Brookfield India Real Estate Trust has raised Rs 3,500 crore (about $415 million) by selling units to institutional investors including International Finance Corporation, the private-sector investment arm of the World Bank Group.
The real estate investment trust (REIT) controlled by Canadian alternative investment firm Brookfield Asset Management Inc. sold a total of about 127.74 million units at Rs 274 apiece to 51 investors. Apart from IFC, state-run Life Insurance Corporation, SBI Mutual Fund, and ICICI Prudential Mutual Fund were among the buyers, the REIT said in a stock-exchange filing.
“The funds raised will be used primarily for reduction of leverage, creating headroom for acquiring high-quality assets and enabling us to execute on our long-term strategic vision,” said Alok Aggarwal, MD and CEO of the REIT.
This is the second institutional placement by Brookfield India Real Estate Trust since its IPO in 2021. In August 2023, it had raised over Rs 2,300 crore to acquire the Downtown Powai (Mumbai) and Candor TechSpace (G1) Gurugram assets from Brookfield Asset Management’s private real estate funds in an equal partnership with Singapore sovereign wealth fund GIC.
Kotak Mahindra Capital Company Limited, Avendus Capital Private Limited and Elara Capital (India) Private Limited served as the lead managers to the issue.
Toronto-headquartered Brookfield manages a portfolio of close to $27 billion in India. Its India portfolio comprises $9 billion under real estate, $12 billion under infrastructure, and $3 billion each under renewable energy and private equity and credit. It recently picked up a 7.7% stake in Indian developer Nirlon Ltd to grow its local portfolio.
Brookfield India REIT manages 10 Grade-A assets located in Delhi, Mumbai, Gurugram, Noida, and Kolkata. Its portfolio consists of 28.9 million sq ft of total leasable area, comprising 24.3 million sq ft of operating area, 0.6 million sq ft of under construction area and 4.0 million sq ft of future development potential.
