REIT simply implies trading dematerialized real estate. REIT exists in most countries of the world, its a great way of optimizing real estate investment and maximize wealth. REIT was legalized in India in 2013. SEBI is its regulator and the coming times will tell the tale of REIT in India.
Study of REITS (Real Estate Investment Trusts) and its prospect in India: Studied REITS in US, UK, Singapore and Hong Kong; its evolution in India and its pros and cons. Concluded that India is a conducive environment for REITS.
REIT simply implies trading dematerialized real estate. REIT exists in most countries of the world, its a great way of optimizing real estate investment and maximize wealth. REIT was legalized in India in 2013. SEBI is its regulator and the coming times will tell the tale of REIT in India.
Study of REITS (Real Estate Investment Trusts) and its prospect in India: Studied REITS in US, UK, Singapore and Hong Kong; its evolution in India and its pros and cons. Concluded that India is a conducive environment for REITS.
The steady growth in the Asian property market and the success of REITs in the US have been the major drivers for the development of REITs in Asia over the last ten years. There are now over 130 REITs across Japan, Singapore, Hong Kong, Malaysia, Taiwan, Thailand and South Korea. Many other Asian countries are in the process of implementing REIT structures. Given the increased significance of Asian REITs, this paper provides an overall description of the evolution of REITs globally, the development of REITs in Asia, as well as the significance of Asian REITs within a global context.
REIT 101: Presentation by Milos Milosevic at George Washington University, RE...MMCapOne
A detailed, up-to-date presentation on the fundamentals of REITs -- types of REITs, structures, and 2014 performance. Presented by Milos Milosevic of Capital One at the Center for Real Estate and Urban Analysis at George Washington University in Washington, D.C. The event was hosted by the GW Real Estate and Finance Alliance.
With the new investment vehicle, Real Estate Investment Trusts (REITs) coming into effect, what will be the impact on real estate sector? Does the real estate sector striving for cash influx will able to boost up the cash strapped industry a new route to tap capital with the approval of setting up of Real Estate Investment Trusts(REITs) by SEBI, market regulator.
REIT is an investment pool, which finds alternative means of financing real estate through an initial public offering (IPO), which is then used to buy, develop, manage and sell assets in real estate. This pool of real estate generates income through renting, leasing and selling of property and distributes it directly to the REIT holder on a regular basis.
A major benefit of REITs is that they do not have to pay tax on the income received by them, as 90% of the income is distributed to the shareholders. Smaller real estate investors are offered certain important qualities through the modem REITs, which previously were never accessible and available to them before.
An article in the Wall Street Journal (http://online.wsj.com/news/articles/SB10001424052702303819704579320581924300124) focused on whether REIT stock prices typically decline when interest rates increase. They usually don't, because the pace of economic growth is generally more important--and interest rates generally increase as a result of improving economic conditions. When demand conditions (employment, income, consumer spending, etc.) are strengthening, commercial real estate usually becomes more valuable because prospects improve for future growth in rents and occupancy levels.
I have done many other versions of this analysis, updated by several years.
Questions? Contact me at bcase@nareit.com.
Real estate investment trusts (REITs) - Overviewhardiklad93
its all about the REITs an overview. Also includes detail of REITs in global market as well as in Indian context.
Also includes advantage & disadvantage of REITs.
Need of REIT and its prospective implication in india- phoenix mall case studyAjinkya jagtap
A Real Estate Investment Trust is a company which modelled after mutual fund that owns or finances income-producing real estate. It provides investors regular income streams, long-term capital appreciation and diversification. REITs typically distribute all of their taxable income as dividends to shareholders. On those dividends shareholders pay the income taxes. REITs are strong income vehicles because REITs must pay out at least 90 percent of their taxable income in the form of dividends to shareholders .Office buildings, hotels, shopping malls, apartments, resorts, warehouses, self-storage facilities and mortgages or loans are the income producing real estate assets of REITS.
