Thursday, July 07, 2016

PE investment in retail real estate at Rs 1,000 crore in Jan-May 
[Editor: Since the end of last year  (2015), the real-estate developer Unitech Ltd (Rs.6.95) has adopted a new strategy in its shopping malls: first lease to tenants before building the structure. The stock of Unitech Ltd is all set to cross Rs.10-12, in the coming days, due to improving fundamentals of the company and also at the same time a (positive) change in sector outlook. The interest cost  of Unitech Ltd, is likely to come down in the near future due to some drastic measures taken by it during the last few quarters. Meanwhile, my recommended J P Associates Ltd (Rs.12.20) has given wonderful returns to the share holders in the short term]
NEW DELHI: Indian retail real estate has become attractive again for global investor as private equity (PE) investment in this segment has reached $149 million in the first five months of this year and likely to break previous record of 2008, according to property consultant JLL. 

During the entire 2008 calendar year, PE investment in retail real estate stood at $267 million. 

"As of May 2016, the total PE investment into Indian retail real estate stood at $149 million or Rs 10 billion. This has beaten most industry experts' expectations," JLL India Managing Director - Capital Markets & International Director Shobhit Agarwal said in a report. 

The figure has exceeded investment attracted by the Indian retail real estate industry in the year 2007 and could very well cross the previous high seen in 2008, he added. 

"PE investment into retail almost dried out after 2008 until the year 2015, with 2012 being the only exception," Agarwal said. 

Stating that retail real estate has become attractive again for PE investment, he said investment by PE biggies into retail properties would continue in the next six months.

Courtesy: The Economic Times
Post a Comment