Real Estate Investment Trusts will help property developers overcome liquidity bottlenecks and act as a medium for investors to exit large projects, according to Nirupa Shankar, executive director at Brigade Enterprises Ltd.
“It is beneficial for the entire (real estate) industry,” Shankar told BloombergQuint in an interview. “It brings in an added liquidity and valuation to some of our commercial portfolio which was otherwise only possible through an initial public offering.”
REITs are mutual fund-liked listed instruments that pool in income-generating assets and allow investors to take exposure in real estate without physically owning it. India cleared such trusts in 2015 but the first public offer comes about four years later after several tweaks to the original rules. Embassy Office Parks REIT launched its three-day IPO on Monday.
REITs also acts as an option for investors in large commercial projects to make an exit.Nirupa Shankar, Executive Director, Brigade Enterprises.
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