Club Meeting IndiaMumbai, April 26th

The Real Estate wave of consolidation - A boon or a bane?

India’s Mid-Market Residential Assets Indicate Most Potential for Consolidation, Innovation & Development Growth

GRI India Club reconvened in Mumbai on 26th of April to discuss ways in which to create critical market transparency for investors and the local developers. 

Co-Hosted by India Club Partner JLL and moderated by Ramesh Nair, CEO, JLL India, the discussion focused on the 2016 Regulation & Development Act which has recently underpinned a wave of consolidation in the market. India’s real estate market is now witnessing a separate class of organized/ branded developers emerge in many project categories. Stronger and fewer competitors have the potential to put a brake on the oversupply outlook. The question is, is consolidation for better or worse when thinking about costs, product supply and product innovation?

Where are we with consolidation? The emergence of a ‘new breed’ of developers 

The residential sector was at the heart of the discussions. The view emerged that mid and affordable offerings will drive demand in the very near future. Consolidation is happening more in Greenfield than Brownfield projects and within stressed ‘high demand’ cities such as Mumbai and NCR.

It was generally believed that professionalism will happen more than consolidation; India is still somewhat lagging behind scattered markets such as Singapore, Dubai and other regions of Southeast Asia. While few developers are yet prepared for consolidation, this is not a deterrent for local players given that they can simultaneously sell their product in the same market. 

It was encouraging to learn that there were two types of classes of developers taking part in consolidation; (Type A: Approval expertise, Type B: Execution expertise) which is contributing to improving development standards across the board. Examining this new breed of developers, will it encourage enough transparency to attract foreign direct investors into the market? The answer appears to be yes, with a growing contingent of foreign funds chasing distressed assets.

Impacts of RERA

Naturally the impact of RERA was discussed in the context of the extent to which it is impacting the current consolidation drive. Club members generally agreed that as we are operating in a consumer-driven market, RERA’s impact is minimal; RERA is not a panacea and developers can opt for a resolution through high court.

Consolidation vs Customisation of Assets

It was clear that current margins on developments are not supporting consolidations, and successful consolidations are confined mainly to the bigger names in the market. This is seen by the fact that new product launches in Tier II cities are quite stagnant, it looks like most are simply cleaning up their books rather than driving forward new developments. Worryingly, it was also highlighted that Tier I capacity is ‘choking up’ with very limited potential, developers not having enough bandwidth to manage multiple projects simultaneously.

Whilst consolidation should and will happen in order to improve product offerings in offices, residential and retail, innovations in new asset classes is sorely in demand, and the process will be slower than seen in other markets. This is largely due to the fact that every micro market has its own unique characteristics, requiring customised solutions. In this respect it could be the case that consolidation might just hinder innovation and product offerings rather than simply help to improve standards.

Conclusions

Whilst there certainly has been consolidation and transparency in different sectors, investors and developers have a long way to go in order to create long term stability and drive the market forwards to compete on the global stage. Most agreed that it remains imperative for developers to get into the affordable housing market space in order to survive. As competence is strengthened and competition amongst developers reaches a plateau, it still remains to be seen for many what implications RERA and the Regulation & Development Act will yet have.

