WATCH: India lacks enough exit channels for investors like Allianz

Rushabh Desai, head of Asia Pacific at Allianz Real Estate, tells PERE that unlike other markets, institutional investors have entered India before the opportunistic and value-add managers, creating questions on how investments will be exited in five to ten years.

The German insurer Allianz Real Estate made its debut in India last October with a $250 million investment for a 50 percent stake in a joint venture partnership with Shapoorji Pallonji Group to invest in office assets. While India remains a key investment market for the firm, Rushabh Desai, head of Asia Pacific at Allianz Real Estate, said it remains unclear how the investor will exit its investments in the country.


“Typically, in a new market, the way we have seen in the past is that the opportunistic or value-add fund managers come in first, they try to develop assets, try to institutionalize the market, and then the institutional investors like us come in later and try to buy the stabilized assets.”

“That is a typical cycle. However, in India, what we are seeing now is that a lot of these institutional investors have come in a little bit earlier and are taking development risk. The question I have is in terms of markets – except for a public exit – are there going to be enough exit channels in the future? I am sure there will be, but we keep an eye on that when we look at a new sector. Who is going to be the new buyer from Allianz in five to 10 years’ time? That is an important question we ask ourselves.”