Reits

Street signs: Reits reborn, investment fast track, global money in motion

Except for the muted debuts of Kross and Tolins Tyres, initial public offerings (IPOs) had a stellar run last week

Sebi remains bullish on Reit market in India, says WTM Ashwani Bhatia

WTM Ashwani Bhatia says benchmarking to bring accuracy, efficiency, and more customers into its fold

350 mn sq ft office space worth $60 bn to get SM-Reit listing by 2026: CBRE

Around 350 million square feet of prime office space, valuing more than USD 60 billion, will become eligible by 2026 to get listed as Small and Medium Real Estate Investment Trusts (SM-REITs), according to CBRE. In March, capital markets regulator Securities and Exchange Board of India (Sebi) notified the framework for SM-REITs. At present, there are no listed SM-REIT in the country. Real estate consultant CBRE on Thursday released its report titled, 'Navigating the SM REIT Landscape - A Look at Regulations and Implications'. As per the report, the total completed office stock in India currently stands at over 800 million square feet, of which REIT-listed office inventory is over 88 million square feet. "The potential market for SM-REITs in India covers over 300 million square feet of completed commercial space, besides an additional 50 million square feet of space expected to be completed by 2026. This translates into an estimated market size of over USD 60 billion," the consultan

Industry came forward for rules on small, medium Reits, says Sebi chief

Sebi chief Madhabi Puri Buch on Thursday said there has been a positive response to small and medium REITs (real estate investment trusts) and industry players came forward for regulations on such entities. Recently, the Securities and Exchange Board of India (Sebi) implemented regulations for small and medium real estate investment trusts (SM REITs) aimed at significantly increasing investor interest in fractional ownership of real estate assets. Speaking at the Global Fintech Fest 2024, Buch spoke about compliances and the role of the regulator and said that industry players came forward for regulations on small and medium REITs. The remarks by the Sebi chairperson came days after the US short-seller Hindenburg Research alleged that recent amendments to Sebi's REIT Regulations 2014 were made to benefit a specific multinational financial conglomerate. However, the markets regulator had stated that Sebi (REIT) Regulations, 2014 has been amended from time to time. Also, Hindenburg

Four listed REITs disburse Rs 1,371 cr to unitholders in Apr-Jun quarter

Four publicly listed real estate investment trusts have distributed Rs 1,371 crore to their unit holders for the first quarter of this fiscal, according to industry data. These four publicly listed real estate investment trusts (REITs) in India are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Indian REITs Association (IRA) data showed that in the latest June quarter, these four REITs have together distributed more than Rs 1,371 crore to over 2,45,000 unit holders. Since their inception over the past five years, these four REITs have collectively distributed more than Rs 18,000 crore to their unit holders. Indian REITs market now oversees gross Assets Under Management (AUM) of over Rs 1,40,000 crore. The portfolio managed by these REITs spans approximately 122 million square feet of Grade A office and retail space across the country. Indian REITs Association, a non-profit organization established under the ..

Hindenburg Research allegations baseless and misleading, says Reit lobby

Says Sebi developments having market-wide benefits

Sebi vs Hindenburg: No relationship between Dhaval Buch, Blackstone's REITS

A decade ago, Sebi approved a long-pending proposal to introduce REITs in India, creating a new investment avenue for institutional investors, wealthy individuals, and eventually ordinary investors

Property Share becomes first FOP; gets Sebi license for small, medium REIT

Property Share, which facilitates fractional ownership of commercial assets, on Friday said it has received the Small and Medium Real Estate Investment Trust (SM REIT) license from market regulator SEBI. In a statement, the company said it has "become the first fractional ownership platform (FOP) to receive the Small and Medium Real Estate Investment Trust (SM REIT) license from the Securities and Exchange Board of India (SEBI)". The license has been given by the SEBI under the newly notified SM REIT regulations under the name of Property Share Investment Trust (PSIT). Property Share will become the investment manager of PSIT. In 2022, Property Share raised Rs 347 crore in a Series B round from WestBridge Capital. "We look forward to continue working closely with SEBI in launching the IPO (Initial Public Offer) of the first SM REIT scheme in the weeks to come," said Kunal Moktan, Co-Founder of Property Share.