Advisory Board Members
Mohit MalhotraMohit MalhotraManaging Director & CEOGodrej Properties
Aditya BhargavaAditya BhargavaSenior Portfolio ManagerAbu Dhabi Investment Authority
Ambar MaheshwariAmbar MaheshwariCEO, Private Equity FundsIndiabulls Asset Management
Avinash SuleAvinash SuleDirectorQatar Investment Authority
Irfan RazackIrfan RazackChairman & Managing DirectorPrestige Group
Avnish SinghAvnish SinghMD & Country Head IndiaTishman Speyer
Kaushik DesaiKaushik DesaiExecutive DirectorWalton Street India Real Estate
Kamal KhetanKamal KhetanChairman and Managing DirectorSunteck Realty Limited
Manoj MendaManoj MendaCorporate ChairmanRMZ Corp
Naresh NaikNaresh NaikFounder and CEOIREP Credit Capital
Nipun SahniNipun SahniPartner and Head of Real EstateApollo Global Management India
Niranjan HiranandaniNiranjan HiranandaniCo-Founder & MDHiranandani Developers
Raj MendaRaj MendaCorporate ChairmanRMZ Corp
Ritesh VohraRitesh VohraPartner Real EstateIDFC
Sanjay DuttSanjay DuttCEO, IndiaAscendas India
Rohtas GoelRohtas GoelChairman & MDOmaxe
Sanjaya GuptaSanjaya GuptaManaging DirectorPNB Housing Finance
S. SriniwasanS. SriniwasanDirectorKotak Investment Advisors Limited-Kotak Realty Fund (KRF)
Srinath SridharanSrinath SridharanMember - Group Management CouncilWadhawan Holdings
Sunil RohokaleSunil RohokaleCEO & Managing DirectorASK Group
Vikas OberoiVikas OberoiOwner- Chairman & Managing DirectorOberoi Realty Limited
Yash GuptaYash GuptaFounder & ChairmanYG Real Estate
Mohit Malhotra
Managing Director & CEO
Mumbai | India
Segment: Developer
Biography:
Mohit Malhotra is the Managing Director and CEO of Godrej Properties Limited (GPL).He joined Godrej Properties in 2010 and has been instrumental in the company’s growth since then. He first headed business development for the company and has taken on larger leadership responsibilities that currently include heading GPL’s pan-India operations. Mohit was appointed to GPL’s Board of Directors as an Executive Director in 2015. Under his leadership, the company added 41 new projects adding to 61 Mn Sq. ft. As the Head of North Business, GPL became the market leader in Gurgaon and Godrej Properties became the largest listed player by booking value in the country. Mohit is responsible for further strengthening the growth and development portfolio.
Aditya Bhargava
Senior Portfolio Manager
Abu Dhabi Investment Authority
UAE
Segment: Sovereign Wealth Fund
Biography:
Aditya heads SITQ’s India platform and is responsible for strategy and investments. SITQ is part of the Caisse de dépôt et placement du Québec, one of the world’s 10 largest real estate asset managers. With a $17.8 B portfolio, SITQ’s assets include prestigious office buildings, business parks, hotels, apartments and retirement residences in major cities in Canada, the United States, France, the United Kingdom, Germany and India, as well as interests in several real estate funds that invest in various markets around the world.
Ambar Maheshwari
CEO, Private Equity Funds
Indiabulls Asset Management
India
Segment: Investor
Biography:
Ambar looks after the Private Equity business with a focus on Real estate at Indiabulls AMC. A Chartered Accountant, Ambar brings with him substantial deal-making and structuring experience in the Real Estate sector. Prior to joining Indiabulls AMC, Ambar was associated with JLL as Managing Director, where he successfully ran five businesses including Corporate Finance, Education, Healthcare and Social Housing, Special Development Initiatives and Infrastructure. He had worked with DTZ for over five years profitably leading the Investment Advisory business for India and set up the firm’s presence in West India for other service lines. His non real estate stints as an investment banker included IL&FS, Ambit Corporate Finance and KPMG”.
Avinash Sule
Director
Qatar Investment Authority
India
Segment: Sovereign Wealth Fund
Biography:
Avinash has been associated with the Qatar Investment Authority (Advisory Pvt Ltd) for the past 9 years, heading their India Office. He leads the investment efforts in Private Equity and Public Equities across sectors and has been actively involved in Real Estate investment strategies such as residential equity, debt and commercial office.
Irfan Razack
Chairman & Managing Director
Prestige Group
INDIA
Biography:
Irfan Razack, the eldest son of Razack Sattar, is at the helm of the Prestige Group. A born leader, Irfan is blessed with the acumen to see opportunities where none apparently exist, the courage to take the untrodden path and the determination to see his vision through to fruition. His leadership acumen received national recognition, when he was declared Professional of the Year at the Real Estate Excellence Awards 2008. He has been Honorary Secretary of the Al Ameen Educational Society for 22 years, the President of Bangalore Commercial Association (BCA) and served as President of KOAPA (now CREDAI Karnataka) for 4 years and currently is the Vice President CREDAI, India.
Avnish Singh
MD & Country Head India
India
Biography:
Mr. Singh has overall responsibility for Tishman Speyer in India and is based in Gurgaon. He joined Tishman Speyer in 2010 as Head of Acquisitions from GE Capital Real Estate where he was responsible for the development and execution of GE Real Estate’s India equity and debt investing platform, encompassing equity joint ventures with local partners, construction financing and corporate loans to developers. From 2003 to 2006, he was with Jones Lang LaSalle’s Asia Capital Markets team based in Singapore, responsible for cross-border equity investing advisory in India and Southeast Asia.
Kaushik Desai
Executive Director
Walton Street India Real Estate
INDIA
Segment: Investment Manager
Biography:
Kaushik Desai is currently Executive Director of Walton Street India, handling key relationships. He is responsible for helping evaluate new investment opportunities and instrumental in structuring the transactions. He is a Chartered Accountant and a Company Secretary and has a bachelor’s degree in commerce from the Mumbai University.
Kamal Khetan
Chairman and Managing Director
Biography:

