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Real estate sector records PE investments of over $2.9 bn in H1 2021
Real Estate

Real estate sector records PE investments of over $2.9 bn in H1 2021

According to a recent report by Colliers International, private equity investment in India reached $2.9 billion within the half of 2021, a quite two-fold increase from H1 2020.

In 2021, total private equity inflows into the real estate sector are expected to reach $5 billion, up 4.1% from 2020.

In H1 2021, office assets accounted for 35% of total investments, followed by industrial and warehousing assets, which accounted for 27%.

The current situation is being viewed by investors as an opportunity to purchase properties at bargain prices.

The investment trends, according to Piyush Gupta, Managing Director of Capital Markets & Investment Services at Colliers India, demonstrate an interest in broader classes of assets and structures.

Forward purchases of office assets, the formation of platforms and acquisitions with development risks in office assets, opportunistic acquisitions of retail assets, industrial assets such as warehousing and data centres, large credit transactions for portfolio acquisitions, and development financing are some of the deal types.

During the first half of 2021, land or projects under construction accounted for roughly 86% of total office investments.

Investors are still looking for land or assets in the under-construction stage to add to their portfolio in preparation for a future REIT listing.

This is due to the scarcity of good rent-yielding assets at reasonable prices, as most large developers have already formed partnerships with institutional investors.

Retail investments accounted for 29% of total investments in H1 2021.

Even after the pandemic caused significant disruption to retail businesses and a drop in rental revenues, investor urge for exposure to stabilised retail assets as well as investments in ground-up developments in collaboration with select developers remained strong.

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Also read: Private equity investment in Indian real estate at $2.7 bn in 2021

According to a recent report by Colliers International, private equity investment in India reached $2.9 billion within the half of 2021, a quite two-fold increase from H1 2020. In 2021, total private equity inflows into the real estate sector are expected to reach $5 billion, up 4.1% from 2020. In H1 2021, office assets accounted for 35% of total investments, followed by industrial and warehousing assets, which accounted for 27%. The current situation is being viewed by investors as an opportunity to purchase properties at bargain prices. The investment trends, according to Piyush Gupta, Managing Director of Capital Markets & Investment Services at Colliers India, demonstrate an interest in broader classes of assets and structures. Forward purchases of office assets, the formation of platforms and acquisitions with development risks in office assets, opportunistic acquisitions of retail assets, industrial assets such as warehousing and data centres, large credit transactions for portfolio acquisitions, and development financing are some of the deal types. During the first half of 2021, land or projects under construction accounted for roughly 86% of total office investments. Investors are still looking for land or assets in the under-construction stage to add to their portfolio in preparation for a future REIT listing. This is due to the scarcity of good rent-yielding assets at reasonable prices, as most large developers have already formed partnerships with institutional investors. Retail investments accounted for 29% of total investments in H1 2021. Even after the pandemic caused significant disruption to retail businesses and a drop in rental revenues, investor urge for exposure to stabilised retail assets as well as investments in ground-up developments in collaboration with select developers remained strong. Image Source Also read: Private equity investment in Indian real estate at $2.7 bn in 2021

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