KKR INVESTS ₹200 CRORES IN SIGNATURE GLOBAL’S AFFORDABLE HOUSING
Delhi: Leading financial investor KKR has committed to invest ₹200 Crore in the National Capital Region based affordable housing player Signature Global India Private Limited. The company has alongside launched two more affordable housing projects in Gurugram primarily ‘The Millenia’ in Sector – 37D and Solera 2, in Sector 107. The projects would also be coming up under the Haryana Affordable Housing Policy like their earlier projects. The company also plans to deliver the first phase of the project Solera, launched in 2015 under the same policy and awarded a 5 star rating from CARE Rating, by the early 2018. This will be the first delivery of any Haryana affordable housing policy project across Haryana .
On this occasion, Pradeep Aggarwal, Co – founder & Chairman, Signature Global said, “It is very exciting and encouraging at the same time to partner with a leading financial investor like KKR and we wish to take forward this partnership in a long way. We are currently developing approx 7,400 affordable homes out of which we have already allotted 5005 units and 2400 would be allotted soon. We wish to develop over 1,00,000 affordable homes till 2022 . The current launch of over 1900 units is a step in the same direction and would come up at a total cost of ₹500 Crores.”
Apart from the recent accrual of ₹200 Crores, Signature Global had also raised ₹150 Crores from ICICI Prudential in May last year. To boost rural and urban housing , post demonetisation, the Prime Minister had announced interest subsidy of up to 3, 4 & 6.5 per cent on loans taken under the Pradhan Mantri Awaas Yojana. The amount raised through this recent funding would be used towards the development of its affordable housing projects.
Speaking further on the group’s expansion plans, Ravi Aggarwal, Co – founder & Managing Director, Signature Global Group said, “Signature Global has the vision of Har Parivar Ek Ghar and working with that vision, they wish to be one of the leading contributor towards the PM’s vision of Housing for All and that is the reason we would be soon expanding to other cities like Karnal, Ghaziabad and further to multiple cities in Uttar Pradesh and Maharashtra. Lalit Aggarwal , Co – founder & Joint Managing director added we are also exploring opportunities for Joint Development Agreement across the country in affordable housing segment. Talks are already in the closing stages of a JDA in Mumbai for affordable housing. We are looking at launching another 20,000 affordable housing units by the end of this financial year wherein our focus will remain the same of providing quality housing for first time home buyers.”
KPMG India Private Limited and Yes Securities Ltd., a wholly owned subsidiary of YES Bank Ltd. acted as financial advisors to the transaction.
RERA ERA FINALLY ARRIVED
The unorganised nature of Indian realty is the sole reason why it had always been in the dire need of a regulatory authority which will now be available post the implementation of nationwide RERA from May 1, 2017. Several states and almost all the Union Territories have notified the laws of RERA before the said deadline of April 30th, 2017. RERA is something which is happening for the first time across the nation and would more or less be finalised along the framework which was set forth by the central government. RERA tends to bring about a new dawn in the sector of Indian realty and limit the concerns of several homebuyers and investors who had almost written off this sector which has seized to be one of the greatest employers and contributors to the country’s GDP. Slowly with the turn of clock, RERA would also settle down as any normal regulation similar to the hundreds we observe in our day to day life but the initial phase will definitely hold key to how better it is accepted amongst the developers and buyers.
Manoj Gaur, Vice President CREDAI – National & MD, Gaursons Group
At the outset, I welcome this much awaited initiative of RERA, which should bring huge relief to homebuyers as well as regulate the real estate sector of India. With the implementation of this act, now all approvals will have to be in place and the agreement signed with buyers includes the interest and the penalty clauses laid down in RERA. Also, the statute now demands that the builder should mention carpet area also specify common areas and the parking areas separately. At the CREDAI level too, the apex body of developers is holding training sessions for developers to educate them on the changes expected in the new business environment.
Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz
The buyers of property market in particular had waited long for RERA becoming a reality which guarantees safeguarding of their rights and interests. For long has this sector and its buyers being affected, but with RERA in place now, soon there will be a regulator in every state who will monitor all the transactions and have answers for their grievances. The amendments are fair and developers have already started working on the lines because these will now pave way for a better demand and supply in the sector.
