The Indian Real Estate Sector may expect direct investments from the Abu Dhabi Investment Authority (ADIA) very soon.
Although, ADIA has already invested money in India’s international property market through a variety of real estate and private equity funds with a total holdings in India to be worth between $400 million and $500 million.
Sovereign fund is looking to hire a fund manager from a private equity firm to look for direct real estate opportunities in India.
Many developers in India are seeking funds to begin new projects and to reduce their debts, which currently is around 1.8 trillion rupees approx.
Although, being Asia’s third largest economy, residential property developers in India is facing a major funding gap as home prices stay low and the country’s banks go on playing it safe when it comes to lending to the real estate sector.
An India-centric private equity fund, Red Fort Capital has recently accepted a $50 million investment from ADIA and has already raised $80 million of its planned $500 million for its second India dedicated property fund. Property accounts for 5% to 10% of ADIA’S global portfolio, whilst North America and Europe account for 60% to 85% and the emerging markets 15%.
