Brookfield India REIT Launches an Offering to Raise INR 3500 Crore Through The Sale of Units

Bengaluru, Karnataka

Brookfield India Real Estate Trust has opened its offering to raise up to Rs 3,500 crore through the private placement sale of units to institutional investors in order to finance the acquisition of two properties in Gurugram and Mumbai.

Brookprop Management Services Pvt Ltd, the manager of Brookfield India REIT, disclosed in a regulatory filing that the issue committee of its board of directors endorsed the opening of the issue for bids on July 27.

In relation to the issue, the panel authorised and adopted the preliminary placement document and the application form. In addition, it approved the base price of Rs 265.79 per unit, according to the filing. The filing did not specify the quantity of units for sale.

In June 2023, the unitholders approved raising funds through an institutional placement of units in one or more tranches not to exceed Rs 3,500 crore.The committee took note of the letter from BSREP II India Office Holdings II Pte Ltd (a sponsor Group member) expressing support for the completion of the acquisitions of Kairos Property Managers and Candour Gurgaon One Realty Projects.

Accordingly, "its affiliates are willing to subscribe to additional units of Brookfield India REIT for a total amount ranging from Rs 8,000 million to Rs 11,000 million"

In May 2023, Brookfield India REIT and GIC of Singapore announced an equal partnership to acquire two commercial properties in India for USD 1.4 billion (INR 11,225 crore) or Rs 11,225 crore.

The built-up area of the two properties in Mumbai and Gurugram is 6.5 million square feet, and they are owned by the private real estate funds of Brookfield Asset Management.

The two properties are Brookfield's Downtown Powai, a portfolio of nine commercial properties spread across three clusters with 2.7 million square feet of operational space and 0.1 million square feet of expansion space, and Candour Techspace in Gurugram, which has more than 3.7 million square feet of operational space.

Brookfield India REIT is one of four Indian stock exchange-listed Real Estate Investment Trusts (REIT).

Its portfolio consists of five major office complexes with a campus layout in Mumbai, Gurugram, Noida, and Kolkata. The portfolio consists of 18,7 million square feet, including 14.3 million square feet of completed space, 0.6 million square feet of space currently under construction, and 3.9 million square feet of space slated for future development.

REIT, a globally renowned instrument, was introduced in India a few years ago to attract investment in the real estate sector by monetising assets that generate rental income.

REITs distribute their rental income to unitholders. REITs help unlock the immense value of real estate assets and enable retail investors to participate. Three of the four REITs listed on Indian bourses are supported by office real estate assets, while one is supported by retail real estate assets.