Private Equity Investments increased in Real Estate

Chennai:  Private equity investments in the previous quarter have increased to $ 318 million in real estate sector. In the last year, amount raised by private equity (PE) investors was $ 172 million which observed an increase of 85 per cent in this years’ corresponding quarter.PE investors in the April-June quarter invested in 13 companies.Blackstone, a global PE firm concluded the biggest deal in January-March quarter by investing in real estate group in Bangalore. The previous quarter of 2013 witnessed a $110 million investment by Phoenix group which was the largest investment in real estate. Xander invested $ 52 million in Supertech’s 125 acre township situated in Gurgaon.Developers and builders use bank funds for their developments but bank funding is now drying up hence developers are going for the PE funding options. The companies are not easily investing in real estate sector as they have witnessed a major setback in returns in the years from 2006 to 2009.PE investment deals have mostly happened in the tier 1 cities and majorly in the residential market. PE investors are only considering residential market for investment as they provide strong and better returns. The tier 2 and tier 3 cities are out of the competition as fascination of investing in these cities has completely gone away.PE investors are sticking to only one real estate group instead of making investments in multiple groups. The first half of the year 2013 observed in total 21 transactions worth about $ 887 million.займ на карту без отказов круглосуточновзять кредит онлайн