Fundraising Plans of REITs May Take a Hit

MUMBAI | BENGALURU: The impact of Covid-19 outbreak globally may prove to be a key challenge for planned and proposed fundraising exercises through Real Estate Investment Trusts (REITs) which are expected to be either delayed or put on hold until the situation improves.The upcoming and planned REITs proposed by K Raheja Corp, Blackstone Group, Prestige Estates and Brookfield Asset Management were already expected to face difficulties in attracting global investors owing to the proposed tax framework in the budget. The government has proposed to tax dividends in the hands of unit holders or investors of infrastructure and real estate investment trusts, which were otherwise not taxable.Key meetings related to crucial decision making and road shows are expected to be postponed due to the current global travel curbs. Institutional investors would like to assess the impact of Covid-19 on the global economy and commercial real estate before finalising any major investment calls. “The external environment is increasingly getting difficult. One cannot expect a series of major decisions with regard to the entire fundraising exercise to be finalised over a video conference,” said a top executive of a company planning to list its REIT.

from Economic Times https://ift.tt/3d4BoAX
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