India has also tried to establish REIT. Mainly due to global slowdown and resultant impact on the property markets in India the earlier attempts to introduce REITs in India did not succeed. The other aspect is mortgage backed securities which is not permitted to invest, resulted real estate market opportunities shrinkage. However, SEBI announced the draft consultation paper on Real Estate Investment Trust (REIT) Regulations on October 10, 2013. Earlier in 2008, SEBI had issued certain draft regulations for introducing REITs. I-REITs (REITs in India) will invest in completed rent generating properties in India (to comprise minimum 90% of net asset value) and mortgage backed securities, would issue securities, which would be listed on stock exchanges and. In earlier phase I-REITs are planned to be available only to high net worth individuals and institutions to develop the market but now there are some relaxations introduced.
Will REITS be a game-changer for the Indian real-estate industry as it is exp...Aurum Equity Partners LLP
REITS have been the key source of capital for real estate in most developed markets, and increasingly so in the last decade. In India, raising capital has been challenging for real estate companies. SEBI has recently promulgated the REIT Regulations and some changes in tax legislation and some more (hopefully in the ensuing fiscal budget), have been carried out.
However, for an industry to change to a new regime, also requires the industry participants to learn the rules of the new game.
What can the industry learn from other sectors? Join the Aurum CXO Dialogues webinar where industry veterans from Aurum Equity, Black Olive Ventures and Dua Associates share their insights and perspectives on how the industry can leverage the opportunities created by REITS.
Real Estate Investment Trust (#REIT) provides an unique opportunity to #investors to invest indirectly in income producing #RealEstate. This investment vehicle has the potential to open up #CapitalMarkets to raise sizeable funds by the #Developers & #RealEstateIndustry. Informative presentation.
With resolution of Central Government for reforms, transparency and governance in Corporate Sector, sentiments in the Capital Market has turned positive. Companies Act 2013 has also helped in reinstating the confidence of small shareholders in Capital Market.
As the capital market has grown global, it has generated ample need and huge opportunities for pools of ready money for investments in specific sectors. In such a scenario, several new Investor and Market friendly laws like AIF/ REITs and InvIT have been introduced. SEBI has also recently simplified some norms of AIFs. These type of funds will help in rapid development and growth of various sector of the country.
Need of REIT and its prospective implication in india- phoenix mall case studyAjinkya jagtap
A Real Estate Investment Trust is a company which modelled after mutual fund that owns or finances income-producing real estate. It provides investors regular income streams, long-term capital appreciation and diversification. REITs typically distribute all of their taxable income as dividends to shareholders. On those dividends shareholders pay the income taxes. REITs are strong income vehicles because REITs must pay out at least 90 percent of their taxable income in the form of dividends to shareholders .Office buildings, hotels, shopping malls, apartments, resorts, warehouses, self-storage facilities and mortgages or loans are the income producing real estate assets of REITS.
India has also tried to establish REIT. Mainly due to global slowdown and resultant impact on the property markets in India the earlier attempts to introduce REITs in India did not succeed. The other aspect is mortgage backed securities which is not permitted to invest, resulted real estate market opportunities shrinkage. However, SEBI announced the draft consultation paper on Real Estate Investment Trust (REIT) Regulations on October 10, 2013. Earlier in 2008, SEBI had issued certain draft regulations for introducing REITs. I-REITs (REITs in India) will invest in completed rent generating properties in India (to comprise minimum 90% of net asset value) and mortgage backed securities, would issue securities, which would be listed on stock exchanges and. In earlier phase I-REITs are planned to be available only to high net worth individuals and institutions to develop the market but now there are some relaxations introduced.
The steady growth in the Asian property market and the success of REITs in the US have been the major drivers for the development of REITs in Asia over the last ten years. There are now over 130 REITs across Japan, Singapore, Hong Kong, Malaysia, Taiwan, Thailand and South Korea. Many other Asian countries are in the process of implementing REIT structures. Given the increased significance of Asian REITs, this paper provides an overall description of the evolution of REITs globally, the development of REITs in Asia, as well as the significance of Asian REITs within a global context.
