Page 6 - Reits

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

Top 5 headlines: India Inc's net profit in Q4, FAME funds allocation & more

Business Standard brings you top news at this hour

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%

Fundraising via REITs hits all-time low in FY23 on higher yields on debt

Higher yields on bonds, lack of new launches, limited availability and awareness among investors have made emerging investment instruments REITs and InvITs less attractive with fundraising hitting an all-time low at Rs 1,166 crore in 2022-23. Going forward, a change in the tax rule on distributions classified as repayment could lead to a substantial increase in tax liability as it will be taxed as 'other income' in the hands of the investor, making the instruments less attractive, Manavi Prabhu, Head Fixed Income, Anand Rathi Shares and Stock Brokers, said. These assets will have to either generate better underlying yields or will have to reduce the price to ensure that they are more attractive than existing fixed-income investment options, he added. According to data compiled by Prime Database.com, a total of Rs 1,166 crore was mobilised by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) together in 2022-23. In comparison, Rs 13,841 crore was ..

Government proposes tax relief for REITs and InVITS in Finance Bill 2023

In a relief to REITs and InVITs, the Finance Bill on Friday proposed to treat distribution from business as return of capital. While presenting the Union Budget on February 1, the government had proposed to tax income distributed by business trusts like REITs and InVITs in the form of debt repayments at the hands of unitholders. However, the government on Friday proposed to soften the tax impact on Real estate investment trusts (REITs) and Infrastructure investment trusts (InVITs) through amendments to the Finance Bill 2023. The Bill has been approved by the Lok Sabha. The Finance Bill had earlier proposed to tax distribution from business trust as income from other sources at applicable rate. "This is now proposed to be treated as return of capital, i.e reduction from cost of acquisition, till the cost at which the unit was issued," an official said. However, any amount in excess of the issue price would be taxable as income. Thus, the change would benefit the unitholders vis-a

Mindspace raises Rs 550 cr through green bond to finance projects

Issue had participation from leading insurers, mutual funds, other investors: Real estate firm

Sebi extends deadline till Mar 15 to submit comments on REITs, InvITs

Capital markets regulator Sebi on Thursday extended the timeline till March 15, for submission of public comments on a proposal pertaining to higher responsibility for sponsors of investment vehicles -- REITs and InvITs. The regulator had put in place a consultation paper on holding of sponsors in Real Estate Investment Trust (REITs) and Infrastructure Investment Trust (InvITs) on February 23 and sought public comments on the same by March 8. "It has been decided to extend the timeline for submission of comments to March 15, 2023," the Securities and Exchange Board of India (Sebi) said in a public notice. In its consultation paper, the regulator proposed changes to rules governing REITs and InvITs whereby sponsors will be required to own a certain percentage of units in these investment vehicles. The changes were proposed keeping in mind the interest of unit holders and the structural vulnerabilities associated with absence of a sponsor for REITs and InvITs. The watchdog suggested

Fractional realty ownership becoming popular with retail investors: Experts

Apart from being a pocket-friendly investment avenue, it also does away with the hassles of property management such as rent collection and maintenance

India is a key country for our regional strategy: Ivanhoe Cambridge MD

India is a key country for our regional strategy as we aim at steady growth in the Asia-Pacific region, says Chanakya Chakravarthi, MD, Ivanhoe Cambridge

Sebi pitches change in rules for REITs, InvITs; sponsors to own some units

Sebi has proposed changes to rules governing REITs and InvITs whereby sponsors will be required to own a certain percentage of units in these investment vehicles. Coming out with a consultation paper on the subject, the markets regulator said the changes are being proposed keeping in mind the interest of unit holders and the structural vulnerabilities associated with absence of a sponsor for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The watchdog has suggested that the sponsors of REITs/InvITs should hold 15 per cent of the capital for a period of three years from the date of listing as there is no mandatory unit holding requirement after three years. It has also been proposed to mandate sponsors to hold 5 per cent of the unit capital after 3-5 years, 3 per cent from 5-10 years, 2 per cent from 10-20 years and 1 per cent after 20 years. "... it is felt that there is a need to have at least one sponsor throughout the life of the REIT/ InvIT

Not REITs to riches for investors as the near-term headwinds blow

Budget proposals, delayed DESH Bill, hiring slowdown, and rising interest rates present a wall of short-term worry

