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In a recent strategic move, Brookfield Properties, the global real estate services company under Brookfield Asset Management, has successfully refinanced a debt of Rs 2,100 crore tied to its commercial property, Equinox Business Park in Mumbai. This financial restructuring, facilitated through Punjab National Bank, replaces the previous debt facility provided by Housing Development Finance Corporation (HDFC) in 2018 and 2020.
The HDFC loans, amounting to Rs 2,000 crore and Rs 100 crore, were availed at interest rates of 8.70% and 9.50%, with respective tenures of 180 and 156 months. The newly secured debt for refinancing offers improved terms, with an 8.60% interest rate and an extended tenure until September 2038.
The decision to refinance was prompted by Equinox Business Park's robust performance, characterized by high occupancy rates and a roster of prestigious clients under Brookfield's management.
Back in 2018, Brookfield Asset Management acquired Equinox Business Park, offering a sprawling 1.3 million sq. ft of leasable space, ideally situated near Mumbai's Bandra-Kurla Complex (BKC), a bustling business district.
Equinox Business Park, set across 10 acres and comprising just four towers, distinguishes itself as one of the low-density business parks in the BKC vicinity.
The mortgage agreement with Punjab National Bank, encompassing all four commercial towers within Equinox Business Park, was formalized on September 8, further solidifying the property's financial foundation.
In 2023, Brookfield Properties has already made significant strides, leasing more than 351,000 sq ft of office space in Equinox Business Park to new tenants, including the National Stock Exchange (NSE). The business park continues to attract key tenants like Mirae Assets Capital Markets, Tata Communication, State Street, Titan, and Atlas University.
One noteworthy highlight from 2021 was the Future Technology Skills Foundation (FTSF) lease transaction, securing nearly 200,000 sq ft of office space for an unprecedented 32-year term. This transaction not only boosted Equinox Business Park's occupancy levels from 40% to nearly 100% but also marked it as the country's most extensive lease agreement to date.
This strategic manoeuvre by Brookfield Properties reflects a commitment to financial prudence, property performance, and an overall drive to fortify the commercial real estate landscape.
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