Should you invest in REIT - Real Estate Investment Trusts
REITs (Real Estate Investment Trusts) - your gateway to fractional ownership in prominent, profit making real estate inventory - were approved in India in the year 2014. If you’re new to REIT, no worries! Here’s a couple of links to help get you up to speed on What is Real Estate Investment Trusts and Why do you need to Invest In REIT.
REITs are quite lucrative and new as an investment opportunity. The units of REITs listed on the stock exchange can be bought and traded just like equity shares. Currently there are three REITs in India -
Brookfield India Real Estate Trust REIT - Brookfield India Real Estate Investment Trust (“Brookfield India REIT”) is 100% institutionally managed real estate trust. It is sponsored by an affiliate of Brookfield Asset Management Inc., one of the largest asset management companies in the world with a footprint spanning 30 countries, 1,50,000 operating employees and assets nearing US$600 billion under management. The portfolio consists of five large campus-style office parks located in key gateway cities. Our assets include Kensington, Powai, Mumbai; Candor TechSpace, Sector 21, Gurugram; Candor TechSpace, Sector 62, Noida; Candor TechSpace, Sector 135, Noida and Candor TechSpace, Rajarhat, Kolkata. The combined ‘business critical’ portfolio comprises 18.6 M sf of Total Area, with13.9 M sf of Completed Area, 0.2 M sf of Under Construction Area and 4.4 M sf of Future Development Potential.
Embassy Office Parks REIT - Embassy REIT owns and operates a 42.6 million square feet (“msf”) portfolio of eight infrastructure-like office parks and four city‑centre office buildings in India’s best-performing office markets of Bengaluru, Mumbai, Pune, and the National Capital Region (“NCR”). Embassy REIT’s portfolio comprises 33.6 msf completed operating area and is home to 201 of the world’s leading companies such as Cognizant, Flipkart, JP Morgan etc. .The portfolio also comprises strategic amenities, including two operational business hotels, four under‑construction hotels, and a 100MW solar park supplying renewable energy to tenants.
Mindspace Business Parks REIT - Mindspace REIT features one of the largest, Grade A Office portfolios in India. They have a well-diversified portfolio of business and IT parks spread across the key commercial markets of Mumbai, Hyderabad, Pune and Chennai.Mindspace REIT is managed by the K Raheja Corp Investment Managers LLP.
With all the What, Why & How of REIT, I think you’re all set to start your investment journey in REITs and become a fractional owner of well performing real estate. With the dividend benefits and the safety net (courtesy of SEBI) it’s really an opportunity up for grabs. And in a sense it’s following in the steps of the safe investment strategy adopted by our elders, since it’s real estate, although with a slight modification which has made the investment in real estate better and more accessible for the common masses. Hope you liked our REIT series!
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