MUMBAI: Private equity firms with huge hunger knotting up with big boys in realty to build large assets and to earn stable returns.

While the overall numbers of reality private equity transactions have fallen over the last one year, funds are focusing more on tying up with reputed builders to create large asset.

In recent deals, realty firm Redfort Capital infused money into Lotus Green while Mahidra inked JV with Standard Charted bank to develop projects.

Analysts say this type of deals could gather momentum, “There have been cases of more and more partnerships in residential and commercial assets at construction stage and WE anticipate that in the next few quarters, the momentum will pick up,” said an official. “Tying up with a particular builder helps fund houses avoid coordination and leasing activities,” latter he added.

Earlier this year, Bangalore-based RMZ Corp got $300 million investment deal from Qatar Investment Authority to back the RMZ’s IT park which is worth Rs 3000 crores. The Delhi based Lotus Greens got Rs 1000 crores funding from the Red Fort Capital for its NCR region residential project . US PE giant Black stone last year bought 50 % stake in an SPV commercial properties gaining 19 mn sq ft.

Slowdown in building activity has left funds with very few projects for investors to invest in. According to a data from Venture Intelligence, the first nine months of this year saw 28 deeds with $1,115 mn, down about 6 pc from the last year.