Total PE inflows into Indian retail hit a new high in 2019 among all five years between 2015 and 2019. Total retail-focused PE inflows touched
$970 million in 2019 – a 19 per cent share of the total $5 billion in overall Indian real estate, reveals research by Anarock Capital.
“Back in 2018, retail inflows stood at a mere $355 million, comprising just a 7 per cent share of total PE funds,” says Shobhit Agarwal, Managing Director & CEO, Anarock Capital. “Interestingly, in 2019, Delhi-NCR received the maximum PE inflows of about $610 million – a massive 63 per cent share of total retail funds into Indian realty during this period.”
“While commercial offices topped the funding charts, the retail sector witnessed the second-highest investments from various PE funds in 2019,” he adds.
Tier-II and Tier-III cities are also on the radar of many PE funds. At least 36 per cent retail-focused funds went to Ahmedabad, Amritsar, Bhubaneshwar, Chandigarh, Nagpur and Mohali.
In 2019, Anarock Capital was instrumental in Virtuous Retail South Asia (a JV between Singapore’s PE firm Xander Group and
Dutch institutional investor APG) concluding a $100 million deal with TRIL for two retail malls, one each in Nagpur and Amritsar.
Cities attracting PE investors
- Between 2015 and 2019, Delhi-NCR received more than $750 million, the maximum.
- MMR was second with $410 million funnelled into retail over the past five years.
- Pune saw PE inflows of nearly $150 million in the retail segment.
- Bengaluru retail saw total PE investments of $275 million since 2015.
- Hyderabad and Chennai together attracted close to $230 million during the same period.
- Chandigarh was a major funding target for US-based Blackstone, which invested $340 million in a single large deal in 2017.
- Ahmedabad also drew the attention of PE investors and saw its retail sector draw nearly $220 million in the past five years.