Singapore sovereign wealth fund GIC and Brookfield India Real Estate Investment Trust (REIT) have joined hands to acquire two commercial properties from Canadian alternative investor Brookfield Asset Management Inc. for about Rs 11,225 crore (nearly $1.4 billion).
The properties are Brookfield’s Downtown Powai in Mumbai, which will be acquired for Rs 6,500 crore, and Candor TechSpace (G1) in Gurugram for Rs 4,725 crore, Mumbai-listed Brookfield India REIT said Friday. The two properties have a total area of about 6.5 million square feet.
Additionally, Brookfield India RIET will also acquire a 100% interest in Candor TechSpace (G1) property management entity, Mountainstar India Office Parks Pvt. Ltd, for over Rs 150 crore (about $18 million).
GIC has committed Rs 3,300 crore (about $400 million) to Brookfield REIT for the 50% acquisition of the commercial properties, as well as for part-repayment of debt.
The transaction, according to a statement, will increase Brookfield India REIT’s operational area by over 40% and its gross asset value by 73%. The listed REIT’s total operating area, as of March 2023 was about 20.6 million square feet, including 6.3 million square feet of total target assets.
Brookfield Asset Management as well as the REIT’s total operational assets are spread across a total area of 38.6 million square feet. The total assets of the two entities, including those to be developed in future, stand at 50.1 million square feet.
Morgan Stanley was the financial advisor to Brookfield Asset Management for this transaction.
Brookfield Asset Management launched its India REIT’s initial public offering in February 2021. Ahead of the IPO, the REIT raised Rs 1,710 crore from anchor investors. The REIT was aiming to raise Rs 3,800 crore (about $520 million) through the issuance of fresh units.
This listing was the third such public offering after Embassy Office Parks REIT, a joint venture between Bengaluru-based Embassy Group and private equity giant Blackstone, and Mindspace REIT backed by K Raheja and Blackstone.
Last week, Nexus Select Trust, the real estate investment trust that operates under Nexus Malls, owned by private equity giant Blackstone, became the first retail REIT to float an IPO in India. Its $390-million IPO was oversubscribed by 5.45 times. It made its stock exchange debut on Friday.