However, they should be aware of risks such as the building staying vacant or getting re-leased at lower rates
REITs are good news for those investors who have a small appetite
Despite government and regulators clearing the decks, the launch of the first real estate investment trust could take could another year, say industry players. Reit invests in real estate and trades on exchanges like a stock. It allows small and large investors to acquire ownership in real estate ventures. Realty companies have set the ball rolling to raise resources through Reits but face hurdles.Capital gains tax and stamp duty at the time of land transfer remain key impediments for the launch of these instruments, say bankers and consultants involved in the preparatory work for the instruments.While one of the aspiring Reit candidates has been stuck due to improper land title, two others are yet to start the land-transfer process, said sources.Consultant Knight Frank says Reits are at least 12 to 14 months away from becoming a reality.According to regulations, a real estate entity has to transfer the land, which is part of the offering to Reit, before the issue opens for public ...
The real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) can help raise close to Rs 50,000 crore in the near-term, given the interest shown by certain players in the infra and real estate space, according to a report. This amount can be utilised either for repayment of debt from banks/ non-banking financial companies (NBFCs)/financial institutions (FIs) or as a consideration to the existing sponsor for dilution of stake or both, according to the study titled 'Building a new India', conducted by Assocham jointly with global research firm Crisil. This will result in monetisation of sponsors investment in long gestation projects or result in release of loan funds for banks to fund other infrastructure projects, the report said. Both REITs and InvITs are vehicles created to primarily invest in revenue-generating real estate/infrastructure assets. The study estimated that public sector banks need equity of Rs 1.7 lakh crore by March 2019 -- a tall ord
Also gearing up to deepen corporate bond market to develop a market-based financing framework for companies
Lack of mention in the Budget was a disappointment for investors and developers