Page 5 - Reits

Sebi eases access to unclaimed funds in REITs, InvITs, debt securities

Capital markets regulator Sebi on Wednesday came out with detailed procedures for dealing with unclaimed funds of investors lying with entities having listed non-convertible securities, REITs and InvITs. Also, the regulator has put in place a manner of claiming such unclaimed amounts by investors. The new framework will come into effect from March 1, 2024, the Securities and Exchange Board of India (Sebi) said in three separate circulars. The move is aimed at prescribing a uniform process of claim for such unclaimed funds in a streamlined manner for the ease and convenience of investors. This came after the board of Sebi in September approved amendments to rules about the IPEF (Investor Protection and Education Fund) disclosure, real estate investment trusts (REITs), and infrastructure investment trusts (InvITs). Going by circulars, Sebi has defined the manner of handling the unclaimed amounts lying with REITs, InvITs, and in the escrow accounts of the listed entities (which are n

REITs, InvITs collect Rs 18,658 cr in Apr-Sep on robust infra demand

Strong demand for infrastructure investment, attractive returns, and favourable government policies have pushed fund mobilization through listed REITs and InvITs to Rs 18,658 crore in the April-September period of the current fiscal. This came following a fund collection of Rs 2,596 crore through listed Infrastructure Investment Trusts (InvITs) in the entire 2022-23, although the amount mopped up through listed Real Estate Investment Trusts (REITs) was nil, data with the Securities and Exchange Board of India (Sebi) showed. Going forward, experts believe that trends seen in REITs and InvITs will continue in the second half of the year too. "The fresh savings will continue similarly as has happened in the last six months, and the investments will continue to be towards InvITs as both the central government and the state governments continue to focus more on infrastructure development," Himanshu Kohli, Co-founder of Client Associates, said. Hence, the trends you have seen in REITs an

Sebi issues framework for REITs, InvITs to exercise board nomination rights

Markets regulator Sebi on Monday issued the framework to exercise board nomination rights by eligible unitholders of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). At its board meeting on June 28, the board of Sebi approved introducing nomination rights to unitholders of REITs and InvITs. An eligible unitholder means a unitholder that has 10 per cent or more of the total outstanding units of a REIT or InvIT, either individually or collectively. The Securities and Exchange Board of India (Sebi) has issued the framework to exercise board nomination rights by the eligible unitholders, according to two separate but similarly-worded circulars. The regulator said the manager of a REIT or InvIT should review whether the eligible unitholders who have exercised the board nomination right, continue to have/hold the required number of units of the REIT or InvIT concerned. The review has to be done within 10 days from the end of each calendar month. In t

4 listed REITs join hands to form industry body to advocate interests

Four listed real estate investment trusts have joined hands to form an industry body that will advocate the interests of businesses as well as investors. The Indian REITs Association, a non-profit group formed under the guidance of the Securities and Exchange Board of India (Sebi) and the Ministry of Finance, will also work on ways to enable further growth of Real Estate Investment Trusts (REITs). Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust are the founding members of the Indian REITs Association (IRA). The journey of REITs in India commenced with the introduction of regulatory guidelines in 2014 and culminated in the public launch of REITs in 2019, with Embassy REIT's listing. Following this, two more REITs were listed on the Indian exchanges -- Mindspace Business Parks REIT in 2020 and Brookfield India Real Estate Trust, in 2021. In May 2023, India's first retail REIT, Nexus Select Trust, was listed. The ..

Market regulator Sebi to bring follow-on offer rules for REITs, InvITs

To develop the market for emerging investment instruments, Sebi is looking to bring in norms for follow-on offers by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). REITs and InvITs were introduced in India to provide investors with an opportunity to gain exposure to real estate and infrastructure projects respectively, with diversification of risks through pooling arrangements. Generally, REITs invest majorly in completed and rent-generating real estate assets. Privately placed InvITs can invest in under-construction assets as well as completed and revenue-generating assets and public InvITs can invest majorly in completed and revenue-generating assets. "Taking cognizance of the potential of REITs and InvITs in driving the future of Indian infrastructure, Sebi would endeavour to further develop the market for REITs and InvITs in the coming years through policy measures including considering bringing in norms for follow-on offers by REITs and ..

REITs will continue to have strong potential in India in future: Experts

The real estate investment trusts (REITs) in India will continue to have "huge potential" in the future as these may expand to other asset classes such as industrial, data centre, hospitality, healthcare and education, experts said. REITs are companies that own and operate income-producing real estate, and their shares are traded on stock exchanges. "REITs in India are still at their early stages as compared to other regional markets. India's REIT market capitalisation is less than 10 per cent of that of countries like the US and Singapore and other countries in the Asia-Pacific region. "Considering the size of the Indian office market, there exists a huge potential for more REITs and expansion of current REITs," Colliers India MD (Capital Markets and Investment Services) Piyush Gupta said. Embassy Office Parks REIT Deputy Chief Financial Officer Abhishek Agarwal recently said the company remained optimistic about the office REIT market and was looking for expansion. The company w

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

Sebi gives norms for compliance with 25% minimum public holding rules

Markets regulator Sebi on Tuesday provided methods such as an offer for-sale mechanism, rights issue and issuance of bonuses to unitholders of REITs and InvITs to achieve compliance with the 25 per cent minimum public holding requirement. The rule mandates that any listed REIT (Real Estate Investment Trust) or InvIT (infrastructure investment trust), which has public unitholding below 25 per cent, will have to increase its public unitholding to at least 25 per cent within a period of three years from the date of listing of units. To facilitate REITs and InvITs to achieve minimum public unitholding compliance, Sebi said that managers of these trusts will have to adopt any method suggested by the regulator. Methods include the issuance of units to the public through an offer document, offer for sale (OFS) of units held by the sponsor, manager and their associates to the public through an offer document and OFS of units through the stock exchange mechanism for compliance with the ...

