CS Professional · Strategic Management and Corporate Finance · Real Estate Investment Trusts
Under the SEBI (Real Estate Investment Trusts) Regulations, 2014, what is the minimum share of the value of REIT assets that must be invested in completed and rent or income generating properties?
At least 80% of the value of REIT assets must be invested in completed and rent or income generating properties. The remainder may be placed in other permitted categories within limits. The 90% figure relates to distribution of net distributable cash flows, not to asset allocation.
- A50%
- B65%
- C80%Correct
- D90%
Explanation
The REIT investment conditions require at least 80% of the value of REIT assets to be in completed and rent or income generating properties. The balance can go into permitted categories such as under-construction projects, subject to their own limits. 90% is the minimum distribution requirement for net distributable cash flows, not the asset-allocation floor.
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