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Wed 12 Feb 2020 01:56 PM

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Abu Dhabi fund active as Indian mall projects attract $1bn PE funding

Abu Dhabi Investment Authority among select global PE majors which invested top dollars in India's retail sector

 Abu Dhabi fund active as Indian mall projects attract $1bn PE funding

Abu Dhabi Investment Authority (ADIA) and ADIA-backed Lake Shore India Advisory are among a select group of leading global private equity (PE) funds which have together invested close to $1 billion in India’s retail commercial sector in 2019, according to a latest research report.

As against $355 million in 2018, the total PE investments in retail realty sector in India last year saw almost a three-fold jump to reach $970, the latest report by Anarock Research has revealed.

According to the report, while ADIA has invested $145 million in the retail realty project of Phoenix Group in Hyderabad, Lake Shore has invested a total of $115 million in two projects of Ganesh Housing in Ahmedabad and Hyderabad.

​When contacted, the ADIA spokesperson did not confirm about its investment in the Phoenix Group or whether it is an investor in Lake Shore India Advisory.

Blackstone, Singapore’s GIC and APG are among the other PE majors which have pumped in investments in the Indian retail projects last year.

While the US-based PE major Blackstone topped the list of investors in Mall projects in India with a total investment of $905 million in the projects of four Indian realty groups including L&T Realty and Carnival Group in Mumbai, Ahmedabad and Chandigarh, GIC has invested $150 million in the retail property project of Sheth Developers in Mumbai, the Anarock Research report said.

“At $970 million, PE investments in India’s retail realty sector were the highest in the previous 5-year period,” Shobhit Agarwal, MD & CEO of Anarock Capital, has said.

“Investors are betting big on selected Grade A mall projects in India which have high scope of business profitability. Despite the consumption slump, many malls are doing excellent business today and investors are keenly vying for such projects,” Agarwal said.

PE investments in India’s retail sector accounted for 19 percent of the total $ 5 billion PE investments in the country’s real estate sector in 2019. This was more than two and half times than the 7 percent the segment accounted for in 2018.

Delhi-NCR received the maximum retail-focused PE inflows of more than $750 million between 2015 – 2019, followed by the Mumbai Metropolitan Region (MMR) with $410 million investments in this sector, the report said.

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