Overall private equity activity in the real estate sector likely to remain subdued in 2020; Capitalisation rates set to expand for office and retail assets, stable for warehousing
Singapore-headquartered private equity firm Everstone Capital has decided to put Modern Foods, which it acquired in 2015 from HUL, on the block, people with knowledge of the matter told Moneycontrol.
KKR will invest Rs 11,367 crore into Jio Platforms
India continued to be the second-largest deal market in the Asia-Pacific region in 2019 with over 1,000 private equity and venture capital pacts valued at USD 45 billion
PEs and VCs are expected to focus on the business continuity of their portfolio companies and rely on private investments in public equity transactions in the near term, said EY in a new report
The consultant projected that total PE investment in real estate could drop to USD 3.5 billion in the calendar year 2020 from USD 6.4 billion last year.
Of the total $5 billion PE inflows in Indian realty in 2019, US firms accounted for 36% share or around $1.8 billion.
Real estate experts are of the view that the deal volume is likely to be reduced to half as cautious investors may decide to invest in a phased manner
The Singapore-headquartered Everstone Capital was co-founded by Sameer Sain and Atul Kapur in 2006.
Japanese and South Korean firms also evaluating the Indian commercial market.
Delhi-NCR received 63% funds of the total USD 970 mn PE inflows in Indian retail in 2019, followed by Hyderabad with a 20% share
MMR and NCR were the favoured regions for private equity investors in 2019 as they received close to $2.7 billion of PE funds.
Challenges in the economy are changing the manner in which PE capital is deployed
India has a fundamental advantage – it’s the only market that offers growth at scale
As much as $8.8 billion of the total foreign investments backed commercial real estate. The residential sector attracted just $1.5 billion of foreign PE in the same 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.
The plan has met with scepticism from banks in the consortium, so the company has approached prospective investors.
Mumbai attracted the highest investment inflows at Rs 6,100 crore, followed by Pune and Delhi-NCR, the Cushman & Wakefield report said
MMR saw maximum inflows of 530 mn dollars. NCR saw minimal inflows
A lot of PE investors who were planning their exits via the IPO route are still holding on to their plans.So far this year, only eight companies have gone public to raise around ₹5,509 crore
Real estate developers yet to warm up to the new asset class due to absence of tax breaks
Southern cities of Bengaluru, Chennai and Hyderabad see maximum inflows, followed by Mumbai and Pune
The dip comes amid data release of sagging GDP growth fuelled largely by a fall in consumption which has been the one of the favourite for investors as well.
The troubled lender is looking to imrpove investor confidence after registering losses for the March quarter.