REIT firms in India consider forming association

REIT firms in India are considering forming an association to represent the industry and promote the emerging product, which is still in its early stages. There are only four listed REITs in India, which could be similar to the Association of Mutual Funds in India AMFI. Embassy Office Parks, Mindspace Business Parks, REIT and Brookfield India REIT are office space-backed REITs, while Nexus Select Trust is the first mall and retail asset-backed REIT in India. Talks are being arranged for an association to represent the REIT sector. It will help carry out awareness jointly about the innovative product, which holds tremendous opportunity, a senior official of a top REIT firm told PTI. The details of the formation of the association are still being worked out with all stakeholders, including the Securities and Exchange Board of India Sebi, he said. The REIT's official statement said that things are still in the preliminary stages. The association would also help set standards and regulations for the REIT sector in India. The official added that this would help to create a more robust and transparent market for REITs, which would benefit investors. The association could help promote the benefits of investing in REITs and increase awareness about this innovative investment product. REITs are an investment vehicle that enables investors to buy shares in a portfolio of real estate assets. The option to invest in real estate can be a more liquid and diversified investment than buying individual properties. In India, there is 57 percent untapped potential for Real Estate Investment Trusts REITs, with 380 million square feet of existing Grade A office space eligible for listing as REITs. The total space under management by the REIT is currently at 100 million square feet, according to an official. The REIT industry in India is still in the early stages, but it is a welcome development. The association could help promote the product and make it more accessible to investors, officials said.