Indian REITs Association formed to foster industry best practices, ET RealEstate

September 5, 2023

NEW DELHI: The Indian REITs Association (IRA) has announced its launch as a non-profit trade organisation to advanced the growth and development of the Real Estate Investment Trust (REIT) sector in India.

The association will collaborate with Securities and Exchange Board of India (SEBI) to advocate for both business and investor interests while adhering to regulations.

Solomon Arokiaraj, joint secretary (IPP), Department of Economic Affairs, Ministry of Finance, said, “The global experience in the US and Singapore markets show that REITs have been instrumental in the capitalization of real estate markets. There is an enormous potential to replicate that success in India as well.”

The IRA aims to foster industry best practices that are benchmarked to global REIT standards. It will also work with the authorities and regulators to aid policy initiatives that will enable further growth of REITs.

Brookfield India Real Estate Trust (BIRET), Embassy REIT, Mindspace Business Parks REIT and Nexus Select Trust are the founding members of the IRA.

With Rs 1,19,313 crore in gross assets under management (AUM), a market capitalization of over Rs 75,000 crore, and a portfolio covering 113.5 million sq ft of Grade A office and retail spaces nationwide, REITs in India have demonstrated noteworthy growth since the first REIT listed in 2019.

“I think this is the right time to form this association. REITs industry is at a nascent stage in India and forming this association will help advocate for both business and investor interests, educate investors and drive growth of REITs in the country,” said Anoop Kumar Mittal, ex-chairman & managing director, NBCC India who has recently been appointed as an independent director on the board of Embassy Office Parks Management Services for a term of five years.

In just four years, REITs have raised over Rs 25,500 crores of equity capital through primary issuances including initial listings and follow-on offerings, and Rs 18,890 crores of debt capital. As of June 30, 2023, the number of unitholders in the four REITs has grown to over 200,000.

The IRA will comprise the governance & strategy committee, executive committee and engagement & promotion committee.

  • Published On Sep 5, 2023 at 03:00 PM IST

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