REIT

(Real Estate Investment Trust)

Ideas for Today and Tomorrow
What are reIt’s ?
 reIt’s In IndIa

 SEBI REIT Regulations 2014 – To be set up as Trust (Not company or LLP)

 To be registered with SEBI & trade on Stock Exchanges

 At least 80% of total Assets value in completed & Rent Generating RE, with lock-in period of 3 year

 Maximum 20% of total Asset Value can be from:

 Under-construction properties with a lock-in period of 3 years post completion. Max under construction – 10%

 Listed or unlisted debt of RE companies

 Mortgage backed Securities

 Stock of listed RE companies in India, generating at least 75% of their income from RE
 reIt’s In IndIa
 Unutilized FSI and TDR

 Government Securities

 Cash or Money Markets

 Cannot invest in vacant land or agriculture land

 At least 75% of revenue from rentals

 Investment in other REIT or lending not permitted

Dividends

 Minimum 90% of net distribution cash flow of REIT

 At least 90% of sales proceeds unless reinvestment is proposed

 Distribution every 6 months

 Public offer
 Total Asset Value of REIT > Rs. 500Cr.

 Min. public Float – 25%

 Min. offer size – Rs. 250Cr

 Min. Subscription amount – Rs. 2 lakh per applicant

 Trading lot – 1 Lakh

 Min. Subscribers - 200

 Pros and Cons of Investing in REITs

PROS CONS

 Low Entry Point & High Liquidity  Lack of Reinvesting

 Diversification/Counterweight to other assets  Non-tax-advantaged

 Less Risk  Subject to market risk

 Transparency  High management and transaction fees

 Steady dividends & Capital Appreciation

 Professionally Managed
 Overview
• Embassy Office Parks is the first listed REIT in India.

• Owns one of a India’s largest office portfolios spread across Bengaluru, Mumbai, Pune and Noida.

• 7 Best in Class Office Parks and 4 Prime city – center office buildings totaling 32.7 million square feet.

• Owns 100 Mega Waltz solar park.

• Hotel Assets managed by Hilton and Four Seasons.

Market value
Top 10 tenants