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India: PE investment in retail real estate hits US$149 million

Indian retail real estate has become attractive again for global investors as private equity (PE) investment in this segment has reached $149 million in the first five months of this year, according to property consultant JLL.

“As of May 2016, the total PE investment into Indian retail real estate stood at $149 million or Rs 10 billion. This has beaten most industry experts’ expectations,” JLL India Managing Director, Capital Markets & International Director Shobhit Agarwal said in a report.

The figure has exceeded investment attracted by the Indian retail real estate industry in the year 2007 and could very well cross the previous high seen in 2008, he added. PE investment in retail real estate during the entire calendar year of 2008 was $267 million.

“PE investment into retail almost dried out after 2008 until the year 2015, with 2012 being the only exception,” Agarwal said. The report also showed Singapore-based GIC had invested $149 million into Sheth Developers’ Viviana mall at Thane earlier this year.

JLL India said that there are a few deals, apart from one big deal, in the works. “If any of these go through, 2016 could prove to be a historic year as far as PE investment into the retail real estate industry is concerned”.

(Source: Economic Times)