PE deals up in real estate
Private equity inflows into real estate increased 22 per cent to Rs. 28,300 crore (USD 4.24 billion) as of September 30 2016, up from Rs. 23,200 crore (USD 3.60 billion) recorded during the same period last year.
Real estate consultancy Cushman & Wakefield in its report on Private Equity investments in Real Estate (PERE), finds about Rs. 9,200 crore (USD 1.4 billion) of these investments were recorded during the third quarter of 2016.
Anshul Jain, Managing Director, India, Cushman & Wakefield in a statement said, “There has been a steady shift in ownership of assets, especially office, from being privately held to institutionally held, moving in line with the global trend. This will further assist the Indian market to attract more and more investment in the sector.”
“It also opens door to the successful implementation of REITs in India,” he said.
Attracting 43 per cent of the total investments, Mumbai retained its top position, Delhi NCR being a distant second, accounting for 27 per cent of the share. While Mumbai witnessed inflows of about Rs. 12,113 crore (USD 1.8 billion), Delhi NCR received Rs. 7,730 crore (USD 1.2 billion). Hyderabad is fast emerging as one of the hotspots for PE interest in real estate.