The relaxation is aimed at
allowing these Trusts to invest more in under-construction assets and have a
larger number of sponsors.
"With this further easing of
norms, I hope that REITs will now become a reality. Introduction of REITs in
Indian real estate market will be a game-changer, especially in the current
market situation," property consultant CBRE South Asia CMDAnshuman
Magazine told PTI.
REITs would bring in the much
required liquidity in the real estate market with expected investment from
retail and institutional investors, he added.
JLL India Country Head and Chairman Anuj Puri said:
"This is very pro-active and progressive of Sebi to understand and act on
the requirements of developers and private equity to incorporate the changes
allowing REITs to become a reality."
Puri added:
"The changes proposed by Sebi will help in easing the process and the
first REIT would come in the next 12 months."
According to
EY Tax Partner, Real Estate practice, Maadhav Poddar, increasing the limit of
investment in under-construction assets to 20 per cent from the current 10 per
cent allows more flexibility to select SPVs and projects to be put into an REIT
and reduces the time and transaction costs involved in a prior restructuring.
Removing the
restriction on the SPV -- only in the case of such SPV being a Holding Company
-- to invest in other SPVs holding the assets ensures that existing structures
can as such be migrated into REITs rather than first restructuring the
shareholding, he added.
"Both of
these were specific asks of the industry and would go towards hastening listing
of the first REIT," Poddar said.
Credit : http://economictimes.indiatimes.com/
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