Will commercial real estate market rebound to pre-pandemic levels in 2021?

wayne

Commercial was one of the few resilient segments within the market that weathered the pandemic storm of 2020 quite well. Barring malls and hospitality, most subsegments held their own. With the recent announcement of the vaccine in India and its adoption over the course of the year, one would expect the workforce to return to office albeit with increased flexibility given the work from home trend witnessed over the past year. The need to adopt dedensification measures, keeping in perspective social distancing norms along with heightened health measures, will lead to a demand for larger quality spaces. The Indian IT industry continues to be competitive and should attract global interest given that most businesses will look to become more efficient in their path to recovery from the pandemic, thereby providing demand for office space through increased offshoring to India. Two large commercial asset transactions in South India towards the end of 2020 are evidence of the fact that the commercial asset story in India is intact and that the successful launch of India’s second Investment Trust (REIT) during the pandemic will provide further impetus to the office story. More developers are looking to

Delhi HC asks SBI to maintain status quo on accounts of Anil Ambani’s firms

wayne


The Wednesday asked to maintain status quo with regard to accounts of Anil Ambani’s firms — RCom, Reliance Telecom and Reliance Infratel, which have been declared by the bank as fraud accounts.


Justice Prateek Jalan passed the order on a plea by erstwhile directors of the three challenging a 2016 circular of the Reserve Bank of India (RBI) regarding declaration of accounts as fraud by banks.



According to the plea, the circular allows banks to declare an account as fraud without giving any prior notice or communication to the account holder against the principles of natural justice. Their lawyers told the court that several similar petitions against the circular have been filed since 2019 and the petitioners in those matters have been protected by the high court.


In view of the orders passed earlier by the high court in similar matters, Justice Jalan directed State Bank of India to “maintain status quo till next date of hearing” with regard to the accounts of the three


The court further said that the respondents, including RBI and the three companies, were at liberty

Recent criticism of CVAs raises the question “are they fit for purpose?”

wayne

In 2018, we have seen a number of high-profile retail restructurings and common to many is the use of a Company Voluntary Arrangement (CVA).

After much press comment, which tended to focus on the plight of landlords, R3, the Association of Business Recovery Professionals, produced a report in May 2018 entitled, ‘Company Voluntary Arrangements: Evaluating Successes and Failures’, which comments on the use of CVAs as effective restructuring procedures. This report highlights the existing strengths and notes development potential for the current CVA process.

However according to Duff & Phelps, the global advisor that protects, restores and maximises value for clients, a CVA might not be the only route for an insolvent company and now might be the right time to review how CVAs are operating in the UK.

Phil Duffy, Managing Director, Duff & Phelps, stated: “Encouragingly, the R3 report confirms that a CVA is an effective tool in many situations, citing its flexibility as its greatest strength, but suggests it is not a panacea for every company. Most criticism seems to revolve around the lack of transparency and the initial planning by directors not being sufficiently robust to deliver the restructuring plan. Equally, to have the

Subscribe Now