REITS As A Constrained Vehicle: Reforming India’s REIT Framework For Mixed-Use Assets

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Shriya Sardar Patil, Associate at Lake Shore India Management Private Limited

ABSTRACT

India's Real Estate Investment Trust (REIT) framework, established under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 (REIT Regulations), drew substantially from Singapore's REIT regime but did not adopt equivalent structural flexibility for diversified or integrated asset classes. Since its introduction, India has developed a listed REIT market that remains predominantly office-focused, with Nexus Select Trust being India's first and only publicly listed retail-focused REIT. Large- format mixed-use developments and retail-integrated commercial projects are not prohibited by the REIT structure per se, but face structural and classification constraints under the existing regime due to asset eligibility conditions under Regulation 18, a uniform leverage framework under Regulation 20, and the absence of a Singapore-style sub-trust mechanism. This paper identifies three specific regulatory gaps, traces their origin in the partial adoption of Singapore's framework, and proposes targeted amendments drawing from both Singapore's sub-trust model and the United Kingdom's 'property rental business' definition under Part 4 of the Finance Act 2006.

951. REITS AS A CONSTRAINED VEHICLE- REFORMING INDIA’S REIT FRAMEWORK FOR MIXED-USE ASSETS

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