· It has open up new investment avenues for developers & way to improve their liquidity. It also give one new investment option to Investors
· Draft guidelines was released in 2013 ,final guidelines released by SEBI on 26th September 2014
· REIT can issue units to both Residents & Non residents
· Minimum investment by investor will be INR 2 Lakhs ( lots of 1 lakhs each )
· REIT will always operate as a Trust
· Every REIT need to be registered with SEBI before starting operation
· Multiple classes of units is not allowed & no preferential voting rights to any unit holders
· REIT would raise funds from Investors which in turn will invest the Money in “Real Estate” only on completed projects / rent generating properties directly or through SPV
· Real estate meaning does not include Mortgage & Infrastructure
· Promoters of REIT will be known as sponsor and
· Maximum 3 sponsor allowed for each REIT
· Each sponsor must hold 5% of the units of REIT ( post IPO)
· Net worth of each sponsor must be INR 20 Cr and collectively INR 100 Cr at all times
· Sponsor must have 5 years experience as developers / Real estate fund Manager
· Sponsor will appoint Trustee
· Trustee will own the REIT Assets / get itself registered under SEBI
· Manager will manage the day to day affairs of the REIT having experience in Fund Management
· Valuer must not be associates of sponsors / trustee/ manager & must have minimum five years experience in valuing properties and qualified as valuer under Companies Act 2013
· Mandatory initial public offer within 3 years of registration of REIT
· Borrowing by the REIT must not exceed 49% of its Assets at any time
| 
No comments:
Post a Comment