NAREDCO (National Real Estate Development Council), the National Real Estate organisation in association with APREA (Asia Pacific Real Estate Association) a non-profit body that represents the real estate investment industry in the Asia-Pacific, will host a two day Real Estate & Infrastructure Investors’ Summit in Mumbai on October 5 – 6, 2015. This summit will provide a pivotal platform for real estate developers to interact with investors and global leaders including Government of Singapore Investment Corporation (GIC), KKR, Cornerstone, Morgan Stanley amongst others.
Private Equity has emerged as a major funding channel for the realty sector since the past decade. Post the global crisis of 2008, bank loan advances have dwindled to the sector. This fall in credit led developers to essentially look to private equity funds and domestic NBFCs for funding project acquisitions.
The year 2015 has seen a sharp spur in PE investments on the back of government initiatives for growth of the housing and infrastructure sectors. Targeting the positive market outlook, USD 3,222 million was committed or invested by domestic and offshore PE, pension and sovereign funds in the first eight months of 2015, an increase of 2.5 times from the same period a year ago.
There is a substantial need of private equity injection into the realty sector on back of Government’s vision for “Housing for All by 2022” and the revival of the real estate sector. The need for attracting more funding with a view to meet the gigantic task of fulfilling the need of housing for every Indian can be facilitated with large inflow of private equity capital.
The government has initiated several reforms in the recent past including relaxation of FDI norms, focus on affordable housing, establishment of REITs and set-up of development corridors and smart cities.
In light of the above, the two day Real Estate & Infrastructure Investors’ Summit will primarily discuss issues concerning policy initiatives and foreign investment norms, significant opportunities and challenges that the real estate sector presents, key investment themes prevalent in the real estate sector and India’s standing as a global investment destination.
Several Ministers including Shri Venkaiah Naidu, Minister of Housing and Urban Poverty Alleviation, Shri Jayant Sinha, Minister of State for Finance, and top officials from Securities and Exchange Board of India, Department of Industrial Policy & Promotion Board and Reserve Bank of India are expected to address and participate in the deliberations at the summit.
NAREDCO National President Sunil Mantri said, “Attracting global funding for the Indian real estate sector can go a long way in bridging the huge capital requirement of the industry. We are delighted to host this investor summit in Mumbai as it being the financial capital of India. The basic aim in hosting this summit is to create a perfect platform bringing together PE players from across the globe and Indian developers on the same dais. This gives them an opportunity to interact with each other on a personal level as well as discuss investing in the real estate sector.”
Commenting on the summit APREA CEO, Mr. Peter Verwer said, “India’s strong long-term growth prospects should make it a magnet for the world’s capital. This summit will raise awareness about the ongoing modernisation of India’s financial systems and the nation’s economic fundamentals. The summit also provides a forum for a frank assessment of the initiatives needed to place India at the centre of international investors’ radar screens.”
Mr. Neeraj Bansal, KPMG in India, stated, “Several government reforms and policy measures have either been implemented or are underway to augment the real estate sector, strengthen the sentiments of PE investors and ease the risk perception of Indian real estate. The summit will provide a strategic platform for all stake holders’: developers, PE players and government agencies to jointly discuss key challenges faced by the sector and initiatives required to improve the sector performance. We are pleased to be associated as knowledge partners for this event.”
Several corporate honchos from the construction and urban infrastructure industries, urban planners, top developers, private equity firms, housing finance companies and banks will also join to share their thoughts.