Tuesday, October 5, 2010

Assignment-2 Real Estate Firms

Real Estate Management Assignment
Submitted By: Remya Chandy
(ID :1900910007, M-Arch 2nd yr)

4 Real Estate Companies in India :
  1. Aura Estates
  2. CB Richard Ellis
  3. Morgan Stanley Real Estate
  4. Ascendas

1.0 - AURA ESTATES

Introduction :

Aura Estates are an International property firm, we offer strategic Investments through a diversified global portfolio of select apartments, villas, townhouses and off-plan properties.

Aura estates is a UK owned company specialising in sourcing top quality developments for discerning purchasers. They have built key alliances with strong International developers to sell and market their properties successfully worldwide.

Founded on a passion for property, Integrity and genuine hard work, they have the skills to deliver excellent long term returns on your Investment by selecting property developments in some of the most desirable locations that are proven to be experiencing good growth rates.

These strengths set us apart from our competitors and make us one of your most valuable resources in fulfilling your real estate need

Analysis on Research :
  1. Reasons to invest in India
India has one of the fastest growing economies in the world. India's stability and lack of a communist government makes the real estate market here in many ways more advantageous for those emerging market investors .

There is ample room for the real estate market to grow with strong demand for accommodation. Investors could not ask for a better set of market fundamentals. Population growth is expected to help India take China's place as the most populous country by 2030. Twenty million houses will be needed in the next five years if supply is to keep up with demand.

Rapid urbanisation of 2.5% a year has increased the need for housing in Indian cities.

A growing middle class with disposable income is also a crucial factor in raising the demand for housing. India's middle class is now growing by 15-20 million people every year, so that by 2025 half of the population will be categorised as middle class.

Overseas and non-resident Indians often like to maintain a base in the country and their wealth provides a constant boost to a property market which has been one of the strongest internationally over the past few years. Remittances by overseas Indians are higher than for any other country in the world.

Property prices are expected to keep rising in most areas of India. For example, property in Bangalore has an expected annual growth rate of 20% over the next several years.

Non-resident Indians are allowed to rent out property and to repatriate the income earned through the banker/authorized dealer. Yields in India vary hugely depending on the city or region, and can be limited by rent control. In New Delhi, yields range between 4% and 8.4%. Mumbai rental yields, are on average around 3% to 4%. Bangalore with less stringent controls has yields as high as 9.9%. There should be a continuing rental market as India's middle class and commercial centres grow.

Twenty million houses will be needed in the next five years if supply is to keep up with demand.

2. Reasons to invest in Barbados :

Population : 280,000

Capital : Bridgetown (other important towns – Hometown, Moistens, Speight town)

Area : 430 sq km/166 sq miles; 34 km/21 miles long 23 km/14 miles wide

Barbados is one of the most popular luxury holiday destinations in the world. Renowned for its breathtaking scenery,

the richness of its culture and above all the friendliness of its people it provides the best of all worlds - it is one of the

best places to relax, but it's also full of chic restaurants, vibrant nightclubs and world class golf courses

There is an established property market and prices are still rising due to near saturation as there is a limited stock of property available for sale and limited land available to build on. With capital growth expected to be consistent at +15% per annum for the next four years bringing a high return on investment it is still an attractive prospect for overseas property investors

Economy: Barbados is one of the most developed countries in the Caribbean with a Market based economy and capital growth of 12%. The island is highly rated for the Quality of its educational, social and healthcare services and ranks in the top 30/31
Its economy is driven by Business and financial services, tourism, agriculture and manufacturing. Large corporates are investing in Barbados e.g. PWC, KPMG, Barclay.

3. Reason to invest in St. Lucia

St Lucia is an increasingly popular holiday destination that is also one of the most accessible. In 2007 hotel occupancy was 69.7% meaning that there is excellent rental potential for properties. The total number of visitors increased by 19.4% between 2002 and 2007. In the period January to June 2008 stopover arrivals were up by 9.1%, with visitors predominantly from the USA (40%) and Europe (32.3%) and Canada (10.2%). Visitors from Canada were up by 46.9% year on year. In 2007 the total expenditure by visitors was $808.3 million

The real estate sector in St Lucia is booming, in 2007 it grew by 7.6%. Property prices are still more reasonable than on other islands in the Caribbean and are 40-50% lower than on Barbados. They have increased by around 40% per annum for the last 2 years, and are projected to continue to rise for the next 5 years. Land prices on the northern tip have doubled over the last three years and are expected to double again in the next two years.

4. Reason to invest in Brazil

  • Mortgage penetration currently sits at under 2% - UK 70%, Mexico 14%, Chile 14%, China 14%.
  • The recent reduction in interest rates has generated an increase in real estate financing that should see it go from being 2% of the
  • GDP currently, to 12% in 2014.
  • Average temperatures of between 26-32ÂșC giving Brazil 12 month rental potential making it one of the most promising tourist
  • and it is the second home destinations in the world.
  • Brazil is now the eighth biggest oil producing nation in the world and is almost completely self sufficient in terms of its import-export trading.
  • The cost of living in Brazil is 60% cheaper than the UK with low fuel costs.
2.0 - CB RICHARD ELLIS

Introduction :

CB Richard Ellis (CBRE) is the world's premier, full-service real estate services company. Operating globally, the firm holds a leadership position in virtually all of the world's key business centres.

Whether it's a local, regional, national or global assignment, CBRE applies insight, experience, intelligence and resources to help clients make informed business decisions.

