Co-Working Firm EFC To Set Up Investment Manager For SM-REITs
Pune-based EFC (I) Ltd, which is listed on the BSE, has over 35 centres across seven states -- Maharashtra, Telangana, Tamil Nadu, Karnataka, Gujarat, Uttar Pradesh, and West Bengal.
Co-working firm EFC (I) Ltd board has approved a proposal to set up an entity that will act as an investment manager for Small & Medium Real Estate Investment Trusts (SM REIT).
Pune-based EFC (I) Ltd, which is listed on the BSE, has over 35 centres across seven states -- Maharashtra, Telangana, Tamil Nadu, Karnataka, Gujarat, Uttar Pradesh, and West Bengal.
In a statement, EFC (I) Ltd said it plans to incorporate an investment manager entity to manage the assets and investments of SM-REIT.
"As part of the plan, the company will acquire and manage commercial real estate and lease out as managed or service office spaces, which have been one of their core businesses for more than a decade," EFC said.
The company's board has approved the proposal to incorporate a step-down subsidiary under EFC Ltd to act as an investment manager to SM REIT in the name of EFC REIT Pvt Ltd or any other name as approved by the competent authority.
EFC REIT is in the process of incorporation, and an application before the Sebi will be filed within the next 3-4 months.
The company has also forayed into sponsoring and managing a Category II Alternative Investment Fund (AIF), a rental yield fund, to acquire premium commercial real estate and lease it as managed or serviced office spaces.
EFC board has approved the incorporation of a wholly-owned subsidiary to act as the investment manager to an Alternate Investment Fund in the name of 'EFC Investment Advisors Pvt Ltd' or any other name as approved by the competent authority.
EFC Founder and CEO Umesh Sahay said, "India's economy is on a growth trajectory, and this is likely to spur investments across sectors, including real estate -- both commercial and residential." "With SEBI notifying amended regulations for SM REITs, investors can now own rent-yielding real estate assets by making a minimum investment of Rs 10 lakh. The move will help enhance transparency and boost participation of both domestic and foreign retail investors, thereby leading to better liquidity in the market," he said.
