Tag Archives: private equity investment

Bangalore and Mumbai bag majority of PERE funds

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Private Equity in Real Estate (PERE) is more in Bangalore and Mumbai. Other cities like Chennai and Pune are also favorites for the private equity investors.
The IT projects in Bangalore more popular for PERE investors.

The IT projects in Bangalore more popular for PERE investors.

South and West remain favorites for private equity real estate investors. Majority of the Private Equity in Real Estate (PERE) investment is done in the south and west cities of India; especially in Bangalore and Mumbai.

Last year Bangalore, Chennai, Mumbai and Pune together received Rs.27,907 Cr of PERE investment. This amounts to 84% of the total investment.

The reports say that the Delhi-NCR received the third highest PERE Investment. But experts refute this by pointing out that though Jwala Real Estate and Indiabulls Infratech are Delhi registered companies, their projects are in Mumbai. It means that the investment in the National Capital Region remains only on the paper.

Blackstone is the largest PE investor in India. The US-based PE major alone has invested over $600 million in the Indian realty. However the group has so far invested only in the south and west India. Bangalore holds majority of their investments. The group has also invested in Pune and some southern and eastern cities. Continue reading →

Bangalore saw doubled PERE investments in 2012

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Global real estate consultants Cushman & Wakefield reported that Bangalore received nearly Rs.32.3 billion of Private Equity in Real Estate- PERE investments.
PERE investments have risen in Bangalore.

PERE investments have risen in Bangalore.

BANGALORE: According to the latest report by Cushman & Wakefield PERE investments have increased in Bangalore. Last year the city received Rs.32.3 billion in the form of private equity investments. The global property consultants reported that the amount is double the size than that of last year.

Most of the private equity investments were done in the commercial sector. The PE investors like Blackstone and others shifted their investment plans to the commercial sector.

While Rs.32.3 billion was invested in the commercial sector, only Rs.28.5 billion was invested in the residential sector. However the pre-launch residential properties witnessed highest number of PE deals. Though about 25 PE deals took place in the residential sector, the amount was comparatively far lower.

With Rs.13 billion of PE investments, Mumbai stood on the second spot. Delhi-NCR stood third with INR Rs.7 billion of investments. While Mumbai witnessed a minimal decline of 2%, NCR saw a sharp decline of 44%. Continue reading →

GMR To Sell Chennai Technology Park For Rs.150 Crore

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GMR Group, a leading infrastructure company plans to sell its Chennai technology park – Cognizant Technology Solutions for Rs.150 Cr.
GMR Group plans to sell its technology park in Chennai,

GMR Group plans to sell its technology park in Chennai,

Leading infrastructure development company GMR Group plans to sell its Chennai technology park. The deal is supposed to be fixed at a price Rs.150 Cr (approximately $30 million). Their Chennai technology park – Cognizant Technology Solutions is located on Old Mahabalipuram Road (OMR) one of the prominent IT hubs of the city.

Bangalore-based Global Tech Park and a leading chartered accountant in the South are the two strong contenders who have expressed their interest in the project. Bangalore-based Global Tech Park; though leading the race, may have to face stiff competition from the prominent CA.

OMR-located GMR Varalakshmi Tech Park was entirely leased out to Cognizant Group. The total built-up area of the technology park is over 400,000- sq. ft. One of the subsidiary firms of GMR Group own the tech park.

GMR Group is an infrastructure conglomerate which has vast land banks in Bangalore, Chennai and Hyderabad. While a senior spokesperson of GMR Group refused to comment on the issue, Global Technology Park promoter Satish Chandra could not be contacted for the comment.

GMR plans to sell its tech park in Chennai for a sum of Rs.150 Cr.

GMR plans to sell its tech park in Chennai for a sum of Rs.150 Cr.

Global investment firm and the ultra-high net worth CA are vigorously after the deal. Both of the contenders are sure of their returns in the investment. The investment in the park assures easy returns as the park is highly income generating without any involvement of risk-factor. The proposed buyers expect to gain an average returns by 12% per annum.

Blackstone Group, prominent private equity firm, has invested almost $1 billion in the real estate market of India in the last three years. Indian market also saw huge investments by Xander, Mapletree and many others.

These foreign investors have shown interest in Bangalore, Chennai and Gurgaon– areas where real estate grows faster. Such deals are considered as defensive in the real estate market which is said-to-be sluggish these days.

Blackstone To Buy Bangalore Business Park For $367 Mn

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US-based private equity firm Blackstone, along with two Indian real estate firms, plans to buy Business Park in Bangalore at a price of $367 million (Approximately Rs.19.5 billion).
Blackstone aims to own Business Park in Bangalore.

Blackstone aims to own Business Park in Bangalore.

US-based Blackstone plans to buy Bangalore Business Park for a sum of $367 million. The private equity major is in talks and is expected to buy the Business Park in Bangalore. The deal is said to be over within two or three months.

The Rs.19.5 billion deal is expected to be the largest ever private equity investment in India since 2008. Blackstone, along with HDFC and Embassy Realty group, will equally invest in the Business Park in Bangalore. The Business Park is located in the outskirts of Bangalore. Continue reading →

Indian Realty Sees Private Equity Firms’ Faded Zeal

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Private equity firms show low interest to invest in Indian Realty and infrastructure. India witnessed a deep fall in the Private equity investment in the last year.
Indian Realty loses its attracting charm

Indian Realty loses its attracting charm.

According to a report by Grant Thornton, a leading global accounting firm, the Private equity firms have lost their interest in the Indian Realty and infrastructure. As per the Grant Thornton report $ 7.4 billion was invested in India by the private equity firms in 2012. Private equity investment of 2012 is comparatively very lower to the same of the previous year in which $8.8 billion was invested, the report adds. Continue reading →