Business Standard

Property funds are in no hurry to invest in stressed realty projects

The reason: lack of clear legal rules and pricing issues

Housing inventory of 15 months in Bengaluru, 44 months in Delhi-NCR: Report
Premium

Raghavendra Kamath Mumbai
Real estate, especially the housing segment, has many financially stressed projects. However, property-focused private equity (PE) funds are in no hurry to put money there. 

The reason: lack of clear legal rules and pricing issues. 

Last week, property consultancy JLL issued a report that there was an opportunity of $66 billion (Rs 4,700 crore) in stalled residential projects for institutional investors to tap. However, it noted, the year 2019 had seen deals worth no more than $1 billion (Rs 70-odd crore) in this space.

“In my sense, a distressed asset is when an asset of Rs 100 is available for Rs 40. Prices

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Nov 29 2019 | 10:14 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com