IVCA Successfully Hosted its 2nd Real Estate and Infrastructure Conference

The Indian Private Equity & Venture Capital Association (IVCA) successfully hosted its 2^nd Real Estate and Infrastructure Conference at Four Seasons, Mumbai to analyse in-depth perspective by Industry’s top players. The event was graced by Mr. Anuj Ranjan, Country Head – India, Brookfield Asset Management, alongside, industry stalwarts and esteemed speakers including Mr. Neel Raheja, Group President, K. Raheja Group, K. Sriniwasan. Chief Executive Office, Kotak Realty Fund, M.K. Sinha, Managing Partner & CEO, IDFC Alternatives limited and other were present at the conference. The audience was a powerful blend of PE & VC community leaders and prominent knowledge leaders of the industry.

The event witnessed significant discussion on various modifications in government regulations for real estate and infrastructure investment. The event addressed common issues that have been helping / impeding the growth of private equity and venture capital Industry in real estate in India. It was followed by a fireside chat session with keynotes from major players in the industry.

Mr. Rajat Tandon, president at IVCA, commented, “The 2nd Real Estate and Infrastructure Conference was a huge success as top industry players came together to share insights on the outlook, challenges and way forward in the real estate investment space and also to chart out a clear roadmap for the industry. This conference has emboldened the tryst of IVCA to provide further clarity into the investment functionaries of various sectors, including that of real estate.”

“Infrastructure in india is a trillion dollar opportunity for investors but it requires serious attention from private equity players” said Mr. Siddharth Shah, Partner, Khaitan & Co.

Mr. Anuj Ranjan, Country Head, Brookfield Asset Management, said “We are pleased to make a foray into the Indian Market. Brookfields views India as an amazing ecosystem for macro investment, while dealing with challenges of micro. It is certainly a great opportunity to invest in infrastructure because most of the distressed assets are in infra sector and the competition is low. We are positive that investment culture would be reaching to newer levels of synchronization through such eye opening conferences.”

Mr. Neel Raheja, Group President, K. Raheja Group, said “The government needs to rethink on the impacts of GST in the real estate sector in the long term as India will soon go to the Asian style mixed use of developments because of shortage of land. In fact, India has gone from most expensive hotel market to the cheapest hotel market in Asia. Where with affordable housing in India, the main problem lies in the scaling- you cannot get scale out of it. So we can say that a lot more is required to be done before India can become truly shining.”

On tapping into opportunities, Mr. Vipul Roongta, MD & CEO, HDFC Capital, said, “There are two sides-supply side and demand side, in which it’s the supply side which is causing the problem. Simply put, if you can manufacture a house at the right price then there is no problem. The supply side needs to gear up focus and needs to be properly funded as it is better to invest in the aid for real estate developers. This will be more profitable investment, due to the fact that money is highly commoditized in the present scenario and hence simply providing money is not the way to go. Prolific investment is the best way ahead in terms of gaining foothold in this ever evolving industry.”

On how 2016 has fared for real estate, Mr. Vishal Kumar, MD, Xander Investment Management said, “2016 has been a year of profitability with best returns being offered by tier 2 cities. Yet development is no longer remunerative in India, hence it is required for quantity to go down and the quality has to go up. The lending rates of NBFC have gone down from 20-23% in 2010s to 15-16% now and so, diversification is the key to make money in NBFC business. A word on Private equity: Private equity players are comfortable in financing affordable housing project as there is less skepticism about the demand of such projects. Yet, it’s just too early for private equity to invest in affordable projects.”

On infrastructure investment, Mr. MK Sinha, Managing Partner & CEO, IDFC Alternatives limited, said, “Invit as product needs to be risk-proofed. It just amazes me that RIETS have not yet taken off but we are already hosting 2 Invits. This holds testament that Indians have greater appetite for risk and would require further awareness before proceeding.”

About IVCA

IVCA’s mission is to promote the development of venture capital and private equity industry in India and to support entrepreneurial activity and innovation. It also serves as a powerful platform for investment funds to interact with each other.

IVCA aims to support entrepreneurial activity and innovation as well as the development and maintenance of a private equity and venture capital industry that provides long term equity capital. It helps establish high standards of ethics, business conduct and professional competence. IVCA also serves as a powerful platform for investment funds to interact with each other.

The Association stimulates the promotion, research and analysis of private equity and venture capital in India, and facilitates contact with policy makers, research institutions, universities, trade associations and other relevant organizations. IVCA collects, circulates and disseminates commercial statistics and information related to the private equity & venture capital industry.