Allowing Bank Lending to REITs:
The Reserve Bank of India had issued a circular on 14th October 2019 permitting bank lending to Infrastructure Investment Trusts (InvITs) but not to REITs. Commercial real estate owned by REIT are perpetual assets unlike roads and other infrastructure assets. Also commercial real estates have typically long leasing period which provides for annual lease escalation clause apart from benefit of upward revision in lease rentals at the time of renewal of leases.
APREA members have been advocating with RBI and sent the submission on the same as well. If you are a member of APREA please login to download full submission.
APREA is seeking a meeting with the Reserve Bank of India to further take this forward. Please contact This email address is being protected from spambots. You need JavaScript enabled to view it. if you wish to be involved.
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