By Vishal Ahuja, Head, Private Wealth Group, JLL India.
Brookfield REIT is the first completely institutionally managed REIT in the country. This offering comes with strong sponsor credentials as they are one of the largest asset management companies globally and have a great track record. The asset portfolio comprises of blue-chip tenants offering stable returns and with a potential of capital appreciation over a period of time.
Commercial space has witnessed a few large transactions recently. Also, most of the tenants continued to pay rents last year inspite of all the uncertainties. These factors offer a lot of comfort to the retail investors and hence we expect a good response to the REIT.
The success of the first two REITs clearly defines the positive sentiment from the investor community towards Commercial REITs. Both, Embassy REIT and Mindspace REIT were well received by institutions as well as retail investors. This has opened the doors for other large institutions/developers to come forward and list their portfolio. We expect more REITs coming up in the near future.