In a strategic move, Brookfield India Real Estate Investment Trust (REIT) has successfully raised Rs 400 crore through a preferential issuance of units to its sponsor group entity, Project Diamond Holdings. The REIT is also planning to secure up to Rs 750 crore through the issuance of commercial papers to finance the acquisition of two commercial properties in Gurugram and Mumbai.
Brookfield India REIT recently made headlines when it announced a significant partnership with Singapore’s GIC to jointly acquire two commercial properties in India, with a combined valuation of USD 1.4 billion (approximately Rs 11,225 crore).
The Board of Brookprop Management Services Pvt Ltd, which serves as the manager to Brookfield India Real Estate Trust, has approved the issuance of up to 1,26,96,800 units of Brookfield India REIT to Project Diamond Holdings (DIFC) Ltd on a preferential basis. The price per unit has been set at Rs 315.04, and the consideration will be non-cash.
Additionally, the Board has given the green light for the issuance and allotment of commercial papers by Brookfield India Real Estate Trust, totaling up to Rs 750 crore, with a maturity period of up to one year. These commercial papers will be offered to one or more permitted investors.
The two properties targeted for acquisition are located in Mumbai and Gurugram, boasting a combined built-up area of 6.5 million square feet. These properties are currently owned by Brookfield Asset Management’s private real estate funds. The first property, Brookfield’s Downtown Powai, comprises a portfolio of nine commercial properties spread across three clusters, with 2.7 million square feet of operational area and 0.1 million square feet of area under expansion. The second property, Candor Techspace in Gurugram, offers over 3.7 million square feet of operational space.
Brookfield India REIT is a listed Real Estate Investment Trust on Indian stock exchanges and holds a diversified portfolio, including five large campus format office parks situated in Mumbai, Gurugram, Noida, and Kolkata, with a total area of 18.7 million square feet. The portfolio includes 14.3 million square feet of completed area, 0.6 million square feet of under-construction space, and 3.9 million square feet earmarked for future development.
The sponsor of Brookfield India REIT is BSREP India Office Holdings V Pte Ltd, an affiliate of Brookfield Asset Management Inc (BAM), which is renowned for its 120-year legacy in real estate investments.
This strategic move to raise capital for the acquisition of prime commercial properties in Mumbai and Gurugram reflects Brookfield India REIT’s commitment to expanding its portfolio and tapping into lucrative opportunities in the Indian real estate market. Investors are closely watching these developments, as the acquisitions have the potential to boost the REIT’s rental income and further strengthen its position in the market.
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