Pol­icy amend­ments on REITs ben­e­fi­cial

HT Estates - - FRONT PAGE - HT Es­tates Cor­re­spon­dent

The lat­est pol­icy an­nounce­ments made by the gov­ern­ment has po­si­tioned In­dia as one of the most open economies. The var­i­ous an­nounce­ments con­vey the gov­ern­ment’s com­mit­ment to re­forms and to mak­ing In­dia a lu­cra­tive in­vest­ment des­ti­na­tion for cor­po­rates across the globe. With th­ese struc­tural shifts, apart from gen­er­at­ing new em­ploy­ment op­por­tu­ni­ties, the coun­try is here to wit­ness rapid in­fra­struc­ture de­vel­op­ment in the near fu­ture.

The mea­sures an­nounced by the gov­ern­ment re­gard­ing FDI as well as Real Es­tate In­vest­ment Trusts (REITs) will fa­cil­i­tate

in­vest­ments into the coun­try. Higher in­vest­ment vol­umes are likely to re­sult in greater in­flow of for­eign in­vest­ments and en­cour­age do­mes­tic play­ers in sec­tors such as man­u­fac­tur­ing with cut-

ting edge tech­nol­ogy, civil and de­fence avi­a­tion, food pro­cess­ing and re­tail, says An­shu­man Mag­a­zine, chair­man and managing director, CBRE, South Asia Pvt Ltd. The growth of th­ese sec- tors will di­rectly ben­e­fit the real es­tate mar­ket in In­dia, es­pe­cially of­fice, re­tail, lo­gis­tics and ware­hous­ing seg­ments, among oth­ers.

With re­gard to REITs, the chang e s pro­posed by t he Se­cu­ri­ties and Ex­change Board of In­dia ( SEBI) are clearly in­dica­tive of the ea­ger­ness to al­low in­vest­ments in REITs on a pri­or­ity ba­sis. The an­nounce­ment to al­low 20% in­vest­ment in under-con­struc­tion projects is likely to lead to an in­crease in po­ten­tial yield re­turns, nec­es­sary for a suc­cess­ful REIT list­ing in the coun­try, he says.

Over­all, th­ese an­nounce­ments by the gov­ern­ment are a much needed step in the di­rec­tion of boost­ing the over­all econ­omy of the coun­try.

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