REIT 101: Presentation by Milos Milosevic at George Washington University, RE...MMCapOne
A detailed, up-to-date presentation on the fundamentals of REITs -- types of REITs, structures, and 2014 performance. Presented by Milos Milosevic of Capital One at the Center for Real Estate and Urban Analysis at George Washington University in Washington, D.C. The event was hosted by the GW Real Estate and Finance Alliance.
With the new investment vehicle, Real Estate Investment Trusts (REITs) coming into effect, what will be the impact on real estate sector? Does the real estate sector striving for cash influx will able to boost up the cash strapped industry a new route to tap capital with the approval of setting up of Real Estate Investment Trusts(REITs) by SEBI, market regulator.
REIT is an investment pool, which finds alternative means of financing real estate through an initial public offering (IPO), which is then used to buy, develop, manage and sell assets in real estate. This pool of real estate generates income through renting, leasing and selling of property and distributes it directly to the REIT holder on a regular basis.
A major benefit of REITs is that they do not have to pay tax on the income received by them, as 90% of the income is distributed to the shareholders. Smaller real estate investors are offered certain important qualities through the modem REITs, which previously were never accessible and available to them before.
An article in the Wall Street Journal (http://online.wsj.com/news/articles/SB10001424052702303819704579320581924300124) focused on whether REIT stock prices typically decline when interest rates increase. They usually don't, because the pace of economic growth is generally more important--and interest rates generally increase as a result of improving economic conditions. When demand conditions (employment, income, consumer spending, etc.) are strengthening, commercial real estate usually becomes more valuable because prospects improve for future growth in rents and occupancy levels.
I have done many other versions of this analysis, updated by several years.
Questions? Contact me at bcase@nareit.com.
Real estate investment trusts (REITs) - Overviewhardiklad93
its all about the REITs an overview. Also includes detail of REITs in global market as well as in Indian context.
Also includes advantage & disadvantage of REITs.
Need of REIT and its prospective implication in india- phoenix mall case studyAjinkya jagtap
A Real Estate Investment Trust is a company which modelled after mutual fund that owns or finances income-producing real estate. It provides investors regular income streams, long-term capital appreciation and diversification. REITs typically distribute all of their taxable income as dividends to shareholders. On those dividends shareholders pay the income taxes. REITs are strong income vehicles because REITs must pay out at least 90 percent of their taxable income in the form of dividends to shareholders .Office buildings, hotels, shopping malls, apartments, resorts, warehouses, self-storage facilities and mortgages or loans are the income producing real estate assets of REITS.
India has also tried to establish REIT. Mainly due to global slowdown and resultant impact on the property markets in India the earlier attempts to introduce REITs in India did not succeed. The other aspect is mortgage backed securities which is not permitted to invest, resulted real estate market opportunities shrinkage. However, SEBI announced the draft consultation paper on Real Estate Investment Trust (REIT) Regulations on October 10, 2013. Earlier in 2008, SEBI had issued certain draft regulations for introducing REITs. I-REITs (REITs in India) will invest in completed rent generating properties in India (to comprise minimum 90% of net asset value) and mortgage backed securities, would issue securities, which would be listed on stock exchanges and. In earlier phase I-REITs are planned to be available only to high net worth individuals and institutions to develop the market but now there are some relaxations introduced.
Will REITS be a game-changer for the Indian real-estate industry as it is exp...Aurum Equity Partners LLP
REITS have been the key source of capital for real estate in most developed markets, and increasingly so in the last decade. In India, raising capital has been challenging for real estate companies. SEBI has recently promulgated the REIT Regulations and some changes in tax legislation and some more (hopefully in the ensuing fiscal budget), have been carried out.
However, for an industry to change to a new regime, also requires the industry participants to learn the rules of the new game.
