Published & Updated as on - 2010-02-20
Real estate players plan to raise a whopping $5.7
billion over the next 18 months through public offer and private placement of
shares to fund projects and repay debts, property consultant Jones Lang LaSalle
Meghraj (JLLM) said. “At least $2.45 billion is expected to be raised through
QIPs for which real estate players have shareholders’ approval and the
remaining $3.31 billion is likely to come from IPOs,” Jones Lang LaSalle
Meghraj Associate Director (Research) Abhishek Kiran Gupta told PTI here.
Gupta,
however, noted that some of the proposed QIPs may find it difficult to sail
through due to market volatility and overpricing of the stocks. Still, he said
that all the channels for financing realty sector would see enhanced activity
in the coming quarters. “While sources of funding have become scarce in the
aftermath of the 2008 global financial crisis, there are some emerging channels
of real estate financing in India, which are likely to help the sector continue
its high-growth story,” the report said. JLLM highlighted that the realty
sector had attracted $2.8 billion FDI in 2008-09 fiscal, up 29 per cent from a
year ago. During the FY2006 to FY2009 period, FDI in India’s real estate sector
grew to $2.8 million from $38 million. Gross bank credit to the realty sector
surged 45 per cent to $19.7 billion in FY09 from $13.6 billion in FY08, the
report revealed.
Source: Indian Realty News 18/2/10
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