Brookfield India Real Estