Real Estate

Lodha Group may monetise ₹13,000-cr projects via REIT

Press Trust of India New Delhi | Updated on October 02, 2019 Published on October 02, 2019

About 7 m sq ft commercial area under construction: MD, Abhishek Lodha

Realty major Lodha Group is constructing commercial real estate projects worth ₹ 13,000 crore and may monetise these assets through REIT (Real Estate Investment Trust) after completing them in the next three years, a top company official said.

The Mumbai-based developer has completed 2 million sq ft office space valued ₹2,000 crore. It recently sold office properties worth ₹ 1,350 crore.

“About 7 million sq ft commercial area is under construction, valuing ₹13,000 crore,” Managing Director Abhishek Lodha told PTI.

After completing these projects over the next three years, the company would explore the possibilities of monetising these rent-yielding commercial assets through REIT, he said.

The REIT is an investment tool that owns and operates rent-yielding real estate assets. It allows individual investors to make investment in this platform and earn income.

The rental income of these assets is estimated to be over ₹ 1,000 crore annually.

Embassy REIT

Earlier this year, Embassy Office Parks, a joint venture between global investment firm Blackstone and realty firm Embassy Group, launched the country’s first REIT to raise ₹4,750 crore.

Unlike residential segment which is plagued with multi-year slowdown, India’s office market has been performing well, driven by demand for quality work space from small and big corporates as well as start-ups.

Many real estate firms have started focussing on the development of commercial properties. Global institutional investors such as Blackstone, GIC and Xander are actively buying completed commercial assets.

Published on October 02, 2019
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