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