Global real estate funds build hope on Indian market

MUMBAI: Escalating interest rates, perception of a real estate asset bubble and aftershocks of US subprime credit defaults have not dampened the spirits of overseas funds looking to invest in the Indian realty sector.

In the past nine months, overseas funds have raised around $2.4 billion towards investment in real estate projects; and if estimates are to be believed another $1.1 billion will flow in before the end of this year — taking the grand total to a whopping $3.5 billion. Real estate fund-raising continues to boom in 2007 following strong returns from real estate firms.

Foreign funds raise $30 b for Indian realty investment

Bangalore: Foreign funds and institutions have, till date, raised approximately $30 billion to be invested in Indian real estate with an estimate of $3 billion that has been committed, according to real estate services firm Cushman & Wakefield.
The industry is progressing up the learning curve, and the spectrum of private equity transactions range from project-specific special purpose vehicles (SPVs) to entity-level investments.

Real Estate in India: A Survival Guide

India has experienced near-double-digit growth in the last several years and stories of the Indian economic juggernaut fill newspapers and bookstores. The commercial real estate market is no exception. The IT boom has created a huge demand for quality office space that was nonexistent a few short years ago. Several prominent Indian developers have emerged, and more and more international investors and developers are plunging into the country. As with any local or regional market, there are many idiosyncrasies that color the business environment, and India is no exception. Below is an introduction into the current conditions within the Indian real estate market and what the future may hold as India quickly becomes a global superpower.

India real estate developers looking at newer financing options

Big residential townships, SEZs (special economic zones) and mega retail malls are prominent among the recent trends in the real estate landscape. To cope with these mega developments, the developers are looking at various options of financing, says Mr. R. Venkatesh, Regional Director, Transaction Advisory Services, Ernst & Young, Chennai.
“While debt funding, private equity (PE), IPO (initial public offer) route shall continue to happen, though at realistic and reasonable valuations, new avenues such as listing of REITs (real estate investment trusts) at overseas exchanges is expected to attract developers’ attention to plan their fund raising exercise,” he adds, during an email interaction with Business Line.