs will not want to consider malls that are strata sold (another major cause of mall underperformance), malls that have everything other than design and finance going for them will be very attractive acquisitions.
  
Strengthening Demand..!

Recent data made available by hiring firms (recruitments), automobile associations (car sales) and the central bank (home loan disbursals and reducing inflation) suggest that consumer sentiment has been on the rise in the past few months.

This is good news for organised retail, and indicates a rise in consumer spending going forward.

Mall Management..!

When compared to the management of commercial buildings (which share common facilities and have relatively stable tenancy profiles), the management of retail malls is complex. Apart from catering to various brand categories, mall management also involves planning the right tenant mix, space optimisation and zoning, and constant adaptation to consumers’ shopping behaviour.

It is fairly certain that REITs would employ better mall management professionals and practices than the mall’s developer. This will increase the probability of their success.

Given the limited number of existing malls that fit the requirements, REITs that are quick to discern and capitalize on the opportunity will benefit. Those that latch on to the potential later will have to wait until new supply of suitable malls hits the market. Moreover, the rising consumer and retailer sentiment will lure REITs into seeking these low-hanging opportunities.

* Malls are classified as Superior Grade based on location, developer reputation, occupiers’ profile, business model, mall design and other qualitative features such as mall management, ambiance and experience at the mall.

About the author
Mr. Suvishesh Valsan is Senior Analyst (Research & REIS) JLL India

For Media Contact
Arun Chitnis
Head – Corporate Communications & Media Relations
JLL India
Pune 411001.
Tel: (020) 30930441 Fax: (020) 40196101
Mob: +91 9657129999
Website: www.joneslanglasalle.co.in
Blog: www.joneslanglasalleblog.com/realestatecompass

Twitter: JLLIndia_Realty
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