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Retail assets get $484 million PE investments in Q1: Knight Frank

ANI
·2-min read
The retail sector has been worst-affected segment in Covid-19 crisis
The retail sector has been worst-affected segment in Covid-19 crisis

Mumbai (Maharashtra) [India], April 17 (ANI): Retail assets recorded private equity investments of 484 million dollars during January to March (Q1 2021), up 120 per cent from 220 million dollars in Q1 2020, according to Knight Frank India.

However, the jump can be attributed to a single large deal (equity) in Bengaluru between Blackstone and Prestige that involved multiple retail, office and hospitality assets as a part of the larger transaction.

Since 2011, the retail space has attracted 3.2 billion equity investments with 26 deals. The retail sector has been worst-affected segment in Covid-19 crisis, said Knight Frank in its latest research report.

The pandemic induced lockdown had forced several malls to shut down, affecting their business adversely temporarily.

"From 2011 to date, around 34.4 million square feet of the retail space have been transacted in India, and global investors are seen to be bullish on investing in ready and new development projects."

On the other hand, residential sector witnessed seven deals worth 234 million dollars in Q1 2021 which was 64 per cent of the total investments that was witnessed during the entire 2020 and 38 per cent of that in 2019.

In volume terms (number of deals), the investment activity touched 100 per cent of 2020 levels and 39 per cent of 2019 levels.

With government interventions and other measures, post the lockdown was lifted between Q2 and Q3 2020, all-India residential sales grew by 5 per cent year-on-year in Q4 2020 and by 44 per cent in Q1 2021.

Mumbai took the largest quantum of residential investment (equity plus debt) worth 44 million dollars followed by the NCR with 55 million dollars and Chennai by 24 million dollars.

Knight Frank said the investors' preference which had moved from equity to debt in the last decade has again tilted strongly in favour of equity in 2020 and Q1 2021, indicating a resurgence in risk appetite while participating in the next residential business cycle.

However, the trajectory of infection rate and severity of the current spate of lockdowns will determine the direction going forward. (ANI)