MUMBAI, INDIA—With home prices dropping 5 to 30 percent since 2009, foreign investment in India is moving toward commercial real estate.
Reuters reports that Investors including Blackstone Group, Morgan Stanley and Rothschild-backed Xander Group are seeking a larger piece of India's commercial property market due to the country's fast-growing economy. There seems to be an opportunity for a quick return.
"We waited till valuations got a bit softer and more attractive. And now, we are going aggressive," Akhil Gupta, chairman of Blackstone India, told Reuters in a recent interview. "We have done a few large deals, and are looking to infuse more capital."
Blackstone, which has the most private equity and is the most active investor in India, has spent $500 million on about 20 million square feet of leased assets over the past 18 months. The firm makes most of its Indian acquisitions through a partnership with Embassy Group, a Bangalore-based developer that invests largely in South India.
They are said to be currently negotiating to buy a special economic zone in Gurgaon - the growing satellite city outside of New Delhi - for about $440 million, according to unnamed sources cited by Reuters.
Click Reuters to read the complete story.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
