Gone are the days when PE players were interested only at a project to project level in their Realty exposures. Now the valuations are beaten down, they seem to be fairly interested in buying stakes in Realty companies instead of specific projects. Clearly their risk perception has come down. Another clue to me is what I see in the rising instances of creeping acquisition. Promoter holding in various companies has been going up sharply. Puravankara Projects and Akruti City have 89.96% promoter holding. If DLF was to go ahead with its entire buyback, it could have one of the highest promoter holding of 89.3%. I get to hear the “buyback” word more now.
Last week I’ve been talking to one of my friends working for a large Realty PE fund. I was surprised when he asked me if I have any interesting proposals from Realty companies. So far his tribe never entertained a hint if it spanned beyond a specific project. I gulped the drink in front of me and ordered another!
Today I read about the resurgence of PE interest in the papers. Now you know why I still call him a friend. He broke it to me two days before!