A great news comes from the sector of real estate. Blackstone,the world’s largest private equity manager, who are also one of the big investors in Indian commercial properties, is clinching on to their plans to raise Rs 4,000 crore. This would be done through a listing of Real Estate Investment Trust (REIT) on the domestic stock exchanges.
The role of REIT:
This will possibly be India’s first REIT listing and a test case for global investors who have invested big bucks into the country’s rent-yielding commercial assets, more so in the tenanted office spaces. REITs are well recognised listed trusts holding income generating properties, earnings from which are distributed to shareholders. Market regulator, Sebi came out with REIT guidelines two years ago, aiding real estate developers to list their rent-yielding assets, and also catering large and small stock market investors with an inflation indexed product.
The initiation of global investment:
Blackstone, through REIT and its local partners, has been working with the investment bank, Morgan Stanley and law firm, Cyril Amarchand Mangaldas for almost six months and are expected to announce their “intent” by early October. Blackstone has met with other banks and law firms to induct them into the listing process. Blackstone and its partner’s overall portfolio collected about Rs 2,200 crore, or slightly over $300 million, in rentals last fiscal.
Blackstone is targeting the rental income to touch $500 million by March, 2018.
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