Page 3 - Reit

Sebi amends investment rules; lays framework for employment benefit scheme

Capital markets regulator Sebi came out with a framework for a unit-based employment benefit scheme for investment trusts -- REITs and InvITs. Under the framework, Sebi has prescribed the manner of the implementation of the scheme through a trust, the manner of receiving units by the employee benefit trust and the manner of allotment of units to the employee benefit trust by REIT (Real Estate Investment Trust) and InvIT (Infrastructure Investment Trust). In two separate notifications, Sebi said the 'unit-based employee benefit scheme' would be in the nature of the employee unit option scheme. Employee unit option scheme refers to a scheme under which the investment manager grants unit options to its employees through an employee benefit trust. The implementation of the scheme would be done through a separate Employee Benefit Trust (EB Trust) which can be created by the manager of a REIT or the investment manager of InvIT. The units held by EB Trust would be used only for the limite

Sebi invites public inputs on proposed changes to REIT, InvIT rules

Capital markets regulator Sebi on Tuesday said it has sought public views on the proposed amendments to the master circulars for REITs and InvITs. In a consultation paper, Sebi said these amendments will provide clarity on the nomination rights of directors to the boards of REIT (Real Estate Investment Trusts) and InvIT (Infrastructure Investment Trusts) managers. In the proposed amendments, the markets watchdog has addressed market participants' requests for clarification on the rights of unitholders to nominate a director to the board of the investment manager or manager of REITs and InvITs. The changes propose that the restriction on nominating a unitholder nominee director will not apply if the right to appoint a nominee director is available as per the Sebi (Debenture Trustees) regulations. Under the current norms, a unitholder holding a significant portion of units in an InvIT or REIT has the right to nominate a director, provided their unitholding exceeds a specified ...

Mindspace becomes first Indian REIT to issue sustainability-linked bonds

Mindspace Business Parks REIT raises Rs 650 crore from the World Bank's International Finance Corporation

New kid on the block: Real estate FOPs ready to roll out bit-sized Reits

Sebi's push for SM REITs has the potential to regularise underlying real estate assets to the tune of over Rs 4,000 crore in the near to mid-term, believes Colliers a real-estate consultant

Mindspace REIT Q4 results: Net operating income up 9% to 477 crore

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

First small & medium REIT may be launched, listed in 6 months: NAREDCO

India's first Small and Medium Real Estate Investment Trust (SM-REIT) is expected to be listed on stock exchanges within the next six months, enabling small investors to have fractional ownership of rent-yielding properties by investing as low as Rs 10 lakh, according to NAREDCO. Addressing a webinar on Wednesday, realtors' body NAREDCO President G Hari Babu said, "We are expecting the launch of first SM-REIT by September-October". Last month, the Securities and Exchange Board of India (Sebi) had notified the framework for SM REITs. Investors can now have fractional ownership of rent-yielding real estate assets by making a minimum investment of Rs 10 lakh, with markets watchdog Sebi notifying the amended regulations for real estate investment trusts. Hari Babu highlighted the benefits of SM-REITs and said small investors can now invest in rent-yielding real estate assets and earn both rental income as well as capital appreciation. NAREDCO Chairman Niranjan Hiranandani hailed the n

Selecting a REIT: Factor in capital gains and dividend payouts

The Indian REITs Association, a newly formed umbrella body, has meanwhile requested Sebi to classify REITs as equities and petitioned RBI to allow banks to lend to REITs

Reit industry pitch for direct bank lending, classification as equity

Indian Real Estate Investment Trust (REIT) industry on Wednesday pitched for the entities to get access to direct bank lending and classification as equities. At present, such vehicles can issue bonds or borrow from non-bank lenders or mutual funds, but are prohibited to borrow from banks, said the Indian REITs Association (IRA), a newly formed umbrella body for the five-year-old sector, which comprises four listed entities. The body's Chairman and Embassy REIT's Chief Executive Arvind Maiya told reporters it is in touch with the RBI (Reserve Bank of India) for allowing banks to lend to such vehicles. The real estate industry is asset-heavy and needs funds regularly to buy assets for which it should be allowed to borrow directly from banks, he added. Typically, banks have access to deposits which brings down the cost of funds, and hence, the cost of borrowing can become softer for a borrowing entity. Alok Aggarwal, the Managing Director and Chief Executive of Brookfield India Real

Year ender 2023: 10 important regulatory changes that took place in India

2023 was a busy year for regulators like the Reserve Bank of India and the Securities and Exchange Board of India. Here are the 10 key changes on the regulatory front

Blackstone to exit embassy office parks in biggest India block sale in FY24

Affiliates of Blackstone Inc. are seeking to exit India's Embassy Office Parks REIT in an $833 million deal that will be the country's biggest block trade this year

