Despite pandemic, assets worth Rs 3.5 lakh cr to get monetised through REIT and InvIT
New Delhi: Despite corona marring the prospects f commercial real estate, assets worth Rs 3.5 lakh crore are expected to get monetised through REIT and InvIT in the coming one year, according to ICRA.
The trend is supported by track record so far of entities that have come up with such structures.
In the realty industry, there are several companies and asset managers who have built large portfolios of assets that are REIT ready and can be monetized. Of these, assets worth Rs 1 lakh crore are expected to be listed in the medium-term.
Infrastructure assets, on the other hand, with 3-5 years of operating track records in segments like highways, roads, digital fibre, gas pipeline and power transmission are suitable candidates for monetization. Of these, assets worth Rs 2.5 lakh crore are likely to be monetized through InvIT in the coming one year.
InvIT and REIT structures are likely get fair traction in the near to medium term.
In the last 2 years, InvITs have seen monetisation of assets worth Rs 85,300 crore and all 3 REITs valued at Rs 77,100 crore were also listed.
"The supporting regulatory framework for various stakeholders attracted both debt and equity investors towards these trusts. Till date, assets worth Rs 2.1 trillion have been floated through these platforms – 64% through InvITs and 36% through REITs. Lenders are also increasingly becoming comfortable lending to such structures,” said Shubham Jain, group head & senior vice president, Corporate Ratings, ICRA.