Brookfield India REIT to raise $400 million in July, appoints bankers

Brookfield India's real estate investment trust (REIT), BROF.NS, has selected eight investment banks to manage an equity-raising venture of approximately $400 million in equity. Sources affirm that the REIT aims to conclude the transaction by July.

Brookfield, a leading global alternative asset group, oversees an astonishing 17.7 million square feet (1.7 million square metres) of office spaces and complex buildings in major Indian cities, including Kolkata, Mumbai, and Gurugram, situated close to New Delhi, through their Indian REIT. Among the renters are Accenture, Amazon, and Samsung Electronics.

Last month, the trust informed Indian stock exchanges of their intention to collect a maximum of $425 million to finance a $1.4 billion purchase of around 6.5 million square feet of office space in India alongside Singapore's GIC. No information was provided on the schedule or the approach to securing the financing.

According to sources, the Indian REIT has initiated a procedure to secure funds by July through a qualified institutional placement. This method involves listed entities gathering substantial investments from notable investors like insurance companies and mutual funds. The individuals who were privy to the discussions opted not to disclose their identities as the talks were confidential.

According to sources, the banks that have been mandated include both global giants Morgan Stanley, Citigroup, and Bank of America, along with national local firms Kotak, IIFL, JM Financial, and Axis Capital, as well as Jefferies. The representative from Brookfield declined to provide any further comments apart from the information disclosed during the exchange in the previous month. Morgan Stanley and Citi chose to withhold their comments, whereas the remaining banks did not provide responses to inquiries. According to one of the three sources, there are initial discussions taking place with prospective investors.

REITs possess and oversee tangible properties, obtaining revenue from the tenants they handle, which is utilized to disseminate earnings to their shareholders. Amidst a series of fundraising efforts in the real estate industry in India, coupled with the increasing need for office facilities post-COVID-19, lies the proposal for a deal plan.

Brookfield India Real Estate Trust is India’s first and only 100 percent institutionally managed real estate investment trust.

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Brookfield India REIT to raise $400 million in July, appoints bankers

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