Real Estate
Content
Session 16 @ IFIM, Bangalore Saturday, 21 July ·07
Section I
Real Estate
Real Estate is a static property basically consisting of an area of land with anything attached to it inseparably, like buildings or structures. It is also referred to as real property in some legal jurisdictions. Real estate differs from personal properties such as furniture, money, clothing, etc. with regards to the basic assumption that any type of personal property is movable with the owner of it.
Definition: Organizations primarily engaged in renting or leasing real estate to others; managing real estate for others; selling, buying, or renting real estate for others; and providing other real estate related services, such as appraisal services
Real Estate in India- the big picture
Commercial real estate: -Research estimates that Indian Real Estate market is expected to grow from the current USD 14 billion to a USD 102 billion in the next 10 years. - The main growth thrust is coming due to favorable demographics, increasing purchasing power,
existence of customer friendly banks & housing finance companies, professionalism in real estate and favorable reforms initiated by the government to attract global investors.
Potential Growth Areas
Commercial Residential Retail Industrial Hospitality Healthcare etc.,
Reasons for upward dash
Urbanization Economic liberalization Customer friendly banking services Influx of International funding
Global Scenario
Real estate continues to experience an influx of capital in virtually all major, emerging and niche markets. Though US and European direct real estate investment looks set to outperform most other assets in the near term, the immediate outlook may be tempered by a range of economic concerns including the impact of consumer debt and rising interest rates. Large sectors of the market are also facing surplus capital and a potential lack of investment stock. This is encouraging investors to look for new sources of value including Eastern Europe and South Asia.
Global majors in Indian real estate
Policy changes introduced by the Government in February 2005 allowed 100 per cent foreign investments in construction projects with fast-track approvals. The real attraction for foreign investors is potential investment returns of 25% and more in Indian projects that might be hard to come by in the US and in Western Europe today. A report by property consultants Jones Lang LaSalle estimates that US$ 10 billion foreign investment will be injected into the Indian real estate sector in the next 12-18 months. International companies like Ayala of the Philippines, Signature from Dubai, Och-Ziff Capital, EurIndia and Old Lane have indicated their interest in entering the Indian real estate market soon. On the cards is sizeable FDI inflow from Malaysia, followed by the UK, US, Israel
Financial institutions in real estate
Some of the prominent companies promoting real estate funds in India are: - HDFC Property Fund - DHFL Venture Capital Fund - Kotak Mahindra Realty Fund - Kshitij Venture Capital Fund (a group venture of Pantaloon Retail India Ltd) - ICICI¶s real estate fund - India Advantage Fund - The Tata group- Trent(with Xander). - India's top real-estate firm DLF
Did you know?
Big deals in realty- Whew!!!!!!!!!! The biggest mall of the world--Mall of India--planned by DLF Universal along NH-8--will have 32 acres spanning a huge entertainment area and large city town squares offering a total retail experience. Chennai, on the radar of foreign real estate funds, recently witnessed two big-ticket property deals. AIG Real Estate Fund and RMZ Corporation purchased an 11-acre plot at Guindy for US$ 686.9 milion and Shyam Kothari, in another deal, bought IDBI's 2.5 acres Boat Club property in Chennai for US$ 40.3 million.
Bangalore, "the most preferred city to live and work in".
Why is there a boom in real estate in bangalore? What do you think is the reason for the same? Do you think Bangalore has over-priced its land value? Who do you think are the people who are investing heavily in Real estate property and why?
Quiz!!
1. Which company is setting its first shop in India in Delhi at saket select city walk area ?
Starbucks
2. Airtel has tied up with which BSchool to offer courses via V-Sat ?
XIM - B
3. TCS provides software support to which F1 team during races ?
Ferrari
4. Cafe coffee day recently had a joint advertisement with this company, name this original advertiser ?
YAMAHA ALBA
5. "Only the paranoid survive"- who is the author ?
Andy Grove
Section II
Mavalli Tiffin Room
The Mavalli Tiffin Room (commonly known as MTR) is the brand name of a food related enterprise located in Bangalore. It is famous for the MTR restaurant located on the Lal Bagh Road in Bangalore and also for the pre-packed food articles which are sold in packets having the MTR brand. MTR is the inventor of the popular South-Indian breakfast item, Rava idli.
