Indian REITs and Bharat InvITs Associations Launch First Investor Awareness Programme in Hyderabad

Varahi media.com online news,Hyderabad, December 4, 2024: The Indian REITs Association (IRA) and Bharat InvITs Association (BIA) collaborated to host their inaugural investor awareness programme in Hyderabad.

This initiative aims to educate retail investors on Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), fostering greater understanding, adoption, and participation in these investment vehicles.

Understanding REITs and InvITs

• REITs (Real Estate Investment Trusts):
  REITs are investment vehicles that manage income-generating real estate, allowing investors to earn returns without directly owning property. In India, publicly listed REITs include Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust.
• InvITs (Infrastructure Investment Trusts):
  InvITs operate and maintain revenue-generating assets across various sectors such as roads, transmission, pipelines, telecom, and warehousing. By democratizing ownership of large-scale infrastructure, InvITs provide stable yields and enable developers to reinvest capital into new projects. Of the 26 SEBI-registered InvITs, four are publicly listed, while 15 remain privately listed.

Both REITs and InvITs, regulated by SEBI, play critical roles in India’s real estate and infrastructure growth.

REITs:

• Distribution: REITs must distribute 90% of net distributable cash flows semi-annually.
• Affordability: Units are priced as low as ₹100–₹400.
• Scale: Over 125 million square feet of Grade A office and retail space under management.
• Performance: Cumulative distributions exceed ₹19,000 crore since inception.

InvITs:

• Tax Efficiency: Mandated to distribute 90% of net distributable cash flows semi-annually.
• Portfolio: 80% of assets consist of operational revenue-generating projects.
• Growth: Achieved a 17.1% pre-tax return over five years, showcasing stability.
• AUM Potential: With government support via the National Infrastructure Pipeline and National Monetization Pipeline, InvITs are poised to achieve an AUM of ₹21 lakh crore by 2030.

IRA emphasized the steady income and potential capital appreciation REITs offer investors, making them attractive for both retail and institutional participants. Meanwhile, BIA highlighted InvITs’ pivotal role in addressing India’s growing infrastructure needs, aligning with government initiatives to attract private investments.

The programme concluded with an interactive session, enabling attendees to understand the strategic advantages of REITs and InvITs as alternative investment avenues. This initiative is expected to deepen the retail investor base in Hyderabad and foster trust in these innovative instruments.

For more details, stay updated with the Indian REITs Association and Bharat InvITs Association.

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