Indian Real Estate Resurfaces Highest Private Equity

Real Estate Resurfaces Highest Private Equity

The real estate which has been seeing lot of negative news has seen highest Private Equity investment in Indian companies across 51 deals in the month of February 2012 with total investment of $ 922.7 million. The total investment from Jan 2011 to Feb 2012 has been aggregating to Rs. $1.85 billion which in 2009-11 was $1.52 billion.

Moreover, among 8 prominent sectors, Real Estate PE (Private Equity) has accounted for almost 36.6% investment which is then followed by BFSI Sector accounting for 23.6%, followed by Healthcare sector accounting for 9.5% and then IT/ITEs by 6.8%. Infrastructure sector accounted 5.9%, Telecom and Retail accounted 5.5% and 4.3%, with manufacturing accounting for 3.4% and 4.4% invested on other miscellaneous sectors.

From the entire deal the Private equity seemed to be one of the most preferred sources of financing. In the month of Feb 2012, the GIC Real Estate has promised to invest over $100 million in office project of Godrej Properties, Mumbai. Moreover, Baring Private Equity partners too have committed to invest $100 million in office space which is being developed by RMZ Corp, a real estate developer, in Bangalore.

In spite of the vibrancy of entry of new players in the real estate space in India, there was also a landmark exit too. In the Month of Feb 2012, Deutsche Bank sold its holdings of Lodha Developers for an amount of $508 million.

Looking forward, it is quite visible that Indian Real Estate sector is in a consolidation phase.

This is a guest post by Mr. Mitesh Agarwal, BBA & MBA (Finance). Currently working as Financial Analyst with a leading firm in Mumbai.

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