Problems in the US real estate market are causing projects as far abroad as India to be halted

One Las Vegas

BSR Engineering and Development Ltd, a major player in the world-wide luxury development market, is suspending all real estate activity in India until further notice. The company notified the TASE (Tel Aviv Stock exchange where they are listed) that it had canceled its participation in a $20 million luxury residential project in Bangalore, which was slated as a residence for foreign workers in Bangalore’s IT sector.

BSR cited the situation of the global real estate market in general and in India and the United States in particular as its reasons for suspending activity in India. BSR Engineering is facing problems with several of its developments. At a bondholders’ meeting of subsidiary BSR Projects Ltd, the company said that projects in the US were in a very difficult situation, a mezzanine loan was in big trouble, and a major project was heading for receivership.  What I hear is that BSR is desperately looking for more financing for their project in Las Vegas - “One Las Vegas,” a 19.5 acre master-planned residential “lifestyle,” condominium development, and is likely to be issuing a going concern warning soon.

Donald Trump Jr.

Late last November, Donald Trump Jr. – the son of the brash American real estate tycoon and reality-TV star – appeared at the high-profile Cityscape India 2007 real estate conference in Mumbai to give a speech on the subcontinent’s booming property market.

Trump, the executive vice president of development and acquisitions at New York-based Trump Organization USA LLC, said India’s red-hot economy has fueled demand for more residential development, particularly luxury housing, but also hotels and resorts for the country’s flourishing tourism industry.

Before he departed, Trump indicated his desire to invest in India’s real estate sector, and hinted that he wouldn’t wait long to do so. “We feel it is now time to invest in Indian realty projects as the quality has moved up and we see emergence of some high-end developers with a product level that will support our brand,” he said in his speech.

It appears that time is now: Trump announced in late July that he intends to set up a hedge fund worth up to $1 billion to invest in Indian real estate.

Accordingly, the privately held fund would initially target property in Mumbai and also include an Indian family as investors. Thirty year-old Trump did not give specific details about the fund, such as how he plans to raise the money, or where the first investment would be made. But in an interview with New York-based media company Bloomberg LP, he did say that it would start conservatively and expand as the opportunities presented themselves.

“The fund will be for acquisitions of real estate in the high end and across the spectrum,” Trump said. “We’ll start it off relatively small and grow it as we get more familiar with the Indian market. Our entry has to be in Mumbai, and that’s where everything is going on right now in terms of the high-end real estate. That’s the place where one is going to achieve the highest prices per square foot. It sets the tone for all of the other future developments.” More on Luxury Real Estate in India - Donald Trump Junior Shows Faith

Zabeel Properties has started work on Porto Dubai, a luxury residential development, on a reclaimed peninsula that will feature a "tiered island" design concept for the first time in the UAE. The Porto Dubai will sit beside the Burj Al Arab luxury hotel.

"We have started dredging and reclamation work on the project. Villa construction will commence by year-end, while the project is expected to be completed by 2010," Mohammed Ali Al Hashimi, Executive Chairman, Zabeel Investments

Although he did not comment on the value of the project, Al Hashimi said it will "significantly increase the size of its investment portfolio". Currently, Zabeel Properties has a Dh15 billion worth of residential, commercial and hospitality development portfolio.

Reclamation work is being undertaken by Boskalis Westminster, whilst Nakeel, the real estate subsidiary of Dubai World, is providing assistance and sharing its experience in reclamation and coastal development.

Porto Dubai, which is being built off the coast near the Umm Suqeim Marina, will expand the public beach, the last remaining stretch of public sand on Jumeirah Beach. "There will be no development on any of the nearby public beach areas," Al Hashimi said, assuring Umm Suqeim residents and beachgoers the beach area will be further extended.

The luxury villas in Porto Dubai will be arranged in a circular fashion on the peninsula’s four platforms, which will rise at stretches of four meters to its highest point of 16 meters at the centre. There will be two restaurants, spa and health club.

"Porto Dubai is an exclusive, high-end, luxury residential development. We are confident it will be a premier and most sought-after villa development in the emirate," said Al Hashimi. The company has no plans to raise any debt to fund its projects. "We have ample sources of funding," he said.

Zabeel Investments is a diversified investment firm with business interests spanning real estate development and management, and private equity and asset management across a wide range of economic sectors in the GCC and other markets.

Sentosa Cove is a luxury residential development on Sentosa Island, Singapore. Once building is complete,  eventually housing about 2,500 units. The Island is mostly made of reclaimed land and the development is it is being marketed as a "exclusive oceanfront residential community.”

The master developer of the site is Sentosa Cove Pte Ltd, which is a subsidiary of Sentosa Development Corporation. SDC purchased the site from the Singapore Land Authority for a sum of about S$800 million.

The idea was originally conceptualized by Bernard Spoerry (Port Grimmaud, France) then updated by McKerrell Lynch. The first offering of apartments were apparently sold out within the first few days of being offered, which makes it surprising that so many luxury real estate agents are still offering them for sale.

Sentosa Cove represents the first, and thus far, only opportunity, for foreign investors to own residential land in Singapore,. Sentosa Cove investors receive a variety of financial benefits, in addition to 48 hour fast-track approval when purchasing properties or plots. The marina and associated berths attached to luxury waterfront housing estates will ultimately cater for more than 700 boats, of which ten of the marina berths will house 50 meter mega-yachts.

Sentosa Cove Home Page

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