India Reits Explained How Real Estate Investing Works

TITLE: India REITs Explained: How Real Estate Investing Works? CHANNEL: The Core DATE: 2026-06-16 URL: https://youtu.be/Yqq39eedwVo ---TRANSCRIPT--- We are fully committed to India not just the REIT which I operate but capital land as a whole. We have about 8 to 9 billion dollars of investments in India across the different products and pools of capital. We do want to double that over the next 4 to 5 years.

So what is an REIT and how does it work in today’s context?

If you’re having capital and you want to secure your regular income after retirement, you put it in a bank deposit, it hardly earns you anything. So REITs are a very popular vehicle especially for those that are looking at regular fixed income and which is inflation hedge because real estate generally tends to escalate in line with inflation.

Data center seems to be the most exciting including valuation and for all the reasons that the world is going mad over AI. The AI and all of that tech boom that is happening makes it exciting. But we want to give stable consistent returns to our unit holders which means we will park our capital where we get stable income.

Hello and welcome to the core reports special edition. The real estate industry is booming including commercial real estate. It’s a lot more complex when it comes to investing in it or looking for vehicles to invest in it. I’m happy to be joined today by Gori Shankar Nagubushanam the CEO of Capital Land India Trust. Now, Capital Land is actually Singapore based and Capital Land India Trust is listed in Singapore but owns India’s first REIT or real estate investment trust amongst a much larger portfolio which spans across Asia across many other asset classes including business parks and of course data centers which is also in India. So we’re going to talk about that and also try and understand how REITs work and how if you are interested in maybe investing in an REIT or trying to be part of a trust what could you potentially do. So to answer all those questions, GI, thank you so much for joining me. So let me start with the simple and the state question first. So what is an REIT and how does it work in today’s context and how is that different from two things? One is a regular real estate company or a real estate brand and second an asset management company of stocks and bonds and so on.

Okay. Um real estate investment trust is nothing but a pooling vehicle for earning regular income by investing in real estate. It was specifically created for giving access to potential investors to real estate assets which on its own they may not be able to access otherwise. It’s a tax efficient vehicle wherein you’re able to pull the income, not tax it multiple times because you’re going to pull capital from different SPVs that own these assets and then you distribute that income. So, it is only going to get taxed once.

In some jurisdictions, it is taxed in the hands of the receiver. In some jurisdictions, it is taxed before distribution. But either which way the taxation is done only once despite the asset being held in multiple jurisdictions.

It was purely meant as a vehicle to reflect a flavor of a fixed income security. So it is not as compared to a regular operating company. The business of the company is not to have growth in the company and reinvest capital and all of that. The purpose of the company is to collect and distribute. That’s why most RE regulations insist that 90% of the income you collect you have to mandatorily distribute which means you don’t have any capital to reinvest. So if you want to have reinvestment you need to go and raise fresh capital either in the form of debt or in the form of equity. So this is more akin to your fixed income security wherein you buy a bond you get a fixed coupon. This is very similar to that except that it’s coming from a bunch of tenants and leases that are signed by these tenants with the landowning company which is with the landlord which is a REIT itself and it got popular in the 70s and the 80s in the US and in Asia. Singapore is the epicenter of the REIT market. Singapore and Hong Kong they keep depending on where the exchange trades they keep switching between each other but Singapore has 12% of Singapore’s market cap is in REITs and the reason is that there are the population is an aging population and they find this vehicle as an extremely attractive proposition because if you’re having capital and you want to secure your regular income after retirement you put it in a bank deposit and it hardly earns you anything in Singapore you probably get between .5 to 1.5% as against you put it in a REIT you almost have 400 basis points delta you get anywhere between 5 and a half to 6 and a half% income in the form of dividend and these assets are visible it’s not a service sector it’s not a business which you don’t understand real estate most people believe at least that they understand the asset pretty well it’s very simple you’re collecting rents and distributing you see the building it’s in a good location. So your ability to understand and underwrite the risk is fairly high. So REITs are a very popular vehicle especially for those that are looking at regular fixed income and which is inflation hedge because real estate generally tends to escalate in line with inflation. So this is a product which fits into that bucket.

Right. And what’s your India journey been like? And this is an unusual structure of course that you’re listed in Singapore where your parent also is but your operations or your investments are in India.

