Realty attracts $6.8 billion private equity investments in 2018

Demonstrating the institutional investors’ confidence in Indian real estate, the sector has attracted inflows of over $6.8 billion or Rs 46,268 crore from private equity funds in 2018. Although the investment volume has witnessed a 10.6% year-on-year decline, this was still second only to the historical peak investment volumes seen in 2017, showed data from Cushman & Wakefield. The decline was also attributed to the Non-Banking Finance Companies (NBFC) liquidity crisis that brought funding from these vehicles to a virtual standstill in the last quarter, which ended up impacting the annual numbers. Investment flows during the last quarter declined 23.4% to Rs 8,450 crore. Office real estate led the investment inflows commanding 46.4% of the annual fund flows. The country’s commercial capital Mumbai maintained its highest share with 27% investments, as was the case in the previous year. The city recorded the largest transaction for 2018 with US Private equity major Blackstone Group acquiring a 50% stake in two office assets of Indiabulls Real Estate. In another marquee transaction, Brookfield Asset Management acquired Equinox Business Park in Mumbai.