Private Equity Real Estate Investments Up 28% in Q1 FY23: Report

Private equity real estate investment saw a 28% increase in the first quarter of FY23 compared to the first quarter of FY22, due to improving market sentiment, widespread vaccination coverage and the lifting of lockdown restrictions that contributed to this recovery, according to ANAROCK Capital’s latest FLUX report.

Foreign private equity investors showed increased confidence, with their contribution rising to 89% in the first quarter of FY23 from 83% in the first quarter of FY22.

Shobhit Agarwal, MD & CEO – ANAROCK Capital, says, “The recovery was mainly in the top 5 private equity deals, which accounted for 90% of the total value of private equity investments in the first quarter of FY23. There was a 53% increase in average note size in the first quarter of FY23 compared to the first quarter of FY22. Indian real estate grew to 87% in the first quarter of FY23 from 84% in the first quarter of FY22.”

Unlike Q1 FY22, deal activity in Q1 FY23 reverted to multi-city deals, instead of previously focusing on single-city deals. NCR captured the attention of private equity investors, with the highest inflow in the city at 48% in the first quarter of FY23 – a considerable increase from 1% in the first quarter of FY23 22.

In the first quarter of FY23, deployments by JV platforms in the commercial real estate sector increased significantly to 74%, particularly in Class A office spaces which are attracting very high investor interest. .

The industrial and logistics sector also shows increased potential, with the creation of a new JV platform between Ivanhoé Cambridge, Bain Capital &

for an investment of $1 billion.

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