Private equity (PE) investment in retail real estate jumped over 13-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 (REIT), 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.
The share of retail sector assets in cumulative PE investments in India has increased to 18 per cent in H1 2016 as compared to 2 per cent recorded in H1 2015.
"The Indian retail market appears to have bottomed-out from its slack and is expected to grow in the coming years.
Factors such as positive economic outlook and large market potential continue to attract retailers to India," C&W India MD Anshul Jain said.