PE investment in Indian real estate up 69% in 2011

According to a report produced by research firm Venture Intelligence, 69 deals were signed off in this space, of which 53 investments had a combined value of $2.68 billion.

The previous year, 63 private equity transactions occurred in the property sector, of which 55 worth $1.58 billion were announced.

More than half - 57% - of the investments were residential projects, while commercial projects represented 19% of the total.

The largest deal was Jeff Morgan Capital's provision of $320 million to listed Compact Disc India's Film City project. Another substantial transaction was Warburg Pincus' INR14 billion ($270 million) cash injection into a joint venture, Oceanus Real Estate, with New Delhi based hospitality firm Lemon Tree Hotels. Lemon Tree owns 51% of the JV with the private equity firm holding the remaining 49%.

Blackstone, meanwhile, acquired a 37% stake in Manyata Promoters, which operates a technology park in Bangalore, India, for around $200 million. The investment is said to value the entire development at $550 million.

Across all sectors in India, private equity firms invested $10.11 billion during 2011, which takes their total investment over the past five years to around $47 billion.

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• Topics
• Real estate
• Real estate
• South Asia
• India
• The Blackstone Group
• Warburg Pincus Asia
• Real estate