FIPB Clears Rs 100 Crore FDI

Real estate investment division of JP Morgan Chase is possibly to pick up about 18% stake in Core Hotels Ventures for one hundred crore rupees with the Foreign Investment Promotion Board clearing the proposal.
The suggestion of J P Morgan India Property Mauritius Company II will now go to FM P Chidambaram for final authorization.
Core Hotels Ventures is engaged in providing project management and hotel maintenance services and also building two hotels in Hyderabad.
As par sources, J P Morgan India Property Mauritius Company II has wanted approval to subscribe to 1.42 crore share of Rupees ten each of Core Hotels Ventures at a price of Rupees seventy per share for a overall consideration of around one hundred crore rupees.
Previous year, Core Hotels got FDI from Indus Hotels Reality (Mauritius) Ltd which picked up 12.8 % stake. The company was given around just more than One crore shares.
J P Morgan Chase is engaged in diverse financial service activities, together with asset management, investment banking, private banking and securities services.

3 Comments

  1. Posted September 1, 2008 at 4:53 am | Permalink

    Foreign direct investment in the country’s real estate sector is likely to rise to $25 billion in the next 10 years from the current $4 billion, even as the industry faces a slowdown in the short term due to rising interest rates, an Assocham study said. “Despite real estate market confronting a temporary depression with real interest rates hovering between 12-16 per cent, FDI in real estate market would increase by about $21 billion to touch $25 billion in the next 10 years,” said industry chamber Asso cham. At present, the domestic real estate market is estimated at $15 billion, of which FDI contributions are about $4 billion. “In future, higher interest rates would subside with India scaling a GDP growth of over 10 per cent for at least a decade, and crea te a huge space for overseas investors in its real estate sector,” Assocham President Sajjan Jindal said. The sector would grow larger as the IT sector alone is expected to require about 200 million sq ft of space across the major and large townships, it added. It is also estimated that in India’s residential sector, housing shortage is around 20 million u nits. About 100 million sq ft is likely to be added by end of 2008 from over 300 mall projects.For more view- realtydigest.blogspot.com

  2. soumitra mukherjee
    Posted March 17, 2009 at 8:48 pm | Permalink

    Dear Sir,

    What is the Govt policy towards allowing 100% MNC subsidiary in India to buy land/building at a prime city and create large rent income, which is un-proportional to their business for which FIPB permission was granted?

    That is, does FIPB looks into these basics while processing such request/permission before granting renting-out permissions?

    Thanks for your help in advance,

    regards
    Soumitra Mukherjee

  3. soumitra mukherjee
    Posted March 17, 2009 at 11:51 pm | Permalink

    Dear Moderator,

    Please delete my previous posting i.e. “What is the Govt policy towards allowing ……..” as I don’t want to post this.

    Thanks for your kind co-operation.

    regards

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