CBRE Capital
Markets establishes itself as No. 1 in India with 50% market share..!
-
Commercial Real Estate (CRE) witnessed USD 4.7 billion
of investment in 2018. CBRE’s Capital Markets team executed transactions worth over
USD 2 billion
-
Mumbai dominated the overall industry with over 40% share
of transactions
CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm today
announced details of the business volume generated by its Capital Markets team
and established itself as the number one team in its domain with a 50% market
share.
With a
comprehensive suite of services such as Capital Raising, Land Services
including land sales, joint developments and development management agreements;
Core Asset Sales, HNI and Family Office Advisory and Advisory to Fund
Portfolios, the Capital Markets team helped its clients through a range of transactions
such as Investment Sales, Foreign Investment (FDI), Structured Debt,
Construction Financing and LRDs, Equity Placement, Core Asset Sales, etc.
Of a total investment
of USD 4.7 billion in Commercial Real Estate (CRE) in 2018, transactions worth
over USD 2 billion were executed by CBRE’s Capital Markets team.
Commenting on this achievement Mr. Anshuman
Magazine, Chairman and Chief Executive Officer (India, South-East Asia, Middle
East and Africa), CBRE said, “The Capital Markets team has successfully
positioned itself as an integrated capital solutions provider- offering Capital
Raising, Land, HNI Advisory and Core Office Acquisition/Divestment Services.
The business reached an all-time high in 2018 and reinforced its number one
position for Land and Capital Markets for the third consecutive year in India.”
Talking about the overall performance of Capital
Markets in 2018, Gaurav Kumar, MD & Co-Head Capital Markets, CBRE said, “The
previous year also marked our expansion in key geographies in the country. We
successfully executed some key transactions which helped us strengthen CBRE’s
leadership position in this domain.”
The Capital Markets
team has significantly contributed to the industry’s growth by arranging
crucial capital requirements and has successfully positioned itself as a one-stop
solution for all capital and investment needs of the commercial real estate
industry.
“2018 was a very successful year for CBRE; our
growth has maintained a consistent positive trend and Capital Markets has
significantly contributed towards it. We foresee strong growth in the coming
years as well,” said Nikhil Bhatia, MD & Co-Head Capital Markets, CBRE.
The Capital
Markets team in 2018 advised on some marquee real estate investment advisory
deals in India and succeeded in maintaining its number one position.
Speaking about
the performance of the real estate industry in the country, Bhatia said, “Investment
momentum for the overall real estate sector is expected to witness an up-tick
from previous years. CBRE’s expertise in providing advice, qualitative and
quantitative analysis and exceptional execution capabilities for alternative
capital solutions for corporate owned and occupied real estate is a push
towards these investments.”
Speaking about the expected trends among
capital providers in 2019, Kumar said, “The present year is expected to see an
increase in institutional equity investments in office and retail developments,
boutique transactions in hospitality and sustained activity in land
acquisitions and land JDAs and JVs.”
He further added that increasing focus
on due diligence in the market will lead to improved loan quality, but may
result in rising costs as well.
Some key trends to be witnessed in Capital Markets
in 2019:
- Consolidation amongst NBFCs – The NBFC
market in India is currently witnessing an overcrowding situation. In the
current situation of cautious funding exposure towards NBFCs, the larger ones
are expected to manage their liabilities by tapping public issues, while the
smaller ones fill find it a challenge to seek alternate source of funding.
- Loan Quality to Improve – With RBI being
aggressive with cancelling licenses of non-compliant NBFCs (around 4500 NBFCs
have had their licenses cancelled till October 2018), it is eventually going to
result in a clean-up, ensuring availability of capital for quality assets.
- Due diligence to come in sharper focus – Investors are
expected to be selective in their investment, with core, Grade A assets
remaining as favoured investment.
- Shift towards core assets and LRDs – As fresh
disbursements are slowing down and caution looms around new assets and land,
assets that are backed by some type of collateral as well as score assetws are
likely to be in greater focus. It largely implies that there is likely to be
greater focus on LRDs and core assets while financing/refinancing opportunities
with existing partners and land deals are expected to be slow.
- REIT becoming a reality – As the sector
gets more organized, HNIs and NRIs investors are realizing that instead of
taking on the pain of directly buying, managing and maintaining commercial
properties, they can also participate through a REIT.
- The yield conundrum - On the
backdrop of increased demand for the dollar, rising crude oil prices and
liquidity issues has resulted in 10-year bond yield breaching the psychological
8 % mark during 2018. On the other hand, prime yield in sectors such as office
and retail are also around the 8.0-8.5 % ballpark, owing to marginal growth in
rents and increase in capital values.
2018 In
Graphs:
Figure-1 Investment
Across Major Sectors – 2018
Figure-2 Investment
Across Major Cities - 2018
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500
and S&P 500 company headquartered in Los Angeles, is the world’s largest
commercial real estate services and investment firm (based on 2017 revenue).
The company has more than 80,000 employees (excluding affiliates) and serves real
estate investors and occupiers through approximately 450 offices (excluding
affiliates) worldwide. CBRE offers a broad range of integrated services,
including facilities, transaction and project management; property management;
investment management; appraisal and valuation; property leasing; strategic
consulting; property sales; mortgage services and development services. CBRE
was the first International Property Consultancy to set up an office in India
in 1994. Since then, the operations have grown to include more than 8,000
professionals across 10 offices with a presence in over 80 cities in India. As
a leading international property consultancy, CBRE provides clients with a wide
range of real estate solutions, including Strategic Consulting, Valuations/Appraisals,
Capital Markets, Agency Services, Asset Services and Project Management. The
guiding principle at CBRE is to provide strategic solutions that make real
estate holdings more productive and economically efficient for its clients
across all service lines.
CBRE has been included in the Fortune 500
since 2008, ranking #207 in 2018. It has also been voted the industry’s top
brand by the Lipsey Company for 17 consecutive years and has been named one of
Fortune’s “Most Admired Companies” in the real estate sector for 6 years in a
row.
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Mobile: +91 99992 02252
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