Welcoming market regulator Sebi’s draft norms on Real Estate Investment Trusts (REITs), the real estate industry on Thursday said the instrument would help in increasing the capital flows into the sector and also provide exit route to investors once implemented.
Sebi proposed listing of REITs, a popular instrument for raising funds in the realty sector. Issuing draft norms for REITs, Sebi said the evolution of such investment vehicles is “crucial” for the rapidly growing real estate industry.
“This is a welcome move. Once in place it will provide an additional exit route for investors and enable retail money to be channelised into India’s realty sector through a regulated network,” CBRE South Asia Chairman & MD Anshuman Magazine said in a statEchoing similar views, Unitech Managing Director Sanjay Chandra said: “It’s an excellent progressive step. This will let investors directly participate in the institutional Grade A office space, giving them steady income. Also will give a much needed boost to commercial real estate business. Developers will benefit by freeing up freeing up of capital in the sector.”