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Do Owner managed real estate companies have a high inherent risk ?

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    Do Owner managed real estate companies  have a high inherent risk ?     Owners provide bandwidth and long term commitment. Professional CEOs provide risk mitigation. Where does the balance lie? Can the same be achieved in Real Estate business ?                                         = = = = = = = = = = = = = = = = = = = = = = = =      Last week in Italy, the owner and CEO of a large listed Indian Real Estate Development company met with a major car accident. The video showed the high level of intensity of the accident.   This incident has put a new thought in minds of some of the institutional investors who have invested in Real Estate Companies - Do owner managed real estate companies have a high inherent risk ?    One might immediately counter - why limit this question only to real estate business ? The answer is simple…. more than 95% of the real estate companies are managed by the owners.    Now, before we move forward, it would be important to understand the structural reason
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Cyrus Pallonji Mistry : A Salute to his Vision

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  Cyrus Pallonji Mistry : A Salute to his Vision Running down the memory lane to understand Cyrus Pallonji Mistry                          -------     -------     -------     -------      -------    -------    -------    -------       On1 st  January, 2000 as the sun rose in the new millennium, if one had asked top ten corporate chieftains and top ten investment bankers - which is the hottest sector to invest in ;    and which is the sector they were least likely to look at. The answer for the first question for each of the twenty would have been the IT sector and to the second one, for all twenty, would have been infrastructure construction. The reasoning for the former obviously was the Y2K effect. For the latter, everyone knew that the government’s role was critical and so with a multi-party alliance government at the centre, few would show any interest.   At that time, ICICI wanted to exit an infrastructure construction company. With the above background and more importantly at the
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Hollywood’s Writers’ Dilemma : Striking A Balance

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    Hollywood’s Writers’ Dilemma : Striking A Balance     The search for one-stop-all solution for the dilemma Hollywood Writer's is future and could lead into more complex situation.                      - - - - -     - - - - -     - - - - -     - - - - -     - - - - -     - - - - -     - - - - -     - - - - -     One of the world’s biggest soft power is in news for having some hard time. Hollywood is on a standstill for over 100 days as writers have stopped working and want the studios to address two key issues – firstly, challenges faced by AI and secondly, the issue of residual payment based on viewership levels on streaming platforms (Netflix, Prime etc.). Enough has been discussed about the former, it is the latter that has some interesting but less discussed complexities.    Entertainment business is known for flops and super performers.  So, when creative personnel ask for residual payments based on viewership levels of super performers, it does seem a fair demand. However,
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Real Estate : The Past, The Present and The Future

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  Real Estate : The Past, The Present and The Future The  opening   up of Indian economy since July 1991 has brought about some interesting and exciting trends in the Indian Real Estate. To continue this, further opening is required which is more challenging. Are we prepared of it ?      ------ ------  ------ ------  ------ ------  ------ ------  ------ ------  ------ ------  ------      “History never repeats itself, but it does often rhyme”     -         Mark Twain First week of July, 1991    :  in just three days Indians experience a shocking devaluation of rupee by 20%.    This historic week, marked the beginning of a new liberalised and open economy where the private sector had a much larger role to play. And over the years, the government continued to work in that direction. A decco of few interesting trends in Real Estate over 32 years has some great stories behind them.     Real Estate becomes bank friendly   The devaluation and liberalised laws for NRI investment brought about
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