In the past 2 years, private equity (“PE”) funds from Singapore have tripled particularly in India’s real estate industry, which now comprises a whooping 41% share of the total funds flowing into the relevant sector.
Singaporean PE funds, in the past 2 years have invested a total of $3.5 billion into Indian real estate industry.
During the two years prior to that, in 2015 and 2016, a total of $1.15 billion was received by various domestic realty businesses, whereas PE investors from US and Canada, put together, contributed $3.8 billion in the last two years.
Major players in the Singapore PE market including – GIC, Ascendas-Singbridge and Xander, and they have been making steady investments in the sector. However, of the total PE inflow of $1.1 billion in the first quarter of the year, investments from any of the Singapore-based PE investors such as GIC, Ascendas and Xander were not present.
The core reason behind this massive PE fund inflow into the sector is that the funding from banks and NBFCs have reduced over the last few years. Hence, Indian realtors are venturing into overseas opportunities for loans and equity funding. This has resultantly led to Singapore topping the chart in PE investments after they established a strong base in China.