Capitals has a very interesting history not many people know. So India’s first IT park was built in Whitefield in Bangalore. It was called international tech park Bangalore. It was a joint venture between the government of Singapore, the government of India. So India prime minister Mr. Narimra goes and meets the Singapore’s prime minister asking him can you help me set up an industrial park just like you helped the Chinese set up theirs in the late 8s. So the prime minister of Singapore agrees he picks up his nearest secretary and tells him go can you figure this out. He happens to be a classmate of Mr. Ratan Tata. So he’s the only person he knows in India well enough. So he picks up the phone and calls him and say my prime minister asked this can you help me with it there. So he says okay why don’t you come in. So he actually flies him around shows him the location and it was a joint venture between government of Singapore through capital. We were called we went by a different name back then and then government of India was through KIB which is government of Karnataka and then the other partner was Tata. It was 20 40 20 government KIBB 20 40 Tata and 40 capital land. this joint venture came and set up ITPB and that’s where the first IT park was set up. This happened this began in 1994. So we have almost a 32 years history in India

I think one year after Infosys listed.

Yeah exactly. And then that’s where we started. So the first IT park came on live on 1999 and then we did the first listing in 2007. we were largely and only in IT parks but back in Singapore if you ask us we were known for industrial and commercial assets by commercial I mean retail assets so we moved into industrial in 2017 and then the data center business we entered in 2021 so that has been our journey we started with private balance sheet capital moved to private funds then to listed funds and we have now multiple funds and across multiple asset classes in India we are fully committed to India. Not just the REIT which I operate but Capital as a whole wants to really we have about 8 to 9 billion dollars of investments in India across the different products and pools of capital. We do want to double that over the next four to five years.

So and these investments are coming through other other funds as which are more sector specific funds or and also the generic fund.

Yeah. So we have three pools of capital. One is the balance sheet which the balance sheet longest gestation projects high-risky projects those projects done from the balance sheet which we are kind of minimizing of late then we have private funds wherein we put in x percentage of capital maybe 10 to 30% or sometimes even higher than that we bring in private partners institutions global institutions sovereign wealth funds to partner these funds are typically development funds and they are kind of asset specific you have a fund for commercial office assets you have a fund for data centers and you have a fund for couple of funds for industrial assets so these are all development so the risk appetite is different once the assets are developed we of course have the listed fund which where most of the income producing assets are sitting so that’s the different products that we have for India

right and you talked about office park that’s one category And that sits under the capital land investment India trust. So we have all three assets sitting under. So it is not the asset class, it is what stage of the asset it is. If it is an income producing asset, it’s likely to sit in an investment trust. Like I said, REITs are meant to distribute income. You distribute income and you get income. The products that are completed assets are the ones who are going to distribute income. So we wouldn’t do too much of development work in a real estate investment trust. So the income producing office property, the income producing industrial property, the income producing DC property will typically sit under the REIT framework. If it is brownfield, green field, you have to buy land, get approvals, construct, they typically sit in the private funds. If these are long gestation projects G2G ventures which is like something which is going to come up in 10 years 15 years you have to so those both private capital institutional capital or the public markets really don’t want to invest in those projects you typically do under the balance sheet

and so in that area you’re similar to let’s say a black rock and other funds

they are actually investing in products that we develop So the difference between assets they early stage they are a late stage.

Yeah. So we are providing products where they can invest in of course they can do all of this within themselves as well but typically you will find us partnering with other institutions such as them I mean we don’t have them as our partner but similar financial institutions who don’t want or don’t understand India well enough or can’t take or need some help in guiding them through the investment framework we partner with them so we develop the product ourselves and We park it where it is most attracted or attractive for investors.

