Morgan Stanley plans to invest; for the first time in India, in a commercial project. Morgan Stanley will invest in Bandra Kurla Complex in Mumbai.
Morgan Stanley is not a new name for the Indian real estate players who have seen the firm investing in India. However, all their investments were in the residential sector and not in the commercial sector. But this time, Morgan Stanley Real Estate Investing has decided to invest in the commercial real estate market of India.
With their plan to invest in Bandra Kurla Complex, Morgan Stanley has aroused the hopes of Indian retailers. The firm will finance for developing around 1.6 million sq. ft. of office space in the Bandra Kurla Complex in Mumbai.
Though this is the first investment of the firm in a commercial project, this is not their first investment in Indian real estate sector. The American firm had invested $850 million earlier in India but the project was mainly a residential one.
Bandra Kurla Complex is being built by Mumbai-based Wadhwa Group. Morgan Stanley will develop two more towers (mainly commercial) in the project by the end of the coming year.
However, both Wadhwa Group and Morgan Stanley refused to comment on the development as the deal is only in the initial stages leaving no further details.
In December 2011 Reuters had reported that around $100 million to $125 million had been given to Mumbai-centered Sheth Developers. However we do not have any accurate details of the deals.
As per the recent reports, private equity investment in India is not as bigger as it was earlier. The size and numbers of investment are falling sharply. It was reported by Venture Intelligence that only $1.95 billion was invested in India in 2012. The research firm added that the amount of investment in 2007 it was $ 9.8 billion.