Kamal Khetan, CMD Sunteck Realty Ltd. is a first generation entrepreneur who founded the Group in 2000. His vision is depicted in being the foremost to anticipate an opportunity in the premium residential space of 4 acres in India’s most promising commercial hub - Bandra Kurla Complex, Mumbai. These high end properties of BKC today hosts the top business honchos making it one of the most prestigious and Iconic project in the country. Mr.Khetan has also identified places like Goregaon & Airoli and invested to develop spaces to cater the needs of the customers. Under his Leadership, Sunteck Realty today manages a development portfolio catering to the ultra-luxurious and Premium segment of over 23 mn.sq.ft spread across 25 projects.

Manoj Menda
Corporate Chairman
Biography:
Manoj Menda is the firm’s Corporate Chairman. He leads the firms Executive Committee and sits on the Investment Committee. Responsible for the strategic client and business relationships globally. He contributes to business development and transaction strategy. He serves on the Investment and Advisory Committees of all RMZ private fund programs. Founder and Trustee of RMZ Foundation whose vision is to actively contribute to the social and economic development of the communities in which we operate.
Naresh Naik
Founder and CEO
IREP Credit Capital
India
Segment: Investor & Private Equity
Biography:
Naresh serves as the CEO of IREP Credit Capital, a Non Banking Finance Company registered with the Reserve Bank of India with lending operations in India. He also serves as the CEO of IREP Opportunities Holdings, an investment fund based out of Mauritius that invests in Indian opportunities. Prior to this, Naresh was the Country Head of Morgan Stanley Real Estate Investing in India. Naresh managed 7 investments totalling US$750MM of equity with a total asset value of US$2,500MM. He served on the Board of Oberoi Realty (OBER:IN), Panchshil Realty and Mantri Realty. Prior to joining Morgan Stanley, Naresh was heading Asset Management for Lehman Brothers Real Estate Partners (LBREP) in India from 2007-2009.
Nipun Sahni
Partner and Head of Real Estate
Apollo Global Management India
INDIA
Segment: Investor
Biography:
Nipun joined Apollo in 2015 in AGRE Delhi and is responsible for Real Estate Investments in India. Prior to that time, Nipun was the Founder of Rezone Investment Advisors from March 2011 to April 2015. Prior to that, Nipun was a Managing Director in the Real Estate Investment Group at Merrill Lynch from 2006 to 2010. Prior that Nipun was a Managing Director at GE Capital, India. Nipun currently serves on the advisory boards of Royal Institute of Chartered Surveyors in India. Nipun previously served on the APREA & USIBC Committees. Nipun graduated in Commerce from Delhi University with a B.Com. degree and received his Masters degree in Finance from the MFC Program at University of Delhi.
Niranjan Hiranandani
Co-Founder & MD
Hiranandani Developers
INDIA
Raj Menda
Corporate Chairman
India
Segment: Real Estate Developer
Biography:
Raj Menda is the Co-Owner & Corporate Chairman of RMZ Corp. RMZ Corp is one of the most successful South Asian real estate development firms, with an unmatched portfolio in India. The organization has developed, acquired or holds an interest in over 24 M sft. of commercial properties. Its prestigious and prolific portfolio includes over $ 3 billion in real estate assets. Headquartered in Bangalore. At RMZ, we are constantly thinking about the Future. This time it’s about the Future of Space and we have chartered our course to look at creating communities. In our new manifesto we are using technology coupled with experiences to build connected communities in our spaces.Raj is the first Indian to be on the Jury of the ULI Awards
Ritesh Vohra
Partner Real Estate
IDFC
India
Segment: Funds Management
Biography:
Ritesh has over 16 years of experience in real estate investing and real estate development advisory. He joined IDFC in late 2011 and is part of the Real Estate Investments group. His primary focus is on building and managing the real estate funds management business at IDFC Alternatives. He is also responsible for overseeing the investment and asset management processes for the fund portfolio. Prior to joining IDFC, Ritesh worked as a managing director at real estate fund manager Saffron Advisors, which was later acquired by IL&FS. He also worked with several advisory firms including JLL. He is a member of the CII National Committee on Real Estate and Housing. He is also a member of the RICS and sits on the RICS India Committee
Sanjay Dutt
CEO, India
Ascendas India
Mumbai | INDIA
Rohtas Goel
Chairman & MD
Omaxe
India
Segment: Real Estate Developer
Biography:
Rohtas Goel, Chairman and Managing Director-Omaxe Ltd., is a leading name in the real estate industry in India. Rohtas founded Omaxe 25years back and has steered the group to an unprecedented height. In 2007, Omaxe got listed on Indian bourses (BSE and NSE) and within a short span, the company emerged as one of the largest real estate companies marked by some renowned and highly appreciated projects. Omaxe has delivered over 101 million sq. ft. in both real estate and construction contracting and the group is presently executing 39 real estate projects across various verticals. Today, the group has its presence in 27 cities and 8 states like Uttar Pradesh, Haryana, Punjab, Madhya Pradesh, Rajasthan, Himachal Pradesh, Uttarakhand and Delhi.
Sanjaya Gupta
Managing Director
PNB Housing Finance
India
Biography:
Mr. Sanjay Gupta is Managing Director of PNB Housing Finance Limited, which is a Public Private Partnership (PPP) between Punjab National Bank and The Carlyle Group. In the last five years, Mr.Gupta has spearheaded the Company’s transformation journey to the fifth largest Housing Finance Company by loan assets and second largest by deposit book of 33,000 Crs. Before this he was with AIG - United Guarantee (AIG Inc.) as the Country Head, a joint venture between NHB, Asian Development Bank (ADB) and IFC Washington (DC). Before that he was with ABN AMRO Bank NV as India Business Head, Retail Mortgages and later got elevated as the Mortgage Operations Head for North America and other geographies. He was earlier with HDFC Bank for 16 years.
S. Sriniwasan
Director
Mumbai | INDIA
Srinath Sridharan
Member - Group Management Council
Wadhawan Holdings
INDIA
Sunil Rohokale
CEO & Managing Director
ASK Group
INDIA
Biography:
Sunil Rohokale, founder of the Private equity real estate practice at ASK, is currently Chief Executive and Managing Director of ASK Group, renowned for its strong research based investment management, asset management, private equity, wealth advisory and multifamily office business. Mr. Rohokale is responsible for the vision of ASK group and spearheads the strategy of the group, which manages Rs 180 Bn (US$ 3 Bn) assets under management in equities, real estate and advisory.
Vikas Oberoi
Owner- Chairman & Managing Director
Mumbai | INDIA
Biography:
Mr. Vikas Oberoi is the Chairman and Managing Director of Oberoi Realty Ltd. He is involved in the formulation of corporate strategy and management and concentrates on the growth and diversification plans of the company. HQ in Mumbai, Oberoi Realty is one of India’s leading real estate development companies. While it’s primary focus is on residential projects, the company today has a diversified portfolio covering key segments of the real estate market like office space, retail, hospitality and social infrastructure verticals. Through it’s developments Oberoi Realty seeks to create environments and spaces that enhance the quality of lives of it’s customers. Mr. Oberoi has more than two decades of experience in the real estate industry
Yash Gupta
Founder & Chairman
YG Real Estate
INDIA
Segment: Investor - Developer
Biography:

