Global Private Equity Eyes Indian Real Estate: Report

Many sovereign and pension funds are pumping funds into the Indian real estate like All Pensions Group (APG Group), Abu Dhabi Investment Authority (ADIA), Qatar Investment Authority (QIA), Canada Pension Plan Investment Board (CPPIB), State General Reserve Fund of Oman (SGRF) and GIC of Singapore.

Interestingly, Bangalore topped PE transactions in the first half of 2014 with 2,500 crore Aas against just 103 crore in the corresponding period year ago.

Investments were spread across the sector, with commercial office accounting for the major chunk (57 percent), followed by residential (28 percent) and retail (15 percent) asset classes.

Mumbai also saw healthy investments worth 1,140 crore though largely in the residential sector.

PE investments in the country's financial capital (Mumbai) shot up three times in first six months of this year over same period year ago, while transactions in NCR (national capital region) and Pune in Maharashtra were 580 crore and 167 crore.

PE investment (4,100 crore) in first half (January-June) was not only more than double of 1,650 crore in same period of 2013, but also the highest since like period of 2009 when a whopping 4,950 crore ($1 billion) was invested then.

Secondly, number of deals in first half of 2014 increased to 28 from 13 in same period of 2013, with the average deal size going up 16 percent to 146 crore.

Investment value in the residential segment at 2,357 crore during first half constituted 60 percent of the overall investments, as PE funds are viewed favourably by developers.
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