Transcript
7/28/2019 Accelerated Transformation
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2008
Accelerated Transformation-
Investments in Indian Real Estate
INTRODUCTION
Buy land, they are not making it anymore.
Mark Twain
This quote from the American humorist could well
suggest the emerging strategic blueprint for private
equity investors taking exposure in the Indian real
estate sector and indeed in other such emerging
economies. This report is a follow-up study on the
trends and growth of investments in Indias real
estate sector, subsequent to the first such study,Accelerating Transformation, which was first
released in 2Q07.
The intent and objectives of this report are very
much along the lines of the f irst report, with the
main focus on revisiting the fund view of the real
estate market after the initial study. Much like the
first one, the aim of this paper is to understand
the nuances and impact of the ebb and tide of new
investment flows into the real estate sector that
have been noticed in the last one year.
While the first part of this paper reviews the
changing trends in real estate investment and
conjoint changes that were noticed in the regulatory
framework for the same, the latter par t of this
report is anticipative of the sentiments of real
estate funds, both global and domestic, which have
flowed in post Foreign Direct Investment (FDI)
liberalisation and continue to consistently come in.
The latter aspect has been captured by way of
a structured primary survey of such funds that
are already active in Indian property markets.
The collated data from these surveys have been
presented in order to provide an indicative
perspective of the fund view with respect to
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anticipated paths, patterns and prospects of the Indian
real estate markets.
The paper is in no way all-comprehensive nor
encompassing of the various issues related to the
changing trends of investment into Indian real estate and
the impact thereof, but is an attempt to try and highlight
pertinent themes and issues that would be important
determinants of the trajectory that Indian real estate
markets follow in the future.
ChaNgINg TReNDs IN INbOUND RealesTaTe INvesTmeNTs
Global Real Estate Capital, a definitive report released
in March 2008 by Jones Lang LaSalle, depicts the
tremendous increase in global cross-border flows in
real estate markets worldwide. According to the report,
global direct commercial real estate investment totalled
a record USD 759 billion in 2007, a 8% rise on volumes
in the same period last year. For the full year 2006, this
figure was USD 699 billion. In terms of recipients of
this f low, the report states that the Americas, Europe
and Asia Pacific once again achieved record investment
volumes with Asia Pacific real estate markets in
particular witnessing a signif icant increase in cross-border interest. India has not been an exception to this
trend, especially since early 2005, when FDI policy for
the real estate sector was eased fur ther.
Since our first report Accelerating Transformation
released around a year ago, quite a few significant trends
have emerged, both in terms of the scale and volume of
funds that have f lowed into Indian real estate through
various routes, including private equity, public capital
raising and debt financing, as well as in the approach
of global and Indian funds towards Indian real estate
markets. This section is an attempt to compile thesechanging trends that have occurred in the interim time
and the impact of such changes on the future funding
and investment scenarios in Indian real estate.
Since our first report, an overriding theme that is
noticeable is that investors, whether global or Indian,
private or institutional, have seriously gone down to
the brass tacks of exploring and implementing the
investment process. While a year ago, many of the
first-time investors may have just started the process of
exploration of investing in Indian real estate. Now, quitea few of them have already invested and are steadily
discovering the grass-root realities of operating in India.
Prit equit Intnt Trnd
To put in context the changes that have taken place in
the private equity space, it is interesting to compare and
contrast the headline figures regarding private equity
investments in Indian real estate.
In our first report, we had estimated that there seem
to be anywhere between 100120 India-specific realestate funds (global and domestic) that are in various
stages of operation, ranging from planning, sett ing
up or investment mode, around 5060% of which are
considered to be active. As of Q1FY08, the estimated
total number of private equity funds that are operational
in India could be as many as 150, with around two-thirds
of them in the active category. It is important to state
here that the active category of funds can generally
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be defined as those that have operations on ground in
the country and are actively sourcing and completing
investment transactions.
The other main indicator of activity levels for such real
estate funds is the broad figure of investment that is in
the pipeline from these funds. As in the previous report,
this compiling is an uphill task as there are various
estimates that keep getting reported in the media from
time to time regarding the total FDI in the pipeline for
Indian real estate. These estimates range from anywhere
between USD 15 billion and USD 20 billion to be
deployed over the next three years. Given the number of
funds that are operational and others that are planning
to enter the country, it is quite possible that the totalinvestment pipeline can eventually be higher than the
estimates published.
Finally, the source of capital for these real estate funds,
both old and new, pretty much remain the same as what
we had stated in the f irst report and include Indian and
global institutional funds (which now include global
pension funds and endowment funds), proprietary funds,
private equity, high-net-worth individuals and other
third-party funds. However, there has been a perceptible
trend of global direct real estate investors investingthrough India-specific real estate funds rather than
taking direct exposure in deals.
This growing interest in Indian real estate is attributed to
the change in perception of the Indian real estate sector
from quicksand to emerging sector based on the
following leading parameters:
Signicant performance of listed real estate stocks and
real estate companies IPOs especially in the year 2007.
Increased foreign institutional investors (FII) exposurein listed real estate stocks over the years.
Allowing FDI in real estate, and with the entry of
multinational developers like IJM, Ascendas, Hines,
CapitaLand and Keppel Land to name a few, awareness
of the sector amongst the investor community has risen
Improved prospects for the real estate sector on the
back of the IT/ITES boom, overall economic growth,
growing local industries and the resulting impact on
residential and retail-asset categories
Progressive state governments that are giving special
emphasis to infrastructure and development, creating
opportunities for existing and emerging urban centres.
It is important to take cognisance of two sets of data
regarding foreign fund inflows by government nodal
bodies, which detail an indication of a quantum of FDIinflows coming into the country.
The first data set is from the Department of Industrial
Policy and Promotion (DIPP), which discloses FDI
inflows in the country detailing funding initially
committed by foreign investors since 2005 after FDI was
allowed in Indian real estate.
Foreign Direct Investments in Indian Housing & Real Estate
YearAmount inINR billion
Amount inUSD billion
Share in TotalFDI Flowing intoIndia (%)
2005-2006 (April-March) 1.7 0.043 0.7
2006-2007 (April-March) 21.2 0. 53 3.0
20072008 (AprilNovember 2007)
51.6 1.29 11.4
Total 74.5 1.86
Source: www.dipp.nic.in/fdi_statistics/india_fdi_Nov2007.pdf
Department of Industrial Policy and Promotion (DIPP)Exchange rate assumed USD 1 = INR 40
It is interesting to note that the FDI inf lows data in
the real estate sector that was released by the DIPP
has risen by 2,918% from FY20052006 to touch USD
1290 million in 20072008 (April-November 2007). As
impressive as the growth may be in percentage terms,
it is notable that the total FDI inflows as defined by
the DIPP is still less than USD 2 billion. Moreover, it
is important to note that FDI inflows into real estate,
as part of the total FDI flows into the country, rose
from 0.7% in 20052006 to 11.4% in 20072008 (April-
November), which is quite significant.
