Investors ready $1 bn war chest for office assets in India

Written By Unknown on Kamis, 26 Juni 2014 | 21.04

In June, Brookfield paid about Rs 3300 crore (USD 552.76 million) for a 60 percent stake in six parks from Unitech Corp Parks and a 40 percent stake in four of the six from Unitech Ltd

Foreign private equity funds and pension funds are among investors that over the last 12 months have committed to invest more than USD 1 billion to buy or build commercial property in India as the government works to finalise rules governing real estate investment trusts (REITs).

-In June, Brookfield paid about Rs 3300 crore (USD 552.76 million) for a 60 percent stake in six parks from Unitech Corp Parks and a 40 percent stake in four of the six from  Unitech Ltd .

-In May, The Xander Group, an emerging markets investor, partnered with a consortium of investors lead by Dutch pension fund asset manager APG Asset Management N.V. to invest USD 300 million, with an option to increase it to USD 500 million, to buy leased office assets in big cities including Mumbai and Delhi.

Also Read: Mumbai realty to see 10-15% price rise on infra push, says JLL

-In November, Singapore warehouse and industrial park developer Ascendas Pte Ltd announced plans to invest in Indian real estate, focussing on office space, with a target asset size of S$600 million (USD 479.88 million). Singapore's sovereign wealth fund GIC will be a key investor.

-In November, Canadian Pension Plan Investment Board said it would invest USD 200 million in an 80 percent joint venture with Mumbai-based developer, Shapoorji Pallonji Group to buy leased office buildings.

-In July, Qatar Investment Authority decided to invest USD 300 million in a special purpose vehicle formed by developer RMZ Corp to buy and build leased office assets, mainly in south India. Baring Private Equity has a 21 percent stake in the vehicle which it bought in 2012 for 5 billion rupees.

(USD 1 = 1.2503 Singapore dollars)

(USD 1 = Rs 59.70)

Unitech stock price

On June 26, 2014, Unitech closed at Rs 33.40, down Rs 1.3, or 3.75 percent. The 52-week high of the share was Rs 38.60 and the 52-week low was Rs 10.86.


The company's trailing 12-month (TTM) EPS was at Rs 0.30 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 111.33. The latest book value of the company is Rs 37.72 per share. At current value, the price-to-book value of the company is 0.89.


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