Two Indian real estate investment trusts plan to tap the bond market in the coming days to end a year that will see record issuances from the operators of income-generating real estate properties, two sources aware of the matter said.
Bonds typically have fewer restrictions than bank loans, allowing trusts to use the funds across multiple properties, merchant bankers say.
Knowledge Realty Trust and Embassy Office Parks REIT are set to raise an aggregate of about 21 billion rupees ($232.8 million) through shorter-tenor debt instruments.
Knowledge Realty Trust will look to raise 16 billion rupees through bonds maturing within four years, while Embassy Office Parks REIT could go for notes of five years or more with put and call options, said the sources, requesting anonymity as the talks are private.
Both companies did not reply to Reuters’ email seeking comment.
If the trusts complete these issuances, December would mark the first month when all of India’s five real estate investment trusts would have issued bonds.
Bond issuances by real estate investment trusts are set to scale a record high this year. So far, they have raised 112.5 billion rupees, nearly double from 59 billion rupees in 2024, according to data from Prime Database.
Earlier this week, Brookfield India Real Estate Trust raised 20 billion rupees through its maiden debt issuance with a five-year maturity.
($1 = 90.2120 Indian rupees)
Reuters
