REITs to have a positive impact on small cos: Posiview Consulting

Recently, Sebi issued final guidelines for REITs, settling several of the concerns raised by the real estate industry.

Aug 20, 2014 04:08 IST India Infoline News Service

Funding through REITs (real estate investment trusts) will be available only to developers of large commercial properties like IT parks, malls etc as SEBI has stipulated asset with valuation of at least Rs 500 crore and issue size of Rs 250 crore for raising money through REITs, Vinit Deo, Chairman and Managing Director, Posiview Consulting Pvt. Ltd, said.
Recently, Sebi issued final guidelines for REITs, settling several of the concerns raised by the real estate industry.
When these large developers start shifting their Project Loans from Banks to REITs, they will free up limits of Banks which have limited funds to lend to this capital intensive sector due to restrictions imposed by RBI. This indirect impact will have a positive impact on small and midsized developers especially in key cities like Mumbai, Pune, Bangalore, Chennai etc, Deo further said.
Posiview Consulting is a Real Estate focused investment advisory for the emerging real estate brands. They  focus on delivering customized financial solutions and advisory to the emerging Indian real estate industry.

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