REIT Watch: Indian Regulator Dusts off REIT Plans

on Aug 5, 2013


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**Indian Regulator Revives Plans to Introduce REITs** Monday, August 5th: The Securities and Exchange Board of India (SEBI) has dusted off plans to introduce real estate investment trusts in the Asian country. The regulator was looking at this alternative investment option about seven years ago but shelved the idea post the Lehman Brothers collapse.

SEBI is working to carve out the REITs’ features, including who can put money in these investment vehicles and the minimum subscription criterion. The regulator plans to introduce the regime before the 2014 general election, according to an inside source. “Today, real estate is the safest form of investment, and the REIT model has already been successful in many countries, such as Singapore, Japan, Australia, the UK and the US,” the source involved in the drafting process has said, as quoted by The Hindu Business Line.

The REIT model, to be proposed by SEBI, will need approvals from the Ministry of Finance and the Department of Industrial Policy and Promotion.
**United Kingdom**
**Uttlesford District Council Rejects Land Securities’ 700-Home Plan**
Uttlesford District Council has rejected a proposal by Land Securities to develop 700 homes west of Dunmow. “The application will involve the loss of a considerable area of countryside and will involve development which will be visually intrusive,” officials said last week.

A spokeswoman for Land Securities said that the company was extremely disappointed following its efforts to meet all requests from the Little Easton Parish Council and the Great Dunmow Town Council. The REIT said it would now “consider its next steps”, which might include an appeal to the Planning Inspectorate.
**Agellan Commercial REIT Slightly Beats Q2 AFFO Forecast**

Agellan Commercial, a real estate investment trust with a portfolio of industrial, office and retail properties across Canada and the U.S., posted on Friday last week its financial results for the second quarter.
Adjusted funds from operations (AFFO) for the quarter ended June 30 came out at $4.2 million (₤2.6 million), against forecast AFFO of C$4.11 million (₤2.58 million), while distributions of C$0.06458 for the months of April, May and June were consistent with the REIT’s annualised target of C$0.775 per share.
!m[Uttlesford District Council Rejects Land Securities’ 700-Home Plan](/uploads/story/4575/thumbs/pic1_inline.jpg)
“For the second consecutive quarter, our results demonstrate our ability to drive leasing and deliver both internal and external growth in our portfolio” Frank Camenzuli, chief executive officer, said in a statement on Friday. “Moving forward, we will continue to focus on leasing in both Canada and the US to drive AFFO growth, and work towards our long term goals of decreasing our payout and leverage ratios.”
BMO Capital Markets initiated coverage on Agellan Commercial’s shares in a report sent to investors on Friday. The research firm set an “outperform” rating and a price target of C$10.25 on the shares.
**Land Securities’ share price was 953.50p as of 05.08.2013, 14.43 BST.
Agellan Commercial’s share price was C$8.69 as of 05.08.2013, 14.52 BST.**


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