PE investments in retail real estate touch Rs 5,500 crore
On increased interest for superior quality shopping malls, Private Equity investments in retail real estate segment have touched around Rs 5,500 crorecurrent year, since 2015.
These investments would boost supply of retail space and is supposed to change the infrastructure of India. A report by JLL says that it is estimated that about 90 shopping malls would come into the market by 2022 at major cities in India. Between 2015 and Q1 2018, the Indian retail sector has attracted a cumulative of Rs 5,500 crore. It has been regarded as one of the best quarters for the sector in recent times as near to Rs 1,000 crore has been invested in the sector in Q1 2018.Private equity investments in retail properties was at Rs 800 crore in 2015, Rs 3,000 crore in 2016 and Rs 700 crorein 2017.
Developers of retail malls are re-evaluating their portfolio and are including three determining factors – product, catchment and customer experience – for success of any mall, as they are seeing good opportunity with the steady increase in interest from private equity investment companies.