Latest news with #LataPillai
Economic Times
21-07-2025
- Business
- Economic Times
India's investment trusts to expand debt fundraising as yields drop, analysts say
Debt fundraising by India's asset-backed investment trusts is expected to keep rising after exceeding $2 billion in the first half of 2025, as falling interest rates continue to fuel strong investor demand, analysts said. ADVERTISEMENT The real estate investment trusts (REIT) and infrastructure investment trusts (InvIT) raised over 178 billion rupees ($2.07 billion) in January-June, compared with 56 billion rupees in the same period last year, according to data aggregator Prime Database. "Bonds offer a lower cost of capital compared to traditional bank financing, especially for highly rated trusts with stable, long-term cash flows," Arka Mookerjee, partner at JSA Advocates and Solicitors, which provides legal advice to corporates. "The predictable income profiles of REITs and InvITs make them well-suited to debt financing, attracting institutional investors seeking yield-bearing, asset-backed instruments." Corporate bond yields have tumbled over the last few months, as the central bank infused liquidity and slashed interest rates by 100 basis points, while banks have lagged in lowering their lending rates. Embassy Office Parks REIT, IndiGrid Infrastructure Trust, Cube Highways Trust and Nexus Select Trust are among the firms that have tapped the bond market. Embassy REIT is planning another bond issue, Reuters reported last week, while others are also in early talks. ADVERTISEMENT Bonds typically have fewer restrictions than bank loans, allowing REITs to use the fund across multiple properties within the portfolio, said Lata Pillai, India senior managing director and head of capital markets, JLL, a global real estate services firm. The trusts, which need to disburse at least 90% of net distributable cash flows to unit holders, say cheaper funding allows them to provide better returns. ADVERTISEMENT Bond fundraising provides clarity to these trusts on planning their finances, while top credit ratings attract marquee investors such as mutual funds and insurers. "The AAA-rated structure gives greater credibility, visibility and better pricing," said Krishnan Iyer, chief executive officer at NDR InvIT, adding they also offer resilience to market volatility. ADVERTISEMENT With infrastructure and real estate sectors gaining momentum, investors see REITs and InvITs as a compelling blend of fixed-income stability and long-term growth, said Suresh Darak, founder of Bondbazaar, an online bond trading platform. ($1 = 86.1700 Indian rupees) ADVERTISEMENT (Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Vijay Kishore)
Time of India
21-07-2025
- Business
- Time of India
India's investment trusts to expand debt fundraising as yields drop, analysts say
Debt fundraising by India's asset-backed investment trusts is expected to keep rising after exceeding $2 billion in the first half of 2025, as falling interest rates continue to fuel strong investor demand, analysts said. The real estate investment trusts ( REIT ) and infrastructure investment trusts ( InvIT ) raised over 178 billion rupees ($2.07 billion) in January-June, compared with 56 billion rupees in the same period last year, according to data aggregator Prime Database. Explore courses from Top Institutes in Select a Course Category others Design Thinking MCA Data Science Management Others Data Science Leadership Product Management Artificial Intelligence MBA Project Management Digital Marketing Public Policy CXO Data Analytics Cybersecurity Healthcare Degree Technology Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT - ISB Cybersecurity for Leaders Program India Starts on undefined Get Details "Bonds offer a lower cost of capital compared to traditional bank financing, especially for highly rated trusts with stable, long-term cash flows," Arka Mookerjee, partner at JSA Advocates and Solicitors, which provides legal advice to corporates. Bonds Corner Powered By Corporate bonds in India: From institutional stronghold to broader participation India's corporate bond market sees record growth in FY25. Issuance rises by 28%, signaling increased corporate