Page 3 - Reits

Sattva, Blackstone-backed REIT raises ₹1,400 crore in pre-IPO funding

Knowledge Realty Trust, sponsored by real estate company Sattva Group and Blackstone, has raised Rs 1,400 crore from investors ahead of its maiden REIT public issue. In early March, Knowledge Realty Trust (KRT) filed the Draft Red Herring Prospectus (DRHP) with SEBI to launch an Initial Public Offering (IPO) for raising Rs 6,200 crore and list the REIT on stock exchanges. This is part of its strategy to monetise its 30 prime office assets across major cities. According to sources, the KRT has raised Rs 1,400 crore in a pre-IPO round from family offices and high net worth individuals. KRT will be the largest REIT in India in terms of Net Operating Income (NOI) and Gross Asset Value, which is estimated at around Rs 60,000 crore. At present, there are four listed REITs in India -- Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Apart from Nexus Select Trust, the other three REITs are backed by rent-yielding office

Embassy Office Parks REIT raises Rs 2K cr via debt issuance at 7.21%

Debt raised for three-year tenor to refinance existing obligations, saving 77 basis points; REIT targets FY26 growth with Rs 24.5-26 distributions per unit

Embassy Reit raises Rs 2,000 crore debt to refinance existing loans

Embassy Office Parks REIT has raised Rs 2,000 crore debt to refinance its existing borrowings and save interest cost. In a regulatory filing on Tuesday, Embassy REIT informed that the company has raised Rs 2,000 crore of coupon-bearing debt at an interest rate of 7.21 per cent for a 3-year tenure. The proceeds will be used to refinance certain existing debt and will save around 77 basis points (bps) in interest costs compared to the current rate, the company said. Embassy REIT said it witnessed a robust demand from institutional investors with 11 different investors participating in the issue of NCDs (Non-Convertible Debentures). Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, said, " This transaction showcases Embassy REIT's fortress balance sheet and reinforces our standing as the leading credit in India's commercial real estate sector. We maintain a well-diversified and conservative debt book, and this refinancing positions us well to capitalise on future growth .

India's four listed Reits distributed 13% additional funds in Q4 FY25

India's four listed Reits distribute over ₹6,000 crore in FY25 amid strong NOI and rising investor confidence, with Embassy Reit leading the pack at ₹2,181 crore

Sebi warns investors as Strata exits SM REIT framework post legal row

Strata, with Rs 2,000 crore AUM, had not launched SM REIT schemes before surrendering its registration following Sebi discussions and legal proceedings

Embassy Reit's Q4 FY25 NOI grows 17% amid robust leasing, rent escalations

This surge was fuelled by strong office demand within the Reit's key gateway markets, coupled with healthy leasing activity and rent escalations

Mutual funds warm up to Reits and InvITs, but exposure remains low

Total investments surge 27x in 5 years to nearly Rs 20,000 crore; still only 0.3% of the MF AUM

Sebi proposes higher mutual fund investment limits in Reits, InvITs

The move aims to provide greater diversification opportunities for mutual fund schemes while increasing capital inflows and liquidity in these relatively new instruments

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