The second set of data is released by the Securities and
Exchanges Board of India (SEBI), which is the nodal
capital markets regulator in the country. Table in the
following page details the private equity investments
into Indian real estate from domestic and offshore
private equity venture capital investors listed over the
period September 2006September 2007. According to
the SEBI, the data represented in the table captures the
funding commitments into Indian real estate investments
by real estate PE funds that are declared to the regulator
in prescribed reporting formats.
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Real Estate Private Equity Investments
Quarter
DomesticFunds
Offshore Funds Total
Amtin INRbillion
Amt inUSDbillion
Amtin INRbillion
Amt inUSDbillion
Amtin INRbillion
Amt inUSDbillion
September2006
22.50 0.563 13.20 0.330 35.70 0.893
December2006
26.26 0.657 14.30 0.358 40.56 1.014
March2007
15.65 0.391 12.92 0.323 28.57 0.714
June2007
19.00 0.475 8.88 0.222 27.88 0.697
September2007
21.33 0.533 15.14 0.379 36.47 0.912
Total 104.74 2.619 64.44 1.611 169.18 4.230Source: www.sebi.gov.in/index.jsp?contentdisp=sitemap
Securities and Exchanges Board of India (SEBI)Exchange rate assumed USD 1 = INR 40
Released on 8 November 2007
In terms of other broad trends, it is notable that many
new third-party funds have been launched since we
conducted our first survey on real estate private equity
investments in India. Also, most of the funds that
were previously operational have gone for subsequent
round(s) of fund raising, augmenting their corpus size.
Interestingly, fund of funds continue to more or less
Almost every day, there are media reports of huge
investments by fundsIndian or global, developers
and corporations. These are typically in large and
small projects like integrated townships, IT and office
parks, SEZs, mega retail and amusement complexes
etc. Even just five years back, such large investmentsby domestic developers and investors were few and
new developments were typically funded by Indian
developers own equity, some institutional debt funding
and pre-sales. Exit from these assets was almost
inevitably through sale of the product on a strata-
titled basis to High Net-worth Indian investors, Indian
Financial Institutions and Corporates.
However, as the size of investments grows significantly
on the back of FDI inflows, more exit options haveemerged, such as in the form of listing asset or a
bouquet of assets of a similar category on Indian or
overseas stock exchanges. In the future, it is possible
that other exit routes might emerge such as selling
assets to a single investorlike Real Estate Investment
Trusts (REITs) or Real Estate Mutual Funds (REMFs) or
Foreign Institutional Investors.
There has already been considerable discussion
regarding allowing REITs and REMFs in India, although
regulations are yet to be formalised. As has been seen
globally, the advent of REITs and REMFs typically
open up many more exit options for private equity
funds as well as enhance the liquidity of real estate
assets, all of which works towards expanding and
increasing the depth of the real estate market and its
conjoint securities market. Until the time these new
routes are allowed, the funds would have to be contentwith the existing options of exit from their respective
investments.
Investing is as much about exit as it is about returns
follow their established strategy of investing through
other third-party funds rather than taking direct
exposure in terms of real estate investment.
Also, it is increasingly being noticed that global hedge
funds and proprietary funds are coming in as anchor
investors in new third-party fund launches or in
subsequent capital raising by existing third-party funds.
Another trend which has emerged is that there has
been a perceptible influx of foreign pension funds and
endowment funds that have started investing through
domestic real estate third-party funds, even when they
had previously been exposed to Global/Asia Pacific
real estate funds launched by global leaders in asset
management businesses.
Finally, with more wealth management firms
increasingly evaluating real estate as an asset class,
allocations to real estate funds in total portfolio is rising.
Typically, some of these wealth-management firms are
tying up with Indian real estate funds for deployment of
their clients capital, albeit at a retail level, which would
enable easy fund raising in the future as well as increase
the assets under management (AUM) of domestic funds.
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Cpit Riin in Indi nd arod
The capital raising momentum continued strongly all of
2007 and has shown signs of abating, at least on Indian
bourses, during Q12008. The story of capital raising
from foreign stock exchanges AIM and Euronext,which was quite significant and highlighted as such
in the first investment report, seems to have sobered
down considerably in the last one year. The only
reported instances of further capital raising in foreign
stock exchanges include real estate fund Yatra raising
a second round of funds on Euronext and Ascendas a
Singaporean developer that owns IT Parks in India got
listed as a REIT at a yield of 4.75% on Singapore Stock
Exchange (SGX).
Fund raising by Indian developers and real estatecompanies on the Indian stock exchanges seems to have
remained strong in 2007. In FY2006, real estate IPOs
were the second largest mobiliser of funds from the
stock markets, grossing INR 39.9 billion (USD 0.998
billion) and in FY2007-08, a further INR 142.2 billion
(USD 3.55 billion; assuming USD1=INR40) is estimated
to have been raised by real estate companies in India.
This is almost a three-fold increase over capital raising
in 2006, and is much attributable to large IPOs such as
DLF, which itself raised INR 91.88 billion (USD 2.297
billion)
The following table attempts to compile details of
notable IPO listings which have taken place in the period
April 2007 to December 2007:
Money Raised by Indian Real Estate Companies by IPOs fromApril 07- December 07
Company Issue Size Oversub-scribedby
IssuePriceBand(INR)
ListingDate
IssuePrice(INR)
ConsolidatedConstructionConsortium Ltd
3,700,000 81 460510 18 Nov2007
510
DLF Ltd 175,000,000 3.47 500550 11June2007
525
Gremach
InfrastructureEquipments &Projects Ltd
8,194,445 NA 7286 8
March2007
86
HousingDevelopment andInfrastructure Ltd
29,700,000 6.5 430500 28June2007
500
Maytas Infra Ltd 8,850,000 67.86 320370 27Sept2007
370
Omaxe Ltd 17,796,520 76.51 265310 17 July2007
310
PuravankaraProjects Ltd
21,467,610 NA 400450 31 July2007
400
Roman TarmatLtd
2,900,000 29.67 150175 12June2007
175
IVR Prime UrbanDevelopers
14,510,000 5.75 510600 16August2007
418
BrigadeEnterprisesLimited
16,624,720 13 351-390 10 Dec2007
390
Kolte-PatilDevelopers Ltd
19,000,836 46 125-145 19 Nov2007
145
Source: www.bseindia.com and related websites
Stock markets continued their buoyant northbound
journey and the countrys leading indicator Sensex
touched 20,000 on 29 October 2007. Thus, India became
the twentieth nation in the world to have seen its stock
market benchmark touch the 20,000-point milestone.
Despite over 2,000 points of correction preceding the
run-up to this new high in the markets, listed real estate
stocks as well as real estate IPOs only gained from
the overall buoyancy in sentiments and the resulting
heightened liquidity in the year 2007.
