REITs to Be Listed in Indian Stock Exchange
Real Estate Investment Trusts, or REITs, are the next big thing in the Indian economic market. Prime Minister Narendra Modi’s decision to implement new rules for the governing of trusts throughout India will open up a new chapter in the country’s real estate. Many prominent private equity players are now pushing for REITs to be listed in an Indian stock exchange.
The first REIT in the country is going to be established by the world’s biggest property investor, Blackstone Group, in partnership with the Embassy Group. With proper backing from the Indian government, these two realty giants are going to list their REITs under one of the country’s stock exchanges. The approval and the establishment of these REITs in Indian stock exchanges is expected to boost the country’s economy.
The market, which has suffered a long inflation period, is going to follow in China’s footsteps, as the latter approved REITs in April. With the possibility of a potential REIT listing in India looming over the horizon, companies like Blackstone, Xander Group, and Red Fort Capital are looking at lucrative exit options.
The upcoming financial budget, being prepared by the finance ministry, will have separate tax rules and regulations for better control and funding of REITs. The implementation of the REITs has been in the works for a long time, since 2008. This long wait was due to the global financial crisis. But with the advent of the new government under Modi, people are looking at increased liquidity in the market, providing more exit options for investors.
Source: Reuters
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