Brookfield India REIT - An INR 3500 Crore Leap Towards REIT Growth in India

Institutional Confidence Drives REIT Momentum

Brookfield India Real Estate Trust (Brookfield India REIT) has set a remarkable benchmark by raising ₹3,500 crore through a Qualified Institutional Placement (QIP). This successful funding round attracted prominent institutional investors, including the International Finance Corporation (IFC) and Life Insurance Corporation of India (LIC), marking their maiden investment in an Indian REIT.

The QIP saw overwhelming demand exceeding ₹5,200 crore, showcasing strong confidence in the REIT’s strategic vision. Brookfield allotted units worth ₹3,500 crore, with significant participation from SBI Mutual Fund and ICICI Prudential Mutual Fund, among others.

A Growing Global Appeal for Indian REITs

This latest QIP highlights India’s rising prominence in the global REIT landscape. Institutional entities like IFC, SBI Mutual Fund, and ICICI Prudential Mutual Fund accounted for 23.86% of the units each, while LIC secured a 14.29% stake. Post-placement, IFC, SBI, and ICICI Prudential hold 5% stakes each in the REIT, with LIC owning 3%.

According to Ankur Gupta, managing partner and head of real estate for the Asia Pacific region at Brookfield, this diverse demand underscores the REIT’s solid portfolio and strategic execution.

Strengthening REIT Financial Health and Growth Strategy

The funds raised through this QIP will primarily be used to reduce leverage, paving the way for future acquisitions and delivering long-term value to unitholders. This move aligns with Brookfield India REIT’s ongoing strategy of acquiring high-quality assets in prime markets.

This is Brookfield India REIT’s second QIP since its IPO in February 2021. In August 2023, it raised over ₹2,300 crore to acquire key properties, including Downtown Powai in Mumbai and Candor TechSpace Gurugram, through a partnership with GIC.

Brookfield India REIT: A Pillar of India’s REIT Market

Brookfield India REIT remains the only 100% institutionally managed office REIT in the country, overseeing a portfolio of 10 grade-A assets across major cities like Mumbai, Delhi, Gurugram, Noida, and Kolkata. With a total leasable area of 28.9 million sq ft, including 24.3 million sq ft of operational space, Brookfield continues to attract global and domestic investors alike.

The REIT is sponsored by Brookfield, a global asset management leader with $1 trillion in assets under management across real estate, infrastructure, renewable power, private equity, and credit strategies.

The Road Ahead for REITs in India

Brookfield India REIT’s success showcases the immense growth potential of REITs in India, bridging institutional capital with high-performing real estate assets. The growing participation of international and domestic investors is a testament to the robust opportunity Indian REITs offer, making them a critical pillar in the country’s economic and infrastructure growth story.

Disclaimer

This article is for informational purposes only. The information presented is based on the latest developments in the REIT market and should not be construed as financial advice. Readers are encouraged to consult with a professional for investment guidance.