New frontiers: REITs are emerging in markets around the world, but the biggest opportunities may be yet to come
Before the ink was even dry on the Indian government’s draft REIT-proposal legislation, Bangalore, India–based Embassy Group was planning a major offering. In partnership with The Blackstone Group, the Indian developer will launch a Rs 50 billion (€74 million) REIT, possibly by the end of 2015. The 2.51 million-square-metre portfolio of income-producing commercial real estate joint-owned by Blackstone and Embassy illustrates one of the roles that REITs can play in new and emerging REIT markets — as an exit path for real estate private equity funds.
The REIT structure has been expanding across the globe and, in the wake of the global financial crisis, a number of new REIT markets are opening up in the Americas, Asia and Europe. The introduction of REIT regimes in countries such as India, Ireland and Mexico, as well as the modernisation of REIT structures in countries such as Spain, has widened the opportunity set for REIT investing around the globe.