RBI Allows Bank Lending to REITs, Boosting Real Estate Funding
By:-Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
“Commenting on the RBI MPC Announcement mentioning easing of REITs and InvITs lending, Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said , “RBI’s decision to permit bank lending to REITs is a welcome step for the sector’s evolving funding ecosystem. Indian REITs, with approximately USD 27 bn of AUM across office and retail segments, have historically relied on capital market issuances and sponsor-backed financing, and access to bank credit will serve as an additional funding avenue that diversifies the liability stack and enhances refinancing flexibility. The move reinforces regulatory confidence in listed real estate vehicles and should strengthen liquidity and depth in India’s real estate investment market.”