Real Estate Players Plan To Raise $5.7 Billion over the Next 18 Months: JLLM

News Posted - 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