PE investments into real estate up a tad
Private equity investments in real estate for the first nine months of the year rose marginally to touch $3.16 billion across 40 deals as global and domestic institutional investors continue to infuse capital into Indian real estate, especially in the commercial segment.
The average investment size has also increased as similar inflow was registered during the year-ago period across 66 transactions, data from Venture Intelligence showed.
The latest quarterly figures take the total PE investments in real estate in the first nine months of 2017 to $3.16 billion across 40 deals, up marginally compared to $3.14 billion across 66 deals in the same period in 2016.
In the third quarter, commercial space continued to dominate in terms of volume and value. Six deals worth $356 million were announced in the commercial space compared to five deals worth $340 million in the residential space in the September quarter. Real estate companies and projects attracted 11 investments worth $696 million. The quarter before saw 12 worth $1.23 billion, data showed.
“The year 2017 will be steady in terms of institutional investment into real estate. More long term and patient capital from stronger entities such as pension and sovereign funds are entering into the sector. The platform transactions are driving the inflow. These are frontloaded commitments towards India and will have cascading effect going forward,” said Arun Natarajan, founder of Venture Intelligence, a data analytics firm Allianz Group, in its first-ever real estate related engagement in India, partnered with Shapoorji Pallonji Group to create an investment platform for office properties here. The Singapore domiciled, rupee-denominated and closed-ended fund is aiming to raise $500 million in equity, of which $250 million will be infused by Allianz.