Assets over Rs 3.5 trillion to be monetised via InvIT, REIT in next one year
Real Estate

Assets over Rs 3.5 trillion to be monetised via InvIT, REIT in next one year

Investment information and credit rating agency (ICRA) told the media that assets worth over Rs 3.5 lakh crore are likely to get monetised through Infrastructure Investment Trust (InvIT) and Real Estate Investment Trust (REIT) as a platform in the next year.

There are various developers and asset managers who have steadily built up large portfolios of REIT-ready assets in the real estate space, which can be monetised through this route. Assets worth over Rs 1 lakh crore of such portfolios are likely to be listed in the near to medium term.

Infrastructure assets with three to five years of operating track record across different segments are ideal candidates for monetisation through this platform. Of this, assets worth over Rs 2.5 lakh crores are anticipated to be monetised by InvIT in the next year.

InvIT and REIT structures are expected to see healthy traction in the near to medium term, supported by the track record of entities that have already floated such structures, enabling regulatory developments and focus on attracting infrastructure space investments.

The InvIT space had observed monetisation of assets worth Rs 853 billion in the last two years. All three REITs worth Rs 771 billion were listed during the same period.

Further, the Insurance Regulatory and Development Authority of India (IRDAI) has recently approved insurers to invest in debt instruments of InvITs and REITs rated AA and above as a part of their approved investments, which evidences the growing comfort of lenders as well as investors around such structures.

ICRA Group Head and Senior Vice President Shubham Jain said that to date assets worth Rs 2.1 lakh crore have been floated through these platforms, 64% through InvITs and 36% through REITs.

Image Source


Also read: Embassy REIT to invest Rs 2,800 cr in developing office spaces

Also read: Potential for ₹5-6 trillion assets to be monetised in the near term at central level

Investment information and credit rating agency (ICRA) told the media that assets worth over Rs 3.5 lakh crore are likely to get monetised through Infrastructure Investment Trust (InvIT) and Real Estate Investment Trust (REIT) as a platform in the next year. There are various developers and asset managers who have steadily built up large portfolios of REIT-ready assets in the real estate space, which can be monetised through this route. Assets worth over Rs 1 lakh crore of such portfolios are likely to be listed in the near to medium term. Infrastructure assets with three to five years of operating track record across different segments are ideal candidates for monetisation through this platform. Of this, assets worth over Rs 2.5 lakh crores are anticipated to be monetised by InvIT in the next year. InvIT and REIT structures are expected to see healthy traction in the near to medium term, supported by the track record of entities that have already floated such structures, enabling regulatory developments and focus on attracting infrastructure space investments. The InvIT space had observed monetisation of assets worth Rs 853 billion in the last two years. All three REITs worth Rs 771 billion were listed during the same period. Further, the Insurance Regulatory and Development Authority of India (IRDAI) has recently approved insurers to invest in debt instruments of InvITs and REITs rated AA and above as a part of their approved investments, which evidences the growing comfort of lenders as well as investors around such structures. ICRA Group Head and Senior Vice President Shubham Jain said that to date assets worth Rs 2.1 lakh crore have been floated through these platforms, 64% through InvITs and 36% through REITs. Image Source Also read: Embassy REIT to invest Rs 2,800 cr in developing office spaces Also read: Potential for ₹5-6 trillion assets to be monetised in the near term at central level

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code