Support for REIT from the government gives a boost to the real estate investors
India’s first real estate investment trust (REIT) will be set up very soon by Blackstone Group (BX.N) and its partner, Embassy Group. This trust will be listed on one of the country’s stock exchanges too. The government is working on finalising the rules that will govern the trusts and by next month the directive will be issued by the government.
Even the finance ministry is will clarify the tax rules for REITs in the Budget. The world’s biggest property investor Blackstone and Embassy Group have a joint portfolio of more than 20 million square feet of offices in India. Jitendra Virwani the chairman of Bangalore-based Embassy Group mentioned that they are hoping that this joint partnership is likely to help value their REIT at $2 billion.
Listing REITs gives companies and investors an attractive option to exit some of their investments. Companies like Blackstone, The Xander Group, an emerging markets investor backed by the Rothschild family, and private equity firm Red Fort Capital, which counts Abu Dhabi Investment Authority among its investors, are very happy with the support from the government in a direction which will give a boost to the real estate sector.
Virwani’s team is getting ready to meet Blackstone to draw up a plan for the listing and discuss all the terms and conditions. Virwani also mentioned that they feel that the pace in which the government is moving at is faster than what the companies would want and hence want to remain prepared much earlier than later.
Source- The Financial Express
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This will surely boost the real estate investment in India.
Well said ‘Virwani’ the pace in which the government is moving at is faster than what the companies would want.