Got it. So you talked about the ITPB in Bangalore and that as a start point which was a long time ago. The market for institutionalized capital in real estate has obviously grown tremendously in the last few decades. So tell us about what have been the kind of the main milestones for the industry and for you. I think for for I mean the easier thing is for us it has been like a journey from one asset class to the other. how we are also so we started with G2G partnership. Most of our initial assets were with KIB Titco and MIDC government the policies are still running they’re still running they they’re still running. And then we moved into once we understood the playing field well enough then we moved into partnering institutions local domestic developers and coming up with office parks in different parts mostly through a forward purchase program then we started some acquiring assets from the open market as well. So that has been the journey for us quite steady I think for the industry I would break it up into multiple phases. I think 2004 when this industry when the pressure zone came and the industry opened up there was a bunch of capital which chased India hey you will fly in a manager from the US because they are the ones who knew how the underwrite the asset so they flew in they thought they understood the market well enough placed bets some of them worked out most of them actually kind of didn’t do well enough so the crisis 2007 hit many of them burned on their fingers that left a very bad taste for institutional capital because they got into India without even understanding. So that set us back by quite some time. Then slowly you had other institutional capital come in around that 2011 12 13 their successes started showing up since 2016 17 18 that started you had the first some of the US funds come in then the Canadians came in then you had the read framework come about which kind of opened up the market so you could list and monetize these assets and then it kind of went through that journey but it was still cyclical you had different asset classes having different cycles you had residential doing well at one point, office doing well at another point, industrial doing well at another point. But over the last 3 years, I would say postcovid most of these asset classes are running parallelly, which meant that developers who are good in a particular asset class started sticking to that asset class. In the past, I could be a residential developer who did well. Now it’s a down cycle and now I’m itching to start a office. So all of us rush into an office and then there is an over supply kills the market then we move on to the latest fad industrial we rush into the markets that has kind of dissipated now everybody has realized each asset class has its unique risks and rewards core knows that asset class is well positioned to run those and institutions are also backing only asset specific specialists as against okay you here is a general check you can go invest in whatever So the sense I get is you’re not in residential at all.

We are not in residential in India by choice in India. Okay.

So in India you’re in parks, industrial facilities, logistics and data centers.

Yes.

Okay. So now the first three are somewhat common because it’s sort of on ground infrastructure. Data center has other elements.

Yes.

So you have one which I know you opened last year in Mumbai.

Navi Mumbai outside Mumbai. And then you’ve got three under we have another couple under construction which is in Hyderabad and Chennai total 200 megawatt about 110 megawatt in Navi Mumbai. The other two kind of split between Hyderabad and Chennai at different stages of development. The entire Navi Mumbai facility is pre-leased. Good conversations happening on the Hyderabad asset and also on the Chennai asset. So we will go live for the Hyderabad asset sometime in the next quarter. and then Chennai will be probably by year end and then we good having good traction. Data center story is quite quite good. So now in the data centers so you are building the power and utilities or

okay I mean data centers you need there are different ways this scatter skin you have the core and shell which is nothing but it’s a building no different from an office building you build it you lease it somebody comes and occupies do does whatever they want and they pay you a fixed rent then it’s called as a power shell which is you build it but data centers is a power guzzler asset class. So you put in all the power infrastructure and so it’s a lease not just for the building but for the power infrastructure as well. You’re not going to provide any other maintenance or management service whatsoever. It’s all the responsibility of the tenant themselves and then you have what is called as the collocation which is you are doing this but you’re providing certain service levels with respect to the power infrastructure. So you are ensuring that the power is in a particular capacity of power is always available. The backups are maintained. There is security. There is chilled water coming in the HVAC systems are in. So all of that which is noncore to the tenant you’re taking care of. So these are collocation. So

the tenant only comes and puts up their racks and

exactly. So you give them the floor area. They their duty is okay I’ll put in the racks. I’ll bring in the chips. I’ll run it for whatever purpose I want to run. Then some of them actually gone on to give that as a SAS the GPU as a service itself. which is Neo clouds and some of those players are coming in today saying that I can provide you that customization as well because they believe I can I mean all of this is architecture. So the efficiency of these is a function of what is the architecture you adopt. Some of the players are saying I can come up with an architecture which is even more efficient from an energy perspective than you are. So why don’t you let me run it for you? You just pay me by as as a service as I provided. So these are the different ways at least the market is distributed right now.

