Page 3 - Reits

Sebi issues framework for fast-track follow-on offer by REITs, InvITs

Markets regulator Sebi on Friday came out with a framework for undertaking fast-track follow-on offers by REITs and InvITs to make fundraising more efficient. Additionally, the regulator has prescribed a lock-in provision of three years for the preferential issue of units of REITs (real estate investment trusts) and InVITs (infrastructure investment trusts) allotted to sponsors. In its circulars, Sebi said 15 per cent of the units allotted to sponsors and sponsor groups will be locked in for a period of three years from the date of trading approval granted for the units. Further, the remaining units allotted to them will be locked in for one year from the date of trading approval granted for the units. Besides, Sebi has clarified on inter se transfer of units among the sponsor or sponsor group entities within a REIT or InvIT. With regards to the follow-on offer, Sebi said the FPO is one of the mechanisms for raising funds subsequent to the issue of units after the initial public .

Reits climb the office ladder even as valuations keep rungs in place

Realty index in the rearview as office demand pulls Reits out of a two-year slump

Knowledge Realty posts Rs 1,632 cr NOI in H1 FY25, set to be largest REIT

Sattva Group and Blackstone sponsored Knowledge Realty Trust has posted a net operating income of Rs 1,632.38 crore in the first half of this fiscal while its asset value stood at nearly Rs 60,000 crore at September-end 2024. On Thursday, Knowledge Realty Trust (KRT) filed the Draft Red Herring Prospectus (DRHP) with SEBI to launch its REIT public issue for raising up to Rs 6,200 crore. The company will issue units through Initial Public Offer (IPO) and list the REIT on stock exchanges as part of its strategy to monetise prime office assets across six major cities. "We own and manage a high-quality office portfolio in India, and upon listing, we will be the largest office REIT in India based on Gross Asset Value of Rs 594,450 million as of September 30, 2024 as well as by Net Operating Income (NOI) for H1, FY25 of Rs 16,323.82 million, and the second largest by NOI for 2023-24 of Rs 28,820.83 million," KRT said in theHP. The Trust said it will also be the second largest office REIT

India's largest REIT IPO: Blackstone, Sattva Developers file DRHP with Sebi

The Trust, which is a joint venture between the Sattva Group and Blackstone, in its draft red herring prospectus (DRHP) said that it aims to raise up to Rs 6,200 crore from the public offering

Sebi suggests new financial disclosures rules for Reits, InvITs' offer docs

Sebi on Friday floated a draft circular proposing REITs, InvITs to disclose financial information in their offer documents inline with public issue and listing norms. The proposed revisions focus on financial disclosures in offer documents and continuous compliance requirements post-listing. These changes are based on the recommendations from the Working Group on Ease of Doing Business for REITs and InvITs, inputs from the Indian REITs Association and Bharat InvITs Association, and internal deliberations, Sebi said. Additionally, the regulator proposed that Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) will be required to disclose combined financial statements for initial public offerings, irrespective of their operational tenure. Further, follow-on offers will need to present audited consolidated financial statements along with links to individual audited reports on their websites, it added. To enhance investor protection, the regulator inten

Four listed REITs distribute Rs 1,505 crore to unitholders in Q3

The distributions rose by nearly 17 per cent from Rs 1,289 crore distributed in Q3 FY24

Commercial real estate offers higher rental yield, but beware the risks

Investors much conduct their own rigorous due diligence before investing to mitigate risks from this segment

Reits, InvITs, municipal bonds hold potential for next decade: Sebi chief

Madhabi Puri Buch also stated that Rs 250 SIP will soon be launched

India's prime, REIT-worthy office stock is worth Rs 4.5 trillion: Report

The REITs' market capitalisation is about 13.7 per cent of the total listed real estate sector in India

REITs in India: 24% returns and 60% of office space ready for investment

Embassy REIT, Mindspace REIT, Brookfield India REIT, and Nexus Select Trust REIT generated returns of 24%, 18%, 6%, and 39% respectively since their inception

More investor education about REITs is needed: Certus Capital founder

He talks about the sector's prospects, including the performance of real estate investment trusts (REITs) and the country's real estate debt investment market

Sebi proposes measures to promote ease of doing biz for Small, Medium REITs

To facilitate ease of doing business for Small and Medium REITs (SM REITs), markets regulator Sebi on Wednesday proposed standardising disclosures in scheme offer documents and simplifying public issue processes for such schemes. Additionally, the regulator proposed to align SM REIT (Real Estate Investment Trust) regulations with existing REIT norms. The proposals aim to simplify regulations, promote transparency, and improve ease of doing business for SM REITs. SM REITs were introduced in March 2024 to encourage smaller real estate investments and increase participation in the sector. These are similar to REITs but operate on a smaller scale with a minimum asset value of Rs 50 crore compared to Rs 500 crore for regular REITs. SM REITs can set up special purpose vehicles (SPVs) to manage assets and are required to invest 95 per cent of assets in completed, revenue-generating properties and distribute 95 per cent of net income to investors quarterly. In its consultation paper, Sebi

