PE investments in real estate up 19% to USD 3.8 bn in Jan-Sept: Anarock

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Private equity investments in the domestic real estate sector rose by 19 percent to USD 3.8 billion during January-September 2019, mostly in commercial properties, according to Anarock. Private equity investments were over USD 3.2 billion in the year ago period, the consultant said in a statement.

Commercial real estate received close to USD 3 billion funds in the first three quarters of 2019 as against USD 2.1 billion in the corresponding period of the previous year.

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

According to Anarock data, retail segment attracted close to USD 260 million during January-September 2019 as against USD 355 million in the year-ago period.

Logistics and warehousing witnessed 27 percent decline in total PE inflows in 2019 at nearly USD 200 million as against USD 275 million earlier.

Among cities, Mumbai Metropolitan Region (MMR) witnessed maximum inflows at USD 1.59 billion till September this year, up 3 percent from the same period of 2018.

Bengaluru witnessed nearly 17 percent gain from USD 420 million to nearly USD 490 million till September.

Pune saw huge jump in investments -- from USD 125 million in 2018 to nearly USD 390 million in 2019.

However, Hyderabad witnessed 76 percent decline -- from over USD 790 million last year to just USD 190 million in 2019.

Chennai saw investments of nearly USD 230 million as against USD 160 million a year ago.

PE funding in NCR dropped to USD 115 million from USD 150 million in January- September period of 2018.

As much as USD 3.6 billion was equity funding -- comprising nearly 95 percent of overall share -- while the remaining 5 percent was via structured debt.

Foreign private equity funds continued to dominate the real estate investment, with Blackstone, Hines, Ascendas, Brookefield being major players.