NASHIK: The civic body, My General, will waive off the penalty for property owners who come forward to declare that they are using their residential property for commercial purposes. Nashik Municipal Corporation (NMC) will waive the penalty for property owners if they declare that they are using their residential properties for commercial purposes between October 10 to November 10. They will be giving amnesty to such residential property owners. NMC will not be imposing a fine but will be charging commercial rates from the day of declaration.

It is binding on the property owner to use the property as per the users registered with the NMC – residential, commercial, or industrial. If the property is not used as per the registration with the NMC, a penalty is imposed upon the owner. “But if the property owners who changed the use of their properties give us a statement in writing about the change by November 10, then NMC will take some positive decision for them. Instead of penalizing them, we will give them amnesty from the day of the declaration. We will charge commercial rates from the day they declare,” said deputy municipal commissioner Rohidas Dorkulkar Reality Crazy.

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He said that generally if the property owner cannot prove the period of change in usage, the NMC imposes the penalty from the last six years. But now, if the owners declare the change in usage on their own, they will get amnesty.
The NMC recently sent notices to 1309 property owners for using residential properties for commercial purposes.

Global private My Latest News equity firm Blackstone Group Lp, the largest owner of office real estate in India, plans to list two separate real estate investment trusts (REITs) for its office assets with developer partners, said multiple people familiar with the development.

For its office parks in the National Capital Region (NCR) and West India (Mumbai and Pune), Blackstone will collaborate with Pune-based Panchshil Realty for a REIT with about 20-25 million so. Ft of office space across cities.

The proposed REIT includes office parks and buildings jointly owned by Blackstone and Panchshil, such as Eon Free Zone and Panchshil IOCC Park in Pune, 247 Park Express Towers Mumbai. There are also assets Blackstone owns independently, such as the two office parks that it had bought out from IDFC Ltd in Pune and Noida and the Oxygen SEZ in Noida.

Blackstone’s other REIT with Bengaluru-based Embassy Property Developments Pvt. Ltd will have a south India focus. Valued at around Rs22,000 crore, this REIT will have a larger portfolio with more than 25 million sq. ft of office space. It is also at a more advanced stage, with Embassy having filed an application for approval from the Securities and Exchange Board of India (Sebi) in October Soul Crazy.

“If all goes well, the Blackstone-Embassy REIT will first go for a listing sometime in mid-2017. The Blackstone-Panchshil one is likely to file a REIT application early next year and then list at the end of 2017 or the beginning of 2018,” said one of the persons mentioned above who did not want to be named.

As per norms, both REITs can include under-construction office space of up to 20% in each of their portfolios. Blackstone declined to comment. REITs are listed entities that primarily invest in leased office and retail assets, allowing developers to raise funds by selling completed buildings to investors.

Since 2006, Blackstone has invested $2.7 billion in 19 transactions involving real estate projects and currently manages the largest portfolio of office parks in India. It owns 31 million sq. ft across 16 operating office parks (apart from an additional 8 million sq. ft under development). Besides office parks, Blackstone has also started buying out retail assets such as shopping malls and has made a few residential investments in recent years.

“The Blackstone-Embassy REIT is likely to enjoy the first-mover advantage and grab the attention of investors. What will be a determining factor for the following REITs, be it Blackstone’s second with Panchshil or for the other developer-investors, is the price the first REIT commands as that will set the overall tone for office REITs,” said another second person cited above, also on condition of anonymity.

India’s real estate sector has witnessed tough times in the past three years, particularly the residential segment, where sales have been slow. Property prices have stagnated, leading to a liquidity crunch for many developers. However, even in this situation, commercial office space has emerged as a bright spot with steady momentum in leasing, investors buying office space at high valuations, and good demand in large cities.

Other companies acquiring and consolidating their office assets and firming up plans for a REIT are RMZ Corp. and K. Raheja Corp. India’s largest real estate developer, DLF Ltd, is in talks with investors such as Blackstone to sell a 40% stake in its rental assets arm to raise about $2 billion, Mint had reported on 31 August. DLF is the second-largest office space owner in the country, after Blackstone.

“Blackstone has steadily built a very worthy portfolio of investible, good grade office assets. These are properties that have a good mix of tenants, combined with healthy cash flows. For investors, REIT is all about stabilized yields that entail less risk,” said Shobhit Agarwal, managing director, capital markets, and international director at property consultant JLL India.

A report by India Ratings (Ind-Ra) My Live Updates shows a worrying trend: defaults on loans against property (LAP) are at their highest level in 2016, compared to the last five years. Between zero and under-2% during 2011-13, these delinquencies are now at 5% or more for most lenders, mainly banks and non-banking finance companies (NBFCs). These are already feeling the pressure of mounting bad debt from corporate borrowers. The Ind-Ra findings are significant: one, delinquencies are rising whatever the year of origin of LAPs.

