Project-Level Consolidation On The Rise

Stuck housing projects get a new lease of life More than 90% consolidation in Indian real estate at project-level; only a few (such as Indiabulls) consider exiting realty business altogether After DeMo wiped out fly-by-night and many small developers, liquidity crisis led Big Boys to take up stuck/delayed projects Preferred consolidation models include JVs, alliance, development management contract, […]

PE Funds Inject $1.1 Bn Into Logistics And Warehousing In 2 Yrs

Q1 2019 saw nearly USD 200 mn invested into Logistics & Warehousing in cities like Bengaluru, Chennai and Pune Over USD 1.1 bn invested in logistics and warehousing sectors from Q1 2017 – Q1 2019; zero investments in 2015 & 2016 Southern cities of Bangalore, Chennai & Hyderabad see maximum inflows, followed by Mumbai & […]

PE Inflows In Indian Retail Double To $1.2 bn In 2 Years

Shobhit Agarwal, MD & CEO – ANAROCK Capital From USD 600 mn from 2015-2016, private equity inflows in retail jumped to over USD 1.2 bn between 2017 and 2018 Of total USD 1.84 bn inflows in retail in last 4 yrs (2015-2018), Tier 2 & 3 cities attracted nearly 48% funds (of USD 880 mn) against USD 960 mn in Tier 1 cities Top favoured Tier […]

Entity-Level PE Inflows In Indian Realty Up 17% In Last 2 Years

Shobhit Agarwal, MD & CEO – ANAROCK Capital Previously, private equity (PE) funds focused on Indian real estate were content with investments at the project level. Now, investors’ preference is now gradually tilting towards entity-level investments. Data trends from ANAROCK’s recent report Private Equity in Indian Real Estate indicate that the share of entity-level investments is on […]

Singapore Private Equity into Indian Real Estate Triples in Last 2 Years

Shobhit Agarwal, MD & CEO – ANAROCK Capital Singapore funds, over 2 years, comprise 41% share of total PE inflows into Indian real estate at USD 3.5 bn (against USD 1.15 bn in 2015 and 2016 combined) The US and Canada-based PE investors come next with a collective contribution of USD 3.8 bn PE funds […]

PE Inflows In Residential At 4-Year Low, Commercial At 4-Year High – ANAROCK Report

Total private equity inflows in residential at USD 266 mn in 2018 – an 82% decline since 2015 Commercial real estate drew the lion’s share with USD 2.8 bn PE funds Average deal size increased by over 170% in 4 years – from USD 47 mn in 2015 to USD 128 mn in 2018 Overall […]

What ROI Can One Expect From REITs?

Shobhit Agarwal, MD & CEO – ANAROCK Capital About 50% of India’s total office stock is REITable – up from 30% in 2 years Projected 5-year returns on commercial assets is 14% REITs could further percolate down to other asset classes like retail and logistics The listing of India’s first REIT by Blackstone-backed Embassy Group has been […]

50% of Indian Office Stock Qualifies for REITs

Shobhit Agarwal, MD & CEO – ANAROCK Capital About 50% of India’s total office stock is REITable – up from 30% in 2 years Low returns, lack of sound rental policy eliminated residential’s REITs candidature Projected 5-year returns on commercial assets are 14% The listing of India’s first REIT by Blackstone-backed Embassy Group has been […]

The NBFC Real Estate Crisis – What, Why and What Next?

Shobhit Agarwal, MD & CEO – ANAROCK Capital NBFCs account for over 50% of total developer financing – close to INR 4 trillion in FY2018 Real estate has already exhausted over 75% of available credit Consolidation of not only developers but also NBFCs on the cards As an alternative to the main banking sector, Non-Banking […]

NBFC Crisis – Real Estate on Tenterhooks!

Shobhit Agarwal, MD & CEO – ANAROCK Capital It may be true that ‘when the going gets tough, the tough gets going,’ but this doesn’t hold true for the Indian real estate sector currently. The ongoing NBFC crisis post IL&FS default has made things even more difficult for developers. Post the banking system’s freeze on […]