Private equity investment hots up in Bangalore
Bangalore- Inspite of ups and downs, India has been an attractive market for Private equity (PE) investors. The PE firms have deeply penetrated Indian real estate market. Majority of investors exist in residential and commercial segment. PE funds are now a major channel of financing real projects in India.
The PE firms prefer to invest in Bangalore, Chennai, Mumbai and Delhi NCR for assured returns. As per data, In past three years, more than 80 percent of PE funds invested in Indian realty market has gone in western and southern cities.
The real estate market of Bangalore is going better than any peer cities of other regions with excellent absorption rate.
US based PE giant, Blackstone has invested $600 million in Indian realty in the last two years. It is the largest investor which has invested in projects in Bangalore, Pune and other southern and eastern cities.
The firm is now planning to invest in two properties- the Express Towers in Mumbai and the Mantri Mall in Bangalore. According to the sources, these two properties are valued at under Rs 1,000 crore each. The Bangalore -Mantri deal is yet to be finalised. It would be Blackstone’s first retail real estate investment in India.
Investments of Blackstone includes a $200-million deal with Bangalore-based Embassy group for its three commercial projects in Bangalore and Pune, $200 million in Manyata IT park in Bangalore, a $153 million information technology special economic zone of DLF-Akruti in Pune and $80 million in EON SEZ in Pune.
In 2012, global investment firm Xander invested in retail part of Mantri Serenity, an integrated township on Kanakapura Main Road, Bangalore. Mantri also raised Rs 100 crore from ASK Property Investment Advisors for its luxury residential project in Lalbagh. ASK also invested another Rs 100 crore in a residential project by Shriram Properties, located off Sarjapur Road.
Reliance Capital invested Rs 40 crore in Century Indus in Bangalore, a project by Century real estate. JP Morgan has also raised Rs 500 crore for two projects of Embassy Property Developments in the city.
Pragnya Advisors Pvt. Ltd has invested around Rs 27.5 crore in a Habitat Ventures project in Bangalore. It is the second and largest investment of the firm in Bangalore. Earlier, Pagnya invested $5 million in another Habitat project in Whitefield.
The sourthen region dominates the roost with Bangalore having maximum PE investments followed by Mumbai and Delhi NCR. This is because investors prefer a systematic and transparent market. Experts opine that Bangaore will contiue to witness more PE investments in near future.
Related Real Estate News:
Essel launches Rs 500-crore real estate private equity fund
India still considered as key realty market for PE funds’
PE investment on Bangalore Mysore Expressway
ASK Property Investment, Blackstone, Express Towers in Mumbai, Mantri Mall in Bangalore, Pragnya Advisors Pvt. Ltd, Private equity firms, private equity investors, real estate market of Bangalore, Reliance Capital, Xander