Two, around half of all defaults, come from high-ticket borrowers, with an exposure of Rs 50 lakh or more; the smallest ones, borrowing Rs 20 lakh or less, are best behaved. Three, most defaults are concentrated in metros and large cities, where a long property bubble is now deflating. Finally, the data goes back five years, enough time to indicate a trend.
NPA-bad-loan Being Mad

The LAP market’s growth was driven by a bubble, which turned the heads of property owners as they saw the notional values of their holdings soar, borrowing more on the back of these unreal values. Lenders jostled with each other to play along: instead of accepting the relatively stable residential property, they took on commercial or business establishments, even freehold land, as collateral. Now, if the LAP market goes belly up, it could impact credit across retail, property, and corporate segments.

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At best, it could make lenders more risk-averse and circumspect about funding; at worst, it could freeze overall credit and growth. The government and Reserve Bank of India must act fast to prevent a replay of India’s US subprime mortgage crisis. The property bubble must be allowed to deflate on its own; it will do so. Regulators must step in: LPAs must be scrutinized, and collateral and margin norms tightened. Credit recovery might be tough or messy, so assets underlying LAPs should be bundled into a recovery pool, which can be auctioned off at prices the market can afford. The government should not go into bailout mode. Early action, with haircuts and rational pricing, should suffice.

NEW DELHI: My Pro Blog, A 35-year-old property dealer, was shot by four unidentified assailants in his office at east Delhi’s Geeta Colony on Sunday evening. Veenu Pandit and his friend Akash were sitting in his office and watching a cricket match between India and New Zealand when the incident occurred. Four men barged into the shop and shot Pandit, police said. They then fled on two bikes Living Tired.

Pandit was rushed to Max Hospital but was declared brought dead. Cops were informed, and they soon reached the spot. A country-made firearm and some cartridges were recovered from the spot. The incident was captured on a CCTV camera. Its footage is being analyzed to identify the men. Police officers said Pandit was a history-sheeter and had several enemies. “He had 15 cases pending against him. An unsettled payment dispute could be a strong motive behind the murder. We are gathering more details on his business deals,” said an officer. A murder case has been registered at Geeta Colony police station. Police said Pandit was a resident of Ghaziabad.

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PUNE: The property tax department of Pune Municipal Corporation (PMC) has issued notices to 200 illegal properties and sealed three properties. “The notices have directed the property owners to pay three times more tax. This amount will be charged as a fine for failing to pay the tax on time,” a statement issued by the civic body said. As per the PMC officials, the action was taken in the Ahmednagar road areas following a survey.

The commercial, as well as residential properties, will face action. These property owners have not completed the process to construct the buildings, or they have carried out additional construction than permitted. Property tax is a levy issued by the government on a person’s real or personal property. The property is assessed to give it a value and, then that value is taxed. The amount of tax owed is determined by multiplying the property’s fair market value by the current tax rate.

This tax is one of the key sources of revenue for the civic body, which, on average, collects the tax of around Rs 700 crore annually. Owners of around 8 lakh properties in the city, including open plots, commercial and residential properties, are liable to pay the tax based on an assessment by PMC. The property tax department plans to use the geographical information system (GIS) to register properties in the city. The system is expected to be functional by November.

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NEW DELHI: Four men entered My Update System, the house of a property dealer in south Delhi’s Chhatarpur area, on Friday and robbed the couple at gunpoint. They entered the house on the pretext of striking a property deal.
Police are yet to identify the accused. After having tea and snacks at the couple’s house, the robbers sprayed chili on their faces and thrashed them. They then tied the couple using a bedsheet and fled with valuables and cash.

According to the victim, Pawan Sharma, at 2.45 pm, a man, who had been contacting him for the past three months for a piece of real estate, arrived at his house along with two others. The man, who introduced himself as SK Samaria, called another person to finalize the deal.

“Sharma said when he got up to keep the property-related documents back into a drawer, one of the men got up and smeared chili on his face from behind. When he cried out in pain, his wife rushed out to the drawing-room. She, too, was attacked in the same way. Both were beaten up. One of them then pulled out a pistol and threatened to shoot the realtor,” a police official said.

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Sharma claimed that the men took him and his wife to the bedroom where, using a bedsheet, they tied them. When the couple tried to raise the alarm, the robbers switched on the television and turned up the volume. “They fled with Rs 45 lakh cash, some jewelry, and a few property-related documents. They even threatened Sharma not to inform the police else they would burn the property documents. After they left, Sharma and his wife managed to untie themselves and informed us,” a police officer said. A case of robbery under the IPC and Arms Act has been registered at the Mehrauli police station. CCTV footage of the area is being scanned to identify the assailants.

