Realty PE funds keen to invest in IT parks, SEZs

NEW DELHI: The real estate-focused private equity (PE) funds are eyeing investment in pre-leased commercial projects, comprising of IT parks and special economic zones (SEZs), since they are aiming for assured returns from these investments.

Reports claim that these investments have potential to offer a buffer for funds, which do not bag the expected returns, he added.
It can be seen that the global private equity (PE) funds such as Blackstone, Baring Private Equity Partners and Xander have invested in pre-leased assets like IT parks and SEZs.

US-based Blackstone infused money in two properties- Pune and Bangalore, while Xander acquired stake in an IT park in Chennai. Baring Private Equity Partners injected money in RMZ Corp, which is an office space developer.

Data displays that the return on equity deployed in retail and commercial properties in 2011 stood at $0.7 and $0.8 respectively per $1 investment.