Sebi amends investment rules; lays framework for employment benefit scheme

Capital markets regulator Sebi came out with a framework for a unit-based employment benefit scheme for investment trusts -- REITs and InvITs. Under the framework, Sebi has prescribed the manner of the implementation of the scheme through a trust, the manner of receiving units by the employee benefit trust and the manner of allotment of units to the employee benefit trust by REIT (Real Estate Investment Trust) and InvIT (Infrastructure Investment Trust). In two separate notifications, Sebi said the 'unit-based employee benefit scheme' would be in the nature of the employee unit option scheme. Employee unit option scheme refers to a scheme under which the investment manager grants unit options to its employees through an employee benefit trust. The implementation of the scheme would be done through a separate Employee Benefit Trust (EB Trust) which can be created by the manager of a REIT or the investment manager of InvIT. The units held by EB Trust would be used only for the limite

Crisil explains how small, medium REITs will broaden realty investor base

Earlier this year, Sebi notified the regulations for small and medium real estate investment trusts and specified that investment managers of such REITs should have a minimum net worth of Rs 20 crore

Brookfield REIT Q4 results: Net operating income rises 89% at Rs 461 cr

Brookfield India Real Estate Trust (BIRET) on Thursday reported an 89 per cent rise in its adjusted net operating income to Rs 460.8 crore during the March quarter and announced distribution of Rs 208.6 crore to unitholders. Its net operating income (NOI) stood at Rs 244.4 crore in the year-ago period. During the full 2023-24 fiscal, the company's NOI increased to Rs 1,506.2 crore from Rs 960.8 crore in the preceding year, according to a regulatory filing. During the fourth quarter of last fiscal, the company said it achieved highest quarterly new leasing since IPO of 0.9 million square feet. It received in-principle approvals for conversion of 1 million square feet of SEZ space to non-processing area and in the process of applying for a further conversion of 0.2 million square feet. "Recent leasing was driven by demand from GCCs (Global Capability Centers), MNCs (multinational corporation) and domestic tenants across sectors such as consulting, BFSI, technology, and oil & gas, ..

REIT to invest Rs 3,800 cr to construct of 6.1 mn sq ft office space

Bullish on demand for premium workspace, Embassy Office Parks REIT will invest Rs 3,800 crore over the next four years to complete its ongoing office complexes as part of its strategy to expand rental portfolio. Embassy REIT, which is India's first publicly listed Real Estate Investment Trust (REIT), currently has 36.5 million (365 lakh) square feet of completed office space across Bengaluru, Mumbai, Pune and Delhi-NCR. In an interview with PTI, Aravind Maiya, Chief Executive Officer of Embassy REIT, said the company's business has been growing from strength to strength. To expand its portfolio, he said the company is constructing 6.1 million (61 lakh) square feet of premium office space in Bengaluru to cater to rising demand from global capability centres (GCCs) and also domestic players. That apart, Maiya said the company has signed an agreement to purchase Embassy Splendid TechZone (ESTZ), a Grade-A business park, from sponsor Embassy Group for an enterprise value of Rs 1,269 .

Mindspace REIT Q4 results: Net operating income up 9% to 477 crore

Mindspace Business Parks REIT on Tuesday reported 9 per cent growth in net operating income (NOI) to Rs 476.8 crore and declared distribution of Rs 282.9 crore to unitholders for March quarter FY24. According to a regulatory filing, the company's NOI grew 12 per cent to Rs 1,895.9 crore in 2023-24. Cumulatively, it has declared distribution of Rs 1,136.2 crore to unitholders for last fiscal year. Ramesh Nair, Chief Executive Officer, K Raheja Corp Investment Managers Pvt Ltd, Manager to Mindspace REIT said, We had a record quarter, leasing 2 million square feet, making this our top-performing quarter since going public." "Our committed occupancy now stands at 90.6 per cent. With ongoing expansion projects totalling 4.4 million square feet, future development of 2.5 million square feet and potential leasing of 2.4 million square feet vacant area, we are positioned for significant NOI growth." Mindpsace REIT said its committed occupancy stood at 90.6 per cent. Cumulative leasing for

