“Considering the rough patch that the real estate sector is going through, there is a lot riding on this sale,” Sandeep Upadhyay, managing director at Centrum Capital. “If there is enough demand for this issuance we will see more REITS tapping the market over next one year.”
The trust’s portfolio comprises about 33 million square feet of office space across four Indian cities, Bengaluru, Pune, Mumbai and Noida, a regulatory filing shows. Its Express Towers property, located in Mumbai’s central business district, counts Wells Fargo & Co., Warburg Pincus as well as Blackstone as tenants.
Strategic investors agreed to subscribe to 8.76 billion rupees of units in the deal, the terms show. Morgan Stanley, Kotak Mahindra Bank Ltd., JPMorgan Chase & Co. and Bank of America Corp. are global coordinators for the offering, a filing showed.
REITs have been in the making for several years in India, as the regulator kept tweaking rules to make it more attractive to developers and investors. Retail investors may still remain wary of these products after the much-hyped infrastructure investment trusts failed to meet market expectations. IRB InvIT Fund has fallen more than 16 percent while India Grid Trust has gained just 1.1 percent since their trading debut in 2017.