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Last Updated : | Source: Moneycontrol.com

Equity investment in real estate sector sees 19% rise at $3.8 bn in Jan to Sep 2019 period

Commercial sector attracts close to $3 billion funds; MMR sees maximum inflows at 1.59 bn dollars this year; records yearly increase of 3 percent.

Equity funds have pumped in nearly 3.8 bn dollars between January to September period in 2019 into the Indian real estate market, an almost 19 percent yearly increase, according to a report by ANAROCK Property Consultants.

Total private equity inflows equalled over $3.2 billion in the corresponding period a year ago.

As much as 3.6 bn dollars was equity funding - comprising nearly 95 percent overall share - while the remaining 5 percent was via structured debt. Also, foreign private equity funds continued to dominate the real estate investment scene. Top investors included Blackstone, Hines, Ascendas and Brookefield, the report said.

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Commercial real estate continued to attract maximum PE investments, totalling close to $3 billion funds in the first three quarters of 2019. In the corresponding period of 2018, total inflows within this segment equalled nearly $2.1 bn dollar, thus rising by 43 percent in a year.

Residential segment, on the other hand, received  $295 million funding this year as against $210 million last year, thus seeing nearly 40 percent yearly gain, the research said.

Retail segment attracted close to $260 million since January till September 2019 whereas last year it saw inflows of $355 million, a reduction of 27 percent in a year.

Logistics and warehousing witnessed 27 percent decline in total PE inflows in 2019 and equalled nearly 200 mn dollars as against $275 million a year ago.

MMR attracted maximum PE funding in 2019, amounting to approximately $1.59 billion. On yearly basis, the region saw total inflows increase by 3 percent from $1.54 billion in first three quarters of 2018.

Pune, on the other hand, saw total investments of $390 million between January till September period in 2019 against $125 million in same period of 2018, a rise of nearly 213 percent.

The IT capital of India – Bengaluru - also witnessed nearly 17 percent yearly gain – from $420 million in 2018 period to nearly $490 million in 2019.

PE funding in NCR continued to squeeze further in 2019 with investors pumping in merely $115 million in contrast to $150 million in January to September period of 2018.
Top 3 deals in Q3 2019
InvestorInvesteeLocationAsset ClassApprox. Deal Amount (USD Mn.)
BlackstoneIndiabulls Real EstateMumbaiCommercial850
Blackstone & Salarpuria SattvaTanglin Retail RealtyBengaluruCommercial400
XanderNew Vernon CapitalPuneCommercial150

Source: ANAROCK Capital

(Note: Deals rounded off to nearest 50)

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First Published on Oct 25, 2019 03:42 pm
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