Private Equity Firms Build up on Indian Realty Firms

The valuations are certainly down as the market is in the midst of a slowdown.
With access to capital market out of question and bank debt getting tighter, we see more and more developers tapping PE sources to bridge the fund gap for projects.
Although in the short-term PE players may take a cautious stance, over a 12 - month horizon, the number of PE deals is likely to go up.
Red Fort Capital has concluded seven transactions in the first six months of 2008 compared to six deals during entire 2007.
Pumping in Earlier in June, Lehman Brothers Real Estate Partners had announced an investment of Rs 740 crore ($185 million) for 50 per cent stake in the initial phase of a Unitech project, located on the Western Expressway of Mumbai.
During the same month, Axis Bank too invested Rs 250 crore in Lavasa Corporation, a subsidiary of Hindustan Construction Company, in the form of convertible preference shares and convertible debentures.
An industry official pointed out that while investors were still interested in the real estate market, they had adopted a selective approach towards projects, I dont know if flats or gardens or whatever...
With more projects on the negation table now, and given the current market sentiments, PE players will pick and choose. Only those projects which have the required approvals in place would hold their interest.
Cheers my friends... Comment please!!!