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Valuation of INVITs / REITs
Real Estate Infrastructure Trusts and Infrastructure Investment Trusts are increasingly becoming preferred mode for raising capital by developers of real estate/infrastructure assets.
As per SEBI Regulations, valuation of the underlying assets of REIT/ InvIT needs to be carried out by a person who is a Registered Valuer under the Companies Act, 2013.
SEBI InvIT Regulations require valuation of the underlying assets of the Trust under the following circumstances:
- Prior to any transaction of purchase or sale of real estate/infrastructure projects, whether directly or through holding company and/or SPVs of the Trust
- Prior to any issue of units (other than bonus issue) by publicly offered REIT/InvIT
- At annual Intervals
- At periodical intervals (usually semi-annual/quarterly)
- Full valuation of the underlying projects (including their physical inspection)
- Update valuation of the underlying projects