By Accommodation Times (www.accommodationtimes.com)
The contemporary property market condition is a big reason of worry not only for Builders but for housing finance companies and homebuyers too. As sales graph is going constantly down, due to lesser sales realtors are finding difficult to complete their projects and on the other side rising debt has become bottleneck for them. But now crisis period will come to an end as Whit Knight will bat for their relief.
The biggest executive quit Morgan Stanley recently to set up a fund that will focus on anxious assets as he expects real estate NPA levels to rise over the next few quarters. Last month, a start-up real estate firm, Citrus Ventures, bought two under construction assets in Bangalore, which it will develop and sell, and is looking for more. Toronto-based investment giant Brookfield Asset Management, which has bought a few distressed assets in the US, recently entered India through a joint venture with the Piramal group.
Following to the biggest market players’ footstep Ascendas India Development Trust is also looking to invest $350miilion fund in real estate sector, out of which 50% of fund will be used for buying anxious assets metro cities such as Mumbai, Bangalore, Hyderabad and Chennai. Also Edelweiss Alternate Asset Advisors has raised $300 million through three funds that will also invest in special situations and stressed assets.
According to the Reserve Bank of India (RBI) in its half yearly assessment said that there is a slight rise in NPA, specially in property market, infra and priority sectors in the recent past.