capex. The overall bond market touches ₹226 lakh crore. Retail participation remains low, but accessibility improves with smaller investment sizes. Interest rates ease, making bonds attractive. Platforms like Jiraaf simplify bond investments. Corporate bonds offer a balanced risk-return profile. India bonds advance as traders build positions for another rate cut Rupee to track dollar recovery, bond market focused on rate cut bets IndusInd Bank to consider raising funds via long-term bonds India bonds flat, traders eye debt supply for cues Browse all Bonds News with "The predictable income profiles of REITs and InvITs make them well-suited to debt financing, attracting institutional investors seeking yield-bearing, asset-backed instruments." Corporate bond yields have tumbled over the last few months, as the central bank infused liquidity and slashed interest rates by 100 basis points, while banks have lagged in lowering their lending rates. Live Events Embassy Office Parks REIT, IndiGrid Infrastructure Trust, Cube Highways Trust and Nexus Select Trust are among the firms that have tapped the bond market . Embassy REIT is planning another bond issue, Reuters reported last week, while others are also in early talks. Bonds typically have fewer restrictions than bank loans, allowing REITs to use the fund across multiple properties within the portfolio, said Lata Pillai, India senior managing director and head of capital markets, JLL, a global real estate services firm. The trusts, which need to disburse at least 90% of net distributable cash flows to unit holders, say cheaper funding allows them to provide better returns. Bond fundraising provides clarity to these trusts on planning their finances, while top credit ratings attract marquee investors such as mutual funds and insurers. "The AAA-rated structure gives greater credibility, visibility and better pricing," said Krishnan Iyer, chief executive officer at NDR InvIT, adding they also offer resilience to market volatility. With infrastructure and real estate sectors gaining momentum, investors see REITs and InvITs as a compelling blend of fixed-income stability and long-term growth, said Suresh Darak, founder of Bondbazaar, an online bond trading platform. ($1 = 86.1700 Indian rupees)
Time of India
24-06-2025
- Business
- Time of India
Institutional investments in Indian real estate set to fall 37% to $3 billion in Jan-Jun: JLL
NEW DELHI: Institutional investments in Indian real estate are estimated to decline 37 per cent to USD 3.06 billion during the first half of this year on global economic uncertainties, according to JLL. Real estate consultant JLL India data showed that institutional investments in Indian real estate are likely to fall to USD 3.06 billion in the January-June period this year as compared to USD 4.89 billion in the year-ago period. Foreign investors' share in total institutional investments in Indian real estate is 68 per cent, while domestic players infused 32 per cent during the first half of the 2025 calendar year. "Investment transactions are experiencing extended timelines due to the challenging international economic conditions and political uncertainties," the consultant pointed out. Institutional investors continue to participate through public market channels, including Real Estate Investment Trusts ( REITs ), Qualified Institutional Placement (QIPs) and investments in listed entities, it added. Lata Pillai, Senior Managing Director, and Head of Capital Markets, India, JLL, said, "India's real estate sector remains a compelling investment destination, buoyed by both domestic and international confidence despite global economic uncertainties having presented short-term challenges in the first half of 2025." A robust pipeline of deals exceeding USD 1 billion points to sustained activity ahead, she added. "The real estate market has consistently demonstrated its staying power with annual investments surpassing the USD 5 billion threshold across the previous five years and we anticipate that capital flows for calendar year 2025 will align with these established benchmarks," Pillai said. As per the data, housing segment got maximum 38 per cent share of the total institutional investments.
