Pvt equity inflow in realty sector up 13% to Rs 7K cr
Cushman & Wakefield, global property consultant, said, In the real estate sector private equity investment increased by 13 per cent to Rs 7,000 crore last year on higher inflows in the residential segment. “Total inflows from private equity funds in the real estate sector was recorded at Rs 7,000 crore ($1.2 billion) for 2013, an increase of 13 per cent compared to 2012 (Rs 6,200 crore/$1.1 billion),” C&W said in a statement. On the whole private equity investments in India across sectors have also increased in 2013 by 11 per cent to $10.5 billion from $9.49 billion in 2012.
The consultant attributed the increase in private equity inflows to “rising investments in residential assets and retail and hospitality”.
In the housing segment the total PE investments for 2013 was recorded at Rs 4,050 crore ($650 million), an increase of 42 per cent compared to 2012 levels. The average deal size has declined marginally at about Rs 175 crore (Rs 28 million) whilst the number of deals has increased to 40 last year, compared to 34 in 2012.
Sanjay Dutt, C&W Executive Managing Director South Asia, said: “In the coming years the residential asset class continues to provide tremendous potential for growth. With housing requirements rising across cities and funds investing in the asset class primarily in the form of NCDs providing fixed returns, investments in the right project have the potential to yield healthy returns.” Dutt noted that, together with sovereign funds, a number of large global investors have taken the first step by partnering with successful local investors and developers.
“During 2014 this is anticipated to result in high transaction activity particularly in income yielding commercial office assets,” he added. Bengaluru with overall investments of about Rs 2,200 crore ($350 million) continued to witness the highest level of transaction activity in 2013; though from 2012 it declined by 33 per cent. In 2013 both Pune and NCR witnessed an increase in transaction volume.
For NCR the transaction volume in 2013 was more than double that of 2012 at about Rs 1,650 crore ($260 million), all of which was in the residential asset class.” For 2013 Mumbai witnessed a fall of about 15 per cent in investments to Rs 1,100 crore ($180 million).
However, with a few large deals in office assets in the pipeline the investment activity in the city is expected to increase.
Source: Tribune India
Bengaluru, Commercial office assets, Cushman & Wakefield, Developers, global investors, Hospitality, housing segment, India, investments in India, Investors, Mumbai, NCDs, NCR, Private equity investment, property consultant, Pune, Real Estate Sector, realty sector up 13%, Residential assets, Residential segment, Retail, Sanjay Dutt, sovereign funds
