Private equity Investment in India -Plan[S]

skyline-architecture_-chicago-from-hancock-towerPrivate equity Investment in India’s office assets will surge fourfold in ’17″ Cushman & Wakefield ( C&W).

  • Stability in the commercial office sector as well as the potential to list under REITs, are the major reasons for investors to park their funds in leased office assets.
  • The commercial office sector has been witnessing sustained high demand and investors are enthused by the opportunity in this space, led by impending REITs.
  • Recent efforts by the government to regulate the sector have been viewed favorably by investors. There is an unabated interest of global as well as domestic institutional investors in commercial real estate.
  • The office sector is seeing stable growth with adequate pre-commitments in key growth markets despite global economic concerns, lower GDP growth projection, demonetization, and slower growth in the IT-BPM sector.
  • It is expected that investors’ appetite for retail assets would go beyond commercial over the next few years. Global investors investing in Indian realty assets for the past few years are eyeing investment and alliance opportunities.
  • Demand for commercial assets is outstripping supply in the market due to lack of office asset development over the last few years.
  • This is an ideal time for commercial real estate investments as assets are available at attractive valuations, and in some cases, at much lower rates than even replacement values.

Some large office deals :

  • DLF’s sale to GIC
  • K Raheja Corp’s sale to Blackstone Group and
  • Hiranandani Group’s sale to Brookfield.
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