Retail REITs set to grow as institutional investors back new malls

Anarock says institutional investors now hold stakes in over 30% of malls, with upcoming Grade A launches and GST reforms driving new retail-focused REIT activity

At least two to three new retail-focused Real Estate Investment Trusts (Reits) are likely to launch soon on the back of more malls getting institutional investments, according to a report by real estate consultancy firm Anarock.

 

This comes even as India’s retail space is being increasingly driven by institutional players, with 30-35 per cent of the 650 operational malls in the country now seeing such investments.

 

With 45 new malls having a pipeline of over 42.5 million square feet (msf) of prime retail space for the next three-five years, top players such as Nexus Malls (Blackstone), Phoenix Mills, DLF, Lakeshore,