Canadian alternative asset manager Brookfield Asset Management Inc. has invested $100 million (around Rs 680 crore) across multiple projects of Hyderabad-based developer INCOR, according to a report in Mint.
The daily quoted INCOR co-founder G Anand Reddy as saying that the capital will be in the form of structured equity.
He said that the money will be used for a bunch of ongoing and upcoming projects in Hyderabad, adding that a part of the proceeds will go towards providing an exit to some of INCOR’s existing investors.
Separate emails written to INCOR and Brookfield seeking more details about the latest transaction did not elicit responses till the time of publishing this report.
INCOR Group, which also has a presence in the healthcare space, primarily takes up residential and commercial projects.
It has a slew of residential projects - both completed and ongoing - in its kitty while it has so far completed only two projects in commercial segment.
Brookfield had earlier invested in two INCOR projects.
According to INCOR’s website, it tied up with Brookfield for its project township project One City, which is located at at KPHB-HITEC City main road in Hyderabad.
It is not clear if the latest funding is for the same project.
Funding in the real estate space seems to have picked up despite a number of disruptive reforms in the industry. As per a report by Cushman and Wakefield, the realty sector attracted a total of $2.6 billion in private equity funding in the first quarter of 2018, up 15% on a year-on-year basis.
Brookfield Asset Management is a global alternative asset manager with more than $285 billion in assets under management. In a bid to increase its Indian footprint, Brookfield has been eyeing assets in the infrastructure sector, especially in telecom, real estate and toll road segments. It has been steadily increasing its exposure to the Indian real estate market across different segments.
Earlier this year, business conglomerate Essar Group announced the sale of its key Mumbai property – Equinox Business Park — to Brookfield at an enterprise value of Rs 2,400 crore ($360 million).
Before that, Brookfield agreed to invest Rs 800 crore across a bunch of projects of Bengaluru-based developer Total Environment Building Systems through structured debt.
Brookfield had also signed a mega deal with Mumbai-based developer Hiranandani Group for its office and retail portfolio for a whopping $1 billion.
It had previously invested Rs 450 crore from the fund in a project of Peninsula Land Ltd in Mumbai.
Last week, VCCircle reported that Brookfield was looking to acquire a stake in Altico Capital India Ltd, a real estate-focused non-banking financial company that counts Clearwater Capital, Abu Dhabi Investment Council and Varde Partners as its main investors.