Global investors have once again placed a large wager on Indian real estate, with billions of dollars on the line.
Global investors are looking to reinvest billions of dollars in Indian real estate as they see growth in the residential and commercial sectors. Many global investors, from Abu Dhabi Investment Authority (ADIA) and Goldman Sachs to CPPIB, have partnered with Indian money managers or developers to participate in the Indian stock market. ADIA, one of the world’s largest financial institutions, is looking to invest in a new money management solution from Kotak Investment Advisors, the private equity arm of Kotak Mahindra Group. Sources said the money will be loaned to housing services and developers.
ADIA, which has $829 billion in assets under management by the end of 2021, could invest up to $1 billion (7,600 rupees) in the Kotak fund, according to sources. “Given the recovery and real estate, but investors think it’s a good opportunity to invest in real estate,” the source said. When contacted, an ADIA spokesperson declined to comment. No response was given to the letter sent to Kotak. ADIA has a real relationship with Kotak. In 2019, Kotak Investment Advisors raised $500 million from ADIA as a leading investor in tackling financial markets. ADIA is also a leader in investing in HDFC Capital’s $1.88 billion H Care-3 Affordable Housing Fund. The fund’s first closing was announced in January of this year.
Another global investor, Goldman Sachs, is looking to invest between $2 and $3 billion in real estate in India over the next three years, according to sources. According to sources, Goldman Sachs and developers in Mumbai and Bengaluru are also in advanced talks to set up real estate investment and business platforms. “GS wants to do both equity and debt, even though the market usually has a debt-to-earnings ratio in the last two years,” the source said. Sources said Goldman Sachs has hired Mukesh Tiwari of Actis to lead the Indian real estate sector and expand its housing team. Email sent to Goldman Sachs went unanswered.
Last week, the Canada Pension Plan Investment Board announced a new partnership with Tata Realty & Infrastructure to develop and deliver nationwide business opportunities. The deal will focus on ready-to-use and development assets that aim to raise more than Rs 5,000 crore in assets under management. In March this year, CPPIB also Formed a second partnership with RMZ Group of Bengaluru and Established offices in key cities across the country. CPPIB says it will jointly invest 2,650 crore in RMZ “These revenues are driven by increased demand for housing, data centers and warehouses, and the return of jobs to the office.
” Sanjay Dutt, general manager of Tata Realty & Infrastructure, said recently that he has a partnership with CPPIB. Dutt added that the general direction of Covid in India in general has boosted economic activity as well as related activities that boost the labor market. Cushman & Wakefield marketing manager Saurabh Shatdal said the success of the three REITs (trust investments in real estate) helped the department build a strong global report. “REIT not only designed the space, but emerged as a powerful creative platform for investors,” Shatdal said. Home sales increased significantly in all cities as developers posted strong sales figures for this quarter. He said commercial loans were close to 12 to 13 million square feet in the first quarter, pointing to a strong recovery in this area.
Analysts at Knight Frank India said in a recent report that the first quarter of the year (January-March 2022) saw quarter-to-four-year sales of 78,627 homes despite the third wave.
Shatdal said investors have always preferred the transactions platform to develop capital charges levels, because the platforms help investors to participate in the cycle of development through the risk matrix thread. they yield. Today, investors are ready to sponsor developers, who have strong delivery histories, manage professional businesses, and have high levels of corporate governance.
Shobhit Agarwal, Anarock Capital Managing Director, said that with a remarkable return to the housing market, India is now a well-established REIT market, which is attractive to investors. “In addition, the logistics and invoice sectors recovered notably after Covid-19, boosted by the e-commerce sector. The other emerging sector is the largest asset class of the world for investing in Indiana,” Agarwal said. The Indian real estate market expects to attract $7-8 billion from global investors each year.