Embassy Office Parks REIT raises Rs 500 cr via debentures to refinance debt

Embassy Office Parks REIT on Monday said it has raised Rs 500 crore through issue of debentures to refinance its existing debt. In a regulatory filing, the company informed that the Debenture Committee of the Board of Directors of the manager has approved the allotment of 50,000 non-convertible debentures (NCDs) with a face value of Rs 1 lakh on a private placement basis. On August 23, the company announced plans to raise Rs 1,000 crore through issue of NCDs in two tranches. The tenure of the NCDs is 60 months from the deemed date of allotment, with a coupon rate of 8.10 per cent per annum payable on a quarterly basis to the debenture holders. These NCDs are proposed to be listed on the Wholesale Debt Market Segment of the BSE Limited. Embassy Office Parks REIT has reported a 9 per cent increase in net operating income to Rs 737.6 crore for the first quarter of this fiscal year and declared a distribution of Rs 510 crore to the unitholders. Net operating income (NOI) stood at Rs 6

Sebi's new rule gives board representation rights to REITs' unitholders

To boost corporate governance norms, markets regulator Sebi has notified rules introducing special rights to unitholders of REITs who can now nominate representatives on the boards. Also, the regulator has introduced the concept of a self-sponsored real estate investment trust (REIT). Further, Sebi said that principles of stewardship code would apply to members, nominated by the unitholders, on the board of directors of investment managers of REIT. Amending rules for REITs, Sebi said, "Unitholders holding not less than 10 per cent of the total outstanding units of the REIT, either individually or collectively, shall be entitled to nominate one director on the board of directors of the manager." This would ensure pro-rata rights to all unitholders. Further, the director so nominated would recuse from voting on any transaction in which such nominee director or the unitholder who nominated such nominee director is a party, Sebi said in a notification on Thursday. Over the years, ret

Brookfield India REIT raises Rs 750 cr via issue of commercial papers

Brookfield India Real Estate Trust has raised Rs 750 crore through issue of commercial papers to partly fund acquisition of two properties in Mumbai and Gurugram. According to a regulatory filing, Brookfield India Real Estate Trust has issued and allotted 15,000 dematerialised, rupee denominated, listed and rated commercial papers, aggregating to Rs 750 crore at a face value of Rs 5 lakh each. Recently, the company said it has a financial commitment in place for the acquisition of two large commercial assets, totalling 6.5 million square feet, in an equal partnership with GIC, from Brookfield Asset Management's private real estate funds. The company has already raised Rs 2,305.4 crore through the Qualified Institutional Placement (QIP). It plans to raise Rs 400 crore through preferential allotment to the sponsor group. The acquisitions of Downtown Powai, Mumbai and Candor TechSpace (G1) Gurugram will add significant scale and diversification to its portfolio, the company said, add

Mindspace REIT net operating income rises by 14% to Rs 457 cr in Q1

Mindspace Business Parks REIT on Tuesday reported a 14 per cent increase in its net operating income at Rs 457 crore in the first quarter of this fiscal and declared to distribute an amount of Rs 284.6 crore to unitholders. The net operating income stood at Rs 401.4 crore in the year-ago period. Revenue from operations rose 14 per cent to Rs 560.4 crore in April-June from Rs 491 crore in the corresponding period a year ago, the company said in a statement. Mindspace Business Parks REIT, sponsored by K Raheja Corp group, got listed on the Indian bourses in August 2020. It owns office portfolios in four office markets -- Mumbai Region, Pune, Hyderabad, and Chennai. It has a portfolio of total leasable area of 32.1 million square feet comprising of 25.9 million square feet of completed area, 2.5 million square feet of area under construction and 3.7 million square feet of future development.

Office space emerging as darling of private equity investors in India

Office space is getting the lion's share of investments by PE investors into the sector, experts suggest this trend is likely to continue in the coming months

ITC considers 'alternative' structure for its hospitality business

Conglomerate looking at REITs, JVs, says Nomura report; industry sees it as a 'win-win' situation

Blackstone-backed REIT Nexus Malls pre-opens 3% higher in trading debut

Shares of Nexus Select Trust, a Blackstone Inc-backed Indian retail REIT, pre-opened 3% higher at 103 rupees in their trading debut on Friday

Nexus Select Trust's initial public offering garners 5.4 times subscription

The REIT plans to utilise the net proceeds of the fresh issue portion to repay debts and to acq­uire stakes and redeem debt securities in ce­rtain asset special purpose vehicles

Nexus Select Trust REIT IPO subscribed 28% on first day of offer

The offer 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

Sensex, Nifty end flat after choppy day; Indiabulls RE sinks 20%, Zomato 6%

CLOSING BELL: Among sectors, the Nifty PSU Bank index fell nearly 3 per cent, followed by the Nifty Realty index (close to 1 per cent)