INVESTMENT CONDITIONS, RELATED PARTY TRANSACTIONS, BORROWING AND VALUATION OF ASSETSSecurities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014
INVESTMENT CONDITIONS, RELATED PARTY TRANSACTIONS, BORROWING AND VALUATION OF ASSETSSecurities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014
REIT leasing restriction: mandates leasing-only income, long-term fixed rentals, and no operational risk for sponsor entities. Regulation 18(5B) illustrates conditions limiting REIT activities to leasing rather than operating: REITs and their HoldCos/SPVs must not bear operating ... Summary
REIT leasing restriction: mandates leasing-only income, long-term fixed rentals, and no operational risk for sponsor entities.
Regulation 18(5B) illustrates conditions limiting REIT activities to leasing rather than operating: REITs and their HoldCos/SPVs must not bear operating model risk or return; income must be fixed rental from leasing, not operating income; leases should be long term with rentals based on leasable area; assets to be leased in cold or warm shell with basic utilities; and operation licences must not be in the name of the REIT, HoldCo or SPV.
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