Real Estate IPOs Tend To Double Every Year, Forecasts JP Morgan

August 8, 2007	(Be the first to rate this story!)  Loading ...
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Considering the strong activity in the Indian listing market, there are the predictions regarding IPOs of real estate companies to go double every year. Whether talk of Singapore Stock Exchange or London Stock Exchange’s AIM, investors are always in a look out for promising projects and income producing assets.

There would be four real estate investment trust (REIT) type vehicles that may list on the SGX in future, explains Anthony Ryan, Managing Director, Head of Real Estate Investment Banking, JP Morgan Asia.

Nearly all Indian property developers are looking forward to broaden their horizons. Stepping up the efforts to accomplish the same, they are tapping both public and private equity markets. So far, seven real estate companies including DLF, HDIL, Omaxe, and IVR Prime, have hit the capital market. Around 10 realty companies are further planning to come up with their IPOs soon.

Private equity players had committed around $15 billion on real estate projects in India. In a view of the fact that a majority of them are seven year vehicles, it would come to $2 billion to $3 billion each year.

Nowadays, single ticket investments are no less than $250 million to $300 million in real estate projects whereas it used to be $50 million to $100 million two days ago.

Talking about the nations such as India and China, their IPOs never exceed $100 million in the beginning. Contrary to this, the market capitalization of a Chinese real estate firm is around $3 billion today.

News Published Under:   Real Estate India |

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