S&P, MSCI to make real estate a new index industry sector
The real estate sector is increasingly being incorporated separately into the strategic asset allocation
Nov 12, 2014
Source : The Economic Times

 

By Reuters

A change in the way publicly traded companies are categorized will result in the creation of a separate real estate sector, bringing the number of Global Industry Classification Standard sectors to 11, S&P Dow Jones Indices and MSCI said.

The real estate sector is "increasingly being incorporated separately into the strategic asset allocation," Remy Briand, global head of equity research at MSCI, said in a statement on Monday.

The GICS changes will likely be implemented after the market close on Aug. 31, 2016.

Companies including Sears have recently embarked in spinoffs of some of their real estate holdings. In late July, network operator Windstream Holdings received regulatory approval to convert some assets into a real estate investment trust.

S&P Dow Jones indices did not specify the companies that will be components of the new sector. The index provider did say that real estate will be separated from being under the financials sector, which now includes eight real estate investment trust-related categories as well as one for thrifts and mortgage finance and another for real estate services.

With the new classification, financials, the second-largest sector on the S&P 500 as of Oct. 31, with a 16.4 percent weight, will find it hard to lead the index weighting again as it did when the market peaked in 2007.

The creation of a new industry group, which followed an annual review of the GICS structure, could spark the formation of new exchange-traded funds even as real estate ETFs like the iShares Dow Jones US Real Estate already trade on Wall Street.

In addition to the real estate changes, a copper sub-industry is being created in the metals and mining industry.

S&P Dow Jones Indices announced in June it was considering potential changes to the GICS structure and was discussing the issue with members of the investment community.

In the June announcement the index provider also said a review of the telecommunications sector was being considered, but said on Monday no changes will be made there at this time.

Latest Realty News

Amplus real estate fund invests Rs 37 cr in Bengaluru project
Nov 12, 2014
Ahmedbad: Ahmedabad-based real estate fund Amplus Capital Advisors Pvt. Ltd announced an investment of $ 6 million (Rs 37 crore roughly) in Jain Heights
Ambience to invest Rs 1,950 cr on two new housing projects
Nov 12, 2014
NEW DELHI: Realty firm Ambience today said it will invest about Rs 1,950 crore over the next four years to develop two luxury housing projects in Gurgaon and Noida
Mahindra Group betting big on government’s initiative to build smart cities
Nov 12, 2014
NEW DELHI: The $16.5-billion Mahindra Group is betting big on the government's initiative to build smart cities
Radhakishan Damani buys 5 floors in Nariman Point office for Rs 134.25 crore
Nov 12, 2014
MUMBAI: Radhakishan Damani, a leading stock investor and owner of retail chain D-Mart, has bought 37,000 square feet spread over five floors in an office building in Nariman Point
Mumbai-based realty portal Makaan.com may sell or form JV with MagicBricks or Quikr
Nov 12, 2014
NEW DELHI: People Group, which owns and operates real estate portal Makaan.com, has entered into talks with potential buyers, to sell the venture
Relief for builders in land Act
Nov 12, 2014
MUMBAI: In a relief for developers in Mumbai, the SC issued a notice to the Maharashtra government and restrained the state from cancelling development schemes
As LMC cracks whip, defaulters make beeline to pay dues
Nov 11, 2014
Lucknow: The Lucknow Municipal Corporation had only cracked the whip on big tax defaulters, which includes businessmen, builders, contractors and traders
After 13 years, property tax set to go up in Ghaziabad
Nov 11, 2014
GHAZIABAD: Residents of Ghaziabad could soon be coughing up more as property tax, with the municipal corporation proposing a hike in rental values across the city
DDA Housing Scheme 2014: Draw Likely on Wednesday
Nov 11, 2014
New Delhi: The Delhi Development Authority (DDA) is likely to hold the draw of lots for the Housing Scheme 2014 on Wednesday
Land pooling panel faces barrage of queries
Nov 11, 2014
GUNTUR: Promising to bring in legislation for the land pooling process, the cabinet sub-committee on land pooling asked farmers of Tulluru mandal not to go for distress sale of their land

Latest Realty News Of State

Realty Talk's