Brookfield India Real Estate Trust, backed by Canadian asset manager Brookfield Asset Management Inc, aims to raise ₹3,800 crore through an initial public offering (IPO)
Brookfield India Real Estate Trust, backed by Canadian asset manager Brookfield Asset Management Inc, aims to raise ₹3,800 crore through an initial public offering (IPO). The issue will open on 3 February and close on 5 February, Brookfield said in an advertisement on Thursday. The issue price will be between ₹274-275 per unit of the Reit.
Proceeds from the issue will be used for partial or full repayment of existing debt, the company said in its offer document.
Currently BPG Holdings Group Inc, a Brookfield entity, holds 99% stake in the Reit. This will be the third Reit IPO after the successful listing of Blackstone Group Inc-backed Mindspace Business Parks Reit last year and Embassy Office Parks Reit in 2019.
The initial portfolio of assets housed under the Reit comprise 14 million sq. ft (msf) of property, with rights to acquire a further 8.3 msf and rights of first offer on an additional 6.7 msf, both currently owned by members of the Brookfield group, the offer document said.
“We own an initial portfolio of four large campus-format office parks, which are business-critical, located in some of India’s key gateway markets, Mumbai, Gurugram, Noida and Kolkata. Our initial portfolio totals 14 msf, comprising 10.3 msf of completed area, 0.1 msf of under construction area and 3.7 msf of future development potential," the document said.
Tenants in these properties include multinational corporations such as Barclays, Bank of America Continuum, RBS, Accenture, Tata Consultancy Services and Cognizant.
In fiscal year 2020, Brookfield Reit posted a profit of ₹15.12 crore against a loss of ₹15.75 crore a year ago. Total income rose 5.54% from a year ago to ₹981.40 crore. As of March 2020, the company had a total debt of ₹6,952.07 crore.