India Can Raise USD 25 Bn With REITs In 3 Years
New Delhi: India can raise USD 25 billion by listing over 150 million sq ft of rent-yielding office properties in the next there years, according to ANAROCK Property Consultants.
The top seven cities in the country have around 550 million sq ft of Grade A office real estate supply. Of this 310-320 million sq ft is REITable as of now.
“The recent success of India’s first listed real estate investment trust (REIT) offers much-needed hope to the beleaguered real estate sector. The enthusiastic response to Embassy Office Parks' REIT launch - and its more-than-satisfactory performance - is priming investors for similar REIT opportunities, which in turn will open up more funding avenues for the sector. Several large developers are keen to list their commercial assets,” said Shobhit Agarwal, MD and CEO, ANAROCK Capital.
REITs worldwide have demonstrated that it can help commercial real estate firms improve their liquidity by way of unlocking the value of their assets to raise capital. For small investors, REITs is a de-risked investment option offering yearly returns of as much as 12-14 percent over the long-term.