History
MTR was founded as a restaurant by Parampalli Yajnanarayana Maiya and his brothers in the year 1924. Mid 1970s - India was under emergency, a Food Control Act was introduced which mandated that food was to be sold at very low prices. This move made it difficult for MTR to maintain high standards in its restaurant business and forced it to diversify into the instant food business, selling ready-to-eat snacks such as chutneys and rasams. Since 1970s, MTR has expanded and diversified, with MTR Department Stores opened next to the restaurant, and an outlet opened in Chennai. MTR restaurant is currently headed by of Hemamalini Maiya (grand-daughter
Yajnanarayana Maiya)
MTR Foods
MTR Foods Limited is amongst the top five processed food manufacturers in India. MTR Foods manufacture, market and export a wide range of packaged foods to global markets that include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE and Oman. Its wide range of products include ready-to-eat curries and rice, ready-tocook gravies, frozen foods, ice cream, instant snack and dessert mixes, spices and a variety of accompaniments like pickles and papads. It bought the packaging technology from the Defence Food Research Laboratory in Mysore and there are no preservatives added to the food while packaging.
The Rava idli story
During
World War II, MTR found it difficult to make
idlis since rice was in short supply.
MTR
experimented with using semolina instead of
rice and thus was invented the very popular breakfast
item of Rava idli.
Brand Positioning
MTR¶s deep understanding of culinary expectations and needs has resulted in many new and innovative products. Our investments in infrastructure and technology ensure that it can scale rapidly and bring these to market. Today, consumers across the globe count on MTR to bring them all-natural, wholesome and delicious food that is also convenient and no-fuss. MTR has also expanded its retail presence significantly: contemporary µNamma MTR¶ and MTR kiosks now serve delighted consumers across Bangalore and Chennai.
Brand Width
Along with positioning, MTR has decided to launch a new-look logo and a contemporary packaging. The new logo will include the ³pure and perfect´ positioning, with the tagline, ³Since 1924,´ which the company feels will influence perceptions that it is a trustworthy brand MTR made a beginning in Bangalore with the launch of Namma MTR. The 2,000-sq ft store is unique in its design in that apart from retailing MTR¶s wide product range, it also has a model kitchen where the entire MTR fare is cooked and sampled by customers. For the last year or so, MTR Foods has been sponsoring magic shows and theatre performances to strengthen its brand presence in Karnataka. The company has been using this platform to hold live demonstrations and dole out free samples of its products to people visiting the performances, before and after the show.
What makes MTR a trusted, household name?
Products are 100% natural : Have no preservatives and use only the finest, most authentic ingredients. Be it an Instant mix or a Ready to Eat dish, pickles or soups, all MTR products are known for their mouthwatering, "home-cooked" taste. MTR adheres to the most stringent quality standards, from sourcing ingredients to processing and packing. They are ISO 9002 and HACCP certified. MTR uses the latest technology to preserve the quality and freshness of our food, that has won them the President's award. All MTR products are 100% vegetarian.
Did you know?
MTR has been featured on television in the travel-related series, Globe Trekker. It is said that once a Chief Minister of Karnataka stood in a queue to have masala dosa at this restaurant.s One of the uniqueness of this restaurant is that silver tumblers are used to serve beverages. MTR¶s closest competitor is the ready-to-serve food brand Tasty Bite. MTR is also the first Indian processed foods company to be certified with the Hazard Analysis Critical Central Point certification which is a rigorous standard of food safety and hygiene. The company boasts of having created the world's first ever frozen dosa, which can be heated and eaten straightaway.
Know your Leaders!!!!!
Kiran Mazumdar Shah
L N Mittal
Steve Blamer
Gautam Singhania
Peter Drucker
News bytes!!
Section III
Thomson Corp. to Acquire Reuters
Canada's Thomson Corp. has agreed to acquire global news agency Reuters for about $17.2 billion, creating a company that will replace Bloomberg as the world's largest provider of financial news and information.
The deal won approval from the Reuters Founders Share Company, a group set up to safeguard editorial independence that had the power to block the acquisition, but must still gain shareholder and regulatory approvals.
The new company will be called Reuters, and see expected revenues of more than $11 billion.
In October 1851 Paul Julius Reuter, a German-born immigrant, opened an office in the City of London which transmitted stock market quotations between London and Paris via the new Calais-Dover cable. Two years earlier he had used pigeons to fly stock prices between Aachen and Brussels, a service which operated for a year until the gap in the telegraph link was closed. Reuters, as the agency soon became known, eventually extended its service to the whole British press as well as to other European countries It also expanded the content to include general and economic news from all around the world. The reputation of its service was enhanced by a succession of reporting scoops. Reuters continued to modernise rapidly in the latter half of the 20th century. The introduction of a succession of computerised products for international traders transformed the business
Early in 2003, the company announced a three year programme - Fast Forward - to make Reuters more competitive, less complex, more focused on customer service and more efficient, with a target of achieving total cost savings of £440 million over four years. The company introduced two key new products: Reuters Trader, a new real time price data and news service for traders and salespeople, to replace the old 2000 series products Reuters Knowledge, an in-depth company information and consensus estimates service for investment bankers and research professionals.
