PE investment in real estate rises 22 pc in Jan-Sept 2016

The report says private equity inflow increased to Rs 28,300 crore during the period, out of which nearly Rs 9,200 crore were recorded during the third quarter (JulySeptember) of 2016. While the number of deals closed during the third quarter moderately declined by 3 per cent quarter-on-quarter (q-o-q) to 32 per cent, the total investments increased by 1.2 per cent, reflecting increased confidence amongst investors to make larger investments. The average deal size, therefore, increased from Rs 275 crore in Q2 2016 to Rs 287 crore in the third quarter of 2016. 

“Owing to the continued interest in pre-leased office assets, the investments in the commercial office assets have already surpassed the total investment received during the calendar year 2015,” the report said. The y-o-y change in investment in office assets has recorded an increase by over 50 pc as registered in the third quarter. “With a few large deals for office portfolios in active discussion and deal closure stages, the fourth quarter (Oct-Dec 2016) is expected to record the highest annual investments made in the asset class,” it said. Residential assets witnessed over 73 per cent or Rs 6,675 crore of the total investment during July-September 2016. “Despite the largest share in total volumes, investments saw a moderate 3 per cent decline when compared to that received in the same period in 2015,” it said.