REITs_in_india

The current write-up seeks to explore the following Q & A: Qs: Which type of investors find investment in REIT/ InvIT suitable for their needs? Ans:The investment is ideal for any investor with a risk-return profile falling between equity and debt.   v   In India, investment in REITs/ InvITs is highly regulated by SEBI and it is now possible for any investor (retail or institutional) to invest in them through stock exchanges. v   Investment is undertaken in exchange tradeable instruments which are termed as “units” v   These units of REITs/ InvITs are issued by special financial vehicles which source money from various investors and invest the same in income generating real estate assets/ infrastructure. v   The legislative framework  provides safety to investors and the taxation framework gives these vehicles a pass-through status to benefit the investors by avoiding multiple taxation points v   The units represent a proportionate...

  Investment Planning: Advantage REITs REITs stand for real estate investment trusts, and REIT units are useful financial products for investment planning purposes. To understand their utility in investment planning, we start with ignoring the part of real estate and we look at them solely as financial products. We analyze the products in comparison to the most widely-used financial products and then extrapolate their usage for financial and investment planning. The two major categories of investment, traditionally, are debt investment and equity investment. Debt investment aims at generating regular returns during the investment period whereas equity investment largely aims at capital appreciation. Debt investors want steady income, safety of investment and avoid risks of equity markets. Although they get regular and steady income stream with debt investments, they are always in danger of losing out on capital appreciation because long time-frames have exponential cyclical ups...

  It is a known fact that REIT and InvIT investments are a favorite of pension funds like the Canadian firm, Brookfield or the Singapore Pension fund, GIC. Here we explore the reason for the same.  The Canada Pension Plan Investment Board (CPPIB) has invested in Embassy REIT, GIV has invested in indigrid InvIT and Brookfield has even come out with its own REIT in 2021. The reasons for their preference of REITs are explored below: A) What do these investors seek: Investors seek regular cash-flows. They also wish to protect their capital over time as one of the biggest fears is inflation eating into capital. B) Disadvantages/ Shortcomings of a typical corpus fund yielding interest (debt investing):  Longevity may prove to be a bane for these individuals as capital gets eroded or the inflation makes their cash flows inadequate. The advantage offered by REITs counter the above problems. This advantage is inherent in the way REITs assets perform and...

  This page is about the new book by Gaurav Jain : Click here to buy book from Amazon India Website    Click here to see description of each chapter of book  BRIEF DESCRIPTION OF THE BOOK This book follows the author’s earlier book named  “Real Estate Investment & Financial Analysis” (REIFA) . REIFA, an awarded book  (awarded "Best Books of All Time" by BookAuthority)  and a bestseller in its category in India, was meant for readers interested in a perspective on financing and related analysis of real estate investments. It covered a wide variety of topics and had a real-estate-centric approach. The present book is focused on REITs and InvITs, which have recently been listed in Indian stock markets. These are extremely lucrative, globally-accepted investment avenues, but are still highly unexplored in the Indian scenario. Although REITs and InvITs are relatively new instruments for Indian stock markets, they have the potential of generating e...

  Chapter 1: What are REITs AND InvITs?             ·          A Reality Check First ·          What is the Need for Systematic Study of REITs & InvITs? ·          Asset Representation in Financial Markets ·          What is the Background for REITs & InvITs? ·          What are REITs & InvITs, in Common Parlance? ·          When do REITs become possible in a country? ·          What is the basic REITs /InvITs structure in India? ·          What Problems Do REITs and InvITs Solve? ·          REITs, Other Financial Instruments and Real Estate Assets ·     ...

  This book is a study of REITs and InvITs and is divided into 7 chapters. The brief description of each chapter is as below: Chapter 1: What are REITs?         Introduction to the concept of REITs and InvITs, the acronyms for “Real Estate Investment Trusts” and “Infrastructure Investment Trusts”, respectively. These investment vehicles offer investors both categories of investment– a slice of the capital markets and a slice of the real estate markets . Since it is a relatively new concept in India, the first chapter touches on a few related topics to quickly answer some preliminary questions that a reader seeks. The sub-topics here necessarily require more detailed explanations, which are carried out in the subsequent chapters.   Chapter 2: REITs and Real Estate Assets   The first few sub-topics of the chapter explore the rationale for real estate investing and also caveats for the same. An understanding of the basic feature...