Brookfield India Real Estate Trust on Wednesday announced that it has completed a capital raise of ₹2,305 crore through qualified institutional placement (QIP) of its units. The company allotted 9.13 crore new units through this QIP to 64 eligible investors on August 2, 2023. The real estate investment trust intends to use raised capital to finance the announced acquisition of two large commercial assets from Brookfield Asset Management’s private real estate funds.
“The qualified institutional placement saw strong demand from existing as well as new Indian and global investors,” the company says in a release.
Ankur Gupta, Managing Partner, Head of Real Estate for the APAC region at Brookfield says, “We thank the institutions that have shown their support for the fund raise which expands and diversifies our investor base and stands as a testament to the quality of office portfolio we have built in the country.”
“We are grateful to our unitholders for the support and vote of confidence in the growth strategy for the REIT, which will further strengthen BIRET’s presence across India,” says Alok Aggarwal, Chief Executive Officer, Brookprop Management Services Private Limited (Manager of Brookfield India Real Estate Trust).
The issue committee of the board of directors of Brookprop Management Services, the manager of Brookfield India Real Estate Trust, approved the issuance and allotment of 9.13 crore new units through this QIP to 64 eligible investors on August 2, 2023.
On May 18, 2023, Brookfield India and Singaporean sovereign wealth fund GIC announced that they will acquire two large commercial assets (totaling 6.5 million square feet) from Brookfield Asset Management’s private real estate funds in an equal partnership with GIC for a combined enterprise value of ₹11,225 crore. The acquisition comprises commercial properties in Brookfield’s Downtown Powai, Mumbai, and Candor TechSpace (G1) Gurugram.
Downtown Powai is a portfolio of 9 commercial properties spread across three clusters totaling 2.7 million square feet (M sf) of operating area and 0.1M sf of area under expansion. Candor TechSpace, located in Sector 48 of Gurugram, is an IGBC Platinum rated Grade-A office SEZ, which comprises 12 completed buildings totaling to 3.7M sf of operational area with 75% committed occupancy and a 6.7 year WALE.
Brookfield and GIC formed a 50:50 joint venture to buy these two commercial assets, with a combined enterprise value of $1.4 billion. This is the first-of-its-kind partnership In India between a listed REIT and a global institutional investor. To fund the acquisitions, Brookfield India launched a QIP on July 27, 2023.
BofA Securities India, Morgan Stanley India Company, Kotak Mahindra Capital Company, Citigroup Global Markets India, Axis Capital, Jefferies India, JM Financial, SBI Capital Markets, IIFL Securities, BOB Capital Markets, and ICICI Securities served as Book Running Lead Managers for this placement.
In a separate development, Brookfield India on Tuesday said that a meeting of the board of directors of Brookprop Management Services will be held on August 4, 2023 to consider and approve fund raising options by Brookfield India REIT, including through preferential issue of units (including to the Sponsor/Sponsor group) or debt and/or any other mode, as permitted under applicable law.
