‘REITs & InviTs coming of age as mainstream asset class in India’

‘REITs & InviTs coming of age as mainstream asset class in India’

NEW DELHI: Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are coming after age in India as a mainstream asset class and are playing “a pivotal role” in driving growth in these two sectors, according to the Indian REITs Association and Bharat InvITs Association. India currently has five publicly listed REITs — Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust and Knowledge Realty Trust. And of the 27 SEBI-registered InvITs, five are publicly listed. Both REITs and InvITs are regulated by SEBI.Terming REITs as a”critical bridge between physical real estate and financial markets,” Alok Aggarwal, MD & CEO of Brookfield India Real Estate Trust and chairman of the Indian REITs Association, said here Friday: “India’s REIT market has moved beyond its early phase to become a reliable investment avenue for both institutional and retail investors. Since their inception, the first four REITs have distributed more than Rs 24,300 crore to unit holders, demonstrating steady cash generation and disciplined governance. Building on this foundation, now five listed REITs command a combined market capitalisation of about Rs 1.5 lakh crore, reflecting growing confidence in the asset class and its ability to deliver stable, predictable distributions.” By regulation, REITs are required to distribute at least 90% of their net distributable cash flows to unit holders on a half-yearly basis. Bharat InvITs Association CEO N S Venkatesh said: “InvITs have emerged as a structured and transparent investment platform, well-suited to India’s evolving infrastructure financing needs. They have created a distinct and credible asset class that brings long-term capital into infrastructure while offering stable returns to investors. The InvIT industry in India has witnessed significant growth, with 27 InvITs registered and cumulative distributions of over Rs 68,000 crore made since inception, underscoring its scale, stability, and increasing investor confidence. With increasing participation from diverse investor categories and a strong regulatory oversight and support from SEBI, InvITs are poised to play an integral role in supporting India’s infrastructure goals.”