Speaking to CNBC-TV18’s Shereen Bhan, Mistry also defended the stability and potential of real estate investment trusts (REITs), an investment vehicle that has been at the centre of Hindenburg Research’s latest broadside. The report, which attacked Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch, alleged a potential conflict of interest in Blackstone’s REIT IPOs and Buch’s husband Dhaval Buch, who works at Blackstone as an advisor.
“As far as the allegation of REIT promotion is concerned, I think REITs are a wonderful product. It is a great investment opportunity for an average Indian with limited resources who wants to take advantage of the change in the real estate market,” Mistry said.
Below are some of the key points Mistry raised:
1. REITs are a “good asset class”Keki Mistry highlighted REITs as a “really interesting asset class for retail investors”. He described REITs as a “wonderful product that needs to be developed” and underlined their growing popularity in global markets such as Singapore. Mistry believes that the REIT sector in India will continue to expand and more entities are expected to launch REIT issues in the near future.
2. Dismissal of the impact of the Hindenburg ReportMistry dismissed the implications of the Hindenburg report for the REIT sector. He said the report is based on a “meaningless interpretation” and asserted that the issues highlighted are not relevant to REITs or their regulatory framework. According to Mistry, the Indian regulatory environment remains “extremely robust” and is not affected by the report’s assertions.
3. Market sentiment and REITsMistry said the market has responded well to the latest allegations against Hindenburg. “I don’t see any investor getting nervous,” Mistry said.
Keki Mistry’s perspective on REITs
Mistry was also optimistic about the future of REITs in India. He believes the sector will continue to develop and increase investor participation, thanks to its established track record and the inherent advantages of the investment product.
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