Investment banks hopeful about REITs
Firms create dedicated teams & hire experts to lead exploratory work for these trusts. The investment banks and law firms have created dedicated teams to lead their exploratory work on Real Estate Investment Trusts (REITs) as they seek to cash in on the growing appetite from real estate developers, big corporate and state-run banks to unlock real estate’s value through the creation of REITs. REITs have finally emerged as an investment avenue for investors after the Securities & Exchange Board of India approved the setting up of REITs in India through an order on 10th of August.
The regulator’s new guidelines allow REITs to raise funds through an initial offering and list on the stock exchanges. JM Financial has recently formed a five-member team headed by Ranganath Char to put together suitable REITs structures for companies. The Nimesh Kampani-owned firm has also hired Tara Subramanian from HDFC to work closely with Char’s team to fine-tune risk management practices.
The guidelines and the regulations that will be needed in order to generate funds will be made available. The people involved in the realty sector are hopeful that this would help reviving the realty business.
Source: Economic Times
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