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FINANCIAL YEAR 2020-21MARKET MONITORFOR CAPITAL FLOWS IN INDIAN RE
A RetrospectivePE Investments in Indian Real Estate
$2,725 MnFY16
$4,152 MnFY17
$5,226 MnFY18
$5,171 MnFY19
$5,276 MnFY20
$6,272 MnFY21
PE investments in India registered strong growth
19%over last year
Source: ANAROCK Capital Market ResearchNote: All transactions in USD ($) unless otherwise stated FY = Financial Year (1st April - 31st March)
Market monitor for capital flows in Indian real estate 32 FLUX FY21
Market monitor for capital flows in Indian real estate 54 FLUX FY21
Top 10 PE Deals in FY21
Capital Provider
BrookfieldBlackstoneFarallon Capital & SSG CapitalApollo Global ManagementOak TreeCarlyleAscendasVarde PartnersGICDCCDL^
Recipient
RMZPrestige EstatesEdelweissPiramal CapitalIndiabulls HFLNxtra DataCybercity DevelopersPhoenix GroupPhoenix GroupHines
Location
MultipleMultipleMultipleMultipleMultipleMultipleBengaluruHyderabadHyderabadNCR
Asset Class
PortfolioPortfolioPortfolioPortfolioPortfolioData CentreCommercialCommercialCommercialCommercial
Deal Amount
1,984 Mn996 Mn 400 Mn 350 Mn 297 Mn 235 Mn 195 Mn 155 Mn 142 Mn105 Mn
Equity Debt & Mezzanine
Contribution of Top 10 Deals Average Ticket Size
78%
FY21
67%FY20
$110 MnFY20
$178 MnFY21
Top 10 PE Deals Total PE Investment
Source: ANAROCK Capital Market ResearchNote: All transactions in USD ($) unless otherwise stated FY = Financial Year (1st April - 31st March)
^ DLF Cyber City Developers Ltd. (DCCDL), is a JV between DLF & GIC
Market monitor for capital flows in Indian real estate 76 FLUX FY21
Source: ANAROCK Capital Market Research
Note: All transactions in USD ($) unless otherwise stated FY = Financial Year (1st April - 31st March) Map not to scale, for reference only
Movement of Capital Inflow Equity v/s Debt Funding
CHENNAI
$34 Mn
EQUITY
86% | $4,537 Mn
STRUCTURED DEBT
14% | $739 Mn
EQUITY
$4,955 Mn | 79%
STRUCTURED DEBT
$1,317 Mn | 21%
$5,276 MnFY20
$6,272 MnFY21
Structured Debt & Equity, both witnessed strong growth in FY21, 78% & 9% respectively; Structured debt was largely towards portfolio deals instead of project-level assets.
PE Investments Pan India (FY21)
MULTIPLE CITIES
$4,583 Mn
Unlike yesteryears, PE investors in FY21 focused on portfolio deals spread across multiple cities and assets, instead of investing in a specific project/city.
City specific PE investments are higher than the number suggests. However, they are part of the portfolio deals (multiple cities) where the bifurcation amongst the cities is not available. Such portfolio deals constitute 73% of the overall deals.
Equity Structured Debt
78%
9%
HYDERABAD
$424 Mn
BENGALURU
$306 Mn
MMR
$480 MnPUNE
$101 Mn
NCR
$344 Mn
Market monitor for capital flows in Indian real estate 98 FLUX FY21
Source: ANAROCK Capital Market ResearchNote: All transactions in USD ($) unless otherwise stated FY = Financial Year (1st April - 31st March)
Asset Class-wise Funding Domestic v/s Foreign Funding
5%
93%
2%8%
61%
31%
Industrial & LogisticsData Centres 11%
Mixed-use 3%
Residential 4% 10%
Hotel & Alternatives 4%
Portfolio 66%8%
FY20 FY21
13%Retail
ForeignFunds
JointFunds
DomesticFunds
62% 13%Commercial
The share of asset classes like Commercial, Retail & Hotel is considerably higher than what is visible; however, they are part of the Portfolio deals, where asset class-wise bifurcation is not available. These include deals like RMZ - Brookfield, Prestige - Blackstone and likewise where the asset class-wise bifurcation is not available.
Optimism in foreign PE funds visibly increased during FY21; 93% of total PE investments in the Indian real estate were done directly by foreign PE investors.
In actual terms, investments by foreign PE funds almost doubled from USD 3 Bn to USD 5.8 Bn in FY21; in contrast, domestic PE funds invested merely USD 300 Mn compared to USD 420 Mn in FY20.
6%
Market monitor for capital flows in Indian real estate 1110 FLUX FY21
Top 10 Key Takeaways
Pandemic doesn’t stop Indian real estate to record its highest ever PE investment in past 5 years
PE investor focus clearly visible with fewer but larger PE deals
Average ticket size increased by 62% for FY21
FY21 - a year of portfolio-level equity deals
Top 10 deals contributing nearly 78% of the total PE investments in the country
Foreign PE investors continued to remain major contributor
Canada & US based investors contribute over 50% of total foreign PE investments
REITs enjoyed wider acceptance; healthy fund raising continued in public market
REIT Size:
USD 608 Mn Mindspace REITUSD 514 Mn Brookfield India REIT
Rent-yielding Grade A office assets with good tenant profile continue to get traction
1
2
3
4
5
6
Market monitor for capital flows in Indian real estate 1312 FLUX FY21
Nearly USD 7 Bn worth platforms have been created for the warehousing sector since 2015
Investors eyeing the Industrial & Logistics sector
Key emerging trends - rise of automation, urban multi-level warehousing, de-centralization, business consolidation on the rise & high demand for Grade A assets
Top 10 Key Takeaways
Last-Mile Funding gaining momentum - SWAMIH fund and various foreign funds actively evaluating various options
Data centres in the top 8 cities occupy 7.5 Mn sf space, an additional 10 Mn sf space is likely to be added over the next 2-3 years
Stressed Asset Resolution started seeing traction
NCLT cases started to move towards conclusion
Investor
PrestigeGaursonsKotak
Investee
AriistoAmrapaliPrius Real Estate
City
MumbaiNCRNCR
Month
Mar’21Mar’21Mar’21
7
108
9Data Centres becoming sunrise sector; gaining more attention from PE investors and strategic investors
Investor
CarlyleEquinixIron Mountain
Investee
Nxtra DataGPXWeb Werks
Deal Size*
235161
150
Month
Jul’20Aug’20Mar’21
* In USD Mn
Market monitor for capital flows in Indian real estate 1514 FLUX FY21
Our Trophy Deals FY2020-21
Note: All transactions in USD ($) unless otherwise stated FY = Financial Year (1st April - 31st March)
Mandeep Singh LambaPresident (South Asia) - HVS [email protected]
Devi ShankarPresident - Industrial & Logistics | Data [email protected]
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Sanjay AkhouriSr. ConsultantStressed Assets Resolution [email protected]
Akshay UdayHead - [email protected]
Mohammed AslamPresident - Capital Markets (Pune)[email protected]
