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BHI Product Offering
Preferred Equity
Preferred Equity investments are quasi – equity instruments that have a well defined time horizon and an agreed rate of return. The time horizon for such investments will typically be between 36-60 months depending on the Project. Investments are done in the form of Fully Convertible Debentures.
Preferred Equity investments are generally done with the companies that already have real estate experience and have completed the aggregation of the land.
Equity
The instrument used for equity investments varies depending on the transaction structure. The final returns from the project are also shared in proportion of their equity capital.
Joint Venture (JV) with the land owning company
Under the Joint Venture agreement, BHI will put in funds towards the value of the land. All further expenses related to the Project (construction, license etc) are shared in proportion of their equity capital.
A JV is done between the companies that have enough financial resources to commit to the project as both parties have to commit further investments in the project for construction related activities. The final returns from the project are also shared in proportion of their equity capital.
Joint Development Agreement (JDA) with the land owner
Under the JDA agreement, a certain fixed portion of the revenues / build up area is provided to the land owner in lieu of his contribution towards land. All the construction related activities and expenses are taken care by the BHI and its affiliates.
JDA is preferred with the land owners who don’t have any major experience in real estate development and are not interested in committing any more resources towards the project but are interested in development of the land and getting higher earnings in lieu of that development.
Foreign Direct Investment (FDI) Norms for Real Estate in India
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Investments in agricultural land is not allowed. |
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Minimum area to be developed under each project would be as under:
- In case of development of serviced housing plots, a minimum land area of 10 hectares (25 acres).
- In case of construction-development projects, a minimum built up area of 50,000 sqmt. |
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Minimum capital investment is USD 5 million |
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Original investment can be fully repatriated only after three years |
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In the hospitality sector there are no prescribed minimum investment norms. |
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Contact Info
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Find out
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US Office
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8000 Westpark Drive, Suite 250
McLean, VA 22102
+1-703-752-8320 Main
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India Office
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+1-703-940-8003 Fax
310, 3rd Floor, Iris Tech Park
Sector 48,Sohna Road Guragon
Haryana - 122018, India
+91-124-413-0500 Main
+91-124-413-0550 Fax
Email: info@beekmanhelixindia.com
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