The current global financial crisis might have cast a shadow on the Indian property market, but the country's real estate sector witnessed an inflow of about $6 billion (Rs 26,900 crore) from global private equity players during the last one year.
According to a report by global realty consultant Cushman & Wakefield (C&W), PE funds struck 79 deals in the country during August 2007-2008 amounting to $6 billion, a rise of 100 per cent over the same period a year ago. The amount received has been evenly distributed among SPV and portfolio level attracting a total investment of Rs 10,000 crore each, while that of entity level was at about Rs 6,970 crore, the report 'The Metamorphosis - Changing dynamics of the Indian Realty Sector' said. "The commitments by the PE funds clearly indicate investor confidence in the Indian market scenario. While, we have seen a dip in total amount committed in the second quarter of 2008, the wait-and-watch approach by the PE funds scouting for the opportune partner will force Indian developers to re-work their valuations and construction timelines to make them more reasonable," C&W India Joint Managing Director Sanjay Dutt said. PE players have also increased their internal rate of return (IRR) expectations from projects to cater to the increase risk, he added. The report said residential sector was the most preferred area of investment for PE players, accounting for about 41 per cent of total inflow in the year. Township developments received about 21 per cent of the total commitment http://www.business-standard.com/india/storypage.php?tp=on&autono=47588 Life is a bridge. Cross over it, but build no house on it. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
