Reits seek changes in regulations to get easier access to capital

They expect the Reit landscape, which is now limited to office space and retail, to expand to hotels, residential properties, data centres, and logistics

Real estate investment trusts (Reits) are in talks with regulatory bodies — the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) — to seek changes in regulations that will allow easier access to capital.

The Indian Reits Association (IRA) said it has approached the market regulator seeking to get classified as an ‘equity’ asset, which will open the path for their inclusion in equity indices and also make investment by mutual funds (MFs) easier.

The association is also in active discussions with the RBI to allow banks to lend to a Reit. At present,