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.
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.
Bangalore and Mumbai holds the lion share of PERE investments.
Blackstone has investments worth $153 million in DLF-Akruti, an IT and SEZ project in Pune. The PE major also will join with Embassy group to develop three commercial projects in Pune and Bangalore.
Blackstone will invest $200-million in Manyata IT Park Bangalore. It will invest another $80 million in EON SEZ in Pune.
A former executive at Blackstone opined that PE investors are focusing on urban centers for better returns. He added that the North, though it is big has only a few urban centers.
Delhi and NCR are the two urban centers in the North. On the other end, South and west are having a handful of urban centers. This view is refuted by some experts who say that the South is having more investment just because the PE investors are investing more in IT parks. There is no doubt, South has more number of IT hubs in India.