Singapore real estate consultants for metros

Singapore-based real estate firms have turned their eyes towards India as the country's metros go full throttle on changing their skylines.

Singapore-based developers and consultants, known for their expertise in the business worldwide, are already in talks with various Indian developers including the Ansals, Unitech and RMZ Corporation to set up joint ventures to invest in the Indian real estate market. They are also offering consultancy services in metros, industry sources said.

Companies from the city-nation such as Centrepoint Properties Ltd, Fraser Serviced Residences, Subarna International Pte Ltd and CPG Corporation Pte Ltd are expected to firm up commercial and residential property development projects such as service apartments in Greater Noida and Gurgaon, near Delhi.

The delegates said they were looking at all options of profitable partnerships with Indian developers ranging from management contracts, joint ventures or minor equity stakes.

Officials from these companies were part of the fifteen-member delegation which was in the capital last week to attend the recently-concluded CII conference on real estate - 'Reality 2003' - organised in association with real estate consultant CB Richard Ellis (CBRE).

CBRE south Asia managing director Anshuman Magazine said: "It is for the first time that such a large delegation from Singapore has flown into the country at their own expense just to attend the real estate summit."

Eunice Yap, brand manager of Fraser Serviced Residences Pte Ltd, said: "We are upbeat on India and should be able to finalise a few projects within the next couple of months."

CPG Corporation senior general manager R Pannir Chelvam added: "We are keen to enter into tie-ups with Indian developers for all kinds of property development projects including township development or commercial property projects. At this point we are looking at consultancy services primarily in the metro cities."

CPG is currently working with the Chattisgarh state government after winning the design contract for the capital city Raipur last year.

Indian real estate developers including Ansals, Unitech and even the MGF Ltd (owners of the Metropolitan mall in Gurgaon) confirmed receiving various proposals from the companies from Singapore.

Ansal Properties and Industries chairman Sushil Ansal said the company was in talks with some Singapore and Malaysian companies to set up joint ventures for development of townships and shopping malls.

He added that these foreign companies would be offered to pick up to 49 per cent stake in the joint ventures.

MGF Ltd executive director Shravan Gupta added: "While we have received some proposals, we are currently studying them to see what expertise will the foreign companies bring to the table besides of course money."

Industry watchers added that a lot of these officials were there in India to explore the kind of market potential that exists in India and also which segment of real estate (residential, commercial, retail) is more profitable. They add that the interest from them is also because of scarcity of space in their country.

Magazine, however, added that the investment will not materialise unless there was more transparency in the system and unless the government relaxed certain key regulations in the sector.

Till now, while the Singapore companies have invested in ITPL projects in Bangalore and Chennai, no substantial investments have come through.

The two-day conference organised by the industry association, centred around policy reforms needed in the sector.

Apart from a revision of the FDI policy, the participants urged for a rationalisation of high stamp duties, repeal of the Urban Land Ceiling and Regulation Act and reform of the rent control laws.