Tag Archives: Private Equity in Real Estate

PE Firms Invest Rs.700 Cr In NCR Real Estate

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Delhi-NCR received Rs.700 Cr PE investments, reported property consultant firm Cushman & Wakefield. However PE firms showed least interest in Gurgaon.

DELHI: In 2012, private equity firms invested Rs.700 Cr in the Delhi-NCR. Overall, India received Rs.19,000 Cr in 2012. PE firms contributed one third of the total investments. The remaining investments were received through institutional sales.

Cushman & Wakefield reported that PE investments in India rose by seven percent in the year 2012-13. Over Rs.6200 Cr was invested in India by the PE firms. Continue reading →

Actis Plans To Exit Its First Realty Fund

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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. Continue reading →

Blackstone Lay Luring Eye On Express Tower

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Blackstone, the PE giant, has showed its interest in grabbing the Express Tower in Mumbai.

With assets worth $210 billion, Blackstone is the largest private equity firm. The group has various investments in India.  While most of their PERE investments are in the residential sector, now they are planning to invest some money in the commercial segment. Continue reading →

Valmark Group mulls over Rs.125 Cr realty fund

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Valmark Group is mulling over raising a private equity in real estate fund. Rs.125 Cr PERE fund of Valmark Group will be focused on Bangalore realty.
Valmark Group plans to raise Rs.125 Cr for investing in real estate.

Valmark Group plans to raise Rs.125 Cr for investing in real estate.

BANGALORE: Valmark Group, a Bangalore-based real estate firm, is mulling over raising a fund worth Rs.125 Cr. The main focus of the fund will be Bangalore realty.

Valmark Infra and Realty Trust plans to invest in the residential market of South Bangalore. The group expects a minimum return of 15%. The fund will be invested for developing six to seven projects in Bangalore.

The investment will be for three to five years. The investment manager for the fund Jaswant Munoth said that Valmark Group expects a return of up to 36%.

Mr. Munoth added that the investment will be extended to two more years in case if there is no chance for an easy exit after five years. Continue reading →

Essel Group to Raise Rs.1000 Cr PERE Fund

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Private Equity wing of Essel Financial Services Ltd plans to launch its first real estate fund. The Rs.1000 Cr PERE fund will be invested in the residential sector.
Essel plans to raise Rs.1000 Cr for investing in residential sector.

Essel plans to raise Rs.1000 Cr for investing in residential sector.

MUMBAI: Private Equity wing of Essel Financial Services Ltd has already raised Rs.200 Cr. The fund will be invested in the real estate sector. Essel Group plans to develop housing projects in top cities across the subcontinent.

Private equity in real estate (PERE) is increasing in India. 2012 saw 32 PERE investment deals. Nearly PERE Funds worth $464.26 million was invested in last year. This is well above $310.88 million in 2011 which saw only 15 such deals.

The PE wing of Subhash Chandra-owned Essel Group plans to launch a Rs.500 Cr fund. The group also has plans to raise another fund of the same amount. The fund will be raised from domestic investors.

Essel Financial Services CEO and MD of Amit Goenka said that developers raise huge demand for capital. He added that most of the projects are stuck, due to the lack of capital. He finds delay in approvals as another reason for the stuck projects. Continue reading →

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 →

Global Real Estate Investment Markets, India in Top 20

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India ranks 20th among the top real estate investment markets of the globe, reported Cushman & Wakefield. With $ 304.1 billion of investment value, China stood top.
China tops the list of real estate investment markets.

China tops the list of real estate investment markets.

MUMBAI: As per the latest report of the global real estate consultant Cushman & Wakefield, India is ranked 20th among the top real estate investment markets of the globe. International Investment Atlas, the latest report of C&W, global real estate investment market saw a 6% rise in the investment activities last year.

In the last quarter witnessed more volume of investment. It signals revival of real estate investment. With the revival taking place, the investment in 2013 is believed to grow by 14%.

China tops the list. $304.1 billion was invested here. USA stood second with investment value of 267.1 billion. Both China and USA hold the lion’s share of the entire real estate investment. These two remained the top real estate investment markets of the world. Continue reading →