Reit Lobby Slams Hindenburg Research: Baseless and Misleading Allegations Exposed | News on Markets
Indian REITs Association Rebuts Hindenburg Allegations
The Indian Real Estate Investment Trusts (REITs) Association (IRA) has firmly denied accusations from Hindenburg, stating that their claims about the REIT framework serving only select interests are “baseless and misleading.” The IRA emphasized that since the REIT regulations were introduced in 2014, India has developed a robust and transparent framework aligned with global best practices, ensuring high levels of investor protection for both domestic and international investors, including retail participants.
The association highlighted the significant participation from major global institutional investors, which underscores the reliability and transparency of the Indian real estate market. This involvement offers investors secure avenues to tap into the country’s burgeoning real estate sector.
Hindenburg’s allegations also suggested that recent changes by the Securities and Exchange Board of India (Sebi) in REIT regulations benefited global asset manager Blackstone, where Sebi chief Madhabi Puri Buch’s husband, Dhaval Buch, serves as a senior advisor. However, the couple has clarified that Dhaval Buch is not involved in Blackstone’s real estate business. Additionally, Blackstone is included in Puri Buch’s recusal list at Sebi.
REITs are entities that operate, own, or finance income-generating real estate with funds from investors. Currently, there are four listed REITs on the Indian stock exchanges: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Collectively, these REITs manage assets worth Rs 1.4 trillion and have distributed over Rs 18,000 crore to unit holders, with their combined market capitalization reaching Rs 80,000 crore.
First Published: Aug 12, 2024 | 9:28 PM IST
Original Story https://www.business-standard.com/markets/news/reit-lobby-calls-hindenburg-s-allegations-baseless-124081201791_1.html
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