Indian Retail sector attracts Rs 9.5 bn PE investment in 2018, up 35% y-o-y

A woman pushes a shopping trolley at a food superstore in Ahmedabad (Photo: Reuters)
Indian retail sector has attracted Rs 9.5 billion YTD (year till today) as compared to Rs 7 billion, a year ago. 

Cumulative investments into the sector between 2015 and 2018 stood at Rs 55 billion. 

Close to Rs 10 billion has been invested in the first quarter of 2018, making it one of the best three-month period for the sector in recent times, according to JLL, a real estate services firm.

The steady increase in interest from private equity investment companies has propelled developers of retail malls to re-evaluate their portfolio to include of three determining factors including product, catchment and customer experience. Going forward, these would be the core of creating a successful retail space.

PEs have shown confidence in the future trends of Indian retail real estate and have started to make large value as well as long-term commitments towards the sector. The key criteria for choosing a property for investment have been the rental values, vacancy levels, tenant mix, design and quality of mall management, location and ownership. Based on these parameters, the report categorises existing and future malls into Superior, Average and Poor, said the research firm. 

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