According to the latest report, India’s maiden Embassy Office Parks REIT has shown an appreciation of nearly 35% in its price in the last six months. The report suggests that this performance will help the cash-starved commercial realty market and help in its revival.
Because of this performance, now more and more commercial realty developers with portfolios of income-producing assets want to list their products in the REIT. Experts believe that such performance will encourage more investors to explore this financial investment tool and at the same time will also help the commercial sector to revive from the liquidity crunch.
The Embassy Office Parks REIT was listed with a price of Rs 300 per unit and in the last six months, its price has been appreciated by 35%. The report said that such appreciation is highest till date as compared to any other Asian or global office REIT.
India’s maiden REIT has also become the part of London Stock Exchange’s FTSE indices — FTSE All-World and FTSE APAC Mid-Cap list. Its capitalisation has risen to over Rs 31,000 crore based on the stock price appreciation.
A few days back only, it was revealed that global firm Blackstone along with realty group K Raheja Corp is all set to launch India’s second REIT by next year. Both the groups have also finalized Morgan Stanley among the major investor, while rest will also be roped in soon. According to sources, this jointly owned REIT will have 85% stakes from the K Raheja Corp while the rest 15% stakes will be from the Blackstone group.