Brookfield India REIT is likely to launch its qualified institutional placement (QIP) next month to raise ₹3,500 crore, sources said. The REIT, which is listed on the Indian bourses, has also appointed eight investment banks including Citigroup, Jefferies, Morgan Stanley, Kotak Mahindra Capital, IIFL and JM Financial to manage the fund-raise.
Last month, the REIT along with Singapore’s sovereign wealth funds had agreed to buy 6.5 million sq ft of a commercial portfolio from sponsor Brookfield Asset Management for $1.4 billion. To fund the deal, GIC had committed around ₹3,500 crore and Brookfield REIT will be raising a similar amount through a QIP, the announcement had said.
Brookfield Properties did not respond to an e-mail seeking clarification.
Assets in the transaction
The assets in the transaction include properties in Downtown Powai in Mumbai and Candor TechSpace in Gurugram. Brookfield REIT had the right of first offer for the assets, but the assets’ ownership and holding was restructured to facilitate the transaction that involves an equal partnership between the REIT and GIC.
The tenant roster in the office include marque clients such as Capgemini, Fidelity, Evalueserve, Nomura, Wipro and Deloitte. Though the deal value was at a 6 per cent discount to the gross asset value of the properties, the cost of replacement of these assets is extremely high and therefore they form an attractive proposition for the REIT as well as GIC, which was originally in the race to acquire the assets from the Hiranandani Group in 2019.