InvestorQ : What is a real estate investment trust (REIT)?
priya Shah made post

What is a real estate investment trust (REIT)?

Pratik vyas answered.
2 years ago

A REIT or real estate investment trust is a type of company that allows investors to pool their money in order to invest in a collection of properties or other real estate assets.

REITs allow investors, even small ones, to invest in the Indian real estate market.

A REIT needs to be registered via an initial public offering (IPO). Its units, similar to mutual fund units, will have to be listed with exchanges and consequently traded as securities.

The SEBI board has kept the minimum asset sizes to be invested in at Rs 500 crore. However, the minimum issue size would have to be less than Rs 250 crore. As with stocks, the investors here would be able to buy the units from either primary and/or the secondary markets.