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.

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