The much awaited India’s first Real Estate Investment Trust or REITS is all set to be launched after years of efforts by the government to put it in an organised way at par with the global standards. Embassy Office Park, that is a joint venture of Embassy Group and Blackstone Group is to file documents with the securities and exchange board of India SEBI. With this India will join the league in the global market of REITS with USA, UK, Singapore, Japan, Australia.
Experts claim that REITS would led to further formalisation of Indian Real Estate as more global institutional funds will be invested in the country. It will inject the much needed growth oriented equity capital in the real estate investment sector. The proposed portfolio includes over 70 assets in Mumbai, Bengaluru, Pune and National Capital Region. Assets could attract higher rentals in the coming years that were leased at around 35% lower than the current rates. The lead banker to the issue is JP Morgan, Kotak Mahindra and Bank of America. While foreign institutions had shown interest in commercial real estate, REITs would open up Avenue for them for channelling monetisation. These are structured like mutual funds and allow investors to earn dividend based returns.
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