Hi, Real estate funds infused equity in various projects with an aim to get higher returns. However, private equity funds faced many issues in projects that had an equity exposure, In case of projects that had to be terminated, equity contributors were given the last preference and as a result, lot of capital was eroded, as the developer had to prioritize debtors.
With enhanced macro-economic conditions, empowering policy environment, recovering demand, attractive valuations and increasing capital requirements of the Indian real estate sector, PE funds are likely to increase their investments in the next few years.
Hi all, in my point of view PE funds continues to make investments in the residential sector at the project level rather than at the entity level to protect their investments. Hence it will boost the residential real estate market in recent years.
Hi Hi According to real estate consultant, residential real estate sector has started to show signs of recovery in the sector attracting the highest private equity (PE) investment during the March quarter at Rs 2,752 crore, accounting for 53% share in a total investment activity.
As per latest data we can say that the PE transaction value during the first quarter of 2015 was 2.5 times more than the same quarter last year and the second highest investment since 2008.