- Private equity investments were over USD 3.2 bn in corresponding period of 2018
- Commercial sector comprised 79% overall share; attracts close to USD 3 bn funds
- Residential attracts USD 295 mn during Jan. – Sept. 2019 against USD 210 mn a year ago
- Retail and logistics & warehousing see total inflows of approx. USD 260 mn & USD 200 mn in 2019 respectively
- MMR sees maximum inflows at USD 1.59 bn this year; records yearly increase of 3%
- Pune sees more than 200% yearly rise in investments – from USD 125 mn in 2018 to nearly USD 390 mn in 2019
- Hyderabad witnessed 76% yearly decline – from over USD 790 mn in 2018 to just USD 190 mn this year
- Of total USD 3.8 bn funds in 2019, equity funding comprises 95% share
- Indian real estate in Q3 2019 alone sees total PE inflows of nearly USD 1.7 bn
Giving a flicker of hope to cash-starved Indian real estate, private equity funds have pumped in nearly USD 3.8 bn between January to September period in 2019, reveals recent research by ANAROCK. Recording nearly 19% yearly gain, total inflows equalled over USD 3.2 bn in the corresponding period a year ago.
As much as USD 3.6 bn was equity funding – comprising nearly 95% overall share – while the remaining 5% was via structured debt. Also, foreign private equity funds continued to dominate the real estate investment scene. Top investors included Blackstone, Hines, Ascendas, Brookefield etc.
Segment-wise break up
- Commercial real estate continued to attract maximum PE investments, totalling close to USD 3 bn funds in the first three quarters of 2019. In the corresponding period of 2018, total inflows within this segment equalled nearly USD 2.1 bn, thus rising by 43% in a year.
- Residential segment, on the other hand, received USD 295 mn funding this year as against USD 210 mn last year, thus seeing nearly 40% yearly gain.
- Retail segment attracted close to USD 260 mn funds since January till September 2019 whereas last year it saw inflows of USD 355 mn, a reduction of 27% in a year.
- Logistics & warehousing witnessed 27% decline in total PE inflows in 2019 and equalled nearly USD 200 mn as against USD 275 mn a year ago.
Cities on a roll
- MMR attracted maximum PE funding in 2019, amounting to approx. USD 1.59 bn. On yearly basis, the region saw total inflows increase by 3% from USD 1.54 bn in first three quarters of 2018.
- Pune, on the other hand, saw total investments of USD 390 mn between January till September period in 2019 against USD 125 mn in same period of 2018, a rise of nearly 213%.
- The IT capital of India – Bangalore – also witnessed nearly 17% yearly gain – from USD 420 mn in 2018 period to nearly USD 490 mn in 2019.
- Interestingly, Hyderabad, which saw more than USD 790 mn PE inflows in the first three quarters of 2018 saw overall PE funding decline by 76% to USD 190 mn in 2019. In entire 2018, the city attracted total funds worth USD 1.1 bn – more of a one-hit wonder.
- Chennai saw investments of nearly USD 230 mn into real estate sector in 2019 against USD 160 mn a year ago – an increase of approx. 44%.
- PE funding in NCR continued to squeeze further in 2019 with investors pumping in merely USD 115 mn in contrast to USD 150 mn in January to September period of 2018.
|Top 3 Deals in Q3 2019|
|Investor||Investee||Location||Asset Class||Approx. Deal Amount (USD Mn.)|
|Blackstone||Indiabulls Real Estate||Mumbai||Commercial||850|
|Blackstone & Salarpuria Sattva||Tanglin Retail Realty||Bengaluru||Commercial||400|
|Xander||New Vernon Capital||Pune||Commercial||150|
Source: ANAROCK Capital
(Note: Deals rounded off to nearest 50)
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