Global investment company Blackstone and realty firm Embassy Group are likely to launch the country’s first real estate investment trust (REIT) next month with an estimated issue size of Rs 5,000 crore.“We will launch our REIT in few weeks,” Embassy Office Parks CEO Mike Holland said.
Embassy Office Parks, a joint venture of Blackstone and Embassy, had in September last year filed the draft red herring prospectus (DRHP) for the REIT with market regulator SEBI. This, once launched, will be Asia’s largest REIT in terms of portfolio size.
Embassy Office Parks, a leading player in commercial real estate, has put 33 million sq ft of office and hospitality assets under the proposed REIT, comprising seven business parks and four city-centric buildings spread across Mumbai, Bengaluru, Pune and Noida.
“We already have a strong book of anchor and strategic investors. The REIT will be successful as in other countries and Embassy Office Parks will set a precedent for the REIT in India,” Holland said.REIT is an investment tool that owns and operates rent-yielding real estate assets.
REITs also allows individual investors to make investments on this platform and earn income. SEBI had notified REIT regulations in 2014, allowing the setting up and listing of such trusts which are very popular in some advanced markets. Experts claim that once successful, this will attract more funds for commercial real estate projects.