$5
billion to be shaved off from Indian realty in 2-3 years: A report
Private equity investors are poised
to exit roughly $5 billion worth of Indian real estate investments in the next
two or three years, a xxxxxx report said, adding pressure to a sector
struggling with access to capital and falling property prices. During the boom
years of 2006-2008, India attracted an influx of private equity in property, a
big chunk of it structured as debt, and in some cases developers will be forced
to buy back the investment from the PE firms."This will increase pressure
on developers to generate cash flows through affordable pricing and better
execution," An analyst said. "The fact that a large section of those
investments are actually quasi-debt in nature and the projects in which
investments have been made are significantly delayed, is a cause for concern as
far as the cash flows of developers are concerned," a note by the Japanese
investment bank said. The property industry has had a harder time attracting
bank financing following a spate of scandals over the past year and worries
about business practices in the thinly regulated sector.
No comments:
Post a Comment