Hirco publishes annual report, sees strong growth in Indian real estate | INRnews
London, UK, December 28, 2007 – Hirco PLC (AIM: HRCO), the investment vehicle for Hiranandani, India’s largest developer of prestigious mixed-use townships, today announced that it has published its Annual Report and Accounts for the period ended 30 September 2007.
The Annual Report includes information on:
· The Indian economy and real estate market (excerpts below);
· Hirco’s response to India’s infrastructure challenge and value creation through its master planned township communities;
· Hirco’s suburban developments in Chennai in southeast India and in Panvel, in the Mumbai Metropolitan Region; and
· Hirco’s Corporate Social Responsibility (CSR) initiatives.
FAST GROWING ECONOMY
India has one of the fastest growing economies in the world, with future annual growth predicted to be sustainable in the range of 7% to 10% over the next 10 to 20 years.
With a current annual GDP of US$1.1 trillion, India is the world’s 12th largest economy, the third largest economy in
Asia, and the second fastest growing economy in the world.
With a population of 1.1 billion, India is the second largest country in the world. By 2013, an additional 91 million people (aged 25-44) are expected to join India’s workforce.
Consumer spending is predicted to quadruple from about 17 trillion rupees (US$372 billion) in 2005 to 70 trillion rupees (US$1.5 trillion) in 2025.
EMERGING MIDDLE CLASS
70% of India’s 1.1 billion population is under the age of 25.
Over the next two decades, India’s middle class is expected to grow rapidly – from 50 million people to 583 million people – and in the process will create the world’s fifth largest consumer market, compared with its 12th-largest status today.
Average household incomes are predicted to triple in this period.
India’s massive new middle class is seeking new communities with robust infrastructures that provide a modern, high-quality lifestyle at an affordable price.
EXPANDING CITIES
By 2011, India’s urban population is expected to rise to 30% of the country’s total, compared with 29% today. India’s huge middle class will be concentrated in urban areas, with the country’s urban population expanding from 318 million today to 523 million in 2025.
Building large integrated townships from scratch is the only solution that provides the scale for meeting both housing and infrastructure needs.
GROWING REAL ESTATE DEMAND
India’s economic boom over the last two decades has created strong demand for both residential and commercial properties.
The Indian property market is estimated to be US$54 billion at the end of FY2007 and is expected to grow to over US$142 billion by the end of FY2012, representing a projected annual growth rate of over 20%.
India currently has a housing shortage of 22.5 million units and the demand is forecast to rise to 80 million over the next 10 years.
The demand for high-quality, affordable housing is driving suburban growth.
The outsourcing sector is expected to grow at a 21% compound annual growth rate over the next four years. Outsourcing constitutes 80% of the demand for commercial property in India.
The IT sector alone is estimated to require 150 million square feet of office space by 2010.
India’s booming retail sector is expected to require an additional 200 million square feet over the next five years.
Copies of the Annual Report and Accounts can be obtained from the registered office of Hirco PLC at 66/67 Athol Street, Douglas, Isle of Man, IM99 2BJ and from the company's website, www.hircoplc.com/financial_reports_and_accounts.html.
About Hirco
Hirco PLC is the investment vehicle for Hiranandani, India’s largest developer of prestigious mixed-use townships for the country’s increasingly affluent middle class. Our modern, large-scale developments – combining high-quality residential, commercial and retail components with green space and social and recreational facilities – are strategically located in suburban areas outside major city centres. Hirco’s four current projects – in Chennai in southeast India and Panvel, in the Mumbai Metropolitan Region – feature a combined total of 66.4 million square feet of buildable mixed-use space.
At the time of its admission to trading on AIM, Hirco was the largest-ever real estate investment company IPO on AIM and the largest AIM IPO in 2006.
By INRnews Correspondent