Land assets right to be transferred to REIT by Fortis

Land assets right to be transferred to REIT by FortisFortis healthcare, the second largest hospital chain in India is said to be evaluating a plan wherein they are going to transfer all the land assets to a real estate investment trust (REIT). The money thus obtained is going to be used for the purpose of expansion.

No information as to how much money is going to be generated with the transfer of assets was told. The detail about the exchange where the listing is going to take place was given as well. The only thing that was told by Shivender Singh, MD, Fortis was that the whole thing is part of a strategy where Fortis wants to become asset light company.

Experts have forecasted that close to $600-700 million has been given to be the figure that Fortis is going to look at. They have also said that in case Fortis goes ahead with restructuring, then it needs to get the land shifted to a separate company and then it can lease them back.

The other possible means is that REIT is going to buy equity stake in Fortis for generating the so-called money that it needs.