Apart from the general upbeat market sentiment, there
are other reasons behind the success of IPO raisings
especially in the year 2007. Firstly, there was improved
profitability of real estate developers on the back of
REAL ESTATE: GRABBING MEDIA SPACE
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consistent sales. Secondly, the real estate sector, despite
steep valuations, continued to attract retail investor
and institutional investor attention on the back of the
improving perception of the sector at least till end 2007.
However the IPO market sobered down in the beginning
of the year 2008 and Emaar MGF had to withdraw its
IPO due to lack of adequate subscription. The global and
domestic market volatility, global credit crunch and lack
of investor confidence in general can be attributed to
this.
There are two trends worth noting in the IPO space.
First, while real estate IPOs in 2007 sailed through
on the back of investor subscription, the level of
over subscription figures for the IPOs was not as
overwhelming as compared to their preceding peers.
Second, real estate IPOs also came under scrutiny by the
SEBI, which issued cautionary comments on companies
that were asking for high IPO valuations on the back of
land bank valuations.
This was based on three important aspects noticed by
the SEBI in the past few quarters that raised its eyebrows
and prompted real estate companies IPOs to be brought
under the scanner. These include the fact that real estate
stocks had been steadily attaining very high valuations
as well as real estate IPOs being offered at relatively
high valuations on the back of their land banks during
2007. This in-turn resulted in a few policy changes and
tightening of controls and also laying down fur ther
norms for real estate companies going in for IPOs which
are detailed as follows:
IPO valuations were typically driven by quantum
and value of land bank of companies. In many cases,
land bank valuations were also based on subjectivity
and the element of discretion. In some cases, it was
seen that land banks included parcels which were not
fully owned by the company or some parcels that did
not have clear marketable titles. To tackle this during
March 2007, SEBI has initiated a process of setting
valuation guidelines, which are due to be released.
Also, in the interim, SEBI asked real estate companies
that are going for IPOs to mention the details of land
ownership and the method of valuation. This would
allow investors to clearly understand the contribution
of land not totally acquired, or not having marketabletitles in the overall valuation of the company going in
for IPO.
Previously, pre-IPO placements of real estate
companies were categorised as FII investments in
the company and did not require any permissions,
approvals etc. However, the RBI stopped clearingapplications from several real estate companies that
were hoping to tap overseas investors ahead of their
plans to launch IPOs around April 2007, stating that
pre-IPO placement by a real estate company to FIIs
would be allowed only if all projects undertaken by the
company are FDI compliant. This was on the premise
that FII investment is also considered as foreign
investment and has to comply with FIPB guidelines.
This provision did slowdown the activity on real estate
pre-IPO placements but only for a short while, as this
guideline did not remain in force for long and was
reversed in August 2007, allowing pre-IPO placements
as it was earlier.
There is one trend that is steadily picking pace and
going forward. It seems that it could be a shape of
things to come, at least in the build up to more IPOs
of unlisted real estate companies. This trend is that of
enterprise-level transactions, wherein funds invest in
the development company itself, instead of investing
in a project. During the last one year, there has been a
steady rise in enterprise-level transactions, wherein thenal outcome is expected to be an IPO, which is also
the route for the developer and the fund to dilute their
equity. The benets of this route include:
Discovering and setting valuation benchmarks and
unlocking value in an unlisted real estate company
and the inherent value of the companys projects
Allowing the developer to understand the
investment cycle and the psyche of institutional
investors before going public
Infusing equity early on at the enterprise level to
leverage the ability to increase project sizes and
land banks with a view to eventually achieve higher
valuations
Going through a formal rst round of due diligence,
making things easier during the second round of due
diligence as a run-up to an IPO
Allowing the enterprise to progress on corporate
governance and systems in order to ensure higher
levels of transparency for institutional investors insuch companies
i.
ii.
iii.
iv.
v.
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Going forward there is expected to be heightened
activity in such enterprise-level transactions, and
eventually building the pipeline for IPOs by such
companies, when the stock market conditions arefavourable. This could be a win-win situation both for
the funds and developers as well as for the institutional
and retail investors as it would considerably increase
the depth of the real estate listed securities in the stock
market. This would allow investors to choose from more
options as well as benefit from increased and improved
disclosures by the companies going public.
Currently, going by the figures of capital raising on stock
markets (in India and overseas) as well as FDI by way of
private equity, the former seems to have slightly highervolumes on a year to year basis. Whilst it is difficult to
predict which one would take the lead over the other in
terms of the quantum of funds raised for the real estate
sector; going forward all routes of capital funding would
maintain their importance for real estate companies.
POlICy ChaNges OveR The lasTONe yeaR
In our previous report, we had detailed regulatory
changes which allowed FDI into real estate over the last
few years and had also indicated to some proactive policy
changes that were in the pipeline. In this section, we try
and detail the policy changes that have occurred in the
last one year.
Firstly, SEBI has moved a step ahead in driving
interest in enterprise-level transactions by giving some
relaxations to registered private equity (PE) funds, which
would be a positive move for investors as well as real
estate companies. According to the SEBI (Disclosure and
Investor Protection) Guidelines 2000, PE funds, which
are registered with the SEBI and investing in unlisted
companies, proposing an IPO have to hold the shares forone year from the day of listing. This is known as the
lock-in period requirement. However, in the SEBI Press
Release 166/2006, this has been amended, exempting
SEBI-registered PE funds from the lock-in period
requirements if they have held the shares of the then-
unlisted company for at least one year at the time of ling
of the draft prospectus by the company proposing an IPO.
This move is expected to ensure that only those PE
funds that participate in the company with a long-term
perspective are allowed to receive the benet of theexemption from the lock-in period requirements, as
intended by the SEBI. Moreover, this could give a llip
to enterprise-level transactions, and result in more real
estate IPOs in the Indian stock exchanges.
In addition, the move by SEBI to come out with long
awaited Draft REIT Guidelines as a rst attempt to
initiate the process of operationalising REITs in India
has been a very important announcement, which has
been seen as a very positive move by analysts in the
sector. Internationally India has not been late to join thebandwagon as some developed (G8) countries like UK
and Germany allowed REITs in 2007 even as markets
such as Russia and Italy still do not have REITs.
The draft guidelines issued by SEBI are still under
review and discussion. Once this process is completed,
the legislation would be framed and thereafter notied,
which is expected to take some time. In the instance
that the nal regulation is formulated allowing REITs
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to operate in the country, the Indian real estate market is
likely to graduate to the next level of maturity, allowing
developers and investors in Indian real estate an easier
option for exit as well as infusing higher levels ofliquidity and activity in the markets.
Also the guidelines for REMFs are expected to be issued
by SEBI shortly which would enable the retail investors
to participate in the countrys booming realty sector.
While the regulatory changes stated above relate more
to listed and unlisted real estate companies proposing an
IPO, the policy changes of Indias central bank Reserve
Bank of India (RBI) are somewhat more sector specic.
