Global realty consultant Cushman & Wakefield said private equity investment in India into the real estate sector had grown 26% to INR 4,716 crore in the first nine months of this year. The firm noted that the growth was impressive despite the slowdown in the property market in the area. Cushman & Wakefield attributed the growth of private equity investments to a jump in the interest in leased income generating office buildings by institutional investors.
Cushman & Wakefield said, "Total value of announced private equity transactions in the real estate sector for the first three quarters of 2013 were recorded at Rs 4,716 crore ($755 million), witnessing an increase of 26 per cent compared to the first three quarter of 2012 (Rs 3,750 crore/$704 million)."
The Indian real estate sector had been slowing down in the past few months of this year, with net absorption in offices showing a decrease of 15% and lackluster housing sales figures. Nonetheless, The Indian Express noted that it did not deter private equity firms to put in their bets on the country's real estate. As such, India had bear witness to a slew of merger and acquisition deals.
Recently, India realty firm Godrej Properties said it had acquired its 49% stake in a subsidiary back from private equity firm Red Fort Capital. Godrej's subsidiary was said to be development an IT Park dubbed "Godrej Genesis" located in Kolkata. Financial details of the transaction were not disclosed.
On the other hand, growth in private equity investments in the India real estate sector also increased its vigilance in adopting regulations. Lately, the Maharashtra State Consumer Disputes Redressal Commission ordered civil contractor SK Poly Formulations to pay back INR18 lakh for rendering deficient services to Malhar Lokpuram Co-operative Housing Society in Thane city regarding work of repair and restoration to the latter.
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