Sebi comes out with disclosure formats of governance compliance for REITs

Capital markets regulator Sebi on Monday came out with disclosure formats for compliance reports on governance and annual secretarial for emerging investment vehicles -- REITs and InvITs. These would come into force from the financial year 2023-24 onwards, the Securities and Exchange Board of India (Sebi) said in four separate circulars. Under the format for compliance report on governance, Sebi said infrastructure investment trusts (InvITs) and real estate infrastructure trusts (REITs) will have to disclose the name of the investment managers, the composition of the board of directors of the investment managers as well as the composition of committees, meetings of the board of directors, along with meetings of committees, on a quarterly basis. In addition, the regulator has issued separate formats for the financial year that need to be submitted by the investment managers of InvITs and REITs. For the governance report, such investment managers are required to submit a quarterly ..

India likely to see listing of 4 REITs in next 18 months: CBRE India head

REIT, a popular instrument globally, was introduced in India a few years ago to attract investment in the real estate sector by monetising rent-yielding assets

India's running offices present a $61 bn listing opportunity via REITs: JLL

Among top-7 cities, Bengaluru leads office space with 32% share, followed by Delhi NCR (15%) and Mumbai (14%)

Sebi asks REITs, InviTs to hold securities of SPVs, Holding Cos in demat

To encourage ease of doing business and improve transparency, capital markets regulator Sebi on Monday asked REITs and InvITs to hold the securities of holding companies and special purpose vehicles (SPVs) in dematerialized form only. The investment manager of the REIT (real estate investment trust) and InvIT (infrastructure investment trust) will have to ensure the same, Sebi said in two separate circulars. Further, for existing securities holdings by REITs and InvITs in Holding Companies and SPVs in physical form, the investment managers have been directed to dematerialise such securities by June 30. Under the rules, the units of REITs and InvITs would be issued only in the dematerialised form to all the applicants. REITs and InvITs are relatively new investment instruments in the Indian context but are extremely popular in global markets. While a REIT comprises a portfolio of commercial real assets, a major portion of which is already leased out, InvITs comprise a portfolio of .

Fractional ownership platforms make commercial real estate accessible

Until they come under Sebi's MSM REIT framework, retail investors must rely on their own due diligence when investing through them

Sebi offers rights to unitholders of REITs, InvITs for corporate governance

With an aim to strengthen governance norms, markets regulator Sebi on Tuesday proposed special rights to unitholders of REITs and InvITs by providing the right to nominate representative on the boards. Also, the regulator has suggested the concept of self-sponsored real estate investment trust (REIT) or infrastructure investment trust ( InvIT), according to a consultation paper. In addition, Sebi has proposed that principles of stewardship code should be applicable to members, nominated by the unitholders, on the board of directors of investment manager of REIT and InvIT. The proposed move would empower unitholders of REITs and InvITs to monitor their investment in REIT/InvIT and assist in decision making. The Securities and Exchange Board of India (Sebi) has sought public comments on the proposals till May 29. REITs and InvITs were introduced in India to provide investors with an opportunity to gain exposure to real estate and infrastructure projects respectively, with ...

Sebi moots norms for fractional ownership platforms offering real estate

Capital markets watchdog Sebi has floated a consultation paper for regulating all web-based platforms offering fractional ownership of real estate assets to protect small investors. Such fractional ownership of real estate assets is proposed to be brought as Micro, Small and Medium REITs under Sebi's Real Estate Investment Trusts rules. The proposed regulatory framework would help develop the real estate market, provide investor protection measures and lead to an orderly development of this sector and the market, Sebi said in its consultation paper. Typically, fractional investment of real estate through fractional ownership platforms (FOPs) is an investing strategy in which the cost of acquisition of real estate is split among several investors, who invest in securities issued by a special purpose vehicle (SPV) established by an FOP. Such SPVs purchase real estate assets. FOPs allow investors to own a certain percentage or fractional share in the real estate asset through the ...

Should you subscribe to Nexus Select REIT IPO? Here's what brokerages say

On Tuesday, shares of Nexus Select enjoyed a premium of Rs 5 in the grey market, which translated to a likely listing price of Rs 105 apiece on the upper price brand

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Slowly but surely, mutual funds warm up to investment in REITs, InvITs

Exposure up sevenfold in three years to Rs 5,200 cr

Blackstone arm to launch India's first retail REIT, raise Rs 4,000 cr

The retail REIT public offer is expected to raise around Rs 4,000 crore, of which Rs 1,600 crore would be primary public offerings

NSE Indices launches India's first REITs & InvITs index with six securities

Weights of securities to be based in their free-float market cap, exposure to a particular REIT or InvIT not to exceed 33%; aggregate weight of top-three securities capped at 72%