(Bloomberg) -- Blackstone-backed real estate investment trust's successful India trading debut has left global funds including Japan's NikkoAM-StraitsTrading Asia wanting a piece of the action.
Eastspring Investments, North Carolina Fund, and Sentry Global are among names looking to invest in the instrument that bets on India's rent-yielding real estate, said Shobhit Agarwal, managing director at Anarock Capital.
Blackstone Group LP-backed Embassy Office Parks REIT, the first such issuance in India, has soared about 35% since its debut in March, enticing more investors for similar instruments and providing India's cash-starved property firms a new fundraising tool. The performance has beaten indexes that track REITs in Singapore and the local BSE Realty Index of 10 developers.
To read more about how maiden REIT in India won over investors
India can raise $25 billion through REITs over the next three years listing around 150 million square feet of rent-yielding office properties, according to Anarock.
Meanwhile, Blackstone along with an Indian partner K Raheja Corp. may look at listing a second REIT, Bloomberg Quint reported this month. The instrument offers a fixed return from a pool of rent-yielding assets, along with the prospect of capital appreciation.
Bengaluru-based Prestige Group is also likely to list its first commercial office REIT soon, Agarwal said. Others that are likely to consider listing REITs include Bengaluru-based RMZ Corp, Mumbai-based Godrej Properties and Pune-based Panchshil Realty.
To contact the reporter on this story: Dhwani Pandya in Mumbai at dpandya11@bloomberg.net
To contact the editors responsible for this story: Arijit Ghosh at aghosh@bloomberg.net, Anto Antony, Ravil Shirodkar
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