MUMBAI: Two Indian real estate investment trusts (REITs) are preparing to enter the bond market in the coming days, concluding a year characterized by record issuances from income-generating real estate operators, according to sources familiar with the matter.
Merchant bankers note that bonds generally come with fewer restrictions compared to bank loans, enabling trusts to allocate funds across multiple properties.
Knowledge Realty Trust and Embassy Office Parks REIT aim to collectively raise around 21 billion rupees (approximately $232.8 million) through shorter-tenor debt instruments.
Knowledge Realty Trust intends to secure 16 billion rupees through bonds maturing within four years. Meanwhile, Embassy Office Parks REIT is considering issuing notes with maturities of five years or more, including put and call options, as per the anonymous sources.
Both companies have not responded to requests for comment from Reuters.
If successful, December will mark the first month in which all five of India’s REITs have issued bonds.
This year’s bond issuances by REITs are projected to hit a record high. To date, they have raised 112.5 billion rupees, nearly double the 59 billion rupees raised in 2024, according to Prime Database.
Earlier this week, Brookfield India Real Estate Trust completed its inaugural debt issuance, raising 20 billion rupees with a five-year maturity.
