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What real estate gained in Union Budget 2021? – ET RealEstate

Here is what real estate gained in Union Budget 2021 presented by Finance Minister Nirmala Sitharaman on February 1.

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What real estate gained in Union Budget 2021?NEW DELHI: This government sees ‘Housing for All’ and affordable housing as priority areas, said Finance Minister Nirmala Sitharaman while presenting Union Budget 2021-22. Real estate sector had high expectation from the Budget 2021, especially post the Covid-19 pandemic.

Ministry of Housing and Urban Affairs has been granted Rs 54,581 crore in the Budget 2021.

Here is what real estate gained in Union Budget 2021:

Increase in safe harbor limit for primary sale of residential units

In order to incentivise home buyers and real estate developers, it is proposed to increase safe harbour limit from 10% to 20% for the specified primary sale of residential units

Affordable Housing

In the July 2019 Budget, the government provided an additional deduction of interest, amounting to Rs 1.5 lakh, for loan taken to purchase an affordable house.

FM proposed to extend the eligibility of this deduction by one more year, to March 31, 2022. The additional deduction of Rs 1.5 lakh shall therefore be available for loans taken up till March 31, 2022, for the purchase of an affordable house.

Further, to keep up the supply of affordable houses, FM proposed that affordable housing projects can avail a tax holiday for one more year – till March 31, 2022.

To promote supply of Affordable Rental Housing for migrant workers, Sitharaman proposed to allow tax exemption for notified Affordable Rental Housing Projects.

REITs

Debt Financing of InVITs and REITs by Foreign Portfolio Investors will be enabled by making suitable amendments in the relevant legislations. This will further ease access of finance to InVITS and REITs thus augmenting funds for infrastructure and real estate sectors.

In the previous Budget, the government had abolished the Dividend Distribution Tax (DDT) in order to incentivise investment. Dividend was made taxable in the hands of shareholders. Now, in order to provide ease of compliance, FM proposed to make dividend payment to REIT/ InvIT exempt from TDS.

Further, as the amount of dividend income cannot be estimated correctly by the shareholders for paying advance tax, FM proposed to provide that advance tax liability on dividend income shall arise only after the declaration/payment of dividend. Also, for Foreign Portfolio Investors, FM proposed to enable deduction of tax on dividend income at lower treaty rate.

Infrastructure

A total of 702 km of conventional metro is operational and another 1,016 km of metro and RRTS is under construction in 27 cities. Two new technologies i.e., ‘MetroLite’ and ‘MetroNeo’ will be deployed to provide metro rail systems at much lesser cost with same experience, convenience and safety in Tier-2 cities and peripheral areas of Tier-1 cities.

Centre will provide funding to:

  • Kochi Metro Railway Phase-II of 11.5 km at a cost of Rs 1,957.05 crore
  • Chennai Metro Railway Phase-II of 118.9 km at a cost of Rs 63,246 crore
  • Bengaluru Metro Railway Project Phase 2A and 2B of 58.19 km at a cost of Rs 14,788 crore
  • Nagpur Metro Rail Project Phase-II and Nashik Metro at a cost of Rs 5,976 crore and Rs 2,092 crore respectively

Infrastructure needs long term debt financing. A professionally managed Development Financial Institution is necessary to act as a provider, enabler and catalyst for infrastructure financing. Accordingly, FM will introduce a Bill to set up a DFI. Sitharaman provided a sum of Rs 20,000 crore to capitalise this institution. The ambition is to have a lending portfolio of at least Rs 5 lakh crore for this DFI in three years time.

Stressed Asset Resolution

The high level of provisioning by public sector banks of their stressed assets calls for measures to clean up the bank books. An Asset Reconstruction Company and Asset Management Company would be set up to consolidate and take over the existing stressed debt and then manage and dispose of the assets to Alternate Investment Funds and other potential investors for eventual value realization.

To ensure faster resolution of cases, NCLT framework will be strengthened, e-Courts system shall be implemented and alternate methods of debt resolution and special framework for MSMEs shall be introduced.

LED Lights

Custom duty has been increased on inputs and parts of LED lights or fixtures including LED Lamps from 7.5% to 10% and on solar lanterns or solar lamps from 5% to 15%

Construction workers

To further extend our efforts towards the unorganised labour force migrant workers particularly, FM proposed to launch a portal that will collect relevant information on gig, building, and construction-workers among others. This will help formulate Health, Housing, Skill, Insurance, Credit, and food schemes for migrant workers.