What can the industry learn from other sectors? Join the Aurum CXO Dialogues webinar where industry veterans from Aurum Equity, Black Olive Ventures and Dua Associates share their insights and perspectives on how the industry can leverage the opportunities created by REITS.
Real Estate Investment Trust (#REIT) provides an unique opportunity to #investors to invest indirectly in income producing #RealEstate. This investment vehicle has the potential to open up #CapitalMarkets to raise sizeable funds by the #Developers & #RealEstateIndustry. Informative presentation.
With resolution of Central Government for reforms, transparency and governance in Corporate Sector, sentiments in the Capital Market has turned positive. Companies Act 2013 has also helped in reinstating the confidence of small shareholders in Capital Market.
As the capital market has grown global, it has generated ample need and huge opportunities for pools of ready money for investments in specific sectors. In such a scenario, several new Investor and Market friendly laws like AIF/ REITs and InvIT have been introduced. SEBI has also recently simplified some norms of AIFs. These type of funds will help in rapid development and growth of various sector of the country.
Need of REIT and its prospective implication in india- phoenix mall case studyAjinkya jagtap
A Real Estate Investment Trust is a company which modelled after mutual fund that owns or finances income-producing real estate. It provides investors regular income streams, long-term capital appreciation and diversification. REITs typically distribute all of their taxable income as dividends to shareholders. On those dividends shareholders pay the income taxes. REITs are strong income vehicles because REITs must pay out at least 90 percent of their taxable income in the form of dividends to shareholders .Office buildings, hotels, shopping malls, apartments, resorts, warehouses, self-storage facilities and mortgages or loans are the income producing real estate assets of REITS.
India has also tried to establish REIT. Mainly due to global slowdown and resultant impact on the property markets in India the earlier attempts to introduce REITs in India did not succeed. The other aspect is mortgage backed securities which is not permitted to invest, resulted real estate market opportunities shrinkage. However, SEBI announced the draft consultation paper on Real Estate Investment Trust (REIT) Regulations on October 10, 2013. Earlier in 2008, SEBI had issued certain draft regulations for introducing REITs. I-REITs (REITs in India) will invest in completed rent generating properties in India (to comprise minimum 90% of net asset value) and mortgage backed securities, would issue securities, which would be listed on stock exchanges and. In earlier phase I-REITs are planned to be available only to high net worth individuals and institutions to develop the market but now there are some relaxations introduced.
The idea of Realty Infosol came out of actual life incidence, whereby one wanted to buy a residential apartment within a time frame to offset the capital gains tax from selling an old property.
The hunt started with meeting agents, their brokerage was more or less standard at around 2% of the value of the property excluding duties, which was coming to a decent sum they would have made in case the deal materialised.
Since buying real estate involves a substantial amount of one’s life’s earnings, it was natural to have a lot of questions for the agents about projects which they were promoting e.g. builders reputation and their past projects, feedback from their past customers, growth potential of particular locations that they were pitching, comparison on carpet area, legal documents & plans submitted by them and permissions, the last price at which the builder has sold an apartment, his lowest price and highest price sale etc.
It was astonishing that the agents did not have most of the answers to the queries and insisting on getting answers to the queries made them disinterested, as a result they started getting reluctant in the assignment.
At the end, one had to put own time and energy in getting answers to the queries. The brokerage they demanded suddenly seemed un- justified.
Research report on Strategic Finance & Real Estate in IndiaSaurabh Trivedi
Prepared research report on Strategic Finance & Real Estate in India presented Indian School of Business (ISB, Hyderabad) on November 9th, 2012. The report consist of real estate trend in India in the year 2012. Comparison among the various funding options available for real estate development in India. REITS operation in India and discussion about yield generating assets. Emerging real estate asset class in India.
