CRE Edge: Wealth generation through investments in CRE | Our CEO in conversation with Moneycontrol
India's Commercial Real Estate (CRE) sector has played a vital role in India's growth story, leading to significant development inΒ ...
Executive Vice President & Chief Investment Officer, Healthcare Realty
Search every verified Ryan Crowley interview, podcast appearance, and on-the-record quote β each transcript cross-checked by AI and human review to confirm speaker identity. Ryan Crowley, Executive Vice President and Chief Investment Officer at Healthcare Realty, appeared on the Moneycontrol show "CRE Edge" on September 17, 2024. During the conversation, he stated that the world has already entered a recession, noting that the definition of recession has been satisfied in most of the Western world. He expressed concern about layoffs at major financial institutions like Morgan Stanley and Goldman Sachs in India, saying that if those institutions slow down, demand for commercial real estate in the country would certainly slow down. Crowley described commercial real estate as a hybrid instrument between debt and equity, stating that investors can achieve 8-9% rental yields plus 5-10% annual capital appreciation, resulting in 13-18% unleveraged IRRs. He noted that every lease in India is indexed to inflation. He discussed his previous lobbying work to get REIT regulations in place in India, and praised SEBI as a regulator, saying they have been conservative and introduced the right regulations at the right time. He also mentioned that his company uses an artificial intelligence tool that learns from millions of data points to predict investment outcomes in specific locations.
“I think that the world has already entered recession if you ask me if you look at the definition of recession that's already been satisfied in most of the western world whether it's the UK the US or Europe you know and India of course is always lagging behind a little bit in terms of supply and demand catching up but I...”
“Morgan Stanley has been firing Goldman Sachs has been firing people in India not just in the west and that's something that's a bit concerning for me I feel that that's something because those were the key institutions who were driving demand for commercial real estate in India and if that slows down then demand for re...”
“Commercial real estate is a hybrid instrument between a debt instrument and an equity instrument so you get 8-9% rental yields which you know because the tenant is in place you know how much rent he's paying and on top of that there is this capital appreciation so you could also get growth on your underlying real estat...”
“Every lease in India is indexed to inflation if inflation is 5% then what you're earning from your instrument gives you the same basket of goods that you would have got a year before so if at 8 rupees you got like 8 cages of rice and rice goes up by 5% then you still get 8 cages of rice next year because it's an inflat...”
“Before REITs there were really no avenues for foreign investors which is pretty sad I mean all around the world REITs give you access to rent yielding real estate but in India we didn't have that and in my previous job of course I did a lot of lobbying and we got the REIT regulations in place because we had created a p...”
“If you want access to blue chip multinational tenants grade A Plus buildings then you need 100 crores plus and therefore for that option no longer exists and people who bought one two crores worth of assets really burnt a lot of their money.”
“We use a very high quality technical diligence to make sure that the building is high quality that all the lifts are functioning properly that the DGs are working they have enough life left in them the lobbies are well done the floors are very well designed you know the core is in the middle all of those technical aspe...”
“We created a very interesting artificial intelligence tool which learns by itself about a location about a property about a tenant you feed it millions of data points and it can tell you that in a particular area if you buy a building where the rent is 150 or more and the tenant is a multinational you're going to make...”
“The first biggest challenge is that there's hardly any supply to buy you know and if you want really good quality assets at great prices you just there's just not enough assets to buy in India and that's the challenge that every fund manager has faced in India and it comes in bulk you know sometimes you have nothing fo...”
“SEBI I think has done a very good job as a regulator in India I have to say you know they've been conservative and they've kind of come up with the right regulations at the right time REIT was a great regulation for Indian investors to participate in which is great but yes there's definitely more things that they can d...”
India's Commercial Real Estate (CRE) sector has played a vital role in India's growth story, leading to significant development inΒ ...
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