The Thomson Corporation is a leading global provider of integrated information-based solutions to business and professional customers. Thomson provides value-added information, with software tools and applications that help its customers make better decisions, faster. Thomson serve professionals in the fields of law, tax, accounting, financial services, scientific research and healthcare.
AT A GLANCE 2006 revenues 8% over prior year from continuing operations: US $6.6 billion;
80% of total revenues derived from electronic products, software and services 82% of total revenues derived from subscription-based products and services 32,000 employees Headquarters in Stamford, CT USA, with operations in 37 countries COMPANY STRUCTURE The Thomson Corporation is organized into five segments: -Financial -Legal -Healthcare -Scientific -Tax and accounting
Thomson-Reuters!
352.5p in cash and 0.16 Thomson-Reuters shares for each Reuters share. Dual listed company structure will allow the combined business to have listings in Canada, the UK and the US. The combined business will adopt the Reuter Trust Principles. Woodbridge, the Thomson family holding company which controls approximately 70 per cent of Thomson before the deal, has agreed that it will use its voting control to support the Reuter Trust Principles. Woodbridge will own approximately 53 per cent of the combined business, other Thomson shareholders approximately 23 per cent and Reuters shareholders approximately 24 per cent. Reuters CEO, Tom Glocer, will become CEO of the combined business. Bear Stearns and Perella Weinberg are acting as financial advisers to Thomson; UBS, Morgan Stanley and Blackstone are acting as financial advisers to Reuters, while Citi and JPMorgan Cazenove are joint corporate brokers to Reuters as well as providing financial advice to them.
Impact!
For Thomson, a combination with Reuters is the next step in expanding its lucrative service business.. How? Why will this merger be a good thing for the shareholders ? What is the threat to Bloomberg?
Mixed bag
Malboro Man
Lee Iacocca
Lipton T Place outlet
Tiger Woods
The Simpson¶s Movie
Feedback
Your views on todays session ?
Thank You
Section I
Real Estate
Real Estate is a static property basically consisting of an area of land with anything attached to it inseparably, like buildings or structures. It is also referred to as real property in some legal jurisdictions. Real estate differs from personal properties such as furniture, money, clothing, etc. with regards to the basic assumption that any type of personal property is movable with the owner of it.
Definition: Organizations primarily engaged in renting or leasing real estate to others; managing real estate for others; selling, buying, or renting real estate for others; and providing other real estate related services, such as appraisal services
Real Estate in India- the big picture
Commercial real estate: -Research estimates that Indian Real Estate market is expected to grow from the current USD 14 billion to a USD 102 billion in the next 10 years. - The main growth thrust is coming due to favorable demographics, increasing purchasing power,
existence of customer friendly banks & housing finance companies, professionalism in real estate and favorable reforms initiated by the government to attract global investors.
Potential Growth Areas
Commercial Residential Retail Industrial Hospitality Healthcare etc.,
Reasons for upward dash
Urbanization Economic liberalization Customer friendly banking services Influx of International funding
Global Scenario
Real estate continues to experience an influx of capital in virtually all major, emerging and niche markets. Though US and European direct real estate investment looks set to outperform most other assets in the near term, the immediate outlook may be tempered by a range of economic concerns including the impact of consumer debt and rising interest rates. Large sectors of the market are also facing surplus capital and a potential lack of investment stock. This is encouraging investors to look for new sources of value including Eastern Europe and South Asia.
Global majors in Indian real estate
Policy changes introduced by the Government in February 2005 allowed 100 per cent foreign investments in construction projects with fast-track approvals. The real attraction for foreign investors is potential investment returns of 25% and more in Indian projects that might be hard to come by in the US and in Western Europe today. A report by property consultants Jones Lang LaSalle estimates that US$ 10 billion foreign investment will be injected into the Indian real estate sector in the next 12-18 months. International companies like Ayala of the Philippines, Signature from Dubai, Och-Ziff Capital, EurIndia and Old Lane have indicated their interest in entering the Indian real estate market soon. On the cards is sizeable FDI inflow from Malaysia, followed by the UK, US, Israel
Financial institutions in real estate
Some of the prominent companies promoting real estate funds in India are: - HDFC Property Fund - DHFL Venture Capital Fund - Kotak Mahindra Realty Fund - Kshitij Venture Capital Fund (a group venture of Pantaloon Retail India Ltd) - ICICI¶s real estate fund - India Advantage Fund - The Tata group- Trent(with Xander). - India's top real-estate firm DLF
Did you know?
