Real estate and infrastructure management sector saw private equity deals worth $2.32 billion in the first half of 2008. This figure is nearly three percent higher than the comparable period last year.
Average deal size fell over nine percent, however, reflecting the sluggishness in the market.
According to accountancy firm Grant Thornton, 33 deals were signed in the first six months of the 2008 compared to 29 deals in the January-June period in 2007.
PE deals, during the month of June, stood at about $247.5 million, almost half the level seen in May 2008 when about $ 478 million of PE money was infused into various projects.
in June, Lehman Brothers Real Estate Partners had announced an investment of Rs 740 crore ($185 million) for 50 per cent stake in the initial phase of a Unitech project, located on the Western Expressway of Mumbai.
During the same month, Axis Bank too invested Rs 250 crore in Lavasa Corporation, a subsidiary of Hindustan Construction Company, in the form of convertible preference shares and convertible debentures.
An industry official pointed out that while investors were still interested in the real estate market, they had adopted a selective approach towards projects. “With more projects on the negation table now, and given the current market sentiments, PE players will pick and choose. Only those projects which have the required approvals in place would hold their interest,” the officials said.
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