Leading the way in 1960, the US Congress signed a legislation introducing Real Estate Investment Trusts (REITs) to bring the benefits of commercial estate to the common American, which were largely available to financial institutions and wealthy individuals. REITs are securities linked to real estate that can be traded on stock exchanges once they get listed. They invest in income-generating real estate. This income gets distributed among unit holders, including sponsors, trustees, fund managers and unitholders. Bradley Real Estate Investors, Continental Mortgage Investors, First Mortgage Investors and First Union Real Estate were among the first ones to create REITs in the US. In 1965, Continental Mortgage Investors listed on the New York Stock Exchange.
Back home, though the Securities and Exchange Board of India (Sebi) introduced the draft REIT regulations as early as 2007, it was only seven years later in 2014 that Real Estate Investment Trusts Regulations, 2014 (REIT Regulations) were enacted. Other reforms, including liberalisation of foreign direct investment (FDI) norms in real estate, opening up of the domestic fund industry to foreign investments and clarity on tax implications of REITs, helped the market get ready for its first REIT listing in 2019. On April 1, Embassy Office Parks (a joint venture between US private equity firm Blackstone and Embassy group) REIT got listed on the BSE. Investors lapped it up.
According to estimates of the European Public Estate Association, the total value of listed real estate globally is around $3,864.3 billion and property under REITs forms nearly 53 per cent, around $2042.8 billion. However, this is largely concentrated in developed markets.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Inclusivity Still a Challenge
HOWEVER, A GREATER NUMBER OF WOMEN, GLOBALLY AS WELL AS IN INDIA, ARE VENTURING INTO ENTREPRENEURSHIP AND BUILDING SUCCESSFUL ORGANISATIONS
Women of Mettle
As the core sectors see participation of women across levels, their proportion will only increase. But how quickly will that happen?
THE ONE WITH BOLD STROKES
For Ritu Gangrade Arora, an avid painter, the canvas imitates professional growth, one that is constantly evolving
TECH MAVEN
Manufacturing firm Flex is scaling records under the able leadership of Revathi Advaithi.
The Global Juggernaut
Devika Bulchandani, the Global CEO of Ogilvy, derives inspiration from closer home. Relationships and reputation are her guiding mantras.
WONDER VISION
Bela Bajaria, as the head of content at Netflix, has been instrumental in shaping what its subscribers watch across the world
Steering Global Change
Anshula Kant is playing a pivotal role as the World Bank reorients itself to better serve developing countries.
The Master Builder
Under her guidance, JK Lakshmi has established itself as one of the largest cement players with annual capacity of 14 million tonnes
MONEY ANGEL
Padmaja Ruparel and her partners at Indian Angel Network have not just backed start-ups; they've created jobs as well.
Taking India Global
Invest India's Nivruti Rai loves taking on challenges. Her tenacity will come in handy as she looks to bring in more foreign investments
