Real estate to see US$ 12-bn PE funds
With the Indian real estate
market slated to grow 35-40 per cent in value terms over the next two
years, private equity (PE) players are lining up significant
investments in the segment. Led by Blackstone and the PE arm of
Deutsche Bank, a host of players -including Red Fort Capital Advisors,
Starwood Capital and Walton Street - are expected to invest close to
US$ 12 billion combined in homes, offices, townships,
hotels and other projects. In 2006, markets regulator SEBI opened up
the real estate market to PE investments. The first year was a learning
period. The following year saw a real correction in the market, with
large incremental growth rather than dramatic growth, where stock
market money went into special purpose vehicle-level investments.
Experts say that in calendar 2007 alone, PE players would have invested
US$ five billion in the Indian real estate sector. But there is need
for investments of up to US$ 18-20 billion, which are expected in FY09
and FY10. Investments of US$ 1,400 billion are being made by Real
Estate Investment Trusts globally. Hence, more global investors will
start looking at Indian realty. This investment zeal comes in the
backdrop of a much broader enthusiasm that PE players have shown across
sectors in India in recent times. This trend is likely to continue
strongly through 2010, driven by robust economic growth and attractive
market valuations.
riathareja
riathareja
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