Amen, Finally the end is here. This is the black swan event which no one could foresee. The black money based developers are going out of business. More than one lakh crore is going out of the system. It is hard to imagine how much deflationary impact this is going to have on the system. Let's wait and watch. The time to buy is about six months away when we see blood on the streets.
Foreigners dumping realty? Morgan Stanley pulls out of major Mumbai project
Sep 27, 2013
The global real estate fund of Morgan Stanley, which was
in talks with the Wadhwa Group to invest about Rs 900-1,000 crore ($186
Million) in an office development project in Mumbai, has now shelved its
investment plans as the rupee's plunge has made the hedging cost for
the entire deal too huge, The Economic Times reported today.
The investment by Morgan Stanley Real Estate Investing (MSREI) was proposed to be deployed in jointly developing 1.6 million square feet office space in Mumbai's financial hub Bandra Kurla Complex.
Mumbai-based Wadhwa Group had already begun construction of the project, ONE BKC, which would consist of two office towers and is due to be completed by 2014.
MSREI has invested about $850 million in Indian real estate, mainly in residential projects, including $100 million to $125 million in a housing project by Mumbai-based Sheth Developers, Reuters reported in December 2011, and the ONE BKC project would have been its first investment in commercial real estate.
"Returns that were arrived at in earlier negotiations between Morgan Stanley and Wadhwa were shrinking even before concluding the deal," one of the people familiar with the deal told ET as the rupee has slipped 46 percent in the last two years, wiping out returns of several PE funds.
The investment by Morgan Stanley Real Estate Investing (MSREI) was proposed to be deployed in jointly developing 1.6 million square feet office space in Mumbai's financial hub Bandra Kurla Complex.
Mumbai-based Wadhwa Group had already begun construction of the project, ONE BKC, which would consist of two office towers and is due to be completed by 2014.
MSREI has invested about $850 million in Indian real estate, mainly in residential projects, including $100 million to $125 million in a housing project by Mumbai-based Sheth Developers, Reuters reported in December 2011, and the ONE BKC project would have been its first investment in commercial real estate.
"Returns that were arrived at in earlier negotiations between Morgan Stanley and Wadhwa were shrinking even before concluding the deal," one of the people familiar with the deal told ET as the rupee has slipped 46 percent in the last two years, wiping out returns of several PE funds.