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May 23, 2016

Commercial Realty witnesses rising interest from PE Funds: The Economic Times

An Economic Times article by Sobia Khan & Kailash Babar uses Venture Intelligence data on to showcase rising PE interest in Commercial Real Estate Projects:
In 2015, private equity real estate firms deployed more than $5 billion in Indian real estate companies and projects — the highest since the financial crisis of 2008 — through 90 deals, according to research from Venture Intelligence . Large investors and established developers also created several joint venture platforms in the past year. Of the investment made, commercial projects accounted for 10%, (compared to 6% in 2014).

Other Trends:

1. Given most of the private equity funds in India receive funds from sovereign funds and pension fund - completed leased commercial assets are seen as the best bet for these investors.

2. Active setting up of tie-ups/platforms with builders

Tata Group's real estate and infrastructure development arm, Tata Realty & Infrastructure, partnered with Standard Chartered Private Equity to create a Rs 3,000 crore investment platform. 

Goldman Sachs and Bengaluru-based property developer Nitesh Estates formed a $250 million fund to invest in income producing commercial real estate assets in India 

APG and Xander launched a $300 million India office venture.

Blackstone formed a special purpose vehicle with Embassy Property Developers.

Qatar Investment Authorities agreed to back real estate firm RMZ to buy commercial assets. 

3. Funds planning to set up REITs to build commercial asset portfolio

Interested in viewing Private Equity investments in Real Estate? Take a trial to the Venture Intelligence PE-RE Deals Database.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

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