REITs and InvITs: AUM Tops ₹9 Lakh Crore in India
Why in the news
Industry bodies Indian REITs Association and Bharat InvITs Association reported that REITs and InvITs together now manage over ₹9 lakh crore in assets, reached within nine years.
Key facts
- Combined AUM: above ₹9 lakh crore.
- Both trusts were launched by SEBI in 2014 to add investment options and deepen capital markets.
- They pool investor money into income-generating real estate or infrastructure assets.
REIT vs InvIT
| Point | REIT | InvIT |
|---|---|---|
| Owns | Commercial real estate such as offices, malls, hotels | Infrastructure such as roads, transmission lines, telecom towers, gas pipelines |
| Players | Sponsor, Trustee, Manager | Sponsor, Trustee, Investment Manager |
| Rules | SEBI REIT Regulations, 2014 | SEBI InvIT Regulations, 2014 |
| Minimum public offer | ₹250 crore, 25% public float | ₹250 crore, 25% public float |
| Trading | Units listed like shares | Units listed, giving liquidity |
| Examples | Embassy Office Parks (2019, first REIT), Mindspace Business Parks, Brookfield India | IRB InvIT Fund (2017, first), PowerGrid InvIT (2021), IndiGrid |
About SM REITs
- A sub-category of REITs created by SEBI in March 2024.
- Lets investors co-own assets worth ₹50 crore to ₹500 crore.
- Regular REITs need assets of at least ₹500 crore.
Exam angle
- Regulator: SEBI. Year of introduction: 2014.
- First REIT: Embassy Office Parks. First InvIT: IRB InvIT Fund.
- SM REIT asset band: ₹50-500 crore.