NEW DELHI: Investments by private equity funds in Indian real estate grew 69% in 2011, said research firm Venture Intelligence, which tracks PE and VC investment activity in India.
Of the 69 transactions that happened during the year, 53 had an announced value of $2,679 million compared to $1,582 million across 63 investments in 2010. The year 2011 saw increased private equity activity in the sector as real estate developers faced a cash crunch. This was because of a drop in home sales as well as banks reducing their exposure to real estate companies.
Residential projects accounted for 57% of the investments (by volume) during 2011, followed by commercial projects with a 19% share of the pie.
In 2011, Warburg Pincus invested over $318 million in its residential segment focused joint venture with portfolio company Lemon Tree Hotels and Blackstone invested $200 million in Bangalore's Manyata Embassy Business Park.
In the year 2011, real estate private equity funds made 19 exits compared to just 8 in 2010. About 14 of the exits announced in 2011 had a deal value of $603 million, according to Venture Intelligence. Kotak Realty Fund sold its stake in an IT Park in Mumbai's Goregaon area for $86 million to Tata Realty Initiatives Fund.
Source: http://economictimes.indiatimes.com/markets/real-estate/realty-trends/private-equity-investments-in-real-estate-grew-69-in-2011-venture-intelligence/articleshow/11461159.cms
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