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In order to incentivise home buyers and real estate developers, it is proposed to increase safe harbour limit from 10% to 20% for the specified primary sale of residential units

Source: https://realty.economictimes.indiatimes.com/news/industry/what-real-estate-gained-in-union-budget-2021/80628374

Real Estate

Real estate news: Applications reopen for affordable homes in Brea; prices start at $320,000

Also in the news: A business park in Santa Ana has been sold to a Chinese holding company for nearly $43 million, according to Newmark Knight Frank.

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Applications are being accepted in a newly opened second round for a small collection of affordable homes in Brea.

The Flats at West Village include 20 “stacked” flats across from Central Park in northwest Brea. Prices begin around $320,000 and rise to $500,000, with all units reserved for income-approved buyers.

The builder and the city opted to postpone the buying process, which first launched in late January, and have since expanded the income requirements by roughly $4,000-$5,000 to widen the pool of applicants.

The project by Trumark Homes includes three one-bedroom units selling for $320,000, seven two-bedroom units selling for $420,000 and 10 three-bedroom units priced at $500,000. The condo-like homes are stacked on top of garages and first-floor units. More details are available at bit.ly/3qVpBuK.

Applicants must earn no more than $102,450 in 2021 for a two-person household and $128,050 for a family of four, according to the city’s website.

Eight floor plans range from 791 square feet to 1,624 square feet with all homes including walk-in closets, washer/dryer space, an outdoor deck and direct garage access.

Applications officially reopened July 12.

For more information, go to bit.ly/3hO4DMZ

A business park in Santa Ana has been sold to a Chinese holding company for nearly $43 million, according to Newmark Knight Frank. The six-building office complex, now called AD/6 and formerly Deere Alton Business Park, sold for $42.8 million. The 188,714-square-foot campus is 87% leased, Daum said. The buyer was Henghou Investment Holding Inc., which is based in Zhejiang, China. (Courtesy of Newmark Knight Frank)Santa Ana campus sells for $43 million

A business park in Santa Ana has been sold to a Chinese holding company for nearly $43 million, according to Newmark Knight Frank.

The six-building office complex at 1920, 1924, 1928, 1932, 1936 and 1940 East Deere Ave., now called AD/6 and formerly Deere Alton Business Park, sold for $42.8 million. The 188,714-square-foot campus is 87% leased, Daum said.

The buyer was Henghou Investment Holding Inc., which is based in Zhejiang, China.

Newmark’s Kevin Shannon, Paul Jones, Sean Fulp, Mark Schuessler and Brandon White represented the seller, Preylock Holdings.

A Southern California investor has sold a Culver City property leased to Starbucks and bought two other Starbucks properties in different states, all part of a 1031 exchange managed by Hanley Investment Group Real Estate Advisors in Corona del Mar and Enduring Real Estate in San Diego. The combined value of the sales was approximately $10 million, Hanley reps said. (Courtesy of Hanley Investment Grojup)3 coffee shops to go, please

A Southern California investor has sold a Culver City property leased to Starbucks and bought two other Starbucks properties in different states, all part of a 1031 exchange managed by Hanley Investment Group Real Estate Advisors in Corona del Mar and Enduring Real Estate in San Diego.

The combined value of the sales was approximately $10 million, Hanley reps said.

The Culver City property lacked a drive-through, something the two newly built properties procured in Ocala, Fla., and Alexandria, La., did have.

In the last 24 months, Hanley Investment Group said it has sold or has in escrow 31 Starbucks properties across the U.S.

A 12,000-square-foot industrial building leased to collision repair operator Service King in Huntington Beach has sold for $3.65 million. DAUM Commercial Real Estate Services represented the seller and found the buyer, both of whom were not identified. The property at 18302 Gothard St. sits on just over a half-acre. Courtesy of DAUM Commercial Real Estate)Industrial sale in Surf City

A 12,000-square-foot industrial building leased to collision repair operator Service King in Huntington Beach has sold for $3.65 million.

DAUM Commercial Real Estate Services represented the seller and found the buyer, both of whom were not identified.

The property at 18302 Gothard St. sits on just over a half-acre.

Birtcher breaks ground on mega-IE center

Newport Beach-based Birtcher Development has broken ground on Birtcher Oak Valley Commerce Center, a 125-acre industrial development in Calimesa in Riverside County.

The firm said it has its eyes on the Inland Empire’s hot industrial market with this center aimed at “big-box tenants with warehousing and distribution needs.”

Four Class-A industrial buildings in the complex will span nearly 2.2 million square feet. The project is near the I-10 freeway and close to Redlands, which also is home to distributors including Amazon and XPO Logistics.

“We are bullish on the growth in the Oak Valley I-10 corridor given its strategic location just beyond Redlands and deep untapped labor market,” said Brooke Birtcher Gustafson, managing director at Birtcher Development.

The seller, principals of Oak Valley Development Co., owned the property since 1997 and obtained entitlements for the project earlier this year.

QuadReal Property Group is a joint venture partner in the project.

Kristie Goshow is the new chief commercial officer at Irvine-based KSL Resorts. Jim Madrid?is the new office leader in Newport Beach?office?for McCarthy Building Co.s’ Southern California?region.On the move

Kristie Goshow is the new chief commercial officer at Irvine-based KSL Resorts. She assumes the position following the retirement of former KSL Resorts’ CCO Jeff Senior, who led the transformation of Orange County’s former St. Regis in Dana Point into the Monarch Beach Resort. Goshow has some 20 years of hospitality industry experience and was most recently chief marketing officer for Preferred Hotels & Resorts. There she was in charge of brand strategy, strategic partnerships, global merchandising and digital marketing.

Jim Madrid is the new office leader in the Newport Beach office for McCarthy Building Co.s’ Southern California region. He’s been tasked with managing the commercial business unit. With 37 years in the construction industry, the company said Madrid has made big contributions to some of McCarthy’s most successful projects. Previously, he ran offices for Kinetics and Southland.

Real estate transactions, leases and new projects, industry hires, new ventures and upcoming events are compiled from press releases by contributing writer Karen Levin. Submit items and high-resolution photos via email to Business Editor Samantha Gowen at sgowen@scng.com. Please allow at least a week for publication. All items are subject to editing for clarity and length.

The project by Trumark Homes includes three one-bedroom units selling for $320,000, seven two-bedroom units selling for $420,000 and 10 three-bedroom units priced at $500,000. The condo-like homes are stacked on top of garages and first-floor units. More details are available at bit.ly/3qVpBuK.

Source: https://www.ocregister.com/2021/07/16/real-estate-news-applications-reopen-for-affordable-homes-in-brea-prices-start-at-320000/

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2 former Sherman Oaks executives plead guilty to role in $1.3 billion real estate fraud

Dane Roseman, 38, and Ivan Acevedo, 44, were executives of a Sherman Oaks-based luxury real estate firm.

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Two more California men have pleaded guilty in South Florida for their roles in a $1.3 billion real estate fraud scheme that stole money from thousands of investors nationwide.

Dane Roseman, 38, and Ivan Acevedo, 44, both of Los Angeles, pleaded guilty Monday in Miami federal court to participating in a massive investment fraud scheme, in which more than 7,000 victims suffered financial losses, according to court records. Co-defendant Robert Shapiro was previously sentenced to 25 years in prison for orchestrating the scheme. Roseman and Acevedo are scheduled to be sentenced on Sept. 20.

Shapiro was the the former owner, president and CEO of the Sherman Oaks-based Woodbridge Group of Companies LLC. The company had offices employing 130 people in California, Florida, Tennessee, Colorado and Connecticut. Prosecutors say Shapiro told investors that Woodbridge held real estate loans that would pay them rates of interest between 5% and 10%. In fact, the real estate also was owned by Shapiro through 270 shell companies and did not generate the necessary money for investors. Sometimes, the properties didn’t even exist.

It became a Ponzi scheme that paid older investors with money from newer ones, court records show. Five states entered cease-and-desist orders because Woodbridge was selling unregistered securities.

Roseman and Acevedo both worked as sales managers for Woodbridge, officials said. They sold securities and trained and supervised Woodbridge internal sales agents who sold Woodbridge securities. Using high-pressure sales tactics, Shapiro, Roseman, Acevedo and others marketed and promoted these investments as low-risk, safe, simple and conservative.

Authorities say the scam operated from at least July 2012 to December 2017, when the company filed for bankruptcy and defaulted on its obligations to investors.

Roseman and Acevedo both worked as sales managers for Woodbridge, officials said. They sold securities and trained and supervised Woodbridge internal sales agents who sold Woodbridge securities. Using high-pressure sales tactics, Shapiro, Roseman, Acevedo and others marketed and promoted these investments as low-risk, safe, simple and conservative.

Source: https://www.dailynews.com/2021/07/13/2-former-sherman-oaks-executives-plead-guilty-to-role-in-1-3-billion-real-estate-fraud/

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Alexandria Real Estate Equities, Inc. Announces Pricing Of Upsized Public Offering Of 7,000,000 Shares Of Common Stock

Alexandria Real Estate Equities, Inc. (“Alexandria” or the “Company”) (NYSE: ARE) today announced the pricing of its upsized public offering of 7,000,000 shares of the Company’s common stock at a price of $184.00 per share in connection with the forward sale agreements described below. The Company also granted the underwriters a 30-day option to purchase up to 1,050,000 additional shares. The offering is expected to close on or about June 17, 2021, subject to customary closing conditions.

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PASADENA, Calif., June 14, 2021 /PRNewswire/ — Alexandria Real Estate Equities, Inc. (“Alexandria” or the “Company”) (NYSE: ARE) today announced the pricing of its upsized public offering of 7,000,000 shares of the Company’s common stock at a price of $184.00 per share in connection with the forward sale agreements described below. The Company also granted the underwriters a 30-day option to purchase up to 1,050,000 additional shares. The offering is expected to close on or about June 17, 2021, subject to customary closing conditions.

RBC Capital Markets, BofA Securities, Citigroup, Goldman Sachs & Co. LLC, J.P. Morgan, BTIG, Evercore ISI, Mizuho Securities, Scotiabank, SMBC Nikko, TD Securities, PNC Capital Markets LLC and Regions Securities LLC are acting as joint book-running managers for the offering. Barclays, BNP PARIBAS, Capital One Securities, Fifth Third Securities, Truist Securities and Ramirez & Co., Inc. are acting as co-managers for the offering.

The Company has entered into forward sale agreements with Royal Bank of Canada, Bank of America, N.A., Citibank, N.A., Goldman Sachs & Co. LLC and JPMorgan Chase Bank, N.A. (the “forward purchasers”) with respect to 7,000,000 shares of its common stock (and expects to enter into forward sale agreements with respect to an aggregate of 8,050,000 shares if the underwriters exercise their option to purchase additional shares in full). In connection with the forward sale agreements, the forward purchasers or their affiliates are expected to borrow and sell to the underwriters an aggregate of 7,000,000 shares of the common stock that will be delivered in this offering (or an aggregate of 8,050,000 shares if the underwriters exercise their option to purchase additional shares in full). Subject to its right to elect cash or net share settlement, which right is subject to certain conditions, the Company intends to deliver, upon physical settlement of such forward sale agreements on one or more dates specified by the Company occurring no later than December 14, 2022, an aggregate of 7,000,000 shares of its common stock (or an aggregate of 8,050,000 shares if the underwriters exercise their option to purchase additional shares in full) to the forward purchasers in exchange for cash proceeds per share equal to the applicable forward sale price, which is the public offering price, less underwriting discounts and commissions, and is subject to certain adjustments as provided in the forward sale agreements.

The Company will not initially receive any proceeds from the sale of shares of its common stock by the forward purchasers or their affiliates in the offering. The Company expects to use the net proceeds, if any, it receives upon the future settlement of the forward sale agreements to fund pending acquisitions, with remaining proceeds, if any, to be used for general working capital and other corporate purposes, which may include the reduction of the outstanding balance, if any, on the Company’s unsecured senior line of credit and the outstanding indebtedness, if any, under the Company’s commercial paper program. Selling common stock through the forward sale agreements enables the Company to set the price of such shares upon the pricing of the offering (subject to certain adjustments) while delaying the issuance of such shares and the receipt of the net proceeds by the Company until the expected funding is required.

The offering is being made pursuant to an effective registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Company’s securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Copies of the prospectus supplement relating to this offering, when available, may be obtained by contacting: RBC Capital Markets, Attn: Prospectus Department, at Three World Financial Center, 200 Vesey Street, 8th Floor, New York, NY 10281, or by telephone at (877) 822-4089; BofA Securities, NC1-004-03-43, Attn: Prospectus Department, at 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, or email at dg.prospectus_requests@baml.com; Citigroup, Attn: Broadridge Financial Solutions, at 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at 800-831-9146 or email at prospectus@citi.com; Goldman Sachs & Co. LLC, Attn: Prospectus Department, at 200 West Street, New York, NY 10282, or by telephone at 866-471-2526, or email at prospectus-ny@ny.email.gs.com; or J.P. Morgan, Attn: Broadridge Financial Solutions, at 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at 1-866-803-9204.

Alexandria, an S&P 500® urban office real estate investment trust, is the first, longest-tenured and pioneering owner, operator and developer uniquely focused on collaborative life science, agtech and technology campuses in AAA innovation cluster locations. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and Research Triangle.

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding the Company’s offering of common stock (including an underwriters’ option to purchase additional shares of common stock), its intended use of the proceeds and the expected closing date of the offering. These forward-looking statements are based on the Company’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by the Company’s forward-looking statements as a result of a variety of factors, including, without limitation, the risks and uncertainties detailed in its filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update this information. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in the Company’s forward-looking statements, and risks and uncertainties to the Company’s business in general, please refer to the Company’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q.

CONTACT: Sara Kabakoff, Vice President – Communications, (626) 788-5578, skabakoff@are.com

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SOURCE Alexandria Real Estate Equities, Inc.

Source: https://finance.yahoo.com/news/alexandria-real-estate-equities-inc-025600088.html

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