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HDFC Property Fund has decided to hold back from investing over 50 per cent of its Rs 3,800 crore corpus due to adverse market conditions and unrealistic valuations sought by real-estate developers....

HDFC holds back funds due to adverse market conditions

HDFC Property Fund has decided to hold back from investing over 50 per cent of its Rs 3,800 crore corpus due to adverse market conditions and unrealistic valuations sought by real-estate developers. It has contained from funding in the last few months,though it had invested around Rs 1,800 crore earlier. K G Krishnamurthy,MD and CEO,HDFC Property Fund said the fund has taken a cautious approach as suddenly there was a recession-like condition and project valuations were unacceptable. The real estate demand in 2010 would drop by 20 per cent across segments, he said.

Citibank launches universal mortgage scheme

Citibank has launched CitiHome One,a first-of-its-kind universal mortgage product,that would enable customers to get a home loan as a combination of a conventional term loan and credit line. The bank,in a release,said that with CitiHome One,customers would enjoy a dual advantage of interest savings on their home loans by utilising surplus funds and the flexibility to structure repayments as per their convenience. It said that the subject to an overall limit,customers can self-determine the amount they wish to take as credit line with the balance being structured as a term loan. Customers can take a maximum of Rs 5 crore under the loan facility,and the credit line can extend upto 30 per cent of the total facility or Rs 1 crore,whichever is lower.

Hiranandani to raise Rs 800 cr by selling stake

Hiranandani Upscale,part of Mumbai-based developer Hiranandani Group,is looking to raise Rs 800 crore by selling project-level stake to private equity investors in the next two years. Surendra Hiranandani,MD of the group,said: We are looking to acquire land plots with this Rs 800 crore and would develop residential projects in the national capital region,Chennai,Hyderabad,Pune and Kolkata in the next two years. Our long-term goal is to earn sales of Rs 9,000 crore in the next seven years from pan-India operations.

Ansal API to raise Rs 650 crore via QIP

Ansal API has planned to raise around Rs 650 crore through a qualified institutional placement QIP in February,2010. According to an insider,the company has mandated IDFC-SSKI as its lead banker for the slated QIP.

Earlier,in June,the board of directors of Ansal API had decided to seek the approval of shareholders to issue equity shares,to qualified institutional buyers to raise up to Rs1,500 crore. The company had informed the same to the Bombay Stock Exchange BSE as well.

Tata Realty to develop Rs 3,500 crore IT city

Tata Realty and Infrastructure,a subsidiary of Tata,has announced its

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Rs 3,500 crore commercial and residential project 8211; Ramanujan IT City at Taramani in Chennai. According to a companys release,the project envisages developing a premium residential community 8211; Cambridge Greens,which is expected to be ready for occupancy by mid-2011. The project,set up on 26 acres along Old Mahabalipuram road is promoted by TRIL Infopark,a joint venture between Tata Realty and Infrastructure,Tamil Nadu Industrial Development Corporation and Indian Hotels Company. It would comprise IT companies along with residential apartments and a retail mall,the press release added.