EFC REIT obtains Sebi registration to launch SM-REIT public issue

Co-working firm EFC (I) Ltd on Wednesday said its arm EFC REIT Pvt Ltd has obtained SEBI registration for launch of Small & Medium Real Estate Investment Trust (SM-REIT) public issue. According to a statement, the company through its wholly-owned step-down subsidiary EFC REIT has obtained SEBI registration for EMBERSTONE SM REIT as an SM REIT. On October 29, 2024, SEBI granted registration to EMBERSTONE SM REIT. Accordingly, EMBERSTONE SM REIT will be eligible to make an initial offer for units of its first scheme for an amount of up to Rs 500 crore. As an investment manager of EMBERSTONE SM REIT, EFC REIT Pvt Ltd will oversee investments raised through the initial offer and manage the acquisition and operation of commercial real estate assets in terms of the REIT regulations. This development will significantly expand the EFC Group's Assets Under Management (AUM) and its managed office space portfolio across the country, positioning the company for accelerated growth. EFC's ...

Record-breaking real estate IPOs in India raise Rs 13,500 cr in 2024 so far

123 IPOs listed till October 20 this year

Demand drivers likely to sustain Reits' outperformance and growth

Home stretch for real estate investment trusts as strength of the office leasing market and Q2 results show endurance

Street signs: Reits reborn, investment fast track, global money in motion

Except for the muted debuts of Kross and Tolins Tyres, initial public offerings (IPOs) had a stellar run last week

Sebi remains bullish on Reit market in India, says WTM Ashwani Bhatia

WTM Ashwani Bhatia says benchmarking to bring accuracy, efficiency, and more customers into its fold

350 mn sq ft office space worth $60 bn to get SM-Reit listing by 2026: CBRE

Around 350 million square feet of prime office space, valuing more than USD 60 billion, will become eligible by 2026 to get listed as Small and Medium Real Estate Investment Trusts (SM-REITs), according to CBRE. In March, capital markets regulator Securities and Exchange Board of India (Sebi) notified the framework for SM-REITs. At present, there are no listed SM-REIT in the country. Real estate consultant CBRE on Thursday released its report titled, 'Navigating the SM REIT Landscape - A Look at Regulations and Implications'. As per the report, the total completed office stock in India currently stands at over 800 million square feet, of which REIT-listed office inventory is over 88 million square feet. "The potential market for SM-REITs in India covers over 300 million square feet of completed commercial space, besides an additional 50 million square feet of space expected to be completed by 2026. This translates into an estimated market size of over USD 60 billion," the consultan

Industry came forward for rules on small, medium Reits, says Sebi chief

Sebi chief Madhabi Puri Buch on Thursday said there has been a positive response to small and medium REITs (real estate investment trusts) and industry players came forward for regulations on such entities. Recently, the Securities and Exchange Board of India (Sebi) implemented regulations for small and medium real estate investment trusts (SM REITs) aimed at significantly increasing investor interest in fractional ownership of real estate assets. Speaking at the Global Fintech Fest 2024, Buch spoke about compliances and the role of the regulator and said that industry players came forward for regulations on small and medium REITs. The remarks by the Sebi chairperson came days after the US short-seller Hindenburg Research alleged that recent amendments to Sebi's REIT Regulations 2014 were made to benefit a specific multinational financial conglomerate. However, the markets regulator had stated that Sebi (REIT) Regulations, 2014 has been amended from time to time. Also, Hindenburg

Four listed REITs disburse Rs 1,371 cr to unitholders in Apr-Jun quarter

Four publicly listed real estate investment trusts have distributed Rs 1,371 crore to their unit holders for the first quarter of this fiscal, according to industry data. These four publicly listed real estate investment trusts (REITs) in India are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Indian REITs Association (IRA) data showed that in the latest June quarter, these four REITs have together distributed more than Rs 1,371 crore to over 2,45,000 unit holders. Since their inception over the past five years, these four REITs have collectively distributed more than Rs 18,000 crore to their unit holders. Indian REITs market now oversees gross Assets Under Management (AUM) of over Rs 1,40,000 crore. The portfolio managed by these REITs spans approximately 122 million square feet of Grade A office and retail space across the country. Indian REITs Association, a non-profit organization established under the ..