CBRE's strengths, which are applied to every transaction, assignment and client relationship, include:

  • An intimate knowledge of virtually every major market in the world
  • Intellectual capital and technology resources that develop and deliver superior analytical, research and client service tools to our professionals
  • A proven track record of meeting diverse client needs
  • The leadership position in nearly all service lines
  • An organisational structure that harnesses the firm's collective expertise
Services of CBRE :
CB Richard Ellis professionals are backed by the most advanced information technology and computer software systems that deliver a total range of services. These include property management, financial and accounting analysis and client databases which provide efficient and detailed reports to clients.

Our service structure and expertise are available to clients whether they buy, sell, or occupy real estate. These include

Agency/ Brokerage

- acquisition and disposal

- sales and leasing

- residential relocation services

Professional

- property valuations and appraisals

- property management

Consultancy
- research
- feasibility studies

- investment

- occupier services

Agency and Brokerage Services

- Landlord Advisory

- Occupier/Tenant Advisory

- Lease Advisory

Asset Services

- Asset Management

- Construction/Project Management

- Property Accounting

- Property Management

Capital Markets

- Finance

- Property Sales and Acquisitions

- Real Estate Investment Banking

3.0 - MORGAN STANLEY REAL ESTATE

Introduction :
Since 1969, the longest uninterrupted real estate industry presence of any Wall Street firm, Morgan Stanley has consistently supported our expansion from roots as a mortgage/asset brokerage business through the introduction of new products and services, such as public debt and equity capital raising, real estate investment management and mortgage lending.

Morgan Stanley's real estate franchise comprises three distinct yet globally integrated businesses: banking, investing and lending. Our senior real estate managers, many of whom have spent their entire careers growing Morgan Stanley's real estate business, provide clients with a team of experienced and knowledgeable advisors dedicated to superior client service and performance.

Analysis on Research:

Morgan Stanley Investment Research is one of the financial industry's dominant thought leaders in equity and fixed-income investing. Our analysts, economists, and strategists have earned this reputation through timely, in-depth analysis of companies, industries, markets, and the world’s economies. Our teams collaborate to assist Morgan Stanley clients with investment decisions, using cash and derivative instruments across major asset classes and geographies.

1. Global Footprint

Research teams are organized by country, region, and global industry to cover all major markets in Asia, Europe, EMEA, Japan, Latin America, and North America, with over 2,300 stocks under coverage.

2. Economics

Our economists not only forecast economic activity, inflation, interest and exchange rates but also provide daily insights into policy, economic, and political trends.


3. Investment Strategy

Working across equity and fixed income markets, the strategy team seeks significant market trends, themes, and investment strategies that lead to superior returns.


4. Company and Industry Research

Our research analysts deploy a variety of tools and resources to assess the investment outlook, including industry contacts, supplier and customer surveys, and public documents, as well as insights from Morgan Stanley analysts following other industries, regions, and asset classes. We look for inflection points that the market may be missing and use scenario analysis to identify future catalysts that will shape companies and industries and determine relative value.


5. Proprietary Modeling and Valuation

A proprietary analytic framework, ModelWare, underpins Morgan Stanley’s investment models, providing transparency and comparability to our global coverage universe. Our Open Research approach offers our investment views with a systematic calibration of risks and rewards.


4.0 - ASCENDAS

Introduction:

Ascendas is Asia's leading provider of business space solutions. Renowned for quality infrastructure and lifestyle environments
catering to business, Ascendas has an excellent track record as Asia’s premier developer and manager of business space

The real estate portfolio includes award-winning science, business and industrial parks, and customized developments for a host of industries. The company is present in more than 30 cities in 10 countries, across key markets such as Singapore, India, China, South Korea, Vietnam, Malaysia and the Philippines.

Ascendas has demonstrated a consistent track record in managing listed and private real estate funds. In Nov 2002, Ascendas Real Estate Investment Trust (www.a-reit.com) was the first business and industrial space REIT listed on the Singapore Exchange, with just eight properties worth S$545 million. The trust portfolio has since expanded to 92 properties with a book value of about S$4.8 billion as at 30 June 2010.
In August 2007, the Ascendas India Trust (a-iTrust) went public as Singapore's first listed business trust holding Indian IT park assets, after two successful years as a privately held trust. Ascendas has also showed strong credentials in real estate fund management with a series of private real estate funds established across Asia.

Services of Ascendas:

  1. Development & Project Management

Value-added convenience packaging comprehensive development & project management services. These include feasibility studies, master planning, project cost analysis and project management.

Our third-party track record include:

CSE Systems & Engineering

Data Storage Institute

IBM at Changi Business Park

Institute of Materials Research & Engineering

Institute of Microelectronics

Institute of Molecular Agrobiology

The Strategy at International Business Park

KA Place at Kampong Ampat

Nanyang Academy of Fine Arts

Orient Container Warehousing Services

Pioneers & Leaders

Richgold

2. Property & Estate Management


Benefit from proven systems to protect your interests and enhance your property value. The value chain includes lease administration, operations management, quality control, budgeting, financial management, government liaison and training.

Our third-party track record include:

  • INSEAD

  • Infineon

  • Frontier

  • Focus One

  • JTC flattered factories

  • TeleTech Park

3. Consultancy Services

Backed by a strong track record for reliability, quality and service excellence, Ascendas packages its best practices and know-how to offer consultancy across the entire value chain of real estate management services. These include property management, lease management, asset management, customer service and marketing consultancy.

4. Renovation Services

At Ascendas, we believe in providing beyond four walls and a roof. We take extra care to enhance the corporate image of our customers. Our business environments are aesthetically designed with superior finishes. And our comprehensive services relieve you of the hassle of renovating your business space, enabling you to focus on succeeding in your business.

Our scope of services include:

Space planning

Interior design

Project management

Consultancy

Design & build

Reinstatement managemen


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