Private equity (PE) investment in retail real estate jumped over thirteen-fold to Rs.3,350 crore in the first six months of this year on the back of some big ticket deals, according to a global property consultant.
“The first half of 2016 witnessed the highest annual PE investments in retail with over Rs.3,350 crore being invested, compared to only Rs. 250 crore invested in H1 2015. This is the highest annual PE investment made since 2008,” Cushman & Wakefield (C&W) said in a statement. Institutional and PE investors are more confident towards investing in retail assets owing to factors such as improved leasing activity, relaxed government policies and positive economic outlook, it added. Moreover, with the government clearing tax hurdles for real estate investment trusts (REITs), PE funds are increasingly exploring opportunities in the retail sector as the retail assets can also be listed under a REIT portfolio, the consultant said.