Brookfield Asset Management Company is in talks with Singapore’s sovereign wealth fund GIC to sell half its stake in the special purpose vehicle that is holding its office assets in Powai, Mumbai for $1.5 billion, two sources with knowledge of the deal said.
The 4.2 million square feet of office and retail space was acquired by the Canadian alternatives asset manager in October 2016 from the Hiranandani group for around $1 billion, in one of the largest deals then in the real estate sector.
At that time, GIC had been among the funds in the race for the assets, which had seen interest from other global investors as well, including US-based Blackstone Inc.
It’s been slightly over six years since Brookfield acquired the assets and it would be looking for returns on its investments by now by partially monetising its stake, a source said, adding that the talks are at an advanced stage. One of the office properties in Powai called Kensington is now part of the Brookfield India Real Estate Trust’s portfolio.
Sources said that Brookfield is likely taking a quicker monetisation route for the assets not under its India REIT and selling a partial stake to GIC. Sources indicated that one of its real estate assets in Gurgaon will also be monetised through a sale, either separately or along with the Powai offices sale.
Singapore’s GIC fund is another major investor in the real estate market in India, and this partnership with Brookfield would give it access to some prime office space in the financial capital, the source said. GIC doesn’t give a geographical break-up of its assets under management.
A spokesperson for Brookfield Asset Management said that it would not be offering any comments. GIC did not respond to emails seeking clarification.
Brookfield, which owns assets such as real estate, telecom towers, toll roads and renewable power in India, is churning its portfolio in the country as it seeks to make profitable returns and then re-invest in areas where it sees growth opportunities. As of June 30, 2022 it managed assets worth $22 billion in India, of which $8 billion was in real estate.
It has been in India for about 15 years and it expects India and China to lead its growth in the Asia Pacific region. In 2021, it reported $2.5 billion in revenues from India, according to its annual report.