NAVI MUMBAI: In what appears My Update Studio to be a massive corruption scandal, the Navi Mumbai Municipal Corporation has lost around Rs 900 crore in uncollected property tax. Officials have found that tax was deliberately not collected from over 15,000 property owners for the last 10 years.

Officials said that 3,300 building owners have not been paying property tax, while details of payments by another 12,700 consumers are missing from the system. Officials say that the property tax department of NMMC has been generating bills, but these have not been distributed to the owners. The department is alleged to have sat on issuing bills to these property owners until March 2016. The department, which prided itself on achieving its recovery targets set every year, is now grappling for answers over the administrative and financial discrepancies.
NMMC officials declined to elaborate but have initiated a departmental inquiry against former assessor and collector of property tax, P B Kulkarni. He was placed under suspension in May 2016, and an inquiry was initiated by NMMC commissioner Tukaram Mundhe immediately after taking charge. NMMC officials say the alleged misappropriation of bills occurred during Kulkarni’s tenure.

“The consumers who till date didn’t receive bills are now being provided with a copy that includes existing dues as well as arrears too. The dues are to be paid by March. Simultaneously, an inquiry is underway to look into the discrepancies,” said additional municipal commissioner Ankush Chavan.

Senior officials of the property tax department stumbled upon the anomaly while generating half-yearly bills. “The calculation is simple as per the corporation’s records. There are 3.07 lakh properties registered, but when the process of generating half-yearly bills was undertaken, it was found that the system had data of only 2.92 lakh properties,” said an official.

“A rough estimate shows that NMMC lost Rs 900 crore in the last 10 years. We suspect these property owners have been greasing the palms of officials,” the official added. These 3,300 properties were ‘land under construction’ category. Though these properties may have been under construction when the first bills were raised, the properties may have been developed, and multi-storied buildings may have come up at these locations, attracting a higher property tax,” said officials.

“Ideally, for constructing a building, a NOC from the property tax department is necessary. However, if commencement certificates and occupation certificates were issued in the absence of a NOC, it only means that the whole scam was carried out with the involvement of officials of various departments. The involvement of some politicians is also being probed,” the official added.

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Official under scanner

A senior official of the property tax department, who is under the scanner for misappropriation of bills, is leading a lavish lifestyle. The officer is said to have amassed expensive properties while his family members used high-end cars.

When considering a business property funding it’s miles smart to set some general guidelines for the evaluation so you can compare possibilities that the diverse homes carry you.

Investment properties normally exist within the retail, workplace, and commercial assets markets. We will not pass into the alternative assets kinds of tourism and amusement here in this newsletter as they themselves take an extra comment and prolonged evaluation.

Here is a useful listing to don’t forget with funding belongings.

