Latest Answer: Today, this sector needs equity because the developer is under constant pressure to service loans and many are highly leveraged. Even if foreign institutional investors largely believe equity is the need of the hour, domestic fund managers have stuck to debt-lending.
Q:Sunteck Realty, whose clients include Bollywood celebrities, is desiring private equity funds to buy distressed assets from competitor running under debt.
Latest Answer: Very clever sign of business. The company's funds are chasing commercial properties more for better returns, and Sunteck may look to double the share of its office and retail assets to about 40% and cut residential assets from 80% if there is increased demand.
Q:Hi! as per the latest news, DLF is in talks with leading PE players to raise up to USD 2 billion by selling up to 50% shares in the holding company of its rent-yielding assets.
Latest Answer: Now, they are being very cautious in deployment because the real estate market is in a continuous change. Developers typically raise capital to either refinance existing obligations or for growth. Currently, most of the deals in the market are for refinancing because of slower sales pace.
Q:Real estate developer Emaar MGF has raised Rs 600 crore from private equity fund SSG Capital Management for its projects in the National Capital Region.
Latest Answer: Yor are right. And now a days many developers are out in the market to raise this kind of money. Today, pricing of capital is not such an issue. The more important aspect is the flexibility of the capital they are raising in terms of payment structures. These funds were used for their projects and corporate requirements.