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REAL ESTATE SECTOR
Parijat Consulting specializes in real estate debt/equity investment advisory as well as various other investment strategies for the real estate sector in India.
Real estate equity/structured debt sourcing, matchmaking, and consulting.
Investor services for our clients and Investor services outsourcing for other
firms (especially organizations in the real estate equity investment arena).
Real estate angel investors.
Our investor clients include American and European Private Equity and Hedge Funds with an interest in India.
Real estate finance: advising, consulting, negotiating, and sourcing of debt
and equity financing.
Due diligence: market research, analysis and feasibility study outsourcing
Finding the Right Company for your business in India.
As a foreign investor with an appetite for the Indian real estate sector you would need to identify local Indian partners with access to clear land, sufficient knowledge of local regulatory issues, and the ability to handle the gamut of project-level regulatory approvals.
As an India centric entity we are well placed to facilitate foreign investors over come the challenge of finding well suited partners, both from a financial ability stand point as well as best attuned for cultural-fit perspective.
With the market maturing local players are also looking for foreign partners who can go Beyond merely cutting checks. Indian real estate companies want partners who can Transfer better and more efficient construction technology and who have access to
Enhanced planning and design skills
Access to capital sources
Superior property and facility management know-how and processes
International branding, and
Access to relevant customer markets and forums
Parijat Consulting is assisting multinational clients in acquiring and establishing operations in multi locations over India .
Our comprehensive understanding of local Indian practices is assisting American and European clients in establishing local partnerships in India as well as to rapidly extend operations with more clients in the market.
FDI For Real Estate
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An overview of
Indian Government Laws with regard to
Foreign Direct Investment in Real Estate and related Areas |
In the year 2005, the Indian government, allowed 100 percent foreign direct investment (FDI) in construction and development projects. These proposals are now cleared through the automatic route and no longer have to approach the Foreign Investment Promotion Board (FIBP) for clearances.
The segments that fall within the above automatic FDI approval include
Townships,
Housing,
Built-up infrastructure and
Construction-development projects,
The above list is not restricted to housing alone, but also includes
Commercial premises,
Hotels,
Resorts,
Hospitals,
Educational institutions,
Recreational facilities,
City and regional level infrastructure
In order to catalyze investment in a vital sector of the economy.
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Key Features
The salient features for the above 100% FDI proposal cleared by the government are: |
a) FDI is now permitted up to 100% under the "automatic route" under the ambit of which foreign investors and only needs to intimate FIBP of their intention of invest and not seek specific approval.
b) Minimum area to be developed under each project is
Development projects, which could be any nature and not limited to office buildings, IT/Business parks, shopping centres, industrial/logistic and warehousing facilities, hotels and serviced apartments Minimum built up area of 50,000 square meters.
Plotted housing development where in only individual plots of land with support infrastructure such as roads and utility connections are sold to individual occupiers within a large development - Minimum land area of 10 hectares.
In case of project combining elements of both the above categories, the investor would be required to meet only one of the above two criteria.
c) The investment would further be subject to the following conditions:
Minimum capitalization of US $10 million for wholly owned subsidiaries and US$5 million for joint ventures with Indian partners. The funds would have to be brought in with in six months of company commencing its business.
Original investment cannot be repatriated before a period of three years from completion of minimum capitalization. However, the investor may be permitted to exit earlier with prior approval of the government through the Foreign Investment Promotion Board (FIPB)
d) The Foreign investor would not be permitted to sell or trade in undeveloped plots or raw land. "Undeveloped plots" will mean where roads, water supply, street lighting, drainage, sewerage, and other conveniences, have not been made the concerned local body/service agency before he is allowed to dispose the plots.
This measure has been provided in order to discourage foreign investment in speculative investment in trading of the land and without any development or any value addition.
e) The project shall conform to the norms and standards, including land use requirements, provision of community amenities and common facilities, as laid down in the applicable building control regulations, bye-laws rules, and other regulations of the State government/ municipal/local body concerned in the city.
If you would like further information on how we work or if you have an opportunity which you would like to discuss with us please contact us by any of the following contact options:
Telephone: ++91-11-41638091-95
Fax: ++91-11-41638097/98
Email: vikram@parijatconsultings.com
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Indian Acts
