PE investment in commercial real estate shimmers, good news for government

The agency in its latest research report – ‘Investments in Real Estate – Trends in PE Investments – Q3 2020’ said that equity investments worth $2,308 million was via 11 deals during the year (Jan-Sept’20). The office segment attracted $1,871 million with an 81 percent share. This was followed by warehousing at 10% and residential at 9%.

Here is a snapshot of the investment:

Real Estate Asset Class

PE Investments in debt and equity ($ mn)

Number of Private Equity Deals

 

2019

YTD 2019

YTD2020

2019

YTD 2019

YTD 2020

Office

3,259

2,725

1,871

18

14

4

Retail

922

397

0

6

3

0

Warehousing

1,894

1,537

221

7

6

4

Residential

717

659

216

18

15

3

Grand Total

6,792

5,318

2,308

49

38

11

Knight Frank’s report suggests that PSUs keen on raising capital may adopt the REIT approach. Shishir Baijal, CMD at Knight Frank adds, “The first

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