<body><script type="text/javascript"> function setAttributeOnload(object, attribute, val) { if(window.addEventListener) { window.addEventListener('load', function(){ object[attribute] = val; }, false); } else { window.attachEvent('onload', function(){ object[attribute] = val; }); } } </script> <div id="navbar-iframe-container"></div> <script type="text/javascript" src="https://apis.google.com/js/plusone.js"></script> <script type="text/javascript"> gapi.load("gapi.iframes:gapi.iframes.style.bubble", function() { if (gapi.iframes && gapi.iframes.getContext) { gapi.iframes.getContext().openChild({ url: 'https://www.blogger.com/navbar.g?targetBlogID\x3d30670461\x26blogName\x3dReliance+SEZ+and+India+Real+Estate\x26publishMode\x3dPUBLISH_MODE_BLOGSPOT\x26navbarType\x3dBLUE\x26layoutType\x3dCLASSIC\x26searchRoot\x3dhttp://reliancesez.blogspot.com/search\x26blogLocale\x3den\x26v\x3d2\x26homepageUrl\x3dhttp://reliancesez.blogspot.com/\x26vt\x3d4003864164228706556', where: document.getElementById("navbar-iframe-container"), id: "navbar-iframe" }); } }); </script>

Home

Property Forum

ICICI SBI Credit Card

Dalal Street


Indian REITs - USD 18 bn Opportunity

Saturday, April 23, 2016

With the Budget 2016-17 clearing the key hurdle of Dividend Distribution Tax (DDT), it has paved the way for REITs/ InvITs to see the light of day. We expect the 1st REIT/ InvIT listing in CY17.

As per Jones Lang LaSalle, REIT-able Grade A office space totals ~229 msf in India across 727 assets. Conservatively assuming that ~50% of this is REIT-able and an average sub-dollar rent of Rs 70/ psf, it would translate into a USD 18 bn of REIT value creation potential (based on a cap rate of 8% and an exchange rate of Rs 65/ $) Mumbai, NCR and Bangalore collectively account for 2/3rd of REIT-able assets

A number of Joint Venture (JV) platforms have been created recently between PE investors and established developers to invest in Indian commercial real estate.
  • Standard Chartered and Tata Realty & Infrastructure to create a Rs 30 bn investment platform, to buy commercial assets across the country. Standard Chartered’s share in this JV to be Rs 20 bn.
  • Goldman Sachs and Nitesh Estates announced a 74:26 JV with a commitment of Rs 18.5 bn from the former
  • Warburg Pincus and Embassy Group announced to invest USD 175 mn and USD 75 mn respectively in a JV that would focus on building warehouses across the country
With new absorptions expected to surpass new completions over the next 2 years, rentals are expected to inch upwards from current levels. Expected improvement on portfolio yields makes this an opportune time  for investors to invest in REITs

0 Comments:

Post a Comment

<< Home