Hindustan Times
23-06-2025
- Business
- Hindustan Times
Real estate institutional capital flows expected to decline by 37% to $3.06 bn in H1 this year: JLL
Institutional investments in the Indian real estate market are expected to touch $3.06 billion across 30 deals in H1 2025, reflecting a 37% year-on-year decline, according to JLL. Investment transactions are experiencing extended timelines due to the challenging international economic conditions and political uncertainties. Real estate institutional capital flows expected to decline by 37% to $3.06 bn in H1 this year: JLL. (Photo for representational purposes only)(Pixabay) Despite this moderation, the real estate market demonstrates fundamental resilience, it said. In comparison, the January–June period of 2024 saw investments of $4.89 billion. Foreign investors' share in total institutional investments in Indian real estate is 68 per cent, while domestic players infused 32 per cent during the first half of the 2025 calendar year. In the past, the Americas have consistently been the highest contributors to investments. However, since 2023, there has been a significant decline in the share of investments from institutions domiciled in the USA and Canada. H1 2025 witnessed APAC lead with 37% share, the report said. MMR and Bengaluru attracted almost half of the total investments Geographically, MMR and Bengaluru collectively attracted 54% of the total real estate investments during the first half of 2025, establishing themselves as the dominant investment destinations in the country. This slowdown follows an exceptional CY 2024, which saw investments reach a historic peak, marginally surpassing the previous record of $8.4 billion set in 2007, the report said. Institutional investors continue to participate through public market channels including REITs, QIPs, and investments in listed entities. The standout transaction of 2025 has been Blackstone's significant entry into India's residential real estate sector with approximately $214 million invested to acquire up to 66% of Kolte-Patil Developers, it noted. 'India's real estate sector remains a compelling investment destination, buoyed by both domestic and international confidence despite global economic uncertainties having presented short-term challenges in the first half of 2025. A robust pipeline of deals exceeding $1 billion points to sustained activity ahead," said Lata Pillai, senior managing director, and Head of Capital Markets, India, JLL. While foreign institutional capital continues to dominate, domestic institutional participation has surged since 2023, now capturing 32% market share in H1 2025. Foreign Investors continued to take the centre stage accounting for 68% share of investments, the report said. Residential sector leads with 38% share of total capital flows 'Residential sector leads marginally at 38% share of the total capital flow, marking a notable shift from the historical office sector preference. Within residential investments, equity strategies command 58% of capital flows in H1 2025, (debt instruments accounting for 42%), extending the equity-focused approach that gained momentum in 2024," said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
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Business Standard
23-06-2025
- Business
- Business Standard
Real estate institutional capital flows in H1CY25 decline by 37% Y-o-Y: JLL
JLL data shows institutional real estate investments declined to $3.1 billion in H1CY25 amid global uncertainty, with Blackstone's Kolte-Patil deal leading the pack Pune Institutional investments in real estate declined by 37 per cent year-on-year in H1CY25, totalling almost $3.1 billion (approximately $3.068 billion) across 30 deals, according to JLL. Investment transactions are experiencing extended timelines due to challenging international economic conditions and political uncertainties, with several capital deployment decisions likely shifting into 2026. 2024 marked a record year The calendar year 2024 saw investments reach a historic peak, marginally surpassing the previous record of $8.4 billion set in 2007. Blackstone leads with landmark transaction The standout transaction of 2025 has been Blackstone's significant entry into India's residential real estate sector, with approximately $214 million invested to acquire up to 66 per cent of Kolte-Patil Developers. 'A robust pipeline of deals exceeding $1 billion points to sustained activity ahead. The surge in activity from Reits and institutional players further highlights the maturity and depth of the Indian real estate investment landscape. The real estate market has consistently demonstrated its staying power, with annual investments surpassing the $5 billion threshold across the previous five years, and we anticipate that capital flows for calendar year 2025 will align with these established benchmarks,' said Lata Pillai, senior managing director and head of capital markets, India, JLL. Domestic capital gains ground Of the total institutional capital in the sector, domestic institutional participation accounted for a 32 per cent market share in H1CY25, while the remaining share came from foreign investors. In the past, the Americas have consistently been the highest contributors to investments. However, since 2023, there has been a significant decline in the share of investments from institutions domiciled in the US and Canada, JLL noted. APAC region leads inflows In H1CY25, the Asia-Pacific (APAC) region led investments with a 37 per cent share. MMR and Bengaluru collectively attracted 54 per cent of the total real estate investments. The residential segment accounted for 38 per cent of the total capital flow. 'Within residential investments, equity strategies commanded 58 per cent of capital flows in H1CY25, with debt instruments accounting for the remaining 42 per cent, extending the equity-focused approach that gained momentum in 2024,' said Dr Samantak Das, chief economist and head of research and REIS, India, JLL.
