Brookfield India REIT raises Rs 2,305 crore through sale of units to 64 institutional investors

Brookfield India Real Estate Trust has raised Rs 2,305 crore by selling units to institutional investors on a private placement basis and will mainly use this fund for the acquisition of two assets in Gurugram and Mumbai.

In a regulatory filing, Brookprop Management Services Pvt Ltd, which is a manager of Brookfield India REIT, informed that the issue committee has approved the allotment of 9,13,01,349 units to 64 successful eligible institutional investors, at the issue price of Rs 252.50 per unit.

The names of investors were not disclosed.

The issue price includes a discount of Rs 13.29 per unit (which is 5 percent) on the floor price of Rs 265.79 per unit.

"Pursuant to the allotment of the units in the issue, 42,63,88,422 units are issued and outstanding," the filing said.

Brookfield India Real Estate Trust (Brookfield India REIT) opened the issue on July 27 for receiving bids.

Last month, the unitholders approved the raising of funds through an institutional placement of units not exceeding Rs 3,500 crore in one or more tranches.

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

The two assets in Mumbai and Gurugram have a built-up area of 6.5 million square feet and are owned by Brookfield Asset Management's private real estate funds.

The two properties are Brookfield's Downtown Powai, which is a portfolio of nine commercial properties spread over three clusters having 2.7 million square feet of operational area and 0.1 million square feet of area under expansion, and Candor Techspace in Gurugram, which has over 3.7 million square feet of operational space.

Brookfield India REIT is among four listed Real Estate Investment Trusts (REIT) on the Indian stock exchanges.

Its portfolio comprises five large campus-format office parks located in Mumbai, Gurugram, Noida, and Kolkata. 

The portfolio consists of 18.7 million square feet comprising 14.3 million square feet of completed area, 0.6 million square feet of under construction, and 3.9 million square feet of future development.