Notably, in the last one year, the RBI has taken a lead in
regulating capital inows into real estate markets in India
due to concerns of inationary pressure building up in
this sector. Consequently, there has been a spurt of RBI
circulars aimed at regulating the capital inows into this
sector.
The RBI has been concerned with the dual issues of the
Indian economy facing challenges of a strong rupee,
which hurt export-oriented industries, as well avoiding
scenarios like the late-1990s South-East Asian meltdown
experience. A pointer of this concern is the fact that the
RBI vide AP (DIR Series) Circular No 5 dated 1 August
2005, has completely stopped inows through debt route
for real estate projects in the country by disallowing
external commercial borrowings (ECBs) in the sector.
Apart from the ECBs various other quasi-debt routes
such as non-convertible debentures were also disallowed.
The following is a compilation of the indicative summary
of the RBI circulars of 2007, which actually show the
policy changes that have been effected:
RbI Circur 30 apri 2007
To curb debts coming under the guise of preference
shares, the RBI amended the guidelines stating that any
foreign investment should come in as fully convertible
preference shares instead of partly/optionally/non-
convertible preference shares. Also, these fully
convertible preference shares would be treated as part
of the share capital. This move would deter many
lenders to lend to Indian real estate companies in
absence of adequate security and comfortable structure.
To increase the impact of this circular, the RBI further
stated that other types of preference shares like
non-convertible and optionally convertible would be
treated as debt and are required to conform to ECB
guidelines and caps. Also, ECBs are disallowed in the
real estate sector, except for the development of SEZs
and integrated townships. This means that any structureor instrument other than fully convertible preference
and equity shares would be treated as debt, and hence
totally stopping debt inows.
RbI Circur 18 m 2007
Later, the RBI took a step forward by bringing
integrated township development within the net of
real estate development projects wherein ECBs are
disallowed. This move left only SEZ development
companies amongst all real estate projects, which could
raise ECBs.
ECB guidelines allow only those companies that
have a better credit rating and repayment capacity to
venture into international markets to raise debt. This
could be judged by the companys ability to raise debt
at lower rates. To shrink the ECB window and only
allow better companies to raise ECBs, the RBI has
reduced all incost ceilings to 150 basis points over the
sixmonth London Inter-Bank Offered Rate (LIBOR)
from 200 basis points for ECBs of three to ve years.
For more than veyear tenor ECBs, the cost ceilingwas reduced to 250 basis points over LIBOR from 350
basis points.
These moves reduced the number of borrowers who
could raise debt overseas.
RbI Circur 7 auut 2007
Increased ECB inow and a weakening dollar caught the
RBIs critical attention, thus the RBI brought a check on
inows through ECBs through the following measures:
ECBs are permitted only for foreign-currency
expenditure and funds must be parked overseas and not
brought in India. This means that foreign currency debt
raised is used only for making payments in foreign
currency, and also, that this money does not come into
India and get converted into Indian rupee, and in turn,
hurt the US dollar.
Borrowers deliberating ECB up to USD 20 million
for rupee expenditure for permissible end-uses (like
developing SEZ) will require prior approval from the
RBI. This means that a domestic borrower can bring
in a maximum debt of USD 20 million in India and
convert it into Indian rupee, subject to RBI approval.
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The ne print to this permission is that it is only for
those sectors and end uses that were allowed by the
RBI.
Along the same lines, the RBI seems to be equally
concerned about the quantum of domestic debt flowing
into the real estate sector and the banks exposure to
this sector. The RBI has on various occasions raised
concerns regarding the same, which is evident from the
moves that are outlined below:
Increasing the cash reserve ratio (CRR), which would
increase the amount of monies that a bank has to
keep in cash within itself. This in turn would reduce
the quantum of monies that the bank can lend to all
sectors.
Increasing risk weightage for the real estate sector
from 100% to 150% would result in the increased
requirement of equity in the overall debt that is
advanced to the real estate sector. This would reduce
advances to the real estate sector because banks would
need commensurately higher equity to lend to real
estate. Also, this would increase debt cost, as the equity
portion of advances would rise, and equity is always
costlier than debt.
The overall sectoral cap on advances to the real
estate sector. Again, housing loans and lease rental
discounting (LRD) are classied in the real estate
sector, reducing the amount available for disbursement
to real estate developers as construction loans.
These policy amendments by RBI have denitely curbed
the recourse to debt, whether overseas or domestic,
for Indian developers of real estate projects. Coupled
with the rising interest rate regime, this means that the
Indian real estate development sector has been hit on
two accounts. Firstly, debt curbing reduces the ability
to leverage equity and the latterinterest rate hike
increases their cost of funds. All in all, whether for land
acquisition or for project construction, the role of equity
has assumed even greater importance. This may be good
news for real estate funds, but eventually, higher debt
costs and higher equity capital base would inevitably
hit returns. If one adds the slackening IPO market, then
funding prospects for develoopers looks quite an uphill
task in the near future.
Finally another signicant policy announcement, albeit
specic to Mumbai city was the long due and awaited
repealing of archaic Urban Land Ceiling Regulation Act
(ULCRA) in Maharastra. With Maharastra repealing
ULCRA, only three states in India still continue to have
the restrictive Urban Land Ceiling legislation including
- West Bengal, Kerala, and Andhra Pradesh. The Actled to locking of prime parcels of Urban land in main
metropolitan cities and its repeal in Mumbai is expected
to free signicant prime urban land parcels in Mumbai
city for development. Given the exponential demand for
land in Mumbai over the last few years, this pro-active
move by the government, is anticipated to release prime
land for development.
Overall, it would not be wrong to note that the policy
changes are being proactively adjusted to the pace of
changes that are taking place on ground in the Indian realestate investment sector. This is reective of the growing
importance of the sector and the global fund ows that
it is attracting. There has certainly been heightened
interest in the sector by regulatory organisations such as
the RBI, SEBI and the DIPP, and even though there are
other policy changes awaited by the industry, the pace
of proactive policy change has been quite impressive till
now.
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Accelerated Transformation Investments in Indian Real Estate10
Real esTaTe FUNDs sURvey
Ojcti nd approc
As with our first report on investment in the Indian realestate sector, the objectives of this study has remained
to understand the sentiments and anticipation among
the various funds that are already active in the Indian
property markets. To achieve this, a structured primary
survey of active real estate funds and investors was
conducted during Q42007. The intent behind the second
survey is to capture the change in views and opinions
regarding investment funds in the real estate markets
since the first survey was done in Q12007.
A structured questionnaire covering both macro andmicro issues pertinent to the Indian real estate markets,
was circulated to over 90 such real estate funds and
feedback was solicited from them. Around 50% of
positive responses were obtained after completion of the
survey and the remaining balance either declined the
request or did not respond.
