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REITs, InvITs may help to raise Rs 50,000 crore

REITs, InvITs may help to raise Rs 50,000 crore
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Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) can help raise close to Rs 50,000 crore in the near-term, given certain playersÂ’ interest in the infra and real estate space, according to a report.

This amount can be utilised either for repayment of debt from banks/non-banking financial companies (NBFCs)/financial institutions (FIs) or as a consideration to the existing sponsor for dilution of stake or both, according to the study titled ‘Building a new India’, brought out by trade body ASSOCHAM jointly with research firm CRISIL.

This will result in monetisation of sponsorsÂ’ investment in long gestation projects or result in release of loan funds for banks to fund other infrastructure projects, the report said.

Both REITs and InvITs are vehicles created to primarily invest in revenue-generating real estate/infrastructure assets.

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