Private equity investment in the real estate sector grew by 26 per cent to Rs 4,716 crore in the first nine months this year despite slowdown in the property market,Cushman & Wakefield said. The global realty consultant attributed the rise in PE investments to increased attraction of institutional investors towards leased income generating office buildings. Total value of announced private equity transactions in the real estate sector for the first three quarters of 2013 were recorded at Rs 4,716 crore ($755 million),witnessing an increase of 26 per cent compared to the first three quarter of 2012 (Rs 3,750 crore/$704 million), the firm said. Rise in PE investment was despite the slow pace of growth in Indian real estate sector with net absorption in offices down by 15 per cent and subdued housing sales,it observed.
Godrej Properties buys back Red Forts stake in Kolkata project
Realty firm Godrej Properties said the company has bought back private equity firm Red Fort Capitals 49 per cent stake in a subsidiary that is developing an IT Park in Kolkata,for an undisclosed amount. In 2008,Red Fort had picked up 49 per cent stake in the IT Park project Godrej Genesis.
Contractor asked to pay R18 lakh to society
The Maharashtra State Consumer Disputes Redressal Commission has ordered a civil contractor to refund Rs 18 lakh to a housing society for rendering deficient services. In a recent order,presiding member Usha S Thakare and member Narendra Kawde held that the contractor SK Poly Formulations was deficient in rendering services. In its complaint,Malhar Lokpuram Co-operative Housing Society in Thane city said that it had given the work of repair and restoration to the company in March 2006,but it was not carried out to their satisfaction. The society complained that the contractor was suppose to do the repair work with a cost of Rs 34 lakh in three months. However,the work period exceeded the time limit. Later,a survey was carried out to assess it,which showed that seepage persisted in certain flats. The contractor was given an extension of time to attend to the seepage,which it failed to do. The society then hired another contractor for the work and thus had to spend another Rs 18 lakh. In its order,the commission observed that the contractor failed to substantiate their submission with documentary evidence that the work was carried to the satisfaction of the complainant society. The commission ruled that the contractor was deficient in the delivery of the service.