REAL ESTATE

Real estate is one of the fastest growing sectors in India. Investment of over USD 100 bn is needed to meet demand over the next 4-5 years in residential real estate (Source: UBS India Real Estate Report (September 2006)). Further, investment of USD 36 bn is needed to meet demand by 2010 in commercial office segment (Source: Deutsche Bank Research Report - 'Building up India, May 2006'). In light of the great potential of the real estate sector and considering the attractiveness of the returns, it is not surprising to see the advent of dedicated real estate funds, floated to tap into the appetite of both domestic and foreign investors.

While we have an overall expertise with respect to funds, may it be private equity or otherwise, our internal trend assessment procedures led us to study this sector globally, and facilitated the development of our product offerings in this segment, even before the announcement of a relaxation in exchange control regulations applicable to this sector. Since the Government started relaxing regulations to attract foreign investments in the Indian real estate sector, we have been in the forefront of advising clients on the Indian tax, corporate and exchange control implications with respect to the setting up of real estate funds and subsequently making downline investments into real estate sector.

The Firm today has earned a reputation for developing innovative structures and assisting clients in documentation and negotiations to achieve their business objectives. Further, the Firm has also helped in developing structures for mezzanine and debt funding for real estate projects to meet with the relatively complex legal, regulatory and tax environment surrounding the sector and especially exchange controls. It also continues to advise several of the real estate funds/entities in respect of their listings on overseas exchanges like AIM, Jersey, London Stock Exchange, Singapore, etc.

Our practice that caters to the real estate sector includes:

    • Advising on a suitable structure for real estate funds from an Indian legal, tax and regulatory perspective, and undertaking related documentation.
    • Advising domestic and offshore clients on all corporate and tax related matters related to downline investments in the real estate sector.
    • Advising, drafting, reviewing and negotiating joint venture agreements, lease and leave & license agreements and share purchase and shareholder agreements, as required for downline investments of real estate funds.
    • Advising clients on legal and regulatory aspects of acquisition of land, including for township projects. 
    • Co-ordinating title searches, as required. 
    • Advising on certain property related disputes. 
    • Advising clients on implementation of SEZ projects throughout India.

Our Research Papers:

Contact details: For further information and / or suggestions, please contact Siddharth Shah or Nishchal Joshipura
Email: siddharth@nishithdesai.com and nishchal@nishithdesai.com