Retail investment touches $700 m mark

The retail segment in the real estate sector attracted an investment of over $700 million last year and inflow from private equity firms and wealth funds could rise by up to 20 per cent in 2017, according to property consultant CBRE.

“The retail segment in 2016 witnessed more than $0.7 billion of investment by PE firms and wealth funds and saw the entry of 19 new global brands into the country,” CBRE said in a report.

“Private equity investments into the segment are expected to increase by as much as 20 per cent in 2017, signalling that the overall market dynamics for the segment continues to be positive.”

In its latest India Retail MarketView report that tracks the country’s seven major cities, the consultant said supply of retail space fell by 5 per cent to 3.4 million sq ft last year from 3.6 million sq ft of organised supply in 2015.

These seven cities are NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad and Pune.

According to CBRE, a majority of the supply that entered the market in 2016 was concentrated in the National Capital Region (NCR), Bengaluru and Mumbai.

Global retailers expanded their portfolio with multiple store openings. International apparel and domestic F&B players dominated demand.

“Rental trends varied across key high streets and malls during the year. While some micro-markets witnessed stable rentals, others saw varying levels of rental increments. The upward movement of rentals in these select micro-markets was due to constrained availability of retail space amid a scenario of robust demand,” CBRE said.

“In 2016, the Indian economy saw quite a few legislations and policies being cleared which will have a positive impact on the retail real estate segment in the long run,” said Anshuman Magazine, Chairman–India and South East Asia, CBRE.  

PNB Housing Q3 Net up 53%  

PNB Housing Finance has posted a rise of 53 per cent in net profit at Rs 137.8 crore for the third quarter ended December.The company had reported a net profit of Rs 90.3 crore in the year-ago period.

Its total income from operations rose to Rs 998.75 crore during the December quarter from Rs 709.10 crore a year earlier on the back of healthy growth in interest income.

“Net interest income registered a growth of 40 per cent to Rs 264.50 crore from Rs 188.60 crore a year ago,” the bank said in a release.

The board of directors of the company at the meeting held earlier this week decided to raise up to Rs 6,000 crore in tranches by issuing non-convertible secured and non-secured debentures.

“We witnessed double-digit growth in our profitability during the nine-month period for the fiscal year 2016-17 as compared to the same period of the previous year. In line with our expansion plans, we added 11 new branches which will support us in the next phase of growth. We continue to focus on expansion in tier II and III cities,” said Sanjaya Gupta, Managing Director, PNB Housing Finance. — Agencies