The Confederation of Real Estate Developers Associations of India plans to organise a series of real estate exhibitions in American cities, including New Jersey, Chicago, and San Jose, from 26 August 2006 to 4 September 2006.
The booming Indian property market could be in for a sustained bull run. Propelled by shortfall of around 20 million homes in the country, an estimated $10-12 billion of investment has been pledged by foreign and domestic funds over a year or two. Commenting on the attractiveness of the sector, analysts put perceived internal rate of returns of close to 20 per cent or so for the sector as a big draw. The recent SEBI guidelines allowing real estate mutual funds to invest directly in properties have also added to the surge.
Global big names such as Morgan Stanley, Lehman Brothers, HSBC and ABN Amro are among those queuing up to pick up stake in local realty firms. Analysts said that the private equity arms of JP Morgan, Lehman Brothers and Merrill Lynch are also on the lookout for deals while at least two dozen firms have already firmed up plans to invest in the realty sector. These include the biggest US pension fund, CalPERS, hedge fund Farallon Capital Management, US-based developer Tishman Speyer and NRI fund Trikona Capital. Domestic funds include Kotak Realty Fund, HDFC India Real Estate Fund, Pantaloon Retails Kshitij Real Estate Fund and UTI Venture Fund.
Bullish forecasts by Merrill Lynch, which expects the Indian realty sector to grow almost nine times to $90 billion by 2015, has further spurred the growing interest, especially among the foreign players. Recent deals in the realty sector include Morgan Stanley picking up stake in two local real estate firms within a space of a few months, while Lehman Brothers, ABN Amro and HSBC Investments together picked up about seven per cent in a Delhi-based developer.
Analysts forecast that the amount of money being raised for investment in the Indian realty sector could double over the next couple of years. In January this year Tishman Speyers tied up with ICICI Bank to invest $1 billion in the country, while JP Morgan, Starwood Capital Group Global, and Knight Frank are among the list of foreign investors in the process of planning new funds. The US-based Trikona Capital Group, started by two NRIs, has announced plans to plough in at least $1 billion through two funds launched in the US and UK.
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| Posted : 7/24/2006 |
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