Big deals in realty- Whew!!!!!!!!!! The biggest mall of the world--Mall of India--planned by DLF Universal along NH-8--will have 32 acres spanning a huge entertainment area and large city town squares offering a total retail experience. Chennai, on the radar of foreign real estate funds, recently witnessed two big-ticket property deals. AIG Real Estate Fund and RMZ Corporation purchased an 11-acre plot at Guindy for US$ 686.9 milion and Shyam Kothari, in another deal, bought IDBI's 2.5 acres Boat Club property in Chennai for US$ 40.3 million.
Bangalore, "the most preferred city to live and work in".
Why is there a boom in real estate in bangalore? What do you think is the reason for the same? Do you think Bangalore has over-priced its land value? Who do you think are the people who are investing heavily in Real estate property and why?
Quiz!!
1. Which company is setting its first shop in India in Delhi at saket select city walk area ?
Starbucks
2. Airtel has tied up with which BSchool to offer courses via V-Sat ?
XIM - B
3. TCS provides software support to which F1 team during races ?
Ferrari
4. Cafe coffee day recently had a joint advertisement with this company, name this original advertiser ?
YAMAHA ALBA
5. "Only the paranoid survive"- who is the author ?
Andy Grove
Section II
Mavalli Tiffin Room
The Mavalli Tiffin Room (commonly known as MTR) is the brand name of a food related enterprise located in Bangalore. It is famous for the MTR restaurant located on the Lal Bagh Road in Bangalore and also for the pre-packed food articles which are sold in packets having the MTR brand. MTR is the inventor of the popular South-Indian breakfast item, Rava idli.
History
MTR was founded as a restaurant by Parampalli Yajnanarayana Maiya and his brothers in the year 1924. Mid 1970s - India was under emergency, a Food Control Act was introduced which mandated that food was to be sold at very low prices. This move made it difficult for MTR to maintain high standards in its restaurant business and forced it to diversify into the instant food business, selling ready-to-eat snacks such as chutneys and rasams. Since 1970s, MTR has expanded and diversified, with MTR Department Stores opened next to the restaurant, and an outlet opened in Chennai. MTR restaurant is currently headed by of Hemamalini Maiya (grand-daughter
Yajnanarayana Maiya)
MTR Foods
MTR Foods Limited is amongst the top five processed food manufacturers in India. MTR Foods manufacture, market and export a wide range of packaged foods to global markets that include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE and Oman. Its wide range of products include ready-to-eat curries and rice, ready-tocook gravies, frozen foods, ice cream, instant snack and dessert mixes, spices and a variety of accompaniments like pickles and papads. It bought the packaging technology from the Defence Food Research Laboratory in Mysore and there are no preservatives added to the food while packaging.
The Rava idli story
During
World War II, MTR found it difficult to make
idlis since rice was in short supply.
MTR
experimented with using semolina instead of
rice and thus was invented the very popular breakfast
item of Rava idli.
Brand Positioning
MTR¶s deep understanding of culinary expectations and needs has resulted in many new and innovative products. Our investments in infrastructure and technology ensure that it can scale rapidly and bring these to market. Today, consumers across the globe count on MTR to bring them all-natural, wholesome and delicious food that is also convenient and no-fuss. MTR has also expanded its retail presence significantly: contemporary µNamma MTR¶ and MTR kiosks now serve delighted consumers across Bangalore and Chennai.
Brand Width
Along with positioning, MTR has decided to launch a new-look logo and a contemporary packaging. The new logo will include the ³pure and perfect´ positioning, with the tagline, ³Since 1924,´ which the company feels will influence perceptions that it is a trustworthy brand MTR made a beginning in Bangalore with the launch of Namma MTR. The 2,000-sq ft store is unique in its design in that apart from retailing MTR¶s wide product range, it also has a model kitchen where the entire MTR fare is cooked and sampled by customers. For the last year or so, MTR Foods has been sponsoring magic shows and theatre performances to strengthen its brand presence in Karnataka. The company has been using this platform to hold live demonstrations and dole out free samples of its products to people visiting the performances, before and after the show.
What makes MTR a trusted, household name?
