Home |Trust Registration | What is the qualification criteria with regard to the Sponsor(s) in ReITs?

What is the qualification criteria with regard to the Sponsor(s) in ReITs?

Adhitya
Answered on February 17,2020

The term ‘sponsor group’ has been defined to include:

• The sponsor

• Where the sponsor is a body corporate.

• Entities/persons controlled by such body corporate.

• Entities/persons controlling such body corporate.

• Entities/persons controlled by entities/persons controlling such body corporate.

• Where the sponsor is an individual.

• Relatives of such individual.

• Entities/controlled by such individual for each sponsor group, not less than one person shall be identified as the 'sponsor'. Sponsors and the sponsor group shall collectively hold.

• A minimum of 25% of the total units on a post issue basis

• A minimum of 15% of the outstanding units of the REIT at all times.

• Minimum holding of 5% of outstanding units of REIT at all time.

• Net worth of at least US$ 15.38 mn on consolidated basis and US$307,692 on individual basis.

• Minimum experience of 5 years in real estate industry for each sponsor and where sponsor is a developer, at least 2 projects of sponsor should be completed.

Please refer to section 4(d) and chapter IV of SEBI (Real Estate Investment Trusts) Regulations 2014 at link for more information.

What is the qualification criteria with regard to the Sponsor(s) in ReITs?

Related Questions