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SG Now is the time for REITs in India: APREA

Property Here - Wednesday, September 11, 2013

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An international symposium convened by the Asia Pacific Real Estate Association (APREA) has concluded that now is the right time to establish REITs in India.

For many years, APREA has promoted REITs in India, presenting detailed submission to the country's regulators.

At the conference, international and local industry leaders – including those top financial services firms - discussed the vital elements of REITs as well as the benefits and opportunities within the country. Admiral Investment also presented a new APREA report on REITs' impact on Asian economies.

“Now is the perfect time for REITs to be established in India as there is significant investor support and interest,” APREA said in a release.

“REITs are critical for the development of the capital markets and the real estate industry. They are also beneficial in enhancing transparency and standards as well as improving professionalism of markets.”

According to S.Srinivasan, CEO of Kotak Realty Fund, “A majority of the Indian consumers' savings is in property and gold. REITs will enable the industry tap into this savings pool in a liquid format. The investors will benefit from a transparent and well regulated investment product. The time is right to bring REITs to India.”

Meanwhile, Anuj Puri, Chairman and Country Head at Jones Lang LaSalle India said: “REITs buy properties and put them out on rent, thereby generating income for investors while also adding rental supply to the market.”

“Unfortunately, this model has not yet found a foothold in India. REITs should be implemented in this country so that small investors will get a chance to invest in real estate assets,” he added.



Nikki De Guzman
, Junior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg