Empowering Growth: Brookfield India REIT Raises Rs 3,500 Crore for Strategic Acquisitions

Brookfield India

Brookfield India REIT Initiates Rs 3,500 Crore Issue for Asset Acquisition

Brookfield India Real Estate Trust, a widely recognized investment instrument globally, has commenced an issue to raise up to Rs 3,500 crore through the sale of units to institutional investors on a private placement basis. The primary purpose of this fundraising initiative is to facilitate the acquisition of two valuable assets situated in Gurugram and Mumbai. The announcement was made by Brookprop Management Services Pvt Ltd, the designated manager of Brookfield India REIT, in a regulatory filing. The issue committee of the board of directors approved the commencement of the issue on July 27, and bids from investors are now being welcomed.

Expressing Support for the Acquisitions

The Committee took note of a supporting letter from BSREP II India Office Holdings II Pte Ltd, a member of the sponsor group, expressing its support for closing the acquisition of Kairos Property Managers and Candor Gurgaon One Realty Projects.

Embracing the REIT Concept in India

Real Estate Investment Trusts (REITs), which have gained significant popularity worldwide, were introduced in India a few years ago to attract investments in the real estate sector by capitalizing on rent-yielding assets. These investment vehicles enable the monetization of real estate assets and facilitate participation from retail investors.

Funding Strategic Acquisitions

The current issuance of units by Brookfield India REIT seeks to raise substantial funds amounting to Rs 3,500 crore. These funds will be channeled towards the acquisition of two prominent assets located in Gurugram and Mumbai. The opening of the issue has been approved by the committee, signifying a crucial step in securing the necessary resources for the strategic expansion.

Setting the Stage for Investment

The committee has successfully adopted the preliminary placement document and the application form associated with the issue. Additionally, the floor price of Rs 265.79 per unit has been approved, setting the groundwork for the sale of units.

Strong Support from Investors

In a significant display of confidence in Brookfield India REIT, the unitholders had previously sanctioned the raising of funds through institutional placement. The total funds to be raised were capped at Rs 3,500 crore, paving the way for multiple tranches of investment. The recent letter of support from BSREP II India Office Holdings II Pte Ltd further reinforces the trust and commitment of key affiliates towards the success of the acquisition endeavors.

Strategic Partnership for Property Acquisition

Earlier this year, Brookfield India REIT formed an equal partnership with Singapore’s GIC to acquire two commercial properties in India. This landmark collaboration amounted to a staggering USD 1.4 billion or Rs 11,225 crore investment. The two properties in Mumbai and Gurugram boast a combined built-up area of 6.5 million square feet and are owned by Brookfield Asset Management’s private real estate funds.

Property Portfolio Overview

Brookfield India REIT is one of the four real estate investment trusts listed on Indian stock exchanges. Its impressive portfolio includes five large campus-format office parks located in Mumbai, Gurugram, Noida and Kolkata. The total portfolio comprises 18.7 million sq ft, of which 14.3 million sq ft is completed, 0.6 million sq ft under construction and 3.9 million sq ft designated for future development.

The Assets in Focus

The two assets acquired through the partnership with GIC are Brookfield’s Downtown Powai and Candor Techspace in Gurugram. Downtown Powai comprises a collection of nine commercial properties, spread across three clusters, with 2.7 million square feet of operational area and 0.1 million square feet undergoing expansion. On the other hand, Candor Techspace in Gurugram features over 3.7 million square feet of operational space.

Brookfield India REIT continues to solidify its position as a key player in India’s real estate market, backed by robust support from investors and strategic acquisitions. The ongoing success of the REIT model in India demonstrates its ability to unlock the significant value of real estate assets and foster increased retail investor participation. Among the four listed REITs on Indian bourses, three focus on office assets, while the remaining one concentrates on retail real estate assets.

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