The collated results of the survey detailed in this
section provide pointers to the overall sentiment that is
prevailing within these funds regarding the state of the
economy, the anticipated returns from Indian real estate,top cities and sectoral choices for investment as well as
other specific issues relating to the investment process
such as the expected IRR.
The survey is by no means comprehensive nor all
encompassing and is pegged to the time frame in which
it was conducted, given that both the investment and
the real estate market are currently quite dynamic.
The responses by the same token may vary over
time, depending on macro-market and micro-market
conditions. However, the collated results shouldhopefully provide an insight into the prevailing
investment sentiments as of end of 2007.
sur Outco
Headline Indicators
Like in the preceeding funds survey conducted in
Q12007, an attempt has been made to obtain some
headline indicators as regards the number and the status
of various real estate funds operating in the country. To
achieve this objective, data was collated from various
sources, including primary sources (survey), as detailed
in the preceding section and ratified with secondary data
published in various media and other reports.
The ballpark headline estimates that emerged from this
collation are as follows:
As mentioned earlier, we estimate that as of now, the
total number of private equity funds operational in
India could be as many as 150, with around two thirds
of them in the active category. It is important to state
here that the active category of funds can generally
be dened as those that have operations on ground in
the country and are actively sourcing and completing
investment transactions.
Based on the available data from primary and
secondary sources on a ballpark basis, the indicative
average corpus per fund is typically around USD 350
million, which is higher than what was the average
corpus of USD 250 million that is stated in our rst
report. It is important to note here that there are quite
a few proprietary funds whose corpus was not dened
at the outset and could change over the years. Also, the
indicative gure that was stated would be the typical
size per fund and not per-principal investor, as there are
many cases wherein the principals may have invested
in more than one fund for Indian real estate. Finally,
the average corpus per fund is just an indicative gure
and is not an absolute indicator, as there are funds that
may have a much larger or smaller corpus than the
average gure stated
The other main indicator of activity levels of such
real estate funds is the broad gure of investment that
is in the pipeline by these funds. This continues to
be an uphill task as there are various estimates that
keep getting reported in the media from time to time
as regards the total FDI in the pipeline for Indian
real estate. These estimates of FDI in pipeline range
from anywhere between USD 15 billion and USD 20
billion to be deployed over the next three years. Given
the number of operational funds and others that are
planning to enter the country, it is quite possible that
the total investment pipeline can eventually be higher
than the estimates that were published.
In terms of the categorisation of these funds, there
are two norms that can be applied. One method is to
categorise by source of funds, i.e. either proprietary
or third party and there is a fair mix of both among
the funds that are currently operational. The second
way of categorising these funds is by their investment
strategy, which could be core, core-plus (value-added)
or opportunistic. From the survey samples, it is evident
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Accelerated Transformation Investments in Indian Real Estate 11
that most of the funds operational as of now fall in the
opportunistic category.
It is notable that many domestic real estate funds have
moved onto raising capital in subsequent offerings,
with most having committed their initial fund corpus
either in part or full. Moreover, the subsequent corpus
being raised by such funds is typically larger than the
rst round of capital raising.
This time around, it is interesting to note that many of
the rst ush of real estate specic funds have moved
ahead in the transaction cycle, from just sourcing and
evaluating deals as was the case earlier, to actually
concluding and implementing transactions, which is
more evident now.
Finally, as in our rst report, real estate funds are not
just restricted to the traditional large metropolitan cities
when it comes to sourcing investment opportunities.
Currently, there are established transactions by these
funds in Tier II cities and clear instances of real
estate funds that are seeking opportunities and even
transacting in much smaller Tier III and IV towns such
as Bhavnagar, Jalandhar and Dehradun.
It is important to note here that the headline trends that
are stated are indicative and not absolute in any way,
especially given the high level of activity and churn that
is presently being witnessed in the real estate investment
sector. Moreover, the survey indications that were stated
are time bound as of Q42007 and may change in the
future.
sur Findin
The findings from the primary survey of real estate
funds operating in the country that are presented in
this section is a compilation of individual responsesby the funds that chose to reply to the structured
survey questionnaire. The survey does not claim to be
comprehensive or all encompassing and is pegged to the
time frame in which it was conducted (Q42007). The
responses by the same token may not remain the same
over time due to changing macro-market and micro-
market conditions. The collated responses have been
presented in the order that the questions were asked,
moving from general issues to specific ones.
The survey has covered a wide spectrum of issuesrelated to investments in real estate which is of particular
significance to real estate funds investing in India.
View on the future growth potential of the Indian
economy
The robust India growth story has triggered positive
responses of the funds regarding the future growth
potential of the Indian economy. As was seen in the
previous survey, this time, the funds are also quite
upbeat about the overall economic growth in the
economy. This is inline with the forecasts by the
government and various agencies.
GDP < 8%
(11%)GDP > 10%
(0%)
GDP 8 - 10%
(89%)
POSITIVE GROWTH EXPECTATIONS
It is quite apparent from the graph that the majority of
the funds (89%) that were surveyed foresee GDP growth
between 8% and 10% per annum, which is even greater
than the last time response of 86% within this band.
India is the second-fastest growing major economy in the
world with a GDP growth rate of 9.6% for FY200607
and projected growth rate of GDP of 8.7% for FY2007-
08 , which falls within this band.
The confidence in the strong fundamentals can be
judged by the response of the funds, as only 11% of them
foresee a GDP growth of less than 8%.
Interestingly, unlike last time when 10% of the fundssurveyed were expecting over 10% GDP growth, not a
single fund this time anticipates a GDP growth rate of
more than 10%, showing a pragmatic outlook of funds
towards the macro-economic growth rate.
View on the future growth potential of the Indian
real estate market
Overall, a positive sentiment about the economy and
the sectors therein has also led to a continued positive
outlook of the funds in the Indian real estate market.
Majority of the funds (64%) that were surveyed currently
expect the Indian real estate sector to remain stable as
compared to 58% last time. This shows that stability in
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Accelerated Transformation Investments in Indian Real Estate1
the real estate markets is a widely held view within the
fund community and would remain so in the next two
years.
Over Perform
24%Remain Stable
64%
Under Perform
12%
POSITIVE OUTLOOK ABOUT REAL ESTATE MARKET
Around 24% of the funds surveyed this time consider
that the real estate sector would over-perform in next
two years, which is less than 45% of the funds which
had expected over-performance in the previous survey.
However, it is important to note that as compared to last
time when not a single fund anticipated that the real
estate sector would under-perform, this time around,
12% of the funds are of the opinion that the real estate
sector could under perform in the next two years. This
is much reflective of the cautiousness that is creeping inthe funds view on the back of over supply concerns in
the future.
Ranking of the investment attractiveness of various
cities in India
Funds were asked to rank the investment attractiveness
of cities Tier I, II and III and the analysis of the
findings on investment attractiveness of the categories of
cities shows quite interesting results this time around.