7. Structure of REIT Investment Dividend Management service Management fees Act on behalf of Unit holders Trustee fees Own assets Rental income REIT Unit holders Asset Management Co. Trustee Properties
11. Transition toward REIT structure Existing public REITS markets REIT structures under consideration Canada-1994 Australia-1971 New Zealand Belgium-1985 Japan-2000 Singapore-2002 Thailand -2005 Malaysia -2004 Hong Kong-2003 Taiwan -2003 Philippines Finland Italy Source: UBS and Deutsche Bank, as of January 2009 U.S.-1960 France-2003 Netherlands-1969 South Korea-2001 Greece -1999 Turkey -1998 India UK - 2006 Germany - 2007
12. REIT – Indian scenario Draft SEBI guidelines INR – Indian Rupees
15. Benefits to Investor Buy real estate stock Own a Property Buy REIT units Returns Dividend from profit Rental income Dividend from rental income Expectancy Company & real estate sector will perform Property prices will rise & Increase in rental income Property prices will rise & increase in rental income Investment Low High Low Liquidity Yes No Yes Diversification Can diversify by buying different companies stock No REIT diversifies by buying various properties Issues Getting clear title property, Ownership hassle No ownership issues
The Russell 2000 Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect value characteristics.
Real estate industry is currently estimated to be US$ 48 billion, with a CAGR of 30 percent Accounting for 4-5 % of the GDP Growth driven primarily by IT/ITeS, growing presence of foreign businesses in India, the globalization of Indian corporates and, the rapidly increasing consumer class providing a huge market potential The real estate sector is in an early growth stage, can be segmented into residential, commercial, retail and hospitality asset classes Demand-supply gap across all segments for quality real estate REIT as a trust registered under the Indian Trusts Act, 1882 and registered with the SEBI, whose object is to organize, operate and manage real estate collective investments. "real estate investment management company" means a company incorporated under the Companies Act, 1956 (1 of 1956) and registered with the Board under these regulations, whose object is to organise, operate and manage a real estate investmentscheme; REIT and Real Estate Investment Manager Co. (REIMC) are required to have a minimum net worth of INR 5 crores. REITs and REIMC would be regulated by SEBI and will have to comply with the prescribed code of conduct. At least 50% of the trustees of REIT and directors of REIMC are required to be persons who are independent and not associated with persons having control over REIT or REIMC. The management of REIT and REIMC is required to be independent of each other. Each Scheme to be rated at the time of launch by a credit rating agency Each Scheme to be appraised at the time of launch and at the end of each financial year. Schemes not to provide guaranteed or assured returns. Provision only for close-ended schemes with no repurchase before the expiry of the maturity period. An independent principal valuer is required to be appointed for valuation of the real estate properties. Advertisements for each scheme to disclose the investment objectives, the method and periodicity of the valuation of scheme property Principal valuer to be a reputed firm or company independent of the scheme, REIT or REIMC and having adequate financial resources, qualified key personnel and robust internal controls. Principal valuer to value all the real estate held under the scheme at least once a year and in any event, for the purpose of issuance of new units. Principal valuer to submit valuation report which shall include all material details regarding the property, nature of interest in property, valuation methodology, overall condition of market and supply demand situation, material information regarding title, etc. Where a legal opinion is required, the same is to be made available to the Principal valuer for inclusion in the valuation report. Principal valuer to compulsorily retire after it has conducted valuations of the real estate of the scheme for 3 consecutive years.
Schemes to invest only in real estate. Real estate should generally be income-generating. No REIT under all its schemes to have exposure in excess of 15% in any single real estate project. No REIT under all its schemes to have exposure in excess of 25% in real estate projects developed, marketed, owned or financed by a group of companies. Schemes are prohibited from investing in vacant land or engaging or participating in property development activities. Schemes not allowed to lend, guarantee, endorse, assume or otherwise become directly or contingently liable for or in connection with any obligation or indebtedness of any person or to secure the indebtedness of any person without prior approval of REIT and the unit holders
Could benefit to Indian Consumer to build Home...... Mention this point......