Govt plans to monetise real estate assets of CPSEs via dedicated REITs

The government on Sunday proposed to accelerate ''recycling'' of real estate assets owned by Central Public Sector Enterprises (CPSEs) through the setting up of dedicated real estate investment trusts (REITs). REITs are investment vehicles that own or operate income-generating real estate, enabling investors to earn a share of the income produced without directly purchasing properties. In her Budget speech, Finance Minister Nirmala Sitharaman said, ''Over the years, REITs have emerged as a successful instrument for asset monetisation. I propose to accelerate recycling of significant real estate assets of CPSEs through the setting up of dedicated REITs''. At present, there are five listed REITs in India - Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust. Nexus Select Trust are backed by rent-yielding retail real estate (shopping malls), while the other four are office REITs.