Embassy Office Parks REIT Public Issue : Should I Invest in India's first REIT?


Embassy Office Parks REIT Public Issue :
 Should I Invest in India's first REIT?

Real estate company Embassy Group is soon expected to launch India’s first real estate investment trust (REIT) in March 2019 to raise about Rs. 4,750 crore.
Embassy Office Parks is a joint venture between the Bengaluru-based property developer – Embassy and Newyork based private equity firm Blackstone.
Securities and Exchange Board of India (SEBI) had notified REIT’s regulations way back in 2014 but they never really took off in India.
So, what are these REITs?
How does REIT works?
What are the Pros & cons of Real Estate Investment Trusts?
Should I invest in Embassy Office Parks REIT Public Issue (Mar 2019)? Let’s discuss..

What is a REIT?

Real Estate Investment Trust, is a type of real estate company which operates like a mutual fund.
Mutual funds pool money from different investors and use it to purchase financial securities like stocks, government bonds etc.,
Whereas, REITs raise money from different investors to invest in income producing real estate properties. REITs can be a great opportunity for small / retail investors to participate in real estate market without directly investing in large scale properties.

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