REITs, InvITs mobilise Rs 1.3 trillion in past four years: RBI data

Investment vehicles for realty and infrastructure sectors -- REITs and InvITs -- have garnered Rs 1.3 lakh crore in the past four years till March-end, and are expected to facilitate more pooled funds, Reserve Bank said in a report. Experts and stakeholders are of the view that with India growing at a fast pace, REITs and InvITs are emerging as alternative investment instruments, especially for high net-worth individuals. "India has been a late adopter of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). However, the market is flourishing - REITs and InvITs have mobilised Rs 1.3 lakh crore since 2019-20 (up to March 2024)," said an article on 'State of Economy' published in the RBI's April Bulletin. March witnessed the listing of an InvIT, which raised Rs 2,500 crore through a public issue, attracting substantial interest from foreign investors. The article noted that market regulator SEBI has progressively reduced the minimum investment size and

Fundraise by InvITs, REITs surges multi-fold to Rs 17,116 cr in FY24

Investor enthusiasm towards InvITs and REITs is on the rise, with fundraising through these routes reaching Rs 17,116 crore in 2023-24, a 14-fold year-on-year surge fuelled by the prospect of stable returns. Going ahead, the outlook for infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) in terms of fundraising for the current fiscal FY25 is very optimistic, industry experts said. "After Sebi's amendments to the SM (small and medium) REITs regulations last month, we are poised for a transformative shift. The Indian fractional ownership market, set to evolve into SM REITs, is projected to grow from USD 500 million to over USD 5 billion in AUM by 2030, indicating a significant expansion and bright prospects for SM REITs," WiseX CEO Aryaman Vir said. Moreover, the road sector is likely to be a major beneficiary, likely attracting 75 per cent of the new inflows, thanks to a robust pipeline of assets ready for monetisation and a strong pace of infrastructu

Selecting a REIT: Factor in capital gains and dividend payouts

The Indian REITs Association, a newly formed umbrella body, has meanwhile requested Sebi to classify REITs as equities and petitioned RBI to allow banks to lend to REITs

Sebi mandates registration of index providers under regulatory fold

Mandates registration of index providers managing 'significant indices' based on securities listed in India

Rs 4K cr and rising: How fractional ownerships are revolutionising realty

Market regulator Sebi's decision to allow the setting up of small and medium Real Estate Investment Trusts (REITs) is expected to regulate and fuel growth in this segment

Mindspace REIT Q3 results: Profit up 16% at Rs 147 cr, income at Rs 610 cr

Mindspace Business Parks REIT on Monday reported a 16 per cent increase in its consolidated net profit to Rs 146.8 crore for the latest December quarter and announced distribution of Rs 285 crore to unitholders, mainly in the form of dividends. Its net profit stood at Rs 126.5 crore in the year-ago period. The total income rose to Rs 610.8 crore in the October-December period of this fiscal from Rs 560.4 crore a year ago, according to a regulatory filing. The company also announced a distribution of Rs 4.80 per unit aggregating to Rs 284.6 crore, which comprises a dividend of Rs 4.29 per unit totalling Rs 254.4 crore, interest of Rs 0.50 per unit aggregating to Rs 29.7 crore and other income of Rs 0.01 per unit, aggregating to Rs 60 lakh. The Board of Directors of K Raheja Corp Investment Managers Pvt Ltd, manager to Mindspace Business Parks REIT, approved the proposed acquisition and term sheet to be entered in relation to the acquisition of certain units measuring leasable area o

REITs, InvITs see growth; fund mobilisation rises to Rs 11,474 cr in 2023

REITs and InvITs have gained popularity as preferred investment options, with fundraising, through the route, surging 10-fold year-on-year to Rs 11,474 crore in 2023, supported by measures taken by regulator Sebi and attractive returns offered by the instruments. Going ahead, fund mobilisation by REITs (real estate investment trusts) and InvITs (infrastructure investment trusts) is poised for significant growth in 2024, driven by several key factors, including anticipation of rate cuts and introduction of a range of policies aimed at encouraging investments like tax incentives and relaxed investment norms, Claravest Technologies co-founder Manaki Parulekar said. "This year, we are likely to see interest rates decrease in the first half of 2024 due to the expected drop in inflation. These conditions are favourable for investors who are looking to invest in long-term opportunities, such as REITs and InvITs," he added. According to data compiled by Prime Database.com, REITs and InvITs