MUMBAI (Reuters) - Private equity PE.L funds are expected to exit between $3 billion and $5 billion worth of Indian real estate investments in 2012, international brokerage Jones Lang LaSalle said on Tuesday.
Most of these investments were made in the country in 2005/06 and are now coming to the end of their 5-7 year cycle, triggering the exit, the brokerage house said in a report.
Over the last four years, PE investors have already exited $3 billion worth of real estate investments, accounting for 23 percent of their total investments since 2005.
Developers are already struggling with a lack of financing options as property sales in major cities are flat with higher interest rates deterring potential homebuyers, cutting off cash to developers, many of whom have racked up high debt levels.
(Reporting By Aditi Shah; Editing by Rajesh Pandathil)
Trending On Reuters
Over a dozen debt-laden farmers have committed suicide in recent weeks in India, and discontent in many rural areas against government policies is turning into anger against Prime Minister Narendra Modi less than a year after he swept into office. Full Article