FPIs lap up REITs, InvITs, wrap up earlier commitments
investment in the 'hybrid' category, which reflects activity in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), has climbed to $875 million so far in 2024, the highest in four years, fuelled by a recent infrastructure offering that attracted significant foreign capital.
Data released by the National Securities Depository (NSDL) showed the increase in FPI investment in the hybrid category was primarily driven by $842 million worth of overseas investment in February. FPI investment was at $3 million in January, and it stood at $30 million in March so far, the data showed.
At the current level, FPI investment in the hybrid category is at its highest level since 2020 when the full-year investment was $1.7 billion.
Market participants said the flurry of investment activity in February was due to the recent public issuance of the Bharat Highways InvIT, which counted several foreign players as anchor investors.
«The current increase in momentum of 'Hybrid Category' under FPI investment (REITs, InvITs) is primarily due to the recent public issue of road infra InvIT with respect to favourable interest rate scenario. Also, a large portion of FPI investment in this category is to do with existing commitments, from a broader perspective,» said Deepak Sood, senior partner and head of fixed income at Alpha Alternatives.
Anchor investors for Bharat Highways InvIT included foreign firms such as CIM Investment Fund ICAV, Copthall Mauritius Investment's ODI Account, Societe Generale's ODI and
