Debt raised by Infrastructure Investment Trust (InvIT) / Real Estate Investment Trust (REIT)

A REIT is a corporation or a trust which utilizes the pooled capital of many investors to purchase, and in most cases, operate income-producing real estate such as offices, apartments, shopping complexes, hotels and warehouses. REITs in India would issue securities, which would be listed on stock exchanges. REITs will invest predominantly in completed commercial real estate assets, either directly or through SPVs. Initially, REITs are planned to be available only to high net worth individuals and institutions to develop the market. Gradually, they will be available for retail investors as well. The rating is an opinion on the ability of the trust to make timely payment on its debt obligations. Infomerics does not rate the units of these trusts. The units are akin to shares of a company and derive their value from the value of underlying assets. Given that units of investment trusts are like equity, Infomerics does not rate these units on a credit rating scale.