Brookfield in talks to sell 50% stake in Mumbai office assets to Singapore

Brookfield Asset Management, a Canadian alternatives asset manager, is in negotiations with Singapore's sovereign wealth fund, GIC, to sell half of its stake in a special purpose vehicle that holds its office assets in Powai, Mumbai. The 4.2 million square feet of office and retail space was acquired by Brookfield in 2016 from the Hiranandani group for $1 billion in one of the largest real estate deals at the time. GIC was among the interested parties in the race for the assets, along with other global investors like Blackstone Inc.

Six years have passed since Brookfield acquired the assets, and it is now looking to partially monetize its stake for returns on its investments. The talks between Brookfield and GIC are said to be at an advanced stage. One of the office properties in Powai, Kensington, is now part of Brookfield India Real Estate Trust's portfolio. Brookfield is reportedly considering a quicker monetization route for the assets not under its India REIT and selling a partial stake to GIC.

GIC's partnership with Brookfield would give the sovereign wealth fund access to some prime office space in the financial capital of India. GIC is another major investor in the Indian real estate market, but it doesn't provide a geographical breakdown of its assets under management. Brookfield, which has been in India for 15 years, is restructuring its portfolio in the country to make profitable returns and re-invest in growth opportunities. It expects India and China to lead its growth in the Asia Pacific region. As of June 30, 2022, Brookfield managed assets worth $22 billion in India, of which $8 billion was in real estate. In 2021, it reported $2.5 billion in revenues from India, according to its annual report.

In addition to real estate, Brookfield also owns assets such as telecom towers, toll roads, and renewable power in India. The company is seeking to make profitable returns and then re-invest in areas where it sees growth opportunities. With its strong presence in India, Brookfield is well-positioned to take advantage of the growth opportunities in the country, especially in the real estate sector. By partnering with GIC, Brookfield can not only monetize its assets but also gain access to the sovereign wealth fund's deep pockets and expertise in the Indian real estate market.

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Brookfield in talks to sell 50% stake in Mumbai office assets to Singapore

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