Avneesh Sood, Director, Eros Group
With RERA implemented in full scale now across major states and union territories, developers are sure to find it encouraging towards building a better image for the sector. Infact, most of the developers who are genuinely into real estate had already been following the rules which have been set forth by this act. With the government concerned and showing direct intentions towards the sector, RERA will enhance the sentiments in the sector paving way for growth. Possessions are the hot cakes in the sector today and history of a developer in the near future would be judged on the possessions they have offered.
Ashok Gupta, CMD, Ajnara India Ltd.
With so many states implementing RERA today, we will see a completely different scenario in the sector in near future. Infact, developers have been gearing up for RERA ever since it became an act in the parliament and have been working based on the norms excluding the limitations. These limitations, if some, can be done away with only when it is existent in the real scenario helping everyone understand them better and try devising corrections.
Pradeep Aggarwal, Co – Founder & Chairman, Signature Global
Indian real estate sector will shape up in a different manner now. With RERA on board and implemented in full force, each state will have a regulator in place to safeguard the interests of the buyers and promote fair dealings in the sector. The housing demand in particular, will catch up momentum which will allow better performance of the sector. But, apart from everything else, the one thing that will infuse buyer sentiments in the sector will be of timely deliveries.
Ashwani Prakash, Executive Director, Paramount Group
The regulatory act (RERA), has been able to arrest the uncertainty in the real estate sector, vis a vis the investors and end users. The mere passage of the bill had given a lot of clarity and made real estate dealings more transparent there by bringing the confidence in the investors and the end users. Once this confidence sets in completely with it’s proper implementation, the market is bound to grow at a steady pace. Single window clearance system once implemented across the country will allow RERA to function smoothly, without which there might still be some barriers.
Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group
Developers are certainly well prepared for this change now with RERA implemented across several states. The impacts are certainly going to be visible for both buyers and developers soon. Developers who are not able to deliver on their promises would be automatically filtered out reducing the existing supply in the market, the sector would be much more organised than before and people would be answerable for what is being done at each stage of project development. Buyers on the other hand would be assured of timely deliveries or assured penalty charges in cases of delay but simultaneously would see the property prices going up because of the supply reducing drastically.
Rakesh Yadav, Chairman, Antriksh India
This act is aimed at protecting the interests of consumers, and also seeks to promote fair play in real estate transactions and ensuring timely execution of projects. With this act in place, every state will now have a regulator who will be continuously supervising and monitoring. Moreover, the projects will now be completed on time and developers will have to submit all the layouts, plans and documents with the regulator who will ensure transparency and hence, customers will feel more secure while transacting.
Gaurav Gupta, General Secretary, CREDAI – RNE
RERA is the biggest thing to happen in the Indian real estate sector and we hope that it will infuse 300% more confidence in the buyers to buy their dream home. This in turn will allow end users to create demand, but will take a while to get going and certain case studies to prove its effectiveness. This act will safeguard the interests of every buyer which will allow a transparent and secured route to transact in future. Once the Act becomes fully functional in each state, grievances will not remain unanswered, and will come with a definite solution. RERA will open more sources of institutional funding for the sector as institutional confidence will also go up in the presence of a regulator. We hope that the teething problems in its implementation will sure be addressed by the government in a practical manner as the intentions of the government is very clear towards protecting the interests of the buyers rather than to strangulate the sector.
Dhiraj Jain, Director, Mahagun Group
RERA’s prime motive is to curb the irregularities persisting in the real estate sector and protect buyers’ interest. There are strict guidelines in the act against developers who are unable to deliver on time. But we cannot deny the fact that developers today are under severe pain of not getting the obligatory clearances and approvals on time; and if this continues then they’ll be axed for no reason. Thus, the government must ensure the passage of single window clearance, so as to allow the sector to work in a much systematic and organised manner, with full support for RERA as well.
Vikas Bhasin, MD, Saya Group
For long has the sector’s buyers and stakeholders being affected due to the absence of a watchdog for the real estate transactions. But with RERA now in place, there will a regulator in every state who will monitor all these activities and have solutions for the problems of the buyers. Developers who had been working fair and square need not worry much about the circumstances post the implementation of the act because adhering to norms and guidelines is a general business practice and that is what RERA is all about, to ensure all norms and guidelines are followed.