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Budget Pushes Dedicated REITs to Monetise CPSE Realty Assets
Real Estate

Budget Pushes Dedicated REITs to Monetise CPSE Realty Assets

The Union Budget has proposed the creation of dedicated Real Estate Investment Trusts (REITs) to recycle land and property assets held by central public sector enterprises (CPSEs), marking a renewed push towards large-scale public asset monetisation. Finance Minister Nirmala Sitharaman said the initiative would build on the success of market-linked instruments such as REITs and Infrastructure Investment Trusts (InVITs) in funding infrastructure development.

Industry experts believe the move could significantly expand India’s pool of investable real estate, deepen capital markets and provide liquidity to the government. CPSEs hold vast land parcels identified under the National Asset Monetisation Pipeline, and channelising them through REITs could help accelerate monetisation while retaining ownership control.

Anuj Puri, chairperson, Anarock, said dedicated Reits aimed at recycling CPSE assets could cover properties worth nearly Rs 10 trillion, including railway land, port assets, power transmission infrastructure and telecom towers. Amit Maheshwari, managing partner, AKM Global, said: “Monetising public-sector undertaking (PSU) real estate through REITs may give significant liquidity to the government. REITs give participation to retail investors for real estate assets.”

Chetan Chichra, partner, Grant Thornton Bharat, noted that monetisation through REITs would expand investable-grade supply and deepen capital markets. Sitharaman added that REITs have emerged as a successful monetisation tool over the past decade, alongside institutions such as NIIF and NaBFID.

Anshuman Magazine, chairperson and CEO – India, South-East Asia, Middle East & Africa, CBRE, said CPSE-backed Reits are likely to focus on stable, high-yield assets, attracting institutional investors including mutual funds. Vijay Agrawal, MD and sector lead infrastructure, Equirus Capital, said the framework could finally unlock value from railway stations, bus terminals and allied commercial developments through sector-focused Reits.

India currently has five listed REITs, which together manage assets worth about Rs 2.35 trillion and have distributed over Rs 26,700 crore to unitholders since inception. Ramesh Nair, MD and CEO, Mindspace Business Parks Reit, said easing foreign participation and dedicated CPSE Reits would strengthen the pipeline for long-term institutional capital.

According to the Indian REITs Association, the move signals a shift from passive ownership to efficient, market-linked public asset management, though experts await further policy clarity on structure and taxation.

News source: Business Standard

The Union Budget has proposed the creation of dedicated Real Estate Investment Trusts (REITs) to recycle land and property assets held by central public sector enterprises (CPSEs), marking a renewed push towards large-scale public asset monetisation. Finance Minister Nirmala Sitharaman said the initiative would build on the success of market-linked instruments such as REITs and Infrastructure Investment Trusts (InVITs) in funding infrastructure development.Industry experts believe the move could significantly expand India’s pool of investable real estate, deepen capital markets and provide liquidity to the government. CPSEs hold vast land parcels identified under the National Asset Monetisation Pipeline, and channelising them through REITs could help accelerate monetisation while retaining ownership control.Anuj Puri, chairperson, Anarock, said dedicated Reits aimed at recycling CPSE assets could cover properties worth nearly Rs 10 trillion, including railway land, port assets, power transmission infrastructure and telecom towers. Amit Maheshwari, managing partner, AKM Global, said: “Monetising public-sector undertaking (PSU) real estate through REITs may give significant liquidity to the government. REITs give participation to retail investors for real estate assets.”Chetan Chichra, partner, Grant Thornton Bharat, noted that monetisation through REITs would expand investable-grade supply and deepen capital markets. Sitharaman added that REITs have emerged as a successful monetisation tool over the past decade, alongside institutions such as NIIF and NaBFID.Anshuman Magazine, chairperson and CEO – India, South-East Asia, Middle East & Africa, CBRE, said CPSE-backed Reits are likely to focus on stable, high-yield assets, attracting institutional investors including mutual funds. Vijay Agrawal, MD and sector lead infrastructure, Equirus Capital, said the framework could finally unlock value from railway stations, bus terminals and allied commercial developments through sector-focused Reits.India currently has five listed REITs, which together manage assets worth about Rs 2.35 trillion and have distributed over Rs 26,700 crore to unitholders since inception. Ramesh Nair, MD and CEO, Mindspace Business Parks Reit, said easing foreign participation and dedicated CPSE Reits would strengthen the pipeline for long-term institutional capital.According to the Indian REITs Association, the move signals a shift from passive ownership to efficient, market-linked public asset management, though experts await further policy clarity on structure and taxation.News source: Business Standard

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