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    PE investment into Indian retail real estate likely to bounce back in 2021: ANAROCK

    PE investment into Indian retail real estate likely to bounce back in 2021: ANAROCK

    PE investment into Indian retail real estate likely to bounce back in 2021: ANAROCK
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    By CNBCTV18.com  IST (Published)

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    PE investment in the Indian retail real estate in 2019 was approx. USD 968 million - the highest between 2015-2020. However, the sector was one of the worst-affected due to COVID-19, which in turn impacted private equity investments into the retail sector in 2020.

    PE investment into Indian retail real estate is likely to bounce back in 2021 with a number of global investors showing interest in the sector. According to ANAROCK Research, PE investments in Indian retail real estate in 2019 was approximately $968 million -- the highest between 2015-2020.
    However, the sector was one of the worst-affected due to the COVID-19 pandemic, which in turn impacted private equity investments into the retail sector in 2020. Between 2015-2019, among the top cities, the National Capital Region (NCR) saw the maximum investments of approximately $755 million, followed by Mumbai Metropolitan Region (MMR) with $410 million, data showed.
    Some of the retail investments deals include Blackstone-Prestige Group portfolio deal covering eight malls, GIC's investment in Phoenix Mills for developing retail mixed-used platform, Warburg-Runwal and Lakeshore-ADIA platforms, which are now evaluating various assets in the retail space.
    In 2020, Brookfield Asset Management concluded a portfolio deal of nearly $2 billion into RMZ Corp (approximately 12.5 mn sq ft of its total real estate assets) including RMZ Galleria Mall. This was tagged as the largest deal in Indian real estate.
    Another portfolio deal of $1.5 billion between Blackstone and Prestige was expected to get closed in December 2020, but its closure is now pushed to Q1 2021. "While there are various PE investors considering the retail space presently, meaningful investments are likely to take place only once the sector shows signs of bouncing back. 2021 does look promising," said Shobhit Agarwal, MD and CEO of ANAROCK Capital.
    New mall deployments in 2020 were also lower than estimated. Pre-COVID-19 data indicated that 54 new malls were to hit the market in 2020, but most of those that failed to be delivered in 2020 have spilled onto 2021.
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