Debt funding for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs) announced in the Union Budget is expected to be a game-changer for fundraising needs in the real estate sector.
Ashoo Gupta, Partner, Shardul Amarchand Mangaldas & Co, said: “Debt financing of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs) will be enabled by making an appropriate amendment, this may change the donates for the fundraising needs of these entities. and thereby enable greater transaction in completed brownfield projects.
Piyush Gupta, Managing Director, Capital Markets and Investment Services at Colliers International India, said: “Providing flexibility for REITs and invitations to raise more debt capital would provide additional funds to acquire assets, which which could lead to faster closing of transactions at lower cost.
Shishir Baijal, President and Managing Director of Knight Frank India, said, “In the context of the real estate sector, the budget announcements relating to the monetization of infrastructure and real estate assets will help increase private sector participation and will also help the government to improving the flow of funds for development. critical infrastructure assets.
“The government has also continued to focus on the affordable housing segment by extending the tax benefit for one year. In the context of a prolonged pandemic, this extension was necessary to support the latent demand for housing in the country. Additionally, the easing of tax compliance for REIT investors will improve the marketing of these products given that we are likely to see new REITs this year,” he added.
“The proposed relaxation of restrictions on leverage by InvITs/REITs will attract more REIT listings and therefore greater investments in real estate. welcome decision; however, the implementation will need to be monitored,” said Dr. Samantak Das, Chief Economist and Head of Research, JLL India.