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Blackstone Reit's success lures global funds to India


BLACKSTONE-BACKED real estate investment trust's (Reit) successful India trading debut has left many global funds including Japan's NikkoAM-StraitsTrading Asia wanting a piece of the action.

Eastspring Investments, North Carolina Fund, and Sentry Global are among names looking to invest in the instrument that bets on India's rent-yielding real estate, said Shobhit Agarwal, the managing director of Anarock Property Consultants.

Blackstone Group-backed Embassy Office Parks Reit, the first such issuance in India, has soared about 35 per cent since its debut in March, enticing more investors for similar instruments and providing India's cash-starved property firms a new fundraising tool.

The performance has beaten indexes that track Reits in Singapore and the local BSE Realty Index of 10 developers.

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India can raise about US$25 billion through Reits over the next three years listing around 150 million square feet of rent-yielding office properties, according to Anarock.

Meanwhile, Blackstone along with an Indian partner K Raheja Corp may look at listing a second Reit, Bloomberg Quint reported this month. The instrument offers a fixed return from a pool of rent-yielding assets, along with the prospect of capital appreciation.

Bengaluru-based Prestige Group is also likely to list its first commercial office Reit soon, Mr Agarwal said. Others that are likely to consider listing Reits include Bengaluru-based RMZ Corp, Mumbai-based Godrej Properties and Pune based Panchshil Realty. BLOOMBERG

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