Tag: Real Estate Investment Trusts

IndustryLatest Stories

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…

IndustryLatest Stories

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,…

IndustryLatest Stories

India’s SM REIT Market to Exceed $75 Billion: CBRE

Illustrative AI image NEW DELHI: The market for India’s small and medium real estate investment trusts (SM REITs) has the potential to surpass USD 75 billion, supported by over 500 million sq ft of qualifying office, logistics, and retail assets, as highlighted in a report by CBRE South Asia. SM REITs, which were introduced under SEBI’s regulatory framework in 2024, facilitate fractional ownership of income-generating properties typically valued between ₹50 crore and ₹500 crore, allowing smaller investors to engage in commercial real estate. CBRE indicates that this segment could enhance the institutional framework for mid-sized assets and promote increased transparency,…

IndustryLatest Stories

Sebi Reclassifies REITs as Equity to Enhance Market Participation

NEW DELHI: The market regulator, Sebi, announced on Friday that Real Estate Investment Trusts (REITs) will now be classified as equity-related instruments to encourage greater involvement from mutual funds and specialized investment funds (SIFs). Additionally, the classification of Infrastructure Investment Trusts (InvITs) will remain as hybrid instruments. Sebi stated in its circular, “Effective January 1, 2026, any investment by mutual funds and SIFs in REITs will be classified as an investment in equity-related instruments.” Investments in REITs from existing debt schemes and SIF strategies as of December 31, 2025, will be grandfathered. However, asset management companies (AMCs) are encouraged to…

IndustryLatest Stories

SEBI to Engage Stakeholders for REITs Inclusion in Indices

NEW DELHI: The Securities and Exchange Board of India (Sebi) plans to collaborate with industry stakeholders to include Real Estate Investment Trusts (REITs) in market indices, a step that is anticipated to significantly enhance liquidity for these instruments, as stated by chairman Tuhin Kanta Pandey on Friday. Speaking at the National Conclave on REITs and InvITs-2025, Pandey remarked, “Sebi will work with all stakeholders to facilitate the inclusion of REITs in indices.” REITs manage and operate real estate, providing investors an opportunity to invest in high-value properties while earning dividend income that can increase capital over time. Once included in…

IndustryLatest Stories

SEBI Considers Expanding Investment Options for REITs, InvITs

BENGALURU: The chairperson of India’s market regulator has announced plans to expand liquid mutual fund options for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to enhance their participation in the market. “We are reviewing a proposal to increase the accessible liquid mutual fund schemes for REITs and InvITs, with a focus on protecting investor interests,” said Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (SEBI). Furthermore, Pandey noted that SEBI will work towards incorporating REITs into market indices, as outlined in his speech on the regulator’s website last Friday. This initiative follows SEBI’s…

IndustryLatest Stories

SEBI Reclassifies REITs as Equity, Expands Investor Access

NEW DELHI: To enhance participation in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), the Securities and Exchange Board of India (SEBI) has approved amendments to the SEBI (Mutual Funds) Regulations, 1996, reclassifying REITs as “equity” while maintaining InvITs under the “hybrid” category for mutual fund and specialized investment fund investments. The decision, made during SEBI’s board meeting, is expected to facilitate greater mutual fund investment in REITs by including them in equity indices. The regulator noted that these changes followed public consultations in April 2025 and extensive discussions with industry stakeholders. This adjustment aligns domestic regulations with…

IndustryLatest Stories

REITs Value Hits ₹1.5 Lakh Crore; Q1 FY26 Distributions Up 13.7%

NEW DELHI: As of market close on August 18, 2025, India’s listed real estate investment trusts (REITs) have achieved a combined market capitalization of approximately ₹1.5 lakh crore. Quarterly distributions rose 13.7% year-on-year to ₹1,559 crore in Q1 FY26, reaching over 2.7 lakh unitholders. Since their inception, the four operational REITs have distributed more than ₹24,300 crore to unitholders up to Q1 FY26. As of Q4 FY25, the domestic REIT industry’s assets under management (AUM) were valued at ₹2.25 lakh crore, with a portfolio exceeding 175 million sq ft of Grade A office and retail space. REITs offer tax-efficient, pass-through…

CommercialLatest Stories

REITs in India’s office market could reach 30% by 2030: Colliers

NEW DELHI: According to Colliers India, the penetration of Real Estate Investment Trusts (REITs) in India’s office segment could rise from the current 16% to 25–30% by 2030. The report reveals that about 500 million sq ft (msf) of office assets in the country are suitable for REIT listing. Currently, 133 msf have been included under four operational office REITs, with an additional 371 msf of Grade A office space identified for potential future listings. Big Opportunities in SBDs The report underscores significant potential for REIT expansion, noting that 371 msf of Grade A office assets—46% of the current stock—could…

InfrastructureLatest Stories

India’s InvIT Market to Reach $258B by 2030: Knight Frank

NEW DELHI: India’s Infrastructure Investment Trusts (InvITs) are poised for significant growth, with asset management (AUM) expected to increase 3.5 times, reaching USD 258 billion by 2030, as revealed in a recent Knight Frank India study. Worldwide, there are over 1,000 listed Real Estate Investment Trusts (REITs) and InvITs with a combined market capitalization of USD 3 trillion. By FY25, India’s InvITs are projected to manage USD 73.3 billion in AUM, nearly 3.5 times that of the country’s REITs. Together, InvITs and REITs represented USD 93.9 billion in FY25, a significant rise from USD 42.1 billion in FY20. Currently, with…