Regulation 18 - Investment conditions and distribution policy
Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 Chapter V INVESTMENT CONDITIONS, RELATED PARTY TRANSACTIONS, BORROWING AND VALUATION OF ASSETS
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REIT investment conditions mandate income-generating property allocation, controlled holding structures, continuous compliance monitoring, and substantial cash-flow distributions to unitholders. REIT investment conditions confine investments to holdcos, SPVs, properties, securities and TDR in India, consistently with the investment strategy ... Summary
REIT investment conditions mandate income-generating property allocation, controlled holding structures, continuous compliance monitoring, and substantial cash-flow distributions to unitholders.
REIT investment conditions confine investments to holdcos, SPVs, properties, securities and TDR in India, consistently with the investment strategy disclosed in the offer document. Vacant land, agricultural land and mortgages are barred, except mortgage-backed securities and contiguous land forming part of an existing project implemented in stages. At least eighty per cent of REIT asset value must be invested in completed rent- and/or income-generating properties. Investments through SPVs or holdcos require non-obstructive shareholder rights, pre-investment agreements, dispute-resolution mechanisms, proportional board representation and exercise of REIT voting rights.
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