REAL ESTATE AND INFRASTRUCTURE INVESTMENT TRUSTS (REITs)
WHAT ARE REITs
REITs are a sort of Mutual Funds or pools, which find alternative means of financing real estate. A REIT
owns real estate directly and it might also own mortgages. The assets are sub-divided into equal units, which are sold to investors. There are income streams from interest in the case of mortgages and from rentals in owned property.
REITs are publically-traded instruments that pool investor money to buy real estate such as office buildings, shopping malls and residential complexes. Pioneered in the US, REITs are already quite popular in several countries including the UK, Singapore and Australia. Several India-focused developers such as Indiabulls and Ascendas have also listed their own REITs on the Singapore Stock Exchange.
Want to participate in the real estate
boom without the hassels of complicated documentation? Real Estate and Infrastructure Investment Trusts, or Reits, is a good option
With the Securities and Exchange Board of India (Sebi) clearing the deck for launch of Reits recently in August,2014 investors will have another option – besides direct purchase of property or direct stocks of real estate companies – to participate to the sector’s fortunes.