REALTY SHAKEOUT POSSIBLE DUE TO LIQUIDITY

REALTY SHAKEOUT POSSIBLE DUE TO LIQUIDITY

As valuations crumble, PEs, FIIs ready for big realty plunge Real estate funds, PE players and foreign institutional investors are exploring options to buy equity stakes in listed realty companies, as valuations of their companies have fallen by over 65% during the past three months. The move has also come as a blessing in disguise for these realty companies who have been finding it difficult to source funds after the RBI tightened lending norms to property developers following a global liquidity meltdown. Sources said funds floated by majors such as HDFC, ICICI, Kotak and Anad Jain’s Urban Infrastructure Opportunities Fund as well as foreign funds are in talks with listed real estate developers to pick up minority stakes.                                                                                

                                                                                                                  Courtesy: - ET Realty  dt. 25 July 2008