Private Equity Investments in Indian Real Estate

If you thought Real Estate was the safest investment option, you are so wrong about it. Look at the status of Private Equity investments in the Indian Real Estate, they all are in deep red :-)

• Subhakm Ventures in Madhav group $9.31m [ROI -8.39%] at Rs 84 / share
  
• Morgan Stanley + GIC + Quantum Fund in Anant Raj Industries $165m[ROI -46.48%] at Rs 246 / share
  
• Yatra Capital + HSBC + Barclays + T.RowePrice + Trinity Capital + DWS in The Phoenix Mills Ltd - $45m [ROI -51.48%] at Rs 320 / share
  
• Wachovia in Vipul Ltd $56.65m [ ROI -72%] at Rs 260 /share

Don't think unlisted companies have escaped this blood bath in Indian realty. Their project valuations have gone down substantially and if the management looks for second round of funding it will happen at half the price, you just can't escape. You just can't make money sitting on land banks without manufacturing, creating jobs and wealth. Fall in Realty is for Real and it is here to stay.