Times Private Treaties Sets Sight On Real Estate Sector

Mar 09, 2010 – Times Private Treaties has in the first two months of the year invested in quick succession in Kumar Properties and Kanakia Spaces. Times Private Treaties has spread its investment across a mix of firms in pursuance of its strategy of expanding the advertising market and bringing a larger number of firms into the advertising market. 

Times Private Treaties has closed a deal with Kumar Properties, a diversified group founded by Mr K H Oswal over four decades ago. The company has evolved over the years from builders of apartments to high rise buildings, bungalows and large sixe complexes. Over the past decade, the company has diversified into Information Technology Parks, commercial buildings, large townships and malls. The firm also has a strategic alliance with GIC Real Estate. 

The investment in Kanakia Spaces took place in the last part of January.  The company is engaged in real estate activities in suburban Mumbai and is part of the Kanakia Group, the premium real estate developers in Mumbai. The Group has to its credit 8 million square feet of delivered residential and commercial properties and has another 23 million sq ft under construction. 

The investments by Times Private Treaties are seen as the return of the real estate market. The demand for offices is coming back according to reports and there is some firming up of prices in Bangalore and Mumbai. However, that said, much of the recovery is still in pockets, with demand mostly coming from telecom, biotech and financial services, with most companies consolidating small offices into one big space. 

Given the context, the Times Private Treaty model fits the real estate sector well at a time when higher visibility through advertising is an essential component of the market strategy. The Times Private Treaties’ innovative approach to giving companies a fast track to the market by offsetting the cost of advertising space to equity seems to be a classic solution to helping both the advertising market expand while giving companies a good alternative to keep their brand building going. While being a risk sharer by selling out space against future gains, the invested company tends to be the winner by getting considerable advertising muscle.