1 Crore of PE Investments during July-May in retail Real Estate


Once again the Indian retail real estate sector has become an attractive investment opportunity as the global PE investors (private equity) have spent more than USD 149 million over the first 5 months of this present quarter. The investment at this rate is expected to even break the records of the year 2008 investments.

As per sources the whole amount of PE investments in the retail realty of India stood at INR 267 million throughout the entire calendar year.And as of the present numbers the cumulative PE investments in the Indian real estate industry stands at USD 149 million i.e. 10 billion as of May, 2016. Thus, the numbers have mostly outrun the industry experts’ expectations until now.

This figure is even higher than the investment attracted by the Indian real estate sector back in the year 2007and is poised to go over the previous highest time of 2008 as well.

As per the industry analysts, the private equity investments had almost dried out since after 2008 and remained lull till 2015. 2012 only was a slight exception to the downtrend and witnessed some investing activity.They also said that the retail real estate has again become attractive for the PE investors and the Private equity giants will continue to invest into this sector for the upcoming 6 months as well.

The economists and financial experts are of the view that factors like political stability along with economic balance and an improvement in consumer sentiment are some important factors that have further helped the retail sector and retail real estate sector.Moreover there are lot more quality, high-end malls coming up with strong pre-commitments that suggest that the retailers still remain confidently bullish over the idea of long-term consumption in India.

However, observing the ongoing deals in the PE investment into Indian retail it seems they are back with bang in interest and also goes on to show that the Indian retail realty sector is again a favorable site for global investor community.

Amongst the major deals was the investment made by Singapore-based GIC into the Viviana mall in Thane by the Sheth developers, which saw an investment of USD 149 million. Apart from this one major deal, there are several small ones under the works and if they work out this could be a historic year for the country in terms of PE investments into the retail real estate industry that is concerned.

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