SUN Group to invest across real estate asset classes
Real Estate fund SUN Group plans to invest across real estate asset classes including industrial and commercial space in the country apart from residential segments.
“India remains an exciting market for investors. So far, we had made project level investments and are looking at long-term platform deal in the country,” said Uday Khemka, vice chairman, SUN Group.
SUN Group is a leading principal investor and private equity fund manager in India and other emerging and transforming markets and recently floated its maiden residential platform in India to build luxury houses.
“SUN Group has brought around $6.5 billion into India so far and owns real estate valued at over $1bn in India and has 100 million sft of real estate across asset classes,” said Khemka.
The private equity fund manager formed a residential platform with real estate developer Vista Spaces for residential and commercial real estate properties in India. This is SUN Groups’s maiden platform level real estate venture in India.
Both partners will own an equal stake in SUN Vista platform with an option to onboard another investor. It plans to invest about Rs 700 crore through multiple tranches over the next five years across residential and commercial assets in southern India.
According to Cushman & Wakefield, inflows from institutional investors into the Indian real estate sector peaked at Rs 11,212 crore in the third quarter of the current fiscal, the highest third-quarter performance in 11 years.
This indicated continued momentum in private equity investment in the sector. In the first three quarters of 2018, investment volume increased 9% from a year ago to $5.6 billion (Rs 37,815 crore).