Page 7 - Reits

REITs to raise short-term debt at lower cost as Sebi allows issue of papers

Capital markets regulator Sebi's decision to allow Real Estate Investment Trust (REIT) to issue commercial papers will help in raising short-term debt at a lower interest cost, according to real estate industry experts. 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. It helps unlock the massive value of real estate assets and enable retail participation. At present, there are three listed REITs -- Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust -- on Indian stock exchanges, but all these are of leased office assets. On Thursday, Sebi allowed emerging investment vehicles, REIT, and Infrastructure Investment Trust (InvIT), to issue commercial papers, subject to certain conditions. Commercial Paper or CP in market parlance refers to a short-term debt instrument issued by companies to garner funds generally for a time period up

REITs, InvITs with net worth of Rs 100 cr or higher can issue CPs: Sebi

Capital markets regulator Sebi on Thursday allowed emerging investment vehicles, Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT), to issue commercial papers. This is subject to certain conditions, the Securities and Exchange Board of India (Sebi) said in two separate circulars. The move came after Reserve Bank Commercial Paper Directions last month indicated that InvIT and REIT having net worth of at least Rs 100 crore are eligible to issue commercial paper. The capital markets regulator said that REITs and InvITs may issue listed commercial papers. This is subject to certain conditions, including, REITs and InvITs need to abide by the guidelines prescribed by Reserve Bank of India (RBI) for issuances of commercial papers and follow the conditions of listing norms prescribed by Sebi. The issuance of listed CPs should be within the overall debt limit permitted under the REITs and InvITs rules, Sebi said. Commercial Paper or CP in market parlance refe

Sebi overhauls preferential allotment rules for REITs, InvITs

Sebi on Monday overhauled the pricing norms for preferential allotment of units by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Under the new framework, the pricing formula for allotment of units under preferential issue would be the Volume-Weighted Average Price (VWAP) of weekly highs and lows for 90 trading days or 10 trading days, whichever is higher. At present, the pricing formula in a preferential allotment is the VWAP of the last two weeks or the last 26 weeks, whichever is higher. The preferential issue of units to "institutional investors" not exceeding five will have to be made at a price not less than the 10 trading days' VWAP of the related units quoted on a stock exchange preceding the relevant date, according to two separate circulars. The regulator said the preferential issue of units would not be made to any person who has sold or transferred any units of the issuer during the 90 trading days preceding the relevant date. At th

REITs offer real estate exposure in a liquid, transparent, and highly regulated form”

The first real estate investment trust, or REIT, listed on the exchanges in April 2019. That was Embassy Office Parks REIT. We have three listed REITs in our country so far. Perhaps if the pandemic had not intervened, we may have had more. In other words, this is still a nascent investment vehicle. To know more about it, Sanjay Kumar Singh of Business Standard spoke to Ritwik Bhattacharjee, Chief Investment Officer, Embassy Office Parks REIT. He says that if you're looking for a product that is liquid, has high corporate governance standards, makes a lot of disclosures, is tightly regulated, and offers the retail investor a mix of dividend yield and capital appreciation, a REIT is the product to go for.

American Balanced Fund offloads Rs 1k-cr shares of Embassy Office REIT

American Balanced Fund on Thursday offloaded 2.9 crore shares of real estate investment trust Embassy Office Parks REIT for Rs 1,046 crore through an open market transaction. According to the bulk deal data available with BSE, American Balanced Fund sold 2,92,62,468 shares of the company. The shares were disposed of at an average price of Rs 357.61 apiece, taking the transaction size to Rs 1,046.45 crore. Meanwhile, ICICI Prudential Mutual Fund picked up the shares of the company. Shares of Embassy Office Parks REIT closed 3.56 per cent lower at Rs 360.94 on BSE on Thursday.

Embassy REIT has delivered 50% total returns since listing: Vikaash Khdloya

"Our overall philosophy on co-working has been that it is an amenity for our business parks and occupiers", said Khdloya

REITs: A combination of good returns with room for growth, say experts

Payouts can be affected by vacancy and tenants defaulting on payments

Ministry of Railways to monetise redeveloped stations through REITs

The decision assumes significance as MoR has been lagging behind in achieving its targets under the National Monetisation Pipeline (NMP) of the Centre, during the last fiscal year

Sebi gives UPI payment option to invest in public issues of REITs, InvITs

The capital markets regulator in January 2019 laid down the process for payment for applications in the public issue of units of these new investment instruments through the facility of ASBA.

Bain Capital-backed $44 billion wealth manager is bullish on India REITs

IIFL Wealth Management Ltd. is recommending its clients allocate as much as 10% to the hybrid investments, co-founder and joint Chief Executive Officer Yatin Shah said

Sebi reduces listing time for REITs, InvITs to 6 days from 12 days

To streamline the process of public issue of units of REIT and InvIT, Sebi reduced the time taken for the listing of such emerging investment vehicles to six working days from the present 12 days.

Office property market: REITs in play as leasing trends to gain traction

Distribution yields could go up but risk of covid infection, interest rates remain

Board REITs to ride office real estate recovery, absorption hits 8-qtr high

A severe third wave of the pandemic could reverse the ongoing upswing in REIT prices

Sebi allows virtual annual meetings for InVITs, REITs till June 2022

InvITs and REITs are required to upload the transcript on their respective websites as soon as possible after the conclusion of the meetings

Brookfield India REIT to acquire Seaview Developers for Rs 3,970 crore

The acquisition and the funding are subject to unitholder and regulatory approvals

Move money that you might require over next three years out of equities

But avoid becoming excessively conservative as only equities have the ability to produce inflation-beating returns over long term

Get diversified country and theme exposure with real estate global funds

Experts say returns from these funds could be slightly lower, but also less volatile, compared to international equity funds

Realty rally likely to continue as Street upbeat on prospects

Analysts say investors should moderate return expectations; DLF and Macrotech top picks

FPIs can invest in debt securities issued by InvITs, REITS: RBI circular

The Reserve Bank on Tuesday said FPIs have been permitted to invest in debt securities issued by Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) by FPIs

Embassy REIT's net operating income grows 30% to Rs 624 crore in Q2

PAT declined 15.5% from Rs 232 crore in the September quarter last year to Rs 196 crore in the same quarter this year