Private equity (PE) investment in real estate sector rose by 40 per cent to Rs 3,840 crore in the first quarter this year as developers raised funds to meet construction cost and refinance loans, says a report.
PE investment in realty sector stood at Rs 2,750 crore in the January-March period of last year. According to the report by property consultant Cushman & Wakefield, PE inflow was seen across asset classes, unlike in the first quarter of 2015, which saw investments only in residential assets. The total number of deals closed in the first quarter of 2016 increased to 17, from 15 in the year-ago period, while the average deal size rose by 23 per cent to Rs 230 crore. Of total PE investments in January-March, the report said, Rs 1,870 crore were in housing segment, Rs 1,000 crore in retail, Rs 470 crore in office segment and the remaining in the hospitality projects.