Products are 100% natural : Have no preservatives and use only the finest, most authentic ingredients. Be it an Instant mix or a Ready to Eat dish, pickles or soups, all MTR products are known for their mouthwatering, "home-cooked" taste. MTR adheres to the most stringent quality standards, from sourcing ingredients to processing and packing. They are ISO 9002 and HACCP certified. MTR uses the latest technology to preserve the quality and freshness of our food, that has won them the President's award. All MTR products are 100% vegetarian.
Did you know?
MTR has been featured on television in the travel-related series, Globe Trekker. It is said that once a Chief Minister of Karnataka stood in a queue to have masala dosa at this restaurant.s One of the uniqueness of this restaurant is that silver tumblers are used to serve beverages. MTR¶s closest competitor is the ready-to-serve food brand Tasty Bite. MTR is also the first Indian processed foods company to be certified with the Hazard Analysis Critical Central Point certification which is a rigorous standard of food safety and hygiene. The company boasts of having created the world's first ever frozen dosa, which can be heated and eaten straightaway.
Know your Leaders!!!!!
Kiran Mazumdar Shah
L N Mittal
Steve Blamer
Gautam Singhania
Peter Drucker
News bytes!!
Section III
Thomson Corp. to Acquire Reuters
Canada's Thomson Corp. has agreed to acquire global news agency Reuters for about $17.2 billion, creating a company that will replace Bloomberg as the world's largest provider of financial news and information.
The deal won approval from the Reuters Founders Share Company, a group set up to safeguard editorial independence that had the power to block the acquisition, but must still gain shareholder and regulatory approvals.
The new company will be called Reuters, and see expected revenues of more than $11 billion.
In October 1851 Paul Julius Reuter, a German-born immigrant, opened an office in the City of London which transmitted stock market quotations between London and Paris via the new Calais-Dover cable. Two years earlier he had used pigeons to fly stock prices between Aachen and Brussels, a service which operated for a year until the gap in the telegraph link was closed. Reuters, as the agency soon became known, eventually extended its service to the whole British press as well as to other European countries It also expanded the content to include general and economic news from all around the world. The reputation of its service was enhanced by a succession of reporting scoops. Reuters continued to modernise rapidly in the latter half of the 20th century. The introduction of a succession of computerised products for international traders transformed the business
Early in 2003, the company announced a three year programme - Fast Forward - to make Reuters more competitive, less complex, more focused on customer service and more efficient, with a target of achieving total cost savings of £440 million over four years. The company introduced two key new products: Reuters Trader, a new real time price data and news service for traders and salespeople, to replace the old 2000 series products Reuters Knowledge, an in-depth company information and consensus estimates service for investment bankers and research professionals.
The Thomson Corporation is a leading global provider of integrated information-based solutions to business and professional customers. Thomson provides value-added information, with software tools and applications that help its customers make better decisions, faster. Thomson serve professionals in the fields of law, tax, accounting, financial services, scientific research and healthcare.
AT A GLANCE 2006 revenues 8% over prior year from continuing operations: US $6.6 billion;
80% of total revenues derived from electronic products, software and services 82% of total revenues derived from subscription-based products and services 32,000 employees Headquarters in Stamford, CT USA, with operations in 37 countries COMPANY STRUCTURE The Thomson Corporation is organized into five segments: -Financial -Legal -Healthcare -Scientific -Tax and accounting
Thomson-Reuters!
352.5p in cash and 0.16 Thomson-Reuters shares for each Reuters share. Dual listed company structure will allow the combined business to have listings in Canada, the UK and the US. The combined business will adopt the Reuter Trust Principles. Woodbridge, the Thomson family holding company which controls approximately 70 per cent of Thomson before the deal, has agreed that it will use its voting control to support the Reuter Trust Principles. Woodbridge will own approximately 53 per cent of the combined business, other Thomson shareholders approximately 23 per cent and Reuters shareholders approximately 24 per cent. Reuters CEO, Tom Glocer, will become CEO of the combined business. Bear Stearns and Perella Weinberg are acting as financial advisers to Thomson; UBS, Morgan Stanley and Blackstone are acting as financial advisers to Reuters, while Citi and JPMorgan Cazenove are joint corporate brokers to Reuters as well as providing financial advice to them.
Impact!
For Thomson, a combination with Reuters is the next step in expanding its lucrative service business.. How? Why will this merger be a good thing for the shareholders ? What is the threat to Bloomberg?
Mixed bag
Malboro Man
Lee Iacocca
Lipton T Place outlet
Tiger Woods
The Simpson¶s Movie
Feedback
Your views on todays session ?
Thank You
