From REITs to News on Nabil Patel: Real Estate Updates

The real estate industry in India is rising back up from the stagnancy that occurred due to various policies and interventions. Developers such as Nabil Patel DB Realty are gaining ground, and buyers also have high hopes for various kinds of developments. While the country expected that the first real estate investment trust here would be developed first and that the Blackstone-backed Embassy Office would file the draft documents in order for it to come into place, it seems unlikely now. Real estate experts say that it will not be possible before the current year ends.

However, sources say that Embassy Group, a real estate firm is preparing to develop a 5,250 crore rupees worth REIT, which could become the largest office REIT listing in Asia itself. But they have warned that it may take longer to get all kinds of approvals and further proceedings may be delayed. The group based in Bengaluru has more than 30,000 square feet of leased space for office, along with much more space in the pipeline.

Experts believe that it will take some more time for the REIT listings to be finished, and regulatory approvals may take more time since they depend on conditions in the market. Sources also say that the REIT listing may not lead to a rush for more listings and the next listing will depend on the price of the first one. For the first listing, it is necessary to obtain approval from the government. There are issues that must be handled initially, and the source is hopeful that the REIT listing occurs before the end of the year.

REITs are important since they invest in properties that generate income. 90% of the income is distributed to unit-holders as dividends. After registering with SEBI, it is compulsory to get the units of the REITs listed on exchanges and securities like trades.

Commercial assets are mainly listed through a REIT. This includes primary office spaces, that are capable of generating a lucrative and steady rental income. Hotels, hospitals, schools, student housing, malls, PSU buildings and other assets are also included.

Even investors with small capitals, such as around 2 lakh rupees, can invest in real estate because of REITs. This is like listed shares, wherein small investors can purchase these units of the REITs from the primary and secondary markets.

SEBI had come up with some regulations over REITS as well as infrastructure investment trusts (InvITs) in 2014. This factor allowed such trusts to be set up and get listed and even become popular in some advanced markets. Yet, so far, only two InvITs were able to get listed. Once REITs are listed, the investors will be able to gain a greater amount of confidence, bringing benefits to the real estate industry.

To receive the latest updates about the real estate industry, or to find specific information, you can run a simple search on the internet using keywords such as ‘Nabil Patel Wikipedia.’

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Created on Jul 23rd 2019 01:41. Viewed 562 times.

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