PE deals score over REITs as realtors eye fast money, avoid listing hassles

Sellers can get 100% funding immediately under PE, compared with 10-25% in REIT, whose listing process could take some time, with risk of market sentiment turning weak in between

Prestige and RMZ, two of India’s largest commercial property owners, chose to sell their assets to global investors, instead of going for real estate investment trusts or REITs. 

While the REIT route has gained prominence, the promoters opted for private deals to get the cash fast and, at the same time, avoid the hassle of listing an REIT that would have taken more than a year, said promoters and capital market experts.

RMZ sold 12.5 million sq. ft in assets to Canada-based Brookfield Asset Management for over Rs 14,000 crore, while Prestige Estates has signed an initial deal to sell its office