Brookfield India REIT, GIC to acquire commercial property for $1.4 billion

The deal will raise the gross asset value and net asset value of Brookfield India Real Estate Trust to US$3.5 billion and US$2 billion, respectively. Representative Image

For an enterprise value of $1.4 billion, Brookfield Asset Management will sell 6.5 million square feet of commercial real estate in India to its listed real estate investment trust, Brookfield India REIT, and Singapore's GIC.

The properties being purchased are in Gurugram's Candour TechSpace and Powai's Hiranandani Gardens, according to the regulatory filing.

Although Brookfield REIT had right of first offer for the assets, ownership has been modified in order to allow the current transaction, which entails a partnership between the REIT and GIC.

Kishore Gotety, co-head of real estate, Asia ex-China, GIC, said, "We expect growth in the India office sector to continue, driven by an established IT industry, increased focus by global corporations on digital adoption, and the availability of skilled talent. These acquisitions are testament to our confidence in the India office sector, as well as the wider Indian market, and will add to the diversification of GIC’s global office portfolio."

The deal will raise the gross asset value and net asset value of Brookfield India Real Estate Trust to US$3.5 billion and US$2 billion, respectively. The acquisition greatly expands the Brookfield India REIT portfolio, adding 35% to total leasable space and 44% to operating area, as per the filing.

Ankur Gupta, managing partner, head of real estate, APAC region, Brookfield, said, "Growing and diversifying our India REIT portfolio via accretive transactions is part of our long-term strategy. We are excited about the addition of market leading properties and the meaningful increase in size of the REIT. This unique partnership furthers our global partnership with GIC in India and reaffirms the quality of the portfolio we’ve built in the country."