Bangalore real estate market attracted maximum PE
The real estate market in Bangalore attracted the maximum private equity (PE) investment in the country in the first half of 2014, beating the national capital Delhi as well as the commercial capital Mumbai, according to property consultancy firm Cushman & Wakefield. Led by high demand for office spaces as well as steady demand for residential property, the city’s real estate market saw PE investments jump nearly 20 times year on-year to Rs 2,005 crore.
The city had received PE investments worth Rs 103 crore in the first six months of 2013. While Mumbai received investments worth Rs 1,140 crore, Delhi-NCR got Rs 490 crore and Chennai Rs 200 crore during the same period. The availability of investible leased office assets and stable yields kept the interest levels high as stated by Sanjay Dutt who is the executive managing director, South Asia, at Cushman & Wakefield.
The share in overall PE investments is expected to remain significant in the coming years for Bangalore he said. He also stated that Most of these assets have high occupancy rate and provide stable yields of approximately 9 percent, making them highly attractive to investors. Piramal Fund Management has just concluded a non-convertible debenture of Rs 100 crore with Century Real Estate Holdings against two projects in Bangalore.
Source: Economic Times
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