The global private equity firm Actis is planning to exit its first and only PERE fund in India. Actis had invested $25 million in a residential and retail project in Bangalore.
The private equity firm Actis is pondering over exiting its private equity in real estate (PERE) fund from India. The private equity firm had invested $25 million in Bangalore for the development of a residential and retail project.
Actis Private Equity is present in Asia, African and Latin American countries. So far the firm has invested only one fund in the Indian realty market. It invested $25 million in India in the year 2008.
The investment was for developing a residential and retail project in Bangalore. The investment was handled by Vaishnavi Group. According to sources, the private equity firm has asked its Indian partners to sell out its stakes.
After the exit, the firm hopes to focus on other emerging markets. The officials of Actis Group did not wish to comment. Vaishnavi Group officials were not available for any comment.
Though only $25 million is invested in the realty sector, the firm has altogether invested $1 billion in India. Actis has investments in various sectors like automotive, healthcare and infrastructure.
While $7.5 million from the $25 million investment was used for the residential and retail project, the remaining amount was used by Vaishnavi Group for developing its various projects. The residential cum retail project is developed at Yeshwantpur, one of the fast emerging suburbs in Bangalore.
The 2005-2008 period is considered as the booming period of PERE investments. During this period $12 billion was invested in Indian realty by the global PE firms. Most of these investments are on the verge to exit.
According to Cushman & Wakefield PE investments in India has fallen in the year 2012 by 28 percent, compared to the previous year. The global PE firms now show less interest in Indian realty as some of the investments are stuck with weak property sales.