REITs reduce borrowing costs by about 200 basis points or more in FY21

Real estate investment trusts (REITs) reduced their borrowing costs by about 200 basis points (bps) or more in FY21 due to their strong credit profiles and better ratings.
 
In comparison, top property developers such as Godrej Properties and the rental arm of DLF reduced their borrowing costs in FY21 by 110 bps and 145 bps, respectively.
 
Mindspace Business Parks’ REIT’s average cost of funds came down 210 bps in FY21. The Mindspace REIT also did refinancing of Rs 1,150 crore of debt raised in the REIT via listed non-convertible debentures and market linked debentures. Mindspace REIT has a