The third interesting theme we participated in nearly a decade ago was the real estate rental yield play, particularly in the commercial real estate space. Over the last few years, large PE investors have invested billions of dollars in Indian commercial real estate as they were attracted to high rental yields of 8-9 per cent, a trend that we identified and accordingly participated in a Mumbai-based listed company – NESCO. Over the last ten years, the real estate index (largely dominated by housing real estate companies) has delivered virtually no returns or negative returns whereas
NESCO has delivered a 15 per cent+ CAGR return over the last 10-12 years.