REIT (Real Estate Investment Trust) investors in the country can anticipate higher yields as foreign investors will now be ready to put in their money more easily and also pitch-in with their international expertise in the management of such trusts. The government, in the Budget, has allowed easier participation by foreign portfolio and institutional investors in the Indian REITs by easing the statutory debt funding requirements. REIT, which allows small investors to take a position in commercial land , is quite a replacement financial trust found out in the Indian context but many fund managers and even foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) have gained immense experience and expertise in overseeing the operations of such trusts over the last 3-4 decades that these set-ups are around in developed countries.
Now these FPIs and FIIs are going to be ready to enter the REITs market in India and lend their expertise in managing the affairs of REITs, taking the graph of yields from such trusts to subsequent level. This may not only enhance the shareholder’s or the unit holders’ returns from the investment but also give a chance to the Indian fund managers to urge a far better grip on the complexities and nuances involved within the running of such trusts. There are many pension funds in the western world which have committed to supply certain minimum returns to the contributing pensioners or members but aren’t ready to generate that sort of yields in their own countries. They have been watching opportunities to maximize their returns to A level where they will sustain the minimum payout in terms of the percentage they need to be promised to the members. These include certain sovereign funds also.
These funds are going to be ready to invest in India and obtain significantly higher returns to be ready to meet their commitments.