And here’s why real estate in retail can expect PE investments up to $80 million
“In 2016, PE may also go into select mall investments, especially in under-represented markets or for buyout of mature assets. JLL was the first to say that single-brand retail companies will find more reason to explore the Indian market thanks to relaxation of sourcing norms and that technology-led retail will start and in single brand retail store category in 2016. These companies will also be able to undertake eCommerce business independently,” said Anuj Puri, country head for JLL India.
He added, “Moreover, as quality mall space is coming up with strong pre-commitments, it indicates that retailers continue to remain bullish about the long-term India consumption story. Retailers are already starting to experiment with the formats, sizes for the same brands – adapting to markets – as they start moving up the value chain.”
However, not all will be hunky dory for the segment. Puri noted that the real estate space in retail will continue to lack quality. The retailers will have to revamp their real estate strategy in order to suit the micro-markets. “Investment by both home-grown and international brands will strengthen in tier-II and tier-III markets as they expand beyond tier-I cities. Investment by large players will also be seen in 2016,” he said.
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