Brookfield India Real Estate Trust is set to raise Rs 400 crore by issuing units to its sponsor group entity, Project Diamond Holdings, on a preferential basis. Additionally, the trust plans 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.
Back in May, Brookfield India REIT and Singapore’s GIC had jointly announced a significant partnership to acquire two commercial properties in India valued at USD 1.4 billion (approximately Rs 11,225 crore). To fund this acquisition, Brookfield India Real Estate Trust recently raised Rs 2,305 crore through the private placement of units to institutional investors.
According to a regulatory filing, the board of Brookprop Management Services Pvt Ltd 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 at a price of Rs 315.04 per unit, for non-cash consideration. Brookprop Management Services Pvt Ltd serves as the manager to Brookfield India Real Estate Trust.
The board has also 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, to one or more permitted investors.
The two properties that Brookfield India REIT and GIC are acquiring in Mumbai and Gurugram encompass a combined built-up area of 6.5 million square feet and are currently owned by Brookfield Asset Management’s private real estate funds. The properties are named Brookfield’s Downtown Powai, which 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 is Candor Techspace in Gurugram, featuring over 3.7 million square feet of operational space.
Brookfield India REIT is one of the four listed Real Estate Investment Trusts (REIT) on Indian stock exchanges. Its diversified portfolio includes five large campus format office parks located in Mumbai, Gurugram, Noida, and Kolkata, with a total area of 18.7 million square feet. The portfolio comprises 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, which is an affiliate of Brookfield Asset Management Inc (BAM), the flagship entity of the esteemed Brookfield Group, boasting a 120-year legacy.
With input from PTI