Page 4 - Reit

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)

Mindspace REIT Q4 NOI up 9% to 436.4 cr, distribution of Rs 285 cr declared

Mindspace Business Parks REIT on Thursday reported a 9 per cent increase in its net operating income to Rs 436.4 crore in the fourth quarter of the last fiscal and declared income distribution of Rs 285.2 crore to unitholders for the March quarter. The company declared a distribution of Rs 285.2 crore or Rs 4.81 per unit for Q4 FY23, a growth of 4.3 per cent YoY (year-on-year). The record date for the distribution is May 10, 2023. Payment of the distribution shall be processed on or before May 17. The dividend, which is tax-exempt in the hand of unitholders, forms 90.9 per cent (Rs 4.37 per unit ) of distribution, it said in a regulatory filing. Net Operating Income (NOI) grew 13 per cent to Rs 1,710.1 crore during the last fiscal. The total distribution in the 2022-23 fiscal will touch Rs 1,132.7 crore. Mindspace Business Parks REIT, sponsored by the K Raheja Corp Group, got listed on the Indian bourses in August 2020. It owns quality office portfolios in Mumbai Region, Pune, ...

Blackstone-backed Nexus Select likely to launch retail REIT IPO in May

Global investment firm Blackstone-sponsored Nexus Select Trust is likely to launch India's first retail REIT public offer in early May to raise up to Rs 4,000 crore. In November last year, Nexus Select Trust filed the draft red herring prospectus (DRHP) with market regulator Sebi to launch its retail REIT (Real Estate Investment Trust). Nexus Select Trust has a portfolio of 17 operational shopping malls across 14 major cities, covering a 9.8 million square feet area valued at around Rs 23,000 crore. According to sources, the Nexus Select Trust is likely to hit the capital market in early May with its REIT IPO. It is expecting to get the Sebi nod soon. The size of the IPO of Nexus Select Trust REIT will be around Rs 4,000 crore, of which Rs 1,600 crore would be a primary offering of shares. This will be the third REIT sponsored by Blackstone. It launched India's first REIT Embassy Office Parks and then Mindspace Business Parks REIT. REIT, a popular instrument globally, was introd

Backed by big deals, GIC ahead of western peers in office properties

According to sources, GIC is in the final leg of three real-estate deals in the country. They relate to properties or significant stakes in portfolios of key investors

Mindpsace REIT raises Rs 550 cr through green bonds to refinance loans

Mindspace Business Parks REIT (Mindspace REIT) has raised Rs 550 crore through an issue of green bonds. In a regulatory filing, Mindpsace REIT stated that the Executive Committee of the manager (K Raheja Corp Investment Managers LLP) has approved the allotment of 55,000 green debt securities in the form of listed, rated, secured, noncumulative, taxable, transferable, redeemable non-convertible debentures of Rs 1 lakh each aggregating to Rs 550 crore by way of the private placement. The tenure of the Non-Convertible Debentures is three years and thirty days at a fixed quarterly coupon of 8.02 per cent per annum payable quarterly. The issue saw participation from leading insurers, mutual funds, and other investor classes. The proceeds will be used towards refinancing loans availed by one of the asset SPVs (special purpose vehicle) to fund the eligible green projects. Mindspace Business Parks REIT, sponsored by the K Raheja Corp group, got listed on the bourses in August 2020. It owns

No plans to launch REIT public offer in next 12 months, says DLF CEO

Real estate major DLF has no plans to launch public offer of REIT in the next one year to monetise its rent-yielding commercial properties, its CEO Ashok Tyagi said. DLF holds bulk of its rental assets (offices and shopping malls) through joint venture firm DLF Cyber City Developers Ltd (DCCDL). DLF holds 66.67 per cent stake in DCCDL, while Singapore sovereign wealth fund GIC has 33.33 per cent shareholding. In the last two years, DCCDL has completed all homework to be ready to list its Real Estate Investment Trust (REIT) on stock exchanges by launching an Initial Public Offering (IPO). DLF's top management has been maintaining that the timing for REIT will be decided by the two joint venture partners. "We are not in a hurry. There is no plan to launch REIT in the next one year," Tyagi told PTI when asked about the company's strategy regarding proposed launch of REIT. The decision comes amid global uncertainties and high interest rates regime. In January 2021, DCCDL had appoint

Mindspace REIT Q3 net dips 13% to Rs 127 cr on higher interest cost

This is despite a 23.4% surge in total revenue to Rs 544 cr in Q3FY23, from Rs 441 crore a year ago