International institutional investors, including large pension funds like The CPP Investment Board, officially the Canada Pension Plan Investment Board, Mirae Asset of Korea, couple of Japanese as well as Middle East funds are eyeing Kolkata’s real estate market to grab a slice of its retail, IT and logistics growth cycle.
With REIT opening up giving these foreign funds an opportunity to exit, the existing private equity funds such as KKR, Blackstone, JM FinancialNSE 2.54 % and Xander are also looking to increase their exposure in West Bengal’s retail and logistics space, avers realtor Pradeep Sureka, vice president, Indian Chamber of Commerce.
Confederation of Real Estate Developers’ Associations of India (Credai) Bengal president Nandu Belani seconds the emotion. “We remain optimistic about real estate and its growth. We are certainly poised to rebound,” he added.
Favourable demographics, strategic location and improving business environment have driven up foreign investment inflows in West Bengal. To enhance its FDI potential, the state has undertaken several initiatives such as single window facility to avail state services, dedicated government departments to monitor and support business processes, sector-specific policies, incubator and monitoring centres for startups, incentives for tech, manufacturing and other sectors etc., states the Credai Bengal-CBRE knowledge paper ‘West Bengal: A beacon of growth in the East’.
Incidentally, the paper encapsulates WB’s enabling policy environment, impetus to infrastructure growth and favourable business environment, that are helping the state attract business and thereby investments, in an unprecedented manner.
The state is also encouraging public -private partnership in various segments of real estate such as office spaces, housing and retail amongst others, the report added. The report was unveiled by Amit Mitra, state finance, commerce & industries minister, Chandrima Bhattacharya, minister of state with independent charge, housing department, Anshuman Magazine, chairman & CEO – India, southeast Asia, middle east & Africa, CBRE, and Credai Bengal president, at ‘Statecon 2019’ in Kolkata.
While releasing the report, Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE said, “The state’s large talent pool, transparent governance processes and much-improved social and physical infrastructure have made its position stronger as a veritable business hub.
Additionally, the real estate dynamics in West Bengal, especially in Kolkata, is at a stage wherein controlled supply is boosting absorption – which in turn is further helping the state’s RE growth trajectory. With the right policy incentives, West Bengal is expected to put itself on the global investment map in the near future.”
The Credai Bengal Statecon 2019 themed ‘Poised to Rebound’ witnessed participation from think-tanks, government officials, policy makers, financial institutions, investors, real estate developers and industrialists. The co-hosts of the event included Credai Bengal’s city chapters at Asansol, Howrah-Hooghly and North Bengal. The interactive platform saw real estate stakeholders discuss emerging industry trends, deliberate on possible finance avenues in the backdrop of a liquidity crunch, assess global practices that can be adopted, state’s real estate scenario and its future prospect and aspirations of tier II and tier III cities.
[“source=economictimes”]
