Q:I am a student of Insurance Management. I am working on a project on Property Insurance with specific focus on Risk Management of Civil construction projects.I want know about REIT.In an article I recently read there was something about banks playing a major role in REIT.The article read " It is also expected that the banks in India can be a major contributor of assets in REITs. These banks own vast commercial real estate for their offices and branches. These assets can be revalued and swapped into a REIT and the asset can be leased to the banks. This would enable the money raised to flow back to the bank for shoring up their balance sheets, and at the same time be a very stable asset for the investors."The article also mentioned about Budget 2016 exempting REIT from dividend distribution tax.I want to know how it will benefit the Real Estate sector.The link to the article ishttp://naredco.in/Article-details.asp?id=160&prYear=2016
Q:Is it true that incorporation of REIT under Foreign Exchange Management Act will fast-track developers & industry watchers listing in the domestic market?
Latest Answer: We are looking forward to seeing REITs launched in India in the coming year. Industry wide, there will be limits on what assets can be transferred to REITs. A significant part of that needs to be discounted for quality. We don't see the opportunity for significant non-office REITs, particularly residential, as the rental market is quite informal and break into pieces.
