Indian real estate PE investments rise 6% in 9MFY25 despite fewer deals: ANAROCK

January 13, 2025
0 Comments

Private equity (PE) investments in Indian real estate displayed a notable shift in the first nine months of FY25 (9MFY25), with total investment value rising 6 per cent year-on-year (YoY) to $2.82 billion, even as the number of deals declined. According to ANAROCK, the top ten deals accounted for 93 per cent of the total investments during this period.

The number of PE deals fell from 30 in 9MFY24 to 24 in 9MFY25. However, the average deal size saw a substantial increase of 32.5 per cent, growing from $88.5 million in 9MFY24 to $117.3 million in 9MFY25.

This growth was primarily driven by the Reliance-ADIA/KKR warehousing deal, which had a significant impact on overall financial metrics, the report noted. The Reliance deal was followed by Shapoorji Pallonji, and the $204 million Blackstone-LOGOS equity transaction.

Logistics and Warehousing

The logistics and warehousing sector captured 62 per cent of total investment, says Shobhit Agarwal, MD, CEO, ANAROCK Capital. Logistics and warehouse surpassed the office and residential sectors, which attracted 14 per cent, and 15 per cent, respectively.  

Elaborating on the trend, Aashiesh Agarwaal, SVP – Research & Investment Advisory, ANAROCK Capital said, “The share of private equity investment in the residential sector rose to 15 per cent, up from 12 per cent in the same period last year, reflects the increased activity in the housing market. However, stronger pre-sales and higher participation from PSU banks in construction finance may reduce the demand for high-cost private equity financing.”

While Indian commercial real estate markets saw strong leasing, this segment saw muted PE activity due to geopolitical concerns and high interest rates, which impacted valuations.

Pure debt and equity transactions remained relatively scarce with the hybrid Reliance – ADIA / KKR deal remaining the dominant one in the period.

Leave a Comment