Tag: Real Estate Investment Trusts

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RBI Sets Final Rules for Easing Bank Loans to REITs, InvITs

MUMBAI: On Wednesday, the Reserve Bank issued final amendment directions that allow commercial banks to lend to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), while maintaining essential safeguards regarding exposure limits, asset quality, and repayment structures. The final directions incorporate feedback from stakeholders following the draft norms. Key changes include allowing overseas branches of Indian banks to engage in REIT financing through syndication, with specific caps on contributions (20%) and risk weight (150%). The requirement for an insolvency mechanism has been modified to include a broader stipulation for an “effective recovery mechanism” in overseas jurisdictions. The central…

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IRDAI to Relax Rules for Insurance Investment in REITs, InvITs

The insurance regulator is currently reviewing a proposal to relax investment regulations for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). This comes in response to strong investor interest in recent infrastructure offerings, such as the ₹6,000 crore Raajmarg InvIT issue launched in March, which has amplified the call for increased insurer involvement in long-term yield assets. Currently, insurers are limited to a maximum of 3% investments in both REITs and InvITs. The Insurance Regulatory and Development Authority (IRDAI) is considering a proposal that would raise the combined exposure limit to 6%, permitting insurers to allocate investments across…

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5 REITs distribute ₹2,450 crore to 3.8 lakh unitholders in Q3 FY26

NEW DELHI: In the third quarter of FY26, India’s five listed Real Estate Investment Trusts (REITs) distributed over ₹2,450 crore to more than 3.8 lakh unitholders. The listed REITs—Brookfield India Real Estate Trust, Embassy Office Parks REIT, Knowledge Realty Trust, Mindspace Business Parks REIT, and Nexus Select Trust—collectively manage a portfolio exceeding 185 million sq ft of grade-A office and retail real estate nationwide. Since their respective launches, these REITs have cumulatively disbursed over ₹29,100 crore to unitholders, demonstrating the growing prominence of this investment vehicle in India’s capital markets. As of Q3 FY26, the total gross assets under management…

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RBI to Permit Bank Lending to REITs with 10% Exposure Cap

NEW DELHI: The Reserve Bank of India (RBI) has suggested allowing commercial banks to extend loans to real estate investment trusts (REITs) that are registered and regulated by the Securities and Exchange Board of India (SEBI). A draft circular has been issued with a set of prudential conditions, including norms related to leverage and security. The new regulations are expected to take effect on July 1, 2026. The central bank indicated that a bank’s total exposure to REITs should not exceed 10% of its eligible capital base, within the overall prudential ceiling for commercial real estate (CRE) exposures. Additionally, banks…

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Sebi Plans to Broaden Liquid MF Investments for REITs, InvITs

NEW DELHI: On Thursday, the market regulator Sebi proposed to broaden the investment scope for liquid mutual fund schemes by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), as the current eligibility criteria limit their investment choices. At present, these investments are confined to liquid schemes that have a high credit risk value and are highly classified in terms of risk. Sebi’s proposals aim to simplify business operations for REITs and InvITs, offering enhanced investment flexibility while maintaining necessary prudential safeguards. In its consultation paper, Sebi has also suggested that InvITs should be allowed to retain investments in…

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Budget 2026: REITs, Land Relief, and City Growth Boost Real Estate

File photo NEW DELHI: Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 on February 1, unveiling a series of initiatives designed to enhance capital recycling, simplify tax compliance, and accelerate urban infrastructure development, benefiting the real estate and construction sectors substantially. A major highlight was the government’s plan to fast-track the monetization of central public sector enterprise (CPSE) real estate assets through specialized Real Estate Investment Trusts (REITs). Sitharaman noted that REITs have proven to be an effective tool for asset monetization, which would aid in recycling mature public assets, while also generating consistent revenue and unlocking funds for…

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InvITs, REITs Distributions Surge 55% YoY in Q2 FY26: ICRA

NEW DELHI: According to ICRA Analytics, India’s Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) showed remarkable growth in distributions for the second quarter of FY2026, buoyed by robust performance in various sectors such as roads, power, energy, commercial real estate, telecom infrastructure, and logistics. Distributions from public InvITs and REITs surged by 34.3% quarter-on-quarter, exceeding ₹3,300 crore in Q2 FY26. On a year-on-year basis, distributions saw a 55.4% increase from the previous year. REITs were the standout performers this quarter, benefiting from steady leasing activity, rental growth, and improved collection rates within commercial office portfolios. Meanwhile, road…

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Crisil: REIT Gross Asset Value to Surge 35-40% This Fiscal

NEW DELHI: According to Crisil Ratings, the gross asset value (GAV) of domestic real estate investment trusts (REITs) is projected to rise by 35-40% by the end of fiscal 2027, up from September 2025, driven by new asset additions and the introduction of another REIT. Stable rental income growth, along with diversification and regulated leverage, will support steady credit profiles. REITs generally grow their asset base either through the development of new projects—limited to 20% by regulations—or by acquiring existing operational assets. Gautam Shahi, director of the firm, stated, “Currently, under-construction assets make up just 5% of total GAV for…

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Two REITs Set for Debt Sales This Month, Sources Say

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…

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PFRDA Simplifies Investment Rules for REITs and InvITs

Representative AI image NEW DELHI: The Pension Fund Regulatory and Development Authority (PFRDA) has clarified the framework for National Pension System (NPS) funds to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) through a revised master circular on investment guidelines issued on December 10, 2025. PFRDA has established new exposure limits to govern this investment. Combined investments in REIT and InvIT debt instruments and units must not exceed 3% of a pension fund’s total assets under management. Furthermore, pension funds cannot hold more than 15% of the outstanding debt instruments from a single REIT or InvIT,…