- Residential property developers are now taking a broad chunk of equity capital through (PE) private equity funds
- Real estate firms are in greater need for equity capital in the post-RERA (Real Estate Regulation and Development) Act scenario
- Borrowing money will not be easy for everyone as investors will ask for higher collateral and will prefer those developers who have a good track record and strong pipeline of projects
- Asset Management Firms are now planning to invest across residential projects after the announcement of RERA
- Most of the Asset Management Firms will not prefer investing in financing greenfield projects and we will prefer to invest in under-construction residential and office projects
- Structured debt deals have reduced significantly this year compared to last year, with PE managers and NBFC(Non-banking financial corporations) do not want to take higher risk by lending for over-leveraged balance sheets of developers
- A sharp drop in the Debt Transactions this year can easily be seen as $305 million in equity and $1,417 million in debt financing was invested in projects in the corresponding period in 2016
Regards
CA PANKAJ CHHABRA
- Real estate firms are in greater need for equity capital in the post-RERA (Real Estate Regulation and Development) Act scenario
- Borrowing money will not be easy for everyone as investors will ask for higher collateral and will prefer those developers who have a good track record and strong pipeline of projects
- Asset Management Firms are now planning to invest across residential projects after the announcement of RERA
- Most of the Asset Management Firms will not prefer investing in financing greenfield projects and we will prefer to invest in under-construction residential and office projects
- Structured debt deals have reduced significantly this year compared to last year, with PE managers and NBFC(Non-banking financial corporations) do not want to take higher risk by lending for over-leveraged balance sheets of developers
- A sharp drop in the Debt Transactions this year can easily be seen as $305 million in equity and $1,417 million in debt financing was invested in projects in the corresponding period in 2016
Regards
CA PANKAJ CHHABRA
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