However, given the size and number of deals that are under negotiation, the interest remains intact, experts said.
“A few mega deals that are under discussion have not fructified in the latest quarter and their closing should reflect in the upcoming quarter. These are large and complex transactions and therefore are taking time to conclude. Global investors’, especially Singapore and Canada entities, remain aggressive to pick up marquee assets in India,” said Arun Natarajan, founder of research firm Venture Intelligence.
The commercial real estate dominated both in terms of volume and value in the second quarter of the year as 7 transactions worth an investment of $766 million were announced in this segment. The residential segment saw the next highest volume of investments, attracting three investments worth $34 million.
Projects in southern India led the investments as it accounted for 6 deals worth $662 million, or half the total investments during the quarter. This was followed by the western region with 4 deals worth $423 million.
The largest investment announced during the quarter was Ascendas’ $198 million forward purchase agreement with Phoenix Infocity to acquire several assets owned by the latter in Hyderabad. The acquisition will include two buildings — aVance V and VI — with a combined leasable area of 1.8 million sq ft, in aVance Business Hub, located in Hitec City.
This was followed by the sovereign wealth fund GIC’s $149 million investment in publicly listed Godrej Properties through preferential allotment.
Ascendas emerged as the most active investor for Q2’18, accounting for 2 deals worth $335 million.
In the sole private equity – real estate exit during the quarter, the promoters of business park developer RMZ Corporation, bought back 45% stake held by Qatar Investment Authority and Baring Private Equity Partners, for $1 billion.