Real estate PE funds reduce investment goals

Investors in the real estate sector are getting much cautious in putting their investments in the real estate sector. This can be attributed to a variety of causes but for investors all that matter is investing at the right time, for the right project and also with the right fund manager. Nowadays as many real estate sector private equity (PE) managers have hit the markets with new fund raising plans; it has changed the whole situation.
According to Mr. Shohbit Agarwal, joint MD, Capital Markets, JLL the new funds hitting the markets are looking for smaller investment cycles, they are raising smaller amounts keeping in view the current market position. Many realty firms have reduced their investments targets much lower to what they earlier sought to achieve.
Various firms like Kotak Realty, DHFL, ICICI Ventures have already lowered their investments in the sector, and many other such real estate firms are planning on the same lines.
Such companies are looking out for smaller investment period. They are looking out for residential projects in smaller cities mostly. Mr. Vikas, Director at Kotak Realty firm expressed that it’s a challenging time to raise funds, but for them it was about making small investment with small target.