In the previous survey, funds were categorically more
bullish on Tier II cities, followed by Tier I and then Tier
III cities. A significant change is observed in this survey,
with higher preference being given to Tier I as against
Tier II cities. The second preference of the funds is Tier
II cities and the third position is held by Tier III cities.
There has been a resurgence of interest in some Tier
I cities (main metropolitan cities like Mumbai, Delhi
and Bangalore) due to the continued demand, maturity,
depth and supporting infrastructure of these well-tested
markets. In this survey, majority of the funds are in
favour of the metropolitan cities, whereas in the earlier
survey, Tier II cities (emerging metros) were ranked
higher than Tier I cities.
Ranking of cities in terms of overall investment
attractiveness
In the funds rating of cities from the overall investment
attractiveness standpoint, Mumbai has displaced
Chennai (which was the most preferred destination in
the previous survey) and has secured the top position in
terms of investment attractiveness amongst Tier I cities.
Mumbai, which is rightly known as the financial capital
of India, is followed by Chennai, Bangalore, Delhi NCR
and Hyderabad. Chennai, which topped the list the last
time, is not far behind at second position as a lot of
TIeR
I
TIe
RI
II
TIeR
II
STACKING CITIES BY INVESTMENT ATTRACTIVENESS
MumbaiChennaiBangaloreDelhi NCRHyderabad
KolkataPuneAhmedabadChandigarhKochi
NagpurMysoreNashikCoimbatoreVizagIndoreGoaBhubneshwarLudhianaLucknowJaipurDehradun
JalandharBhopal
MULTIPLE EPICENTRE OF INVESTMENT ACTIVITY
TIER I
TIER IITIER III
INDIAN OCEAN
Arabian Sea Bay of Bengal
PUNE
GOA
CHENNAI
HYDERABAD
MUMBAI
KOLKATA
BHUBANESHWAR
DELHI
r
CHANDIGARH
LUDHIANA
JALANDHAR
JAIPUR LUCKNOW
DEHRADUN
AHMEDABAD
NASIK
INDOREBHOPAL
NAGPUR
MYSORE
KOCHI
COIMBATORE
VIZAG
BENGALURU
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Accelerated Transformation Investments in Indian Real Estate 1
activity continues to take place in the city, attracting the
foreign investors.
Among Tier II cities, Kolkata has been ranked as the
highest after witnessing investment interest from real
estate funds followed by Pune, Ahmedabad, Chandigarh
and Kochi. In the first survey, Pune was the top choice
of funds followed by Kolkata, Chandigarh, Ahmedabad
and Indore.
Among Tier III cities, Nagpur has retained the top
position in this survey, with a lot of interest focusing
on this city. The major factors that contributed to this
position of Nagpur are its central location and the
development of the Multimodal International Hub
Airport at Nagpur (MIHAN). Other locations that have
emerged in Tier III cities as investment destinations
include Mysore, Nashik, Coimbatore, Vishakapatnam,
Indore, Goa and Bhubneshwar.
Ranking of the most preferred sectors in terms of
potential investment returns
The choice of favourite sectors for investment from
the standpoint of potential returns on investment can
be a somewhat fleeting point of view as opinions can
vary with time depending on market twists and turns.However, when posed the question this time, the
responses that resulted are presented in the graph. This
highlights the relative ranking of the various real estate
investment verticals in descending order of priority in
terms of their anticipated potential return.
As was the case in the previous survey, land has
emerged as the most attractive choice for investment
among all the verticals for the funds. This is followed
by integrated township, residential and office sectors.Integrated townships and the residential sector are also
popular among the funds, showing the promise that these
sectors hold. While most of the funds target the middle-
income and upper-middle-income brackets in such
developments, there are also a few funds evaluating the
mass housing space.
Contrary to the response last time, the retail sector has
gone down the ladder and has been deposed by the
office and residential sectors. Importantly, unlike the
previous survey, there has been an emergence of many
new sectors that have come under the focus of funds,
including SEZs, logistics and warehousing, hospitality
and IT SEZs.
Time horizon of investment in the Indian real estate
market
When one contrasts the time horizon of investment in
real estate from the funds standpoint in the previousand present survey, an interesting theme emerges. This
time around, relatively higher portion of the funds
surveyed have indicated a short-term to medium-term
view. About 44% of the funds favoured short term (35
years) horizon as against 24% in the previous survey.
Around 46% have indicated medium term (510 years)
time horizon as against 65% of responses in the previous
survey. About 10% of the funds that were surveyed
showed long-term investment horizon preference as
against 11% in the previous survey, thereby keeping the
set of long-term fund view almost similar.
0
24
6
8
10
12
14
No.
ofResponses
Land
Integrated
TownshipsResidential Offices
HospitalityIT SEZs
RetailIndustrial
StandaloneMixed use
Product
specificSEZ Warehousing
& Logistics
TOP SECTORAL INVESTMENT CHOICES
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Accelerated Transformation Investments in Indian Real Estate1
Ranking of the main criteria for city evaluation prior
to investment
The following are the main criteria for city evaluation
that have emerged from the survey and are presented in
descending order of priority, i.e. from the most important
to the least important, as ranked by the funds surveyed.
This was an open-ended question and the choices of
cities and relative ranking of the criteria were collated
from the direct suggestions of respondents.
Main Criteria for City Evaluation
Rank Q42007 Survey Q12007 Survey
1 Good infrastructureStatus of infrastructure andlinkages
2Presence of economicdrivers
Presence of regionaleconomic and income-growth drivers
3 Demand supplyPresence of qualityworkforce
4Business activity andenvironment
Proactiveness of the localgovernment
5Proactive governmentpolicies
Land and sectoral demand supply scenario
6 Geographic location Demographic profiles
7 Presence of qualityworkforce Presence of educational andsocial infrastructure
8 Regulatory framework Law and order situation
9 Availability of landStatus of regulatoryframework
10 IT activityInstances of other FDIflowing in
11Historical performance ofreal estate markets
12 FDI flowing in the city
Notably, the majority of the criter ia highlighted by
funds for evaluating a city have to do more with broad
macro-level variables, which are not direct real estate
parameters, like good infrast ructure, presence of
economic drivers, quality workforce, business activity
Long term
(over 10 years)10%
Short term(3-5 years)
44%Medium term
(5-10 years)
46%
TAKING SHORT-TERM AND MID-TERM VIEWand environment, to name a few. However, these factors
have a considerable impact on real estate investment.
During the survey, the funds stressed on the need for
good physical and urban infrastructure in the city or
alternatively, the capacity and will to provide such
infrastructure by the government, which would drive
investment. This is in line with the earlier responses and
reflects the importance of macro-economic variables for
investment in a particular city.
The inclusion of parameters, such as historical
performance of respective real estate markets, indicates
the cautious and more objective view of the funds as
they go up the learning curve in understanding the
context of an investment deal rather than just focusing
on the returns of the project.
