Brookfield India REIT to raise Rs 400 crore via preferential issue

Brookfield India Real Estate Trust will garner Rs 400 crore by issuing units to sponsor group entity Project Diamond Holdings on preferential basis and also plans to raise up to Rs 750 crore through issue of commercial papers to finance acquisition of two commercial assets in Gurugram and Mumbai.

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.

To fund this acquisition, Brookfield India Real Estate Trust had earlier this week raised Rs 2,305 crore by selling units to institutional investors on private placement basis.

According to a regulatory filing on Friday, the board of Brookprop Management Services Pvt Ltd approved issuance of up to 1,26,96,800 units of Brookfield India REIT at a price of Rs 315.04 per unit to Project Diamond Holdings (DIFC) Ltd on a preferential basis for consideration other than cash.

Brookprop Management Services Pvt Ltd is the manager to Brookfield India Real Estate Trust.

The board also approved issuance and allotment of commercial papers by Brookfield India Real Estate Trust aggregating up to Rs 750 crore with a maturity period of up to 1 year to one or more permitted investors.

Brookfield India Real Estate Trust and GIC are acquiring the two commercial assets in Mumbai and Gurugram, which have a total 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 Indian stock exchanges.

Its portfolio comprises five large campus format office parks 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.

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 Brookfield Group with a 120-year legacy.