One REIT May Enter Market Annually for Next 3-5 Years: IRA Chief

India's real estate investment trust (REIT) sector is set for robust expansion, with at least one new REIT expected to enter the market each year over the next three to five years.

- GULVEEN AULAKH

This growth trajectory builds on rising occupancies, surging leasing activity, and increasing investor interest.

"We expect that probably one player, on average every year, will continue to launch their REIT in the short-to-medium term. We feel short-to-medium will be three to five years," said Alok Aggarwal, managing director (MD) & chief executive officer (CEO), Brookfield India Real Estate Trust and chairman of the Indian REITs Association (IRA).

For a market that has seen only five REITs since the investment instrument was allowed in 2014, getting one a year would mean a significantly high rate of growth. Some upcoming REITs include Blackstone-backed Bengaluru developer Bagmane, which is reportedly planning a ₹4,000-crore REIT initial public offering (IPO). Another one likely is DLF-GIC JV firm DLF Cyber City Developers Limited (DCCDL), which houses all of DLF rental assets of office space and malls, but has said it has no immediate plans for REIT listing. The next one is reported to be Blackstone, Sattva Group and Panchshil Realty-backed REIT. On the purely retail side is Phoenix Mills, which recently acquired Canada Pension Plan Investment Board's (CPPIB's) shares in its subsidiary Island Star Mall Developers Private Ltd. It said in an investor presentation the move opened up monetization through a possible REIT.