And you are in the power

no we are in the collocation. Okay. We are in the colo space wherein we provide the infrastructure we maintain the infrastructure and we ensure that the infrastructure is available for the core function that the tenant is taking up the space for. So collocation includes the power and it includes the power substantial cost. It is a this is how it is split. So let’s say your current shell is $1. Your power shell is $3 per let’s say the split I’m out of let’s say $9 out of $9 $1 goes to your core and shell $2 goes to your power infrastructure. So $3 put together and your tenants racks and GPUs and all of that is $6. So if you distribute the core and shell developer is only taking one nth the risk from a capital perspective. If you’re doing a powered shell you’re taking one third the risk. If you’re doing the racks yourself and the GPUs you’re taking two. So the tenant is putting more capex two times more capex than what you put you are putting which is what makes this a bit more attractive for institutions because the tenant is really committed and sticky because once he has put in so much capex and these are like billion dollars capex that one has to put in so he is going to continue to operate this on a long-term basis so the income which I said is of primary importance the counterparty is a hyperscaler they are the ones with the deepest pockets and they are going to sign long-term leases and they are not just signing leases they are putting a lot of dollars to operate these assets. So, so Mumbai you’ve already found one.

Yeah. Mumbai entire capacity taken up. Hyperscaler taken up. So for institutions which are looking at locking in long-term receivables from very very safe tenants, data centers are very attractive. That’s why the valuations of data centers are so sought after especially in the west. I mean in Asia we still trying to figure out why are they paying crazy valuation but I think this is my own theory but I think this is why they are paying so much value. So as you look ahead in the capital land portfolio data center seems to be the most exciting including valuation and for all the reasons that the world is going mad over AI. how does the portfolio then look? I mean what’s the steady state? What’s the big bet or the exciting part and what’s the middle layer if so?

I would break it up into two parts. One I would say we are quite agnostic to asset classes. We want to perform well and promise the returns that we promise in each of these asset classes. It is different flavors of ice cream. Let the customer come and pick up whichever. So all we promise is whichever flavor you pick up that’ll be the best flavor you would get is a promise that we make from a Clint perspective because I’m a listed read. the journey in data center started out and the unique thing and I earlier mentioned that we generally avoid development because we want income to come in if you’re constructing you’re not going to have income for 3 4 years but for in 2021 in the midst of covid when there are only like four to 5% of the population visiting offices there was an existential crisis are you are people even going to come back to office what if all the office are going to be shut out what do we do? Yeah. So that existential crisis made us diversify into data centers because he said if it’s not physical the world is not going to be physical, it’s going to be digital. Let us look at digital infrastructure. that is how we got into 2021. But there were no assets to purchase in India in 2021. So we were kind of forced to construct and develop our own assets. So we started the development of data center assets which goes against the grain of a REIT. REIT is generally trying to avoid any development. They want stabilized properties to acquire. The part that we need to look at is what is the diversification across these two. So for Clint at least in our mind we want to split it up 2/3 1/3 2/3 is the steady state IT parks and offices and all that. one third we want to the new economy assets which is data centers and industrial so that at any point in time if there is change and significant change in the market then making 1/3 into a 2/3 is much more easier than sort of having let’s say I’m only 5% or 10%. And we don’t even want to go onto the other extreme because it is a technology space and tech space evolves so one needs to be very careful about when you’re entering into a data center it has to have certain specifications which it has to meet and stringent specifications which has to be valid over a long period of time. So we are quite watchful. Yeah, I mean the AI and all of that tech boom that is happening makes it exciting but we want to give stable consistent returns to our unit holders which means we will park our capital where we get stable income and that stable income can be promised for a meaningfully long period of time. So therefore we will continue to be diversified across all of these three assets. We’ll continue to invest in office because India is a great office market still the best performing office market in the world by quite a margin record.

There’s other in many other parts of the world people are leaving their offices and so on. Yeah,

it is coming back. So if you look at the last 12 months you find pockets well CBD assets are attracting good good occupancies as well. So all great thing about India is touchwood all asset classes are doing good. there is a business case for it there is local demand for it a lot of GCC’s are coming in lot of making India the industries are coming in data centers now India is like so under represented we have like a per million we have 1 megawatt of data center Singapore has 220 megawatt per million people I mean that’s like a huge huge divide even China is like closer to 10 I think US is closer to 50 some some say with new capacity is going to one is to 100 so our data center journeys we are way way low in terms of our per capita requirement so it’s still a sunrise industry

who are your unit holders I mean what do they look like

it’s I would say equally split between institutions and retail so 50% of our units are held by the the mom and pops of Singapore retirement money safe legacy with the capital and halo and it’s income producing assets we know what we are doing so and we provide them that 6 and a half 7% sing dollar yields which is great as compared to what they make like a 1% yield on their investments so that is one and the rest are the regular institutions and the global fund managers who are looking to invest into emerging markets and who are looking to invest into Asia into real estate institutions and some there are some hedge funds who do invest based on how opportunistic are.

