InvestorQ : What has been the success of REITs and INVITs in the last few years since they were permitted?
Ria Jain made post

What has been the success of REITs and INVITs in the last few years since they were permitted?

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swati Bakhda answered.
2 weeks ago
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While both REITs and INVITs were first permitted in 2014 but only took off in 2018, the progress has been tremendous in the last 2 years. According to ICRA, nearly Rs.350,000 crore worth of assets were likely be monetized via INVITs and REITs in next one year. If you look at the data till date, Rs.210,000 crore has already been monetized through INVITs and REITs , with the former having a 64% share.

While INVITs monetize infrastructure projects like roads and toll-ways, the REITs monetize commercial real estate based income generating properties. If you look at just the last 2 years, INVIT monetization was worth Rs.85,300 crore while REIT monetization was Rs.77,100 crore. Perhaps, the big boost came from the fact that even lenders are now getting comfortable lending to such REIT / INVIT structures considering they are fully asset backed.

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