RE in its Indian sense is a black box, even with the introduction of RERA, IBC etc, I am not confident about RE as a whole. So if in the future REITs grow and become a segment by itself, considering the size of our country, the demand for RE in general, and how fragmented RE is, if a lot of players issue CP, the probability of mishaps is more compared to other sectors and businesses is my limited point.
Like I said, just a hypothetical thought, a bit of food for thought for myself
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So a small real estate company issuing CP today is acceptable but a hypothetical small REIT issuing CP in future gets you worried?
Not sure what to say for that.
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No, all the same, no difference. RE is RE.
Of course there are genuine names, I myself had a position in one of them before.
Company behind India’s maiden REIT, about to launch India’s first Retail REIT through Nexus Select Trust.
Source: Blackstone arm to launch India’s first retail REIT, raise Rs 4,000 cr
Nexus Select Trust has a portfolio of 17 operational shopping malls across 14 major cities, covering a 9.8 million square feet area valued at around Rs 23,000 crore.
This may probably be a driving force for the retail REITS. The strength in the Indian retail market is expect to favourably impact the retail real estate.
Thoughts?
I just have one question here. Are these equivalent to buy commercial property and earn rental income or real estate investment? I mean not like go in traditional way of signing up loans, managing big asset nd all. Are these equivalent to real estate like how gold can be tracked using goldbees ETF? Is this the paper form? Can we consider this equivalent to real estate in our portfolio?