As the Canadian asset management organisation, Brookfield is all set to create a real estate investment trust (REIT) and list it in India, the move is likely to revitalize the country’s real estate segment towards a renewed prospect to growth and prosperity.
This can very soon be a reality, once India finalizes its rules governing REITs, which are typically attuned to provide high dividend yield along with capital appreciation to the investor community and hence this could very well create a unique set of value proposition for investors eyeing the real estate segment in India.
According to market reports, the REIT that Brookfield is looking at, could be valued at about $500 million or INR 3,085 crore. And as part of its India foray, Brookfield might be looking forward to just bring in a select list of properties under one umbrella and get it listed first (as REIT) at one of India’s stock exchanges.
It is important to note that while REITs are a popular route to raise money in the real-estate segment when it comes to real estate operations in matured markets such as the US, India has just initiated its roadmap towards REIT only in the year 2014.
As a result, there are a lot of investors and institutions which are closely eyeing the moves being made by the government to further institutionalize the sector and provide further clarity towards functioning of REITs in India.