Private equity (PE) firms are returning to real estate investments through projects rather than equity as an easier exit option coupled with the relatively higher returns from the sector helped them overcome their qualms. Since late 2008, PE investors have been shying away from real estate investments as a stock market downturn took a larger toll on real estate prices, which were then priced higher than the broader market, resulting in many funds burning their fingers. “At the enterprise level, private equity in operating companies is a challenge. The exit is through public markets, and the public market is tired of real estate stories. So PE at corporate levels has gone for an expiry now,” V Hari Krishna, director at Kotak Realty Fund told Reuters. “At project levels, exit is easy. Even in the residential sector, the exit is easy once the apartment is sold,” he said. […]