Five Indian REITs Distribute Rs 24.5 bn To Unitholders
Real Estate

Five Indian REITs Distribute Rs 24.5 bn To Unitholders

Five publicly listed Real Estate Investment Trusts (REITs) in India distributed Rs 24.5 bn to more than 380,000 unitholders during the third quarter of the current financial year. The trusts are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Knowledge Realty Trust, Mindspace Business Parks REIT and Nexus Select Trust. Together they manage a portfolio spanning over 185 million (mn) square feet of Grade A office and retail space across India.

Since their inception the listed Real Estate Investment Trusts have cumulatively returned Rs 291 bn to unitholders, underlining their growing role in the country’s capital markets. As of the third quarter gross assets under management (AUM) stand at Rs 2,500 bn, reflecting rapid expansion of the sector. The scale of assets highlights increasing investor appetite for transparent income-generating platforms in commercial real estate.

The chairperson of the Indian REITs Association, who is also the managing director and chief executive of one founding trust, said the sector continues to show strong and stable performance supported by steady demand for high quality office and retail assets in key markets. He noted that healthy leasing activity, improving occupancy and rental growth demonstrate the resilience of India’s commercial real estate ecosystem. Recent regulatory proposals such as permitting banks to lend directly to REITs and the potential for dedicated REITs for Central Public Sector Enterprises are expected to broaden access to long term capital.

The Indian REITs Association (IRA) is a non-profit trade body formed with guidance from the Securities and Exchange Board of India and the Ministry of Finance to advance the Real Estate Investment Trust sector and promote industry best practices. Founding members include Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT and Nexus Select Trust, with Knowledge Realty Trust joining as a member.

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Five publicly listed Real Estate Investment Trusts (REITs) in India distributed Rs 24.5 bn to more than 380,000 unitholders during the third quarter of the current financial year. The trusts are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Knowledge Realty Trust, Mindspace Business Parks REIT and Nexus Select Trust. Together they manage a portfolio spanning over 185 million (mn) square feet of Grade A office and retail space across India. Since their inception the listed Real Estate Investment Trusts have cumulatively returned Rs 291 bn to unitholders, underlining their growing role in the country’s capital markets. As of the third quarter gross assets under management (AUM) stand at Rs 2,500 bn, reflecting rapid expansion of the sector. The scale of assets highlights increasing investor appetite for transparent income-generating platforms in commercial real estate. The chairperson of the Indian REITs Association, who is also the managing director and chief executive of one founding trust, said the sector continues to show strong and stable performance supported by steady demand for high quality office and retail assets in key markets. He noted that healthy leasing activity, improving occupancy and rental growth demonstrate the resilience of India’s commercial real estate ecosystem. Recent regulatory proposals such as permitting banks to lend directly to REITs and the potential for dedicated REITs for Central Public Sector Enterprises are expected to broaden access to long term capital. The Indian REITs Association (IRA) is a non-profit trade body formed with guidance from the Securities and Exchange Board of India and the Ministry of Finance to advance the Real Estate Investment Trust sector and promote industry best practices. Founding members include Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT and Nexus Select Trust, with Knowledge Realty Trust joining as a member.

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