Page 2 - Realty Funds
As NBFCs retreat, private equity funds move in to fund realty projects
Motilal Oswal, HDFC Capital, Xander and other PE funds focused on this segment find opportunity in NBFC retreat
 "As NBFCs retreat, private equity funds move in to fund realty projects")
As NBFCs turn off tap, realty funds see deal proposal spurt but remain wary
Mumbai, 24 OctoberAfter non-banking finance companies (NBFCs) tightened liquidity flow to property developers over the past month, private equity (PE) funds are seeing a spurt in proposals from developers for funding. "Developers need capital to sustain the current cycle. From that perspective, they are coming," said Vikas Chimakurthy, chief executive officer (CEO) at Kotak Realty Fund. Defaults at Infrastructure Leasing & Financial Services (IL&FS) has made it difficult for NBFCs to raise money, forcing them to avoid new lending and stop the disbursal of already sanctioned loans. Sharad Mittal, CEO at Motilal Oswal Real Estate Fund, said after NBFCs had gone slow on lending to developers, deal flow had gone up significantly for funds like theirs. According to Reserve Bank data, NBFCs have exposure of 7.5 per cent to real estate. This amounted to Rs 1.65 trillion as on end-March. However, property funds are treading cautiously, given the scenario in the segment. "Where ...
 "As NBFCs turn off tap, realty funds see deal proposal spurt but remain wary")
Pai-backed Neev realty fund to shut down as tier-II developers struggle
The fund was to make small-sized investments in tier II property developers in Bengaluru and Mumbai, among others
 "Pai-backed Neev realty fund to shut down as tier-II developers struggle")
Realty funds get traction with a regulator in the offing
Raise $420 million so far this year against $520 mn last year
 "Realty funds get traction with a regulator in the offing")
