India’s first REIT is finally here. Should you invest?
- Though REITs are less volatile, there is no historical data for comparison in India
- REITs shall be tax exempt except the interest income received from the SPV and rental income from property owned directly by REITs
India’s first real estate investment trust (REIT) is soon going to be a reality. The first REIT initial public offering (IPO) by Embassy Office Parks, a Bangalore-based real estate developer backed by Blackstone Group LP, a global private equity firm, is open for investment between March 18 and 20, 2019. The Embassy Office Parks REIT plans to raise ₹4,570 crore through the IPO. The per unit price of the REIT has been kept in the range of ₹299-300, with the minimum application bid of 800 units. This means that an investor will have to invest at least ₹2.4 lakh in this product. Thereafter, one can increase the lot size in multiples of 400 units.
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