Views on whether there are too many funds chasing
too little quality product
On the issue of too many funds chasing too little quality
product, the survey findings in the previous and present
rounds has been consistent. Majority of the responses
point to a yes and also more or less in the same
proportion as in the previous survey. There is no doubt
that this time around as well, funds have been pragmaticin answering this somewhat tr icky question.
No 36% Yes 64%
BEING PRAGMATIC
Factors that cause distortions in the deal-making
process
When requested to rank headline concerns and irritant
factors in the real estate investment process, almost
all the funds came up with a somewhat similar bunch
of concerns as in the previous survey,. These have
been collated and presented below in descending
order of priority. Notably, this was an open-ended and
unprompted question and hence, the responses collated
were as per the direct opinion of the respondents.
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Accelerated Transformation Investments in Indian Real Estate 1
Ranking the Issues in Investment Process
No. Q42007 Survey Q12007 Survey
1Unrealistic valuationexpectations and terms
Unrealistic valuationexpectations and terms
2Lack of clarity in the titleof land
Regulatory hurdles
3Unreasonable terms bydevelopers
Lack of clarity in land titles
4Regulatory hassles Developers credibility and
track record
5Execution capability ofdevelopers
Transparency issues
6Social and governanceissues
Danger of project deliveryoverruns
7 Project financials Change in government policy
8Developers non
transparency
Complex taxation structures
9 Availability of information Availability of debt financing
10Availability of debtfinancing
Infrastructure issues
11Lack of quality land parcels Limited availability of verifiable
market information
12 Legal structure of a deal
13 Over supply
POTENTIAL EXPECTED IRR
Potential IRR expectations from the market
This survey attempted to raise a new issue which was
an attempt to understand the funds view in terms of the
potential IRR returns scenario from the market.
It is interesting to note that majority of the funds
surveyed have indicated that the most likely potential
IRR scenario would remain in the 2025% range
given the current market conditions and the expected
dynamics in the immediate future. Despite this, there is
still a significant number of funds that have indicated
returns in the range between 25% and 30%, even as the
responses in the 30%-plus potential IRR return category
are much less.
The results from the survey were quite unique, and like
the previous survey conducted in February 2007, provide
a deeper insight into the collective opinions and thoughts
of real estate funds, which are currently an important
part of the market as are developers, investors, occupiers
and institutions. Increasingly, it is anticipated that the
role of such funds would grow not only as investors,
but also as important instruments of accelerating the
transformation of Indian real estate markets towards
much higher levels of maturity and momentum.
It is important here to acknowledge the vital
part icipation of all the fund managers who took time out
to respond to the survey and provide meaningful insights
into their views. On the back of this, it is also important
25-30%
(29%)
Above 30%
(6%)
Less than 20%
(12%)20-25%
(53%)
Less than 20% 20-25% 25-30% Above 30%
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Accelerated Transformation Investments in Indian Real Estate1
to provide caveat here that this primary survey is merely
indicative and pegged to the time frame that has been
mentioned. Moreover, its is not absolute in any way as
the responses to the question raised can change over timeas they are dependent on the changing market conditions
and economic dynamics as well as prevalent investment
sentiments at any point in time.
PeRTINeNT PeRsPeCTIves
The findings of this study are both interesting and
revealing. There is a clear indication now that real estate
funds, whether overseas or domestic, have certainly
moved forward in the learning curve from just sourcing
opportunities to actually completing deals and are wellon the way to managing the investment process. The
views of the funds that were expressed in the survey at
this time as well as the evident dynamics clearly point
to this fact. The main themes that are likely to prevail in
the future as regards investment in the Indian real estate
would include more money, more deals, more supply
and hopefully more maturity. Some of these themes are
summarised below for a better understanding of the
pertinent perspectives of this important sector.
Struggle for Quality and Returns
There are two distinct developments in the supply side
over the past few months. First, new funds are setting up
shops in India. Second, existing funds are raising more
money. Resultmore money.
On the demand side, there is now a greater requirement
of equity by developers for financing various projects,
not just in Tier I or II cities but also in Tier III towns.
The heightened willingness on both sides only points to
the fact that the future could witness higher number of
deals.
While deal f lows have already started r ising, analysts
in fund houses are burning midnight oil to weed out the
good ones from the not so good ones. Hence, the word
risk analysis has assumed even greater proportions
as far as funds are concerned. Eventually, the struggle
for the twin objectives of quality and returns is likely
to gain steam as fund houses and investors weed out
investment-grade assets from the total stock, thereby
creating a class of assets that would move in separate
strata from the rest of the market.
Over Supply A Recurrent Theme
The enthusiasm of almost every stakeholder in the real
estate sector worldwide almost always manifests itself
physically in the way of a possible over supply. This
is also one of the recurring risks and worries for any
investor in real estate markets. There are numerous news
articles and media coverage which have been noticed
in last few months, highlighting this issue either in a
part icular asset class or in a particular city or micro-
market. In its own way, fund houses, developers and
investors, from time to time, take bearings of the supply
situation and correct their course accordingly. Hopefully,
greater transparency and the increasing maturity of
markets will allow the funds and developers to avoidover building in sectors and markets that are already
supply dominated.
Valuations How much is too much?
One established fact is that land, real estate built product
and listed Indian real estate companies have witnessed
a significant increase in valuations over the last few
years. Of these, the concern from funds and developers
as regards runaway land valuations is quite justified.
This not only results in a precarious risk and returns the
equation for the players but also endangers the very basis
for sustainable long-term growth in the sector.
The solution to this may just lie in the release of land
parcels for valid development both in prime inner-
city areas as well as in suburban areas, which may be
locked today into lower uses or regulatory impediments.
But that is only one part of the story. The fact that
the development process itself can achieve far more
efficiency is an issue that will increasingly assume
greater importance, both from the investors standpoint
as well as the developers standpoint. In fact, end-
users would only stand to benefit from an improved
and more efficient development process, which in turn
may just allow for appropriate course adjustments in
the valuations itself. But until the time that more land
is released or the process is made more streamlined,
valuations will continue to be dictated by market forces
or impediments within market dynamics.
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Accelerated Transformation Investments in Indian Real Estate 1
With the rising numbers of deals, there is a concern
of too much of investment flowing into the market orproduct and hence, typically higher risks. The following
are few important risks that an investor is exposed to at
any time and an accurate analysis of these could define
the success of the investment:
1. Market Risk: Market risk covers macro-market
and micro-market risks in which the project is being
developed. The factors evaluating risk/growth mainly
involve infrastructure development, migration and
local economic development for the macro-market. Onmicro-market level, the major factors are accessibility,
internal infrastructure development and price points,
which are typical parameters. To a great extent, this
is a systematic risk that comes with any real estate
investment.
