“We are in talks with various investors. We want to float a REIT
at the right time,” said Vijay Wadhwa, chairman emeritus of the group.
“Since it owns marquee assets in a place like BKC, it is good for investors,” said Shobhit Agarwal, managing director at Anarock Capital.
As an instrument, REIT
is becoming popular among the owners of office assets. After the Blackstone-Embassy joint venture raised Rs 4,750 crore through this route, which was the country’s first REIT, other firms are also looking to float and list them.
While another Blackstone-Raheja venture is gearing up for REITs, Bengaluru-based Salarpuria Sattva and Pune-based Panchshil, where Blackstone
has invested, could also go for REITs, sources said. REITs are like mutual funds which are traded on exchanges. They are tax efficient as 90 per cent of the income is distributed as dividend.
Blackstone, which invested over $6 billion in commercial properties in India, is the biggest owner of office properties in the country with a portfolio of 115 million square feet.
owns about 25 million square feet. Success of the first REIT
in the country could lead to 100 million square feet office space getting listed in the short to medium term.
The total REIT-worthy assets are around 302 million square feet, according to JLL Research, translating into a potential investment of $38.6 billion.