The real estate sector in India saw private equity (PE) investors pouring large sums of money into the multi-billion industry in the first six months of the current calendar year even as more companies plan to take the real estate investment trust (REIT) route after the capital markets regulator relaxed norms last Friday.
PE investments in the sector jumped 64 percent to Rs 19,137 crore in 57 deals struck both by domestic and international investors, with the residential segment garnering 44 percent of the investments, PTI said, citing a report by property consultant Cushman & Wakefield.
The investments stood at Rs 11,635 crore during the corresponding period last year.
In a related development, real estate developers said that they are keen to raise funds from investors via the REIT route after the Securities and Exchange Board of India (Sebi). The amended norms, among other things, allow REITs to invest up to 20 percent of the amount raised in under-construction assets.
DLF, RMZ and other developers and investors are keen to launch their respective REITs shortly.
"Sebi has sorted out most of the issues and we're looking to float an REIT soon," DLF CEO Rajiv Talwar told the Business Standard.
Bengaluru-based real estate developer RMZ also hinted at applying for REIT within six months. "Preparations are at a preliminary stage and we are in the process of appointing bankers," the company's chairman Raj Menda told the daily. The listing of the REIT could be by the third quarter of next year.