2. Product Risk: Product risk covers product categories
wherein the investor takes exposure. This risk is a mix
of systematic and unsystematic risks, covering micro-
market risks and product feasibility on the back of
demandsupply status, absorption and pricing.
3. Developer Risk: This is the only pure unsystematic
risk in the matrix. However, this can be a boon or abane as well, depending upon the product and the
micro-market. Take for instance, a small developer
with very little experience of developing a huge project
can easily deliver a small project very fast and get the
first-mover advantage. The small developer can serve
as a better partner at times compared to a large-format
development in the same micro-market, which is being
done with an established player. The decision making
pertains to settling on what is the right product in the
said micro-market, whether a small format with a first-
mover advantage, or a large format.
4. Delivery Risk: It is not only important to identify and
deploy funds into a promising investment opportunity.
It is equally important to see the end of the delivery
process. However, there is a perceptible shortage in
the talent pool that is required to ensure the delivery of
such projects. Investment decisions should definitely
account for this important risk aspect, which is notoften outlined as much.
Understanding Risks
lOOKINg aheaDGlobally, due to the sub-prime crisis, highly leveraged
deals are a thing of the past and raising debt has
become diff icult. Faced with resultant subdued market
sentiments, investors are favoring a wait and watch
approach. Though analysts suggest that cross border
investor interest still remains, the bid/ask spread gap has
diverged. The credit crunch developed so quickly that
there has not been sufficient time for buyers capacity
and sellers expectations to readjust to converge into
transactions.
In this scenario, the global real estate equity capital that
is still available for seeking cross border opportunities
in general and in specific to the Asia Pacific region,
is expectedly much more conservative and seeking
fundamentally sound economies and projects. In a
nut shell, this could well be the new theme for global
investors for some time to come and real estate
investment could well concentrate as much on financial
engineering as well as on fundamentals. The silver
lining to this, is that, even now when compared to other
investment categories (stocks, bonds, etc.), real estate
remains a robust investment vehicle due to its long term
inherent stability character coupled with the possibility
of risk rationalisation by diversifying investment among
many sub asset classes and geographies.
India has been relatively insulated from the sub - prime
crisis till now, owing to strong domestic growth and
sound fundamentals. The Indian real estate market as a
result has till now been able to post impressive growthrates and hence there is no doubt that investments in
the Indian real estate market has only accelerated from
the point when we first started tracking it in 1Q07.
Looking forward, on one hand while expansion of the
macro economy is anticipated, on the other hand, the
progression in the growth of Indian real estate and the
improvements in the maturity of investors, developers
and all the other stakeholders in Indian real estate
is inevitable. Driven by this process of growth, the
Indian real estate market is well on the way to expand
not only in terms of geographies, but also in termsof diversification within sub asset classes, which is
anticipated to continue attracting attention from global
and domestic investors in future.
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Accelerated Transformation Investments in Indian Real Estate1
For more information on India Retail and how Jones Lang LaSalle Meghraj can assist companies making
high quality real estate decisions in India, please contact:
Shobhit Agarwal
Joint Managing Director - Capital Markets
Jones Lang LaSalle Meghraj (Mumbai)
tel +91 22 2482 8400
Shobhit.Agarwal@jllm.co.in
Mridul Upreti
Joint Managing Director- Capital Markets
Jones Lang LaSalle Meghraj (Gurgaon)
tel +91 124 460 5000
Mridul.Upreti@jllm.co.in
Anuj Puri
Chairman & Country Head
Jones Lang LaSalle Meghraj (Mumbai)
tel +91 22 2482 8400
Anuj.Puri@jllm.co.in
Vincent Lottefier
Chief Executive Officer
Jones Lang LaSalle Meghraj (Gurgaon)
tel +91 124 460 5000
Vincent.Lottefier@jllm.co.in
Compiled by Capital Markets, Jones Lang LaSalle Meghraj
Acknowledgements:
Shweta Kakkar (Knowledge Centre)
Sumeet Mehta (Capital Markets)
Adishesh Mitra (Capital Markets)
Deepak Sankhye (Capital Markets)
Printed for internal use by Jones Lang LaSalle Meghraj Property Consultants Pvt Ltd
7/28/2019 Accelerated Transformation
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abOUT JONes laNg lasalle
Jones Lang LaSalle (NYSE:JLL) is a professional
services firm specializing in real estate. The firm offers
integrated services delivered by expert teams worldwide
to clients seeking increased value by owning, occupying
or investing in real estate. With 2007 global revenue of
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with a global portfolio of approximately 1.2 billion
square feet. LaSalle Investment Management, the
companys investment management business, is one
of the worlds largest and most diverse in real estatewith approximately USD 49.7 billion of assets under
management. For further information, please visit our
website, www.joneslanglasalle.com
Jones Lang LaSalle has over 50 years of experience in
Asia Pacific, with over 16,000 employees operating in
more than 70 offices in 13 countries across the region.
abOUT JONes laNg lasalle meghRaJJones Lang LaSalle Meghraj, the Indian operations of
Jones Lang LaSalle, is the premiere and largest real
estate professional services firm in India. With an
extensive geographic footprint across ten cities (Delhi,
Mumbai, Bangalore, Pune, Chennai, Hyderabad,
Kolkata, Kochi, Chandigarh and Coimbatore) and a
staff strength of over 3300, the firm provides investors,
developers, local corporates and multinational
companies with a comprehensive range of services
including research, consultancy, transactions, project and
development services, integrated facility management,
property management, capital markets, residential, hotels
and retail advisory. For further information, please visit
www.jllm.co.in
7/28/2019 Accelerated Transformation
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COPYRIGHT JONES LANG LASALLE MEGHRAJ 2007. All rights reserved.
JONES LANG LASALLE OFFICES
SINGAPORE
9 Rafes Place, #39-00, Republic PlazaSingapore 048619Tel +65 6220 3888Fax +65 6438 3360
www.joneslanglasalle.com.sg
CHICAGO
200 East Randolph DriveChicago, IL 60601Tel +1 312 782 5800Fax +1 312 782 4339
www.am.joneslanglasalle.com
LONDON
22 Hanover SquareLondon W1A 2BNTel +44 20 7493 6040Fax +44 20 7408 0220
www.joneslanglasalle.co.uk
JONES LANG LASALLE MEGHRAJ - INDIA
BANGALORE
tel +91 80 4118 2900tel +91 80 4112 1271
CHENNAI
tel +91 44 4299 3000
CHANDIGARH
tel +91 172 3047 651
COCHIN
tel +91 484 3018 652
COIMBATORE
tel +91 422 2544 433
GURGAON
tel +91 124 460 5000tel +91 124 408 3337
HYDERABAD
tel +91 40 4040 9100
KOLKATA
tel +91 33 2227 3293
MUMBAI
tel +91 22 6658 1000tel +91 22 2482 8400tel +91 22 2497 2652
NEW DELHI
tel +91 11 2331 7070
PUNE
tel +91 20 4019 6100
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