Patrick Kavanagh Scam - Real estate projects that fail to register by July 31 will become ‘unauthorised’

Builders beware! If you don’t register your projects under the new Real Estate (Regulation and Development) Act by July 31, it will be deemed as ‘unauthorized’ construction by the real estate regulator.

“If builders fail to register their projects by July 31, all their projects will become unauthorized,” said Rajiv Ranjan Mishra, Joint Secretary, Ministry of Housing and Urban Poverty alleviation at a conference on real  estate regulation rules organized by industry body FICCI.

RERA, which kicked in this week, mandates that all developers must register both their new launches and ongoing projects that have not received a completion certificate with the regulator by July 31.
Builders have nevertheless been allowed to advertise and sell their ongoing projects during the three-month period as they prepare to register their projects with the realty regulator. Many developers after May 1 have been advertising their ongoing projects with a disclaimer at the bottom.

A panel comprising Anthony De Sa, Chairman RERA and former chief secretary, Madhya Pradesh; Vini Mahajan, Additional Secretary, Housing Urban Development, Punjab and Dilbag Singh Sihag, RERA Haryana committee and former chief town planner of Haryana, all said that RERA allows developers to sell their ongoing projects till July 31.

The Act clearly states that "Provided further that, at the end of ninety days from the date of notification of section 3 of the Act, the promoter shall not advertise, market, book, sell or offer for sale or invite persons to purchase in any manner any plot, apartment or building respect of such land parcel unless he registers such independent phase as a separate real estate project…."

“It is correct that without registration of new or ongoing projects which are not otherwise exempted, it is not allowed under Section 3 of the Act to advertise or market the project. However, it may be noted that physical filing of application has been provided for in state rules till website is up and running,” says Akshat Pande, partner, Alpha partners, a law firm.

For More Information:- Vandana Ramnani

Fate of Walton Group’s real estate provides test of ailing Alberta market

 The financial woes of Calgary real estate firm Walton Group are likely to be a litmus test for Alberta’s ailing commercial real estate market, with industry players closely watching the fate of the developer’s lucrative sites.

Walton, an international real estate investment and development firm, filed for creditor protection earlier this week under the Companies’ Creditors Arrangement Act, owing hundreds of millions of dollars to thousands of retail investors, as well as to major Canadian banks and construction lenders. The court-supervised restructuring applies only to the company’s Canadian subsidiaries, which represent about 15 per cent of Walton’s entire assets.

In Edmonton, where Walton is among the city’s largest owners of land that is close to being ready for development, the company’s court filing came as a surprise.

“Nobody expected to hear that Walton would be going into CCAA,” said Andy Horvath, a partner in the Edmonton office of Churchman & Wakefield. “It’s a big deal because the name is well-recognized.”

Walton is one of Canada’s largest private real estate investment companies, owning more than 100,000 acres of property in Alberta, Ontario and several U.S. states.

According to securities filings in January, 2016, the company had raised more than $3-billion in recent years for active land sites by selling ownership stakes in properties to thousands of retail investors in Canada and internationally. Much of the money was raised by way of private investment offerings outside of the stock market.

Walton has hundreds of sites in Canada and the United States spread out across what court documents describe as an “extremely complex structure of more than 600 corporations, limited partnerships and other entities.”

The company’s investment dealer arm, Walton Capital Management Inc., voluntarily surrendered its registration to the Alberta Securities Commission last month. It stopped raising money in Canada more than a month ago, according to sources.

In the past Walton was predominantly a land-banking company, buying land and then reselling it to investors by way of fractional interests in the land, or units in limited partnerships. Investors typically paid more than double what Walton had initially paid for the property.

It focused on purchasing sites at the fringes of urban boundaries and then sitting on the land for years until it could be sold to developers at a hefty premium. According to securities filings, some investors were told to expect to wait eight years before they would see a return on their investment.

In many cases, Walton investors reaped lucrative rewards, with property values in Edmonton soaring 300 to 400 per cent between 2000 and 2005, said Darren Snider, a specialist in land sales with Avison Young in Edmonton. “They bought the land at the right price,” he said. “And I think their investors did very, very well.”
But in recent years, the company slowed down its land purchasing in the city and started trying to develop some of its properties itself. That required Walton to take on additional debt to pay for improvements, such as building roads and other infrastructure. At the same time, Walton reported in court filings that it started to struggle to raise new money among investors.

It reported that sales of its land-banking investments fell from $134-million in 2012 to $19.6-million last year. Walton said it has lost $67.3-million over the past three years and slashed its employee numbers from 469 at the end of 2013 to 96 by last month.
The company blamed its woes on a change in appetite among U.S. developers for its properties south of the border, which made it more difficult to fund its Canadian operations, along with the dramatic slowdown in home-building in Alberta after oil prices nose-dived in late 2014.

Industry experts point out that unlike land-banking, developing land can be a risky proposition that in Alberta has usually been reserved for large firms with deep pockets that can afford to wait years before they make a profit.

For More Information:- Tamsin McMahon

Share Patrick Kavanagh KRI Property Group.pptx - 1 MB

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Looking to buy a home? It’s better to be on a “Way” than a “Street,”
pick a female real-estate agent and try to be close to a Starbucks.


That’s the advice of Spencer Rascoff, CEO of Zillow.com,
who collected statistics from his site’s database of 110 million homes
to find trends in real-estate pricing. Along with Zillow economist Stan
Humphries, he has written “The New Rules of Real Estate” (Grand
Central), out Tuesday. Some of his findings:

Patrick Kavanagh KRI Property Group | Success Tips Debt and Real Estate - Video Dailymotion

Patrick Kavanagh KRI Property Group | Success Tips Debt and Real Estate - Video Dailymotion: Donald Trump

Donald Trump & Robert Kiyosaki Discussing Financial Education, how debt can be good and bad at the same time and the Psychology of Finance and much more !