Yash Gupta Senior Managing Director and Country Head Before being MD @ HINES he has served as the CEO of Silverglades, a mid-sized Indian real estate developer. In the 90's he ran his family's business, Doorvani Cables - a manufacturer of telecommunication ancillaries. He was a consultant with McKinsey & Company in New York (and New Delhi) for 5 years and Pricewaterhouse Coopers in Chicago for 2 years. He has Masters in Business Administration from Harvard Business School, Boston and Bachelor of Science in Industrial Management from Carnegie Mellon University, Pittsburgh.

Schedule

Thursday, 26th April

08:30 - 09:30 Registration / Breakfast


09:30 - 10:30 Discussion


10:30 - 11:00 Networking

CRITERIA TO BECOME A CLUB MEMBER

Membership is subject to approval by a committee of peers and is reserved exclusively for senior investors, lenders and developers*.

Qualified individuals (C / Director Level) that believe they could benefit from being part of such a global community are welcome to further details.

*Some leniency is given to those outside this category up to a maximum of 10% ratio of the Club.

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Venue

Jones Lang LaSalle Property Consultants (India) Pvt. Ltd. ONE BKC, Tower - A, 15th Floor C-66, G-Block, BKC, Bandra East Mumbai – 400 051
Priya Mathias

Priya Mathias

Country Head, India

+91 98339-45086

[email protected]
Puneet Alag Singh

Puneet Alag Singh

Club Director, India

+91 95602-40659

[email protected]
Anubha Garg

Anubha Garg

Club Director, India

+91 96198-98682

[email protected]
Priya Mathias
+91 98339-45086
Country Head, India
GRI Club
Puneet Alag Singh
+91 95602-40659
Club Director, India
GRI Club
Anubha Garg
+91 96198-98682
Club Director, India
GRI Club

Club Partner

BrookfieldCHEC Port City Colombo Pvt. Ltd

Sectoral Club Partner

COWRKSJLLPwC - PricewaterHouseCoopers
Brookfield

Brookfield is a global alternative asset manager with over US$ 285 billion of assets under management and has a history, of over 100 years, of owning and operating assets with a focus on property, infrastructure, renewable energy and private equity.


CHEC Port City Colombo Pvt. Ltd

Port City Colombo is a brand new city development built as an extension of the existing Colombo CBD with an initial investment of US$1.4billion & an expected US$15billion overall investment when completed. Spanning 269 hectares, it is a sea reclamation project. Port City Colombo will be developed to become the financial hub of South Asia with world class facilities including education, healthcare, entertainment, commercial offices & retail concepts, hospitality, marina and luxury residences.

COWRKS

CoWrks is India’s largest and fastest growing large-format coworking space provider. Established in 2016, it is home to leading entrepreneurs, a launch pad for start-ups and a work hub for millennials in large enterprises and Fortune 500 companies. This community of pioneers are all members of a large format coworking space - the first of its kind in the country. It fosters cross-pollination of ideas between members, which in turn encourages skill swap.

JLL

JLL is India’s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities and a staff strength of over 9,300, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory. The firm was awarded the Property Consultant of the Decade at the 10th CNBC-Awaaz Real Estate Awards 2015 and the Best Property Consultancy in India at the International Property Awards Asia Pacific 2016-17.


PwC - PricewaterHouseCoopers

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