REIT supposes to prove good option for investors: Vikas Gupta

Ludhiana, February 10: A major development in the real estate sector is about to take across the country. There is a proposal of introducing Real Estate Investment Trust (REIT) regime.
REIT will manage real estate properties on behalf of investors, much like shareholding in a company. In this regard, Draft guidelines have already been floated by SEBI in October last. However, the final guidelines are still awaited.
The real estate sector has attained tremendous growth over the period, especially in the last one decade. Still, the real estate sector is to get the status of an industry. Insiders in real estate sector believe that the proposed REIT regime is supposed to provide a systematic and institutional financing option for this particular sector. In nutshell the proposed REIT regime is to be set up with the objectives of organising, operating and managing the collective investments in the Indian real estate sector.  As per the consultation paper issued by SEBI, REIT will be registered as a trust with SEBI and provide financing and exit options both for the investors as well as developers, builders and others. Interestingly, it is an option that streamlines the alternative investment options for the real estate sector and provides a return to the investors. Under this proposed regime, returns come from the rentals of the properties.
Reacting to the proposed REIT regime, Vikas Gupta, Joint Managing Director, Earth Group, says that REIT is supposed to prove a good option for the investors as they get less risky avenue with the scope of good returns. He adds as per the SEBI’s proposal, after the establishment of REIT, largest realty companies will be allowed to register with it and allowed them to issue public offerings to get funding for their projects completed on providing good returns. He adds that there is huge scope of such instruments and will prove to be measured step to protect the growth of the real estate sector from the adverse impacts of the interest rates and burdensome financial realty. // ludhiana real estate market, ludhiana real estate news, ludhiana real estate projects, ludhiana real estate prices, ludhiana real estate classifieds, real estate agents ludhiana, ludhiana property, plot ludhiana, Ludhiana property news, world news,

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