Some Key Property Concerns

Rent: The stages of the existing rent are essential to the investor or landlord but more essential are the levels of the lease within the future. It is an issue of what hire escalation the hire lets in for and in what time body. A top rent with an excellent hire evaluation profile in legitimate and nicely controlled belonging will continually appeal to assets investors.
Outgoings: These are the belongings going for walks prices. Importantly they should be in stability and in assessment to other residences of similar types within the equal vicinity. If the outgoings are out of balance to similar properties then you need to recognize why as any astute belongings consumer will ask approximately the outgoings. They know what are the averages of outgoings in the place and could not want to pay above the common except there may be a strong and sound purpose to achieve this.
Supply and Demand: How plenty other assets is getting into the marketplace within the following couple of years? Will that asset affect the property that you are searching for? Could this effect on the tenant profile or hobby in your own home? This equation or consideration is known as supply and call for. It will impact on customer and tenant interest within the vicinity in which your home is positioned.
Location: Does the property give appropriate publicity to passing traffic or customers and does it have precise get right of entry to for humans and motor cars? Add to this the consideration and availability of vehicle parking.
Design: Is the property person friendly and appealing? Right belonging funding normally seems exact and is well maintained. This is to maintain interest in the property from the tenant and the consumer attitude. If these humans experience good approximately the property after they go to it or use it, then you are nicely in the manner to suitable belongings performance. As a part of this method, you may behavior interviews with human beings as they use the assets to look and pick out any latent issues. In the case of retail property this is exceedingly advocated as retail assets is strongly geared to the sentiment of customers.
Amenities: Are you presenting the whole lot that a modern-day enterprise, tenant, or purchaser needs? Amenities are much stuff and it honestly relies upon on what the belongings are doing or serving. Most humans that use the property count on ease of use and access to the amenities inclusive of bathrooms, vehicle parks, commonplace areas, etc. Retail belongings have a higher degree of attention in this class.
Services: Are your property services present day and performing well? This could consist of water, gasoline, roads, power, lighting fixtures, phones and so forth.
Parking: Are clients and tenants properly served by recognizing the parking of vehicles? Ease of getting right of entry to the assets is critical and at a premium these days. Motor vehicles are part of enterprise and existence for anyone. If parking isn’t always well catered for on the assets then the interaction of the belongings with public delivery is essential.
Tenant Covenants: This relates strongly to the rentals and files of career on the belongings. The phrase covenant pertains to the clauses or hires terms. Every lease may be extraordinary so it will pay to study all occupancy papers or rentals. Are the rentals and tenant profiles strong and attractive to destiny occupancy?
Tenancy Mix: Perhaps this is more vital in a retail property however it can have an impact on workplace assets. Some landlords need to be very careful as to the tenants that they pick out for a constructing. It is pretty feasible that a low profile and poorly decided on tenant will detract from the customers that go to the building. Other tenants will also then emerge as involved and probably have little interest in ongoing occupancy. This then says that no longer all tenants are precise tenants for the property. Add to this any other question of proximity and site of tenants to each other. Are the tenancies properly balanced to fulfill the purchaser needs? Can tenants that are located near to each other effect each others business thru impact of clients, product, service, hours of trade, or team of workers?
Management: The strength and techniques of a assets management team will make or smash belongings. The property control methods will effect on such a lot of things which includes rent, running fees, tenant sentiment, and lease balance. For this motive ask the tenants about the property control reports that they have got seen in latest time. Any poor comments have to be explored for hidden issues.
Lease Agreements: Are they landlord favorable and do they provide a long time appealing and strong occupancy? What is the duration of tenure or terms of all the rentals and do they expire on the identical time? Does this gift an trouble to the landlord as to belongings stability and exposure?
Transport Routes: All modes of shipping to the belongings must be looked at. Make your assessment as to whether or not they may be convenient and current. Do they serve the tenants and the customers to the assets and how is that accomplished?
Source uncooked materials: In the case of industrial belongings the get right of entry to raw substances may be a trouble for the tenant. What raw substances are wanted via the enterprise or tenant and can they get to them without difficulty?
Power Supply: Industrial assets will generally need a critical amount of energy for machinery on the property. Access to that strength is a choice factor for the tenant that occupies the premises. Ask the neighborhood strength authority if 3 section or excessive tension energy is close by or available.
Labor Availability: Business tenants need a labor supply as a part of their operation. This exertions supply wishes to be stable and handy. This is why corporations are located near to transport corridors on the radial road points to a town or metropolis. Is the exertions marketplace close by and lively? Can that hard work deliver attain the assets without problems? Public shipping will enhance this case.
Goods stop market: If your tenant is to fabricate whatever, they will want to transport it to their clients. How near is the product shopping for the market for that tenant and the way will they get to it? Is the marketplace for the tenant’s goods or services developing and strong?
Rent and Vacancies: These are always an issue in funding belongings and want to track. Shifts in population and zoning rules regard assets can quickly shift the attractiveness to occupy assets.
Pre-hire market: These are the more recent properties which are coming in the marketplace soon. They are typically keenly priced or rented and will effect on different current belongings in the place. The belongings investor or developer within the newer property has one goal handiest and that is to fully rent the completed belongings as speedy as feasible. Expect them to chase the tenants to your constructing.
Owner Occupiers: Investment assets move in cycles between renting and possession. Many companies will do either depending on what’s more appealing to them in the economic situations prevailing.
Investors demand: The stability among the belongings marketplace and the percentage market is thrilling to reveal. Investors move into the property after they need long-run funding balance. If the percentage marketplace is unstable and unpredictable, then assets funding actions to the front of the line and becomes the funding of choice. The handiest problem buyers may have is in getting the finance from the banks once they need it. This motion between investment types says which you have to screen stages of go back which are feasible among stocks and assets.
Corporate Businesses: Major organizations like to off-load capital from balance sheets. This manner a potential sale and lease again of property occasionally. This is likewise usually carried out whilst the belongings is within the closing tiers of use or need for the tenant. They might also sell the belongings and take a lease for a term of years at the same time as they invent the subsequent degree of assets method. Always search for tenants and companies which might be inside the degrees of trade or flux. Mergers, acquisitions, expansions, contractions, and so forth. All create pressures on the property that the tenant may occupy.
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John Highman is a outstanding funding actual property speaker and teach that enables real property dealers and real property agents globally to enhance their commercial actual property marketplace share and near extra income and leasing offers. He himself is a a success real property agent that has specialized in business, commercial, and retail real estate of every kind for over 30+ years.

Whether you focus on actual estate sales, leasing, or funding, John has the gear that let you and your workplace achieve your market.

Today John Highman gives workshops and keynotes to actual estate agents and agents globally on how to be professionally higher than your opposition in any market and drive extra of the proper listings and commissions.