Foreign Institutions showing interest in market for the 1st time since economic collapse of 2008.

Lokesh Patwa,

19th January 2015

Real estate News in Mumbai

real estate

morgan stanley

lehman brothers

goldman sachs

jpmorgan

us banks

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Last time when these giants were invested in Indian real estate, projects got delayed, approvals got delayed and execution also got delayed. All these factors killed the returns expected by them. The slowing economy and global slowdown did not help either.
This time they have full confidence and become aware of Indian real estate is well balance to grow this time around due to the new government, clearing of real estate investment trusts, relaxed land acquisition norms and so on.

Suresh,

20th January 2015

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Executives with US banks and leading consultants are saying that the investors are betting on the India story which has become attractive after the new government at the Centre and its pro-industry focus among others.
The comparative value of Indian property market has gone up. Rest of the markets are seeing too much money. In many Western markets it is seen that rates are low thus people are lending money and buying real estate.

Diwakar Shetty,

19th January 2015

Comment

Goldman Sachs, looking at opportunities in Indian properties and looking to invest from different pockets. Recently they have invested Rs 250 crore as equity in Vatika Hotels, part of real estate developer Vatika Group,
Last May, the US-based investor incurred its 2nd real estate credit fund Broad Street Real Estate Credit Partners-II (RECP-II), with over $4 billion in corpus from America, Europe and Asia.

Suresh,

19th January 2015

Comment

Yes Suresh,
Morgan Stanley, which has invested about $800 million in Indian real estate since 2006, did not invest in any funds in 2014. Since they have raised $1 billion under its 8th global fund and are looking to raise a similar amount under that fund, they are looking to invest actively in India in 2015.

Do you know that Morgan Stanley has $33 billion of real estate property under management globally, of which 28% is invested in Asia, 51% t in the Americas and the rest in Europe.

Diwakar Shetty,

19th January 2015

Comment

But Diwakar, Blackstone and KKR, the 2 big private equity giants of the US, have invested aggressively in Indian properties. Blackstone has invested nearly $1.9 billion in info-tech parks and commercial office buildings since 2011.
Now, US-based banks seem to have bring back their faith in Indian properties again. Among the 3, Morgan Stanley is expected to lead the group with property investments this year.

Suresh,

19th January 2015

Comment

According to executives with property funds and consultancies, Goldman Sachs, Morgan Stanley and JPMorgan, the 3 banking groups of the US, are likely to enter in Indian real estate after a long gap.
Although these US banks were active in Indian real estate from 2005-08, they did very few deals or became completely quiet in Indian real estate after the collapse of Lehman Brothers in 2008.

Diwakar Shetty,

19th January 2015

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