Realty developers mulling the option to launch REITs
With Finance Minister Arun Jaitley having announced in his Budget speech that the income generated by Real Estate Investment Trusts (REITs) will be taxed at the hands of investors, bigwig realty developers are mulling the option of launching REITs.
The prominent real estate players that are considering the option to launch REITs – which are like mutual funds that pool money to make real estate purchases – include DLF, Phoenix Mills and Embassy.
In fact, analysts are projecting that other than real estate developers, global investors like Blackstone and Brookfield may also probably look at the option of launching REITs. The key encouragement for realty players and global investors to launch REITs could be the fact that these investment trusts are tax-efficient structures under which the majority of the income generated is distributed among their investors.
With regard to the REIT-launch option, DLF’s executive Director Rajeev Talwar said that the company will “definitely look at launching them.” DLF is India’s biggest realty developer; with 28 million square feet of leased assets.
Acknowledging that Phoenix Mills too is studying options top launch REITs, the company’s Managing Director Atul Ruia said: “After we understand the guidelines, we will decide on the launch. We have done some work.” Similarly, Embassy group too said that it is exploring the option to launch REITs.
Source- Business Standard
analysis, BSE, commodities, company financials, derivatives, economy news, Features, investing, Management, marketing, Markets, MCX, mutual fund, NCDEX, Nifty, NSE, opinion, personal finance, Stock market
