Brookfield - a Canadian entity planning to set up USD 500 million REIT in Indian Real Estate Industry
- 30th Jan 2015
- 2354
- 0
Brookfield - a Canadian entity planning to set up USD 500 REIT in Indian Real Estate Industry
With major global players eyeing to get a sizeable chunk of the pie - Indian real estate seems to be heading in the right direction.
As per industry speculations, the latest biggie to join the growing list of entrants in Indian real estate is Brookfield which is a global alternative asset manager with approximately $200 billion in assets under management. The Canadian company has over a century of experience and reputation of owning and operating assets including property, renewable energy, infrastructure and private equity.
It is planning to create a real estate investment trust (REIT) and list it in India subject to clearance from the government and authorities.
REITs are a different way of investing in real estate without actually getting into the purchase of the physical assets. REITs tend to give high dividend yield along with capital appreciation to investors, something very similar to actually buying a property but without the bother of getting into the complications of buying an immoveable real estate asset.
In the year 2014 in what was the largest realty deal in the Indian real estate space, Brookfield had bought a 100% stake in four special economic zones and 60% in two other assets owned by Unitech and Unitech Corporate Parks at around Rs. 3,500 Cr.
Although it is not a thumb rule, REITs generally buy non-residential real estate assets like offices, malls, retail spaces that give a good rental yield.
The rental yields that these properties generate are treated as income and individal investors have the option of investing in such entities upon them getting listed on the stock exchange.
Western economies especially America have adopted the REIT way on real estate investing wholeheartedly. However the whole concept of REITs has gained momentum very recently in India and the country gave its primary nod to this real estate investment format only last year. There is heavy anticipation in the market with further clarity expected on the same this year during the budget.
WRITTEN BY
Rajesh Kulkarni is a professional content writer and he writes on various contemporary topics.... read more
Comments
Add Your Comment
Thank you, for commenting !!
Your comment is under moderation...
Keep reading other articles