So you don’t have any I mean pathway to let’s say a vehicle for Indian investors who want to invest via your expertise and so on.

right now I mean you still can access us. I mean as a retail institutions can access us. As a retail investor you’re going to be limited by the cap of how much you can invest outside India. So that still is something which you can do if you’re making a meaningful exposure to I would definitely recommend one to compare our yields with the yields that they can make in India. we would be similar or slightly better but ours is an appreciating currency. so you are going to make that and you’re going to keep assets in currency which is continues to appreciate. sing dollar appreciates even against US dollar. so it’s actually one of the safest currencies there are globally. So this gives you the opportunity to invest in that and also Singapore is a very plain vanilla simple framework. you don’t have taxes. the dividend income we distribute is neither taxed by us nor taxed in your hand. So you make the full income is taxfree. You sell the there are no capital gains taxes when when you sell units and it’s a very very high governance framework. So and capital manages multiple reads. So we are very careful about how we manage these conflicts between sponsor and rate manager and all of that. so it’s something I would definitely want your audience to actually know

but capital land will not have a pure capital land India

I’m sure might list here and we will definitely do it at some point in time and it’s just a matter of time we have

and you’ve done that in other countries

yeah we’ve done that in Malaysia we’ve done that in China we’ve done that in Japan so we’ve done local listing definitely a local listing in a different asset class or even in IT parks is just a matter of time. It’s just a matter of time.

Okay. So now to between let’s say logistics parks and industrial facilities, we are sitting in one by the way much older one though. what is the how are you seeing it in the context of where the economy is going or what does it tell you about where the economy is going or where’s the manufacturing interest and what kind of industries are coming in from your vantage point?

Yeah. I mean industry specific it’s more electronics I think they do have quite a lot the healthcare the pharma industry is picking up quite a lot automotive always has been a strong base what has happened yeah for us as well I mean we generally play with the market so whatever is the market we’re not trying to create a separate niche or something like that so we are in Chennai you’ll find quite a few of them in the electronics and automotive sector there the private funds own industrial assets in Pune of course it’s so Pune and Chennai are largely industrial we have presence elsewhere then there it is largely 3PL operators and warehousing requirements we have one FTWZ in a Mumbai which is used as a free trade warehouse zone for knowing goods in out of the customs so it’s we play with whatever is a flavor for that local market we pick and choose And we do try to do a good job at that. right now make in India is something which is fairly attractive. You have a lot of suppliers coming in today. Even in the semicon industry you have the large investments that are being made. A lot of supplier networks is still not established. Now what we see in India today is the headline of somebody setting up a semicon or somebody setting up a huge data center. But what you don’t have is the supply network. that’s a huge need that is still unaddressed we want to play in that space as well so that is something which is driving the industry of course logistics is something which is India is still far far away from where any developed economy would be so 3PL operators it’s becoming much more professionalized 3PL operators are now becoming more bread and butter and standard practice for corporates to manage their logistics usually it used to be in-house Now with 3PL’s coming in they are running the show and that makes it much more a structured industry. so it’s a pretty secular demand right now

right and as you look ahead what are the areas let me divide that into two or three parts. So one is let’s say all the growth that’s linked to economic growth and then the availability of land and the ability to monetize that land and so on. The other is of course regulation. I know regulation has been somewhat slow in this space and today there is a structure but there are not that many players in the organized REIT space in India today but my sense is a lot more could come even as investors get wiser about it. So what do you see as the either the challenges and the challenges plus opportunities and what maybe needs to be done to let’s say expand this industry further?

