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Brookfield India Real Estate Trust, backed by Canada’s Brookfield Asset Management Inc., is seeking to raise upto Rs 3,808 crore in an initial public offering.

This would be the third REIT in India, after Mindspace Business Parks REIT which debuted on the stock exchange in August 2020 and Embassy Business Office Parks that launched in 2019.

Brookfield REIT IPO details

Brookfield REIT is selling 13.82 crore units to 13.85 crore units at Rs 274 to Rs 275 each.

The minimum bid lot is 200 units. The minimum bid amount is Rs 54,800 to Rs 55,000.  

The IPO will open on February 3 and close on February 5. Listing is scheduled for February 17.

Brookfield REIT will use the funds raised in the IPO to partially or fully repay existing debt and general corporate purposes.

Bank of America Corp., Citigroup Inc., HSBC Holdings Plc and Morgan Stanley are global coordinators and book running lead managers for the IPO.

What is a REIT

A REIT is a vehicle that enables owners of real estate to pool primarily income generating assets together in a portfolio. REITs give all investors access to the benefits of real estate investment with the advantage of investing in publicly traded units.

In India REITs are governed by SEBI (Real Estate Investment Trusts) Regulations, 2014 which primarily lay down the framework in line with the global REIT’s standards including:

* Minimum 80% of total value of assets to be comprising of completed and income generating properties

* Net Debt to not exceed 49% of total asset value

* Minimum 90% of distributable cash flows to be distributed

REITs are typically listed on stock exchanges through an Initial Public Offering (IPO).

About Brookfield India

Brookfield manages $578 billion in assets globally. It owns and operates about 22 million square feet of office properties in India. It also operates toll roads, solar and wind assets, a construction business and real estate management services in India.

The Brookfield India Real Estate Trust is India’s only institutionally managed public commercial real estate vehicle. The REIT wants to be a leading owner of high quality income producing commercial real estate assets in key gateway Indian markets, which have significant barriers to entry.

Realty portfolio

As per its website, the Brookfield India Real Estate Trust comprises of grade-A commercial assets located in four major cities – Mumbai, Gurgaon, Noida and Kolkata. 

Its initial portfolio of four large campus-format office parks, which are “business-critical” totals to 14.0 M sf, comprising 9.8 M sf of Completed Area, 0.6 M sf of under construction area (occupation certificate for 0.5 M sf received on September 22, 2020) and 3.6 M sf of Future Development Potential and comprises of Kensington, Candor Techspace, Sector 21, Gurugram, Candor Techspace, Sector 62, Noida and Candor Techspace, Rajarhat, Kolkata. 

The “Pro Forma Portfolio” comprises initial portfolio along with Candor Techspace, Sector 48, Gurugram and Candor Techspace, Sector 135, Noida, assuming the completion of the acquisition of these two Call Option Properties by us. Candor Techspace, Sector 48, Gurugram and Candor Techspace, Sector 135, Noida are referred to as the “Call Option Properties”.

IPO factbox

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