Private Equity Real Estate (PERE) firms deployed over $5 billion in Indian real estate companies and projects – the highest since the financial crisis of 2008.
Private Equity Real Estate firms made 90 investments in India during 2015 and of these, 85 transactions had an announced value of $5.06 billion, according to research from Venture Intelligence.
PE-RE firms announced 25 exits during 2015 compared to a total of 24 exits announced during 2014. 17 of exits were through buybacks which was followed by secondary sale which accounted for five exits and strategic sale that accounted for two exits.
Blackstone’s acquisition of 247 Park at an enterprise value of INR 1,050 crore paved way for the exit of existing investors Milestone Capital and listed construction firm HCC. Milestone Capital, via IL&FS Milestone Fund, had invested Rs 575 crore in 247 HCC Park in June 2010 and held 74% in the property with the rest being held by HCC.
Among buybacks, a wholly owned subsidiary of publicly listed Prestige Estates Projects paid over Rs 876 crore to acquire a 62.54% stake in Exora Business Park from Red Fort Capital helping the PE firm exit its March 2011 investment. Among secondary transactions, New Vernon exited Chennai-based IT Park SP Infocity – a JV formed with Shapoorji Pallonji in which New Vernon later acquired the complete stake – via sale to CPPIB for $220 million.