New REIT, InvIT regime spells higher taxation for sovereign funds

Other foreign investors likely to face significantly higher taxation on cashflow distribution too

Sebi mulls framework for REITs, InvITs to issue depository receipts

Sebi on Thursday proposed to allow REITs and InvITs to issue depository receipts to provide foreign investors an opportunity to participate in the units of Indian emerging investment instruments. This will be beneficial for foreign investors as depository receipts (DR) avoids the need to trade directly with the Indian stock exchange, the Securities and Exchange Board of India (Sebi) said in a consultation paper. Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are set up as Business Trusts and hold and operate revenue-generating real estate or infrastructure assets, respectively. REITs and InvITs raise funds by issuing units to the public at large. REITs and InvITs do not have multiple schemes or classes of units. The units are denominated in Indian rupees and the units are also required to be listed on a recognised stock exchange in India. "Permitting issuance of Depository Receipts against units of REITs and InvITs which are listed on a foreign

Union Budget 2023: Govt proposes taxation changes related to REITs, InVITs

Seeking to widen the tax base, the government on Wednesday proposed to tax income distributed by business trusts like REITs and InVITs in the form of debt repayments at the hands of unitholders. "It is proposed to tax distributed income by business trusts in the hands of a unit holder (other than dividend, interest or rent which is already taxable) on which tax is currently avoided both in the hands of unit holder as well as in the hands of business trust," Finance Minister Nirmala Sitharaman said in her Budget speech on Wednesday. The move is aimed at widening the tax base. Explaining the move in the memorandum of the Finance Bill, the government said that interest, dividend and rental income have been accorded a pass-through status at the level of business trust and are taxable in the hands of the unit holder. "However, in respect of the distributions made by the business trust to its unit holders which are shown as repayment of debt, it is actually an income of unit holder which

Sebi allows virtual meetings for REITs, InVITs unitholders via video call

Capital markets regulator Sebi on Friday allowed investment managers of investment vehicles -- REITs and InvITs-- to conduct meetings of unitholders through video conferencing and other audio-visual means. The move would allow maximum participation of unitholders in the decision-making process and help in better governance. Under the rules, an annual meeting of all unitholders of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) need to be held within 120 days from the end of a financial year and the time between two meetings should not exceed 15 months. Further, managers of such investment instruments are also required to hold meetings of unitholders for certain matters. In two separate circulars, Sebi said it has decided to allow investment managers of REITs and InvITs to conduct meetings of unitholders through video conferencing (VC) and other audio-visual means (OAVM). For conducting such meetings, they need to comply with the procedure prescr

Mindspace Business Parks raises Rs 100 cr debt for working capital needs

Mindspace Business Parks REIT has raised Rs 100 crore debt for working capital requirements. In a regulatory filing, Mindspace Business Parks REIT informed that it has completed an issuance of commercial papers of Rs 100 crore for a maturity of three months at an interest rate of 7.2 per annum. The funds will be utilised towards the working capital requirements of Mindspace REIT's asset SPVs (special purpose vehicle). Loan to value of Mindspace REIT stood at 16.8 per cent as on September 30, 2022. In September this year, capital markets regulator Sebi allowed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to issue commercial papers. The move would enable REITs an additional short term fundraising avenue through shorter tenor instruments at a potentially lower interest cost and swifter timelines. "After successfully exploring capital market fund raising through issuance of multiple debentures, we are glad to be the first Indian REIT to raise fund

Strong leasing activity to benefit Real Estate Investment Trusts

But slowdown in the US and rising interest rates could pose risks

Sebi lays guidelines on preferential issues for listed REIT, InvIT

Capital markets regulator Sebi on Wednesday came out with guidelines pertaining to preferential issues and institutional placement of units by emerging investment vehicles -- REIT and InvIT. The regulator has specified the manner of issuance of units under preferential issue as well as institutional placement by listed real estate investment trust (REIT) and infrastructure investment trust (InvIT), according to two separate circulars. With regard to the issuance of units under institutional placement, Sebi said that no allotment will be made, either directly or indirectly, to any institutional investor, who is a sponsor or manager or is a person related to, or related party or associate of the sponsor or the manager. However, the allotment of units can be made to the sponsor for unsubscribed portion in the institutional placement where at least 90 per cent of the issue size has been subscribed, the object of the issue is the acquisition of assets from that sponsor and unit-holders .