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REIT India
Indian Real Estate Investment Trusts (REITs) are generating an average yield of 6-7.5 per cent for unitholders, better than many mature markets, including the US, according to a report by CREDAI and Anarock. CREDAI, the apex body of Indian real estate developers, and property consultant Anarock released a report 'Indian REITs - A Gateway to Institutional Real Estate' at an event here. At present, there are five listed REITs in India - Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust. Nexus Select Trust are backed by rent-yielding retail real estate (shopping malls) while the other four are office REITs. "Average distribution yields of Indian REITs range between 6 per cent and 7.5 per cent, competitive with fixed-income instruments but with the added potential for capital appreciation," the joint report said. Comparing with other REIT markets globally, the report found that India still lags
Sattva Group and Blackstone sponsored Knowledge Realty Trust has posted a net operating income of Rs 1,632.38 crore in the first half of this fiscal while its asset value stood at nearly Rs 60,000 crore at September-end 2024. On Thursday, Knowledge Realty Trust (KRT) filed the Draft Red Herring Prospectus (DRHP) with SEBI to launch its REIT public issue for raising up to Rs 6,200 crore. The company will issue units through Initial Public Offer (IPO) and list the REIT on stock exchanges as part of its strategy to monetise prime office assets across six major cities. "We own and manage a high-quality office portfolio in India, and upon listing, we will be the largest office REIT in India based on Gross Asset Value of Rs 594,450 million as of September 30, 2024 as well as by Net Operating Income (NOI) for H1, FY25 of Rs 16,323.82 million, and the second largest by NOI for 2023-24 of Rs 28,820.83 million," KRT said in theHP. The Trust said it will also be the second largest office REIT
Embassy Office Parks REIT has raised Rs 2,000 crore debt to repay non-convertible debentures maturing this month. In a regulatory filing on Tuesday, Embassy REIT said it has raised "Rs 2,000 crore of coupon-bearing debt at an interest rate of 7.95 per cent." Embassy REIT will utilise the proceeds from this debt raise to repay its Non-Convertible Debentures (NCDs) of Rs 2,000 crore maturing in October 2024. "We are pleased to announce this fundraise of Rs 2,000 crore, which has seen strong participation from mutual funds and banks," said Aravind Maiya, Chief Executive Officer of Embassy REIT. This refinancing continues to allow the company to optimally control its balance sheet and positions it to take advantage of future rate cuts to raise capital. Embassy REIT is India's first publicly listed Real Estate Investment Trust. It owns and operates a 51 million square feet portfolio of 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai. Embassy
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
Blackstone-sponsored Nexus Select Trust, which will hit the capital market on Tuesday, has raised Rs 1,440 crore from anchor investors. Nexus Select Trust will launch India's first REIT (Real Estate Investment Trust) Initial Public Offer (IPO) backed by rent yielding retail real estate assets. At present, there are three listed REITs on stock exchanges but all are backed by office assets. The company will hit the capital market on Tuesday to raise up to Rs 3,200 crore through its retail REIT maiden public offer, and this includes fresh issue of units worth up to Rs 1,400 crore and an Offer For Sale (OFS) of up to Rs 1,800 crore. The company has fixed the price band at Rs 95 per unit to Rs 100 per unit for the proposed issue scheduled to close on May 11. As per the regulatory filing on Monday, Nexus Select Trust has raised Rs 1,440 crore from anchor investors, which included many mutual fund and insurance companies. The anchor investors who have been allocated units are -- HDFC Mut