India’s real estate sector saw three big ticket global investments during the first quarter of 2022 (January to March), accounting for close to $1 billion of inflows. Total institutional investments, during this period is pegged at $1–1.1 billion, depending on analyst estimates.

While some other global investors have begun talks, existing players are announcing new tie-ups and further investments too.

The three deals

One of the major deals inked during the period was by Singapore’s sovereign wealth fund, GIC’s investment. in 125-acre town Bharatiya City in Bengaluru, where it picked up close to 3 million sq ft of space for $366 million.

The Canada Pension Plans Investment Board (CPPIB) was among the big three as it purchased select office properties of the RMZ Group for approximately $346 million. In fact, CPIBB, announced further investment in April as it entered into a new joint venture with Tata Realty & Infrastructure to develop and own commercial office space across the country. The JV will target ready and development assets, aiming to reach over ₹5,000 crore in assets under management.

The third big investment during the quarter came from the Abu Dhabi Investment Authority (ADIA) to the tune of $248 million as Lake Shores (backed by ADIA) acquired the already operational Viviana Mall (in Thane).

Five-fold jump

Commercial properties continued to be the frontrunner during Q1 2022, garnering more than two-thirds share of the investment pie.

Incidentally, all investments concentrated in core office assets in Bengaluru, while retail segment is not generating interest as consumption activity picks-up post opening up and State governments relaxing Covid-restrictions.

“Private equity investment inflows in Indian real estate stood at $1 billion in Q1 2022, almost five times the quantum recorded during Q4 2021,” said Diwakar Rana, Managing Director, Capital Markets, Savills India.

New platforms

Logistics received investments to the tune of $200 million, while data centre investments stood at $40 million, Colliers’ India said in a report. Investors continued to scout for land parcels for in-city warehouses and in the peripheral locations of larger markets.

“We are also seeing the creation of platforms for investment in specific asset classes, especially across the commercial office and industrial asset classes,” Vimal Nadar, Senior Director and Head of Research, Colliers India, said.

Related Topics
comment COMMENT NOW