I think a lot of investor education needs to happen. my worry has always been are investors looking at this as a REIT play or are they looking at as a real estate operations play. These two are different me running a real estate development company investing in real estate office development or residential development is very different from me running a real estate investment trust. both are different risk return profiles. I just want to be sure that the investor community is cognizant of it. So this is a much more risk adjusted product which focuses more on current yields current income to you has some growth potential. so one should have realistic expectations of this. Total returns is something which people look at but one needs to be fairly cautious about total returns because total returns is basically telling I will give you income but if my income is lower look at the capital appreciation that you’re going to get from this but capital appreciation is not the play of a REIT REITs are more stable income providers capital appreciation is more a operational game so that investor education has to happen is number one you need to have more professional REIT managers which um who are doing it for the sake of the REIT management itself because the industry at the end of the day is going to be buying and selling from common sponsors etc. So the industry should get a clear-cut understanding of governance frameworks and all of that and professional REIT managers will be able to set those standards for the industry and that will help in attracting more investor community into this asset class. it does need to still open up in institutions. this is a very very safe play. If institutions are directly investing in real estate, well, they are investing in an asset class which they actually don’t know. um here you’re going to get access to that same quality asset for a very very marginal price and at a later stage and at a significantly later stage and it is diversified across so it is if you’re I would say if you’re owning one office property one full block you need to think about diversification I would rather invest that across multiple professionally managed reach because yeah my income may go down a little but I’m diversifying across multiple assets and these are much more professionally run. Tomorrow if a tenant vacates a REIT manager with a established leasing team is much better position to attract tenants especially if they have presence across multiple markets than if I’m a standalone office owner and if some tenant leaves now I have to depend on a third party to help me lease.

So your income obviously is the leases and and whatever the the tenants give you as a as a strategy or as an approach. So let’s say you bought eight IT parks and or have a stake in them or industrial facilities or data centers. So are you at all going to get out of them at some point is how does this industry work? I mean or will you be invested in them for whatever few decades and then

great question. so there will be active portfolio management. We have a every REIT management we definitely have a we have a separate investment team we have a separate portfolio management team. The job of the portfolio management team to ensure what is the highest and best use of that property from an income perspective and from a value perspective. You’ll have times when the income is great but the opportunity cost that you have is even better in which case you would want to divest this asset and recycle that capital into the other investment opportunity. So it’s very very active portfolio management. There are professional teams which are looking at this and what we call as a hold sale analysis every quarter and the report to the board saying these are the assets why we want to retain for these reason these are the assets why you want to divest for these reasons and the reasons could be multiple you could be at a top of a cycle you may feel these valuations you’re not going to get so it’s better to convert them into cash today and buy when the down cycle starts or the escalations may not the rental reversions as we call it may not be great in this particular submarket. So it has already reached the peak. So we’ll divest this asset and buy an asset where we have better rental escalations. So those active

so who would buy from you in a situation like this?

It’ll be other institutions. it can be other institutions. It can be private family officers it can be institutional capital it can be private equity.

So it is an active secondary market of sorts.

There is an active secondary market. In fact, India doesn’t have an active there aren’t enough gradea properties traded and that’s why you will find one and a good quality gradea asset comes to the market. You’ll have like these 10 institutions jumping in trying to outbid each other. But we need more activity of gradea office spaces to actually have a realistic sense of what the true market price of that asset is.

And in the assets that you own today are how many of them are churned and how many of them what is there a lifespan? we between 2007 and 2025 we never turned an asset. for the first time we divested two assets one office and one industrial in 2025 and then we did a part sale of the data center portfolio. 20% of it we sold down in 2026. So that journey for us has started because some of these assets have vintage old vintage and different submarkets the the themes that we want to play today are different from where it started so that’s something which we are actively pursuing of late

and I guess investors see bump ups when this happens when you have sort of capital gains coming in in this form so how are they rewarded

there is a choice of distributing that capital there’s a choice of sort of using that Capital to reinvest there’s a choice of what do you call a smoothening the yield curve it is very specific to where the industry where the cycle is at that point in time the trustee manager is well positioned to take that call is it better off distributing is it better off reinvesting is it better off using that to smoothen because you can have what we a manager want to do is consistent returns which are growing there may be times when for various reasons you may have a dip in the dividend. So you can use some of the gains that you’ve got to smoothen that curve. Sometimes you may find a fantastic opportunity. You may be selling something at say 7 and a half% and you may be investing in something at a 9%. So you’re just increasing the dividend that your unit holders are going to get for the same amount of capital that they put in. So you might take that. Sometimes you don’t have a better opportunity. You’re better off distributing the capital back to the unit holders. So it’s a choice which is made at different points in time.

Right. Last couple of questions. So at this point of time in where we are in middle of 26 things are happening around the world. what are what’s the market looking like?

Market is actually quite exciting. If you look at the numbers pure play numbers things are really very strong but if you look at the rhetoric that is there on the market there’s always this scare of oh AI is going to come in and there going to be jobs are going to be lost. So that keeps us very true. we I mean nobody can crystal gaze and say that you’ll have naysayers and you’ll have doomsday players so as managers as trustee managers we have to be cognizant about what is going to happen so we engage with a lot with our tenant community very significantly trying to understand what is happening to them are jobs growing are they cutting down jobs what is the nature of work that they getting are they pivoting themselves so we have a fair mix of IT service company, we have healthcare companies, we have e-commerce, we cater to a wide variety of industries. So that is something that you’re constantly

and what are the signals that you’re getting right now?

The signals is actually quite positive. I would say about 3/4s are looking at a positive outcome. They all believe that AI is actually going to make things better. it there will be some jobs lost but it is going to be made up by other jobs that are going to get created out of more office space and not so there is that so they are not nobody that we spoke are really saying that you know what I’m going to cut jobs that is my focus now I need to cut job that is not their focus they are trying to optimize some of them but their focus is to grow and for growth they think AI is a very good enabler and AI is again going to happen over a period of time. It’s not like you cannot suddenly pick up and say okay I’m going to introduce a tool and half the office is going to it is going to take maybe every year you’re going to have a churn certain type of people replaced by a different type of people everybody believes it is going to only enable so you will for lack of another example in your own space you have post-production which you might have had x number of people do it maybe you do that it might have come down but that space is not that time saved, you’re going to put it in a different activity. Maybe you’re going to engage with more of your audiences or you’re going to give better content to your audience or you’re going to have better quality podcast or more podcast coming. So I think it is only going to enhance the pie. So people are very worried about how many slices is going to be cut into but I think the pie is only going to enlarge. So even if the slices come in the pie, it’s going to be larger chunks of the same pie,

right? And that’s the sort of maybe IT services and people intensive but you’re also in areas like industrial facilities and logistics parks and you talked about electronics and that I’m assuming is a secular growth that is happening for India particularly for India. I mean if you’re using an Apple iPhone the chances are very high that it is manufactured in one of our facilities. so that is happening. I mean there it’s only

so capital and own some of those facilities.

Yeah, we manage industrial park and

Foxconn or someone would be your tenant.

We have one of our tenants actually is a manufactures iPhones for Apple and they distributed internally as well and they exported as well.

so a large chunk of and the ecosystem you were saying that today maybe some of those sub assemblies we’re importing from China but those could be coming up around that.

Absolutely. Absolutely. So as we become more institutionalized now as an industry more people will come in. I think it’s an ecosystem we are figuring out in a very very secular slow manner. I mean if you were like kind of like the Chinese model wherein okay it’s a cookie cutter I just force my way through this is how you need to do it probably it would have been done faster. but we kind of figure it out and we have our own dynamics in India about how different states have different policies for different industries. So all of that has to come in play. Every state is now really proactive about FDI coming in. You’ll find a lot of states and their administration going and visiting Singapore, Hong Kong US everywhere raising trying to raise capital and awareness about India which actually kind of helping this industry grow and so super excited about all asset classes. This is the first time at 25 years I’ve been in this industry first time all asset classes in themselves are being managed and run professionally and excited about all of these asset classes.

Right. So last question. And so you said you’ve spent 25 years in this industry which is unusual I think. I mean most people have migrated from other forms of asset management. So what are some of the things that you’ve seen or heard or picked up which have been sort of become your lessons in life or your sort of northstars?

I would say it’s a function of who are we addressing this content to. So as a investor what I’ve learned is that we need to diligence very very carefully there is a propensity to overextend which should be avoided take it one step at a time keep things simple we have had instances of going and buying hundreds and hundreds of acres and then figuring out it gets stuck and then you’re trying to unravel it for like six seven it is better to give up a little bit of current income and buy something at a slightly higher price and sleep safe at night and healthy at night as against trying to be over optimistic about outcomes and thinking that everything is going to work out. I would definitely avoid because at the end of the day in real estate there are so many agencies involved and so many parts that are have to move in sync even if one fails and you can’t unravel this as quickly it’s not a service which you can okay let me start over once for you to unravel it will take five six years so be very careful going in half the money is made going in at the right time at the right price and with the right structure the rest India economy all of that will take care

right that’s a good note to end on GI thank you so much for so much pleasure talking to you.