REIT firms plan to form an association

Real Estate Investment Trust (REIT) firms in India are discussing plans to form an association to represent the industry and promote the emerging product, which is still in its early stages. The association could be on the lines of the Association of Mutual Funds in India (AMFI).

Currently, there are only four listed REIT entities in India. Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India REIT are office space-backed REITs, While Nexus Select Trust is the first mall and retail-asset-backed REIT in India.

"Talks are on for an association to represent the REIT sector. It will help carry out awareness jointly about the innovative product, which holds tremendous opportunity," a senior official of a top REIT firm told PTI, requesting anonymity.

He said details for the formation of the association are still being worked out with all stakeholders, including the Securities and Exchange Board of India (Sebi). However, it could get crystallised within the current fiscal.

Another REIT official stated that things are still in the "preliminary" stages.

The association could also help to set standards and regulations for the REIT sector in India. This would help to create a more robust and transparent market for REITs, which would benefit investors, the official said.

The association could help in promoting the benefits of investing in REITs and increasing awareness about this innovative investment product.

REITs are a type of investment vehicle that allows investors to buy shares in a portfolio of real estate assets. This can be a more diversified and liquid way to invest in real estate than buying individual properties.

There is 57 per cent untapped potential for Real Estate Investment Trusts (REITs) in India, with 380 million square feet of existing Grade A office space eligible for listing as REITs. Currently, total space under REIT management is estimated at 100 million sq ft, according to an official.

The formation of the association is still in the early stages, but it is a positive development for the REIT sector in India. The association could help to promote the product and make it more accessible to investors, officials mentioned.