Bain-backed $44 billion wealth manager is bullish on REITs

Indian infrastructure and real estate investment trusts present a good buying opportunity for investors seeking a hedge against inflation as the nascent market grows, according to a $44 billion wealth manager backed by Bain Capital.

IIFL Wealth Management Ltd is recommending its clients allocate as much as 10 per cent to the hybrid investments, co-founder and joint Chief Executive Officer Yatin Shah said in an interview.

“We have been proponents of these hybrid assets from the beginning,” said Shah. “They have had a phenomenal track record and there will be many more of these assets being listed.”

Three REITs, which mainly hold commercial office assets, have listed on India’s stock exchanges so far, with the best performer, Brookfield India Real Estate Trust, rising almost 30 per cent in the past year. PowerGrid Infrastructure Investment Trust has gained 19 per cent over the same period, compared with an increase of 5.2 per cent for the NSE Nifty 50 Index.

Indian infrastructure and real estate investment trusts present a good buying opportunity for investors seeking a hedge against inflation as the nascent market grows, according to a $44 billion wealth manager backed by Bain Capital.

IIFL Wealth Management Ltd is recommending its clients allocate as much as 10 per cent to the hybrid investments, co-founder and joint Chief Executive Officer Yatin Shah said in an interview.

“We have been proponents of these hybrid assets from the beginning,” said Shah. “They have had a phenomenal track record and there will be many more of these assets being listed.”

Three REITs, which mainly hold commercial office assets, have listed on India’s stock exchanges so far, with the best performer, Brookfield India Real Estate Trust, rising almost 30 per cent in the past year. PowerGrid Infrastructure Investment Trust has gained 19 per cent over the same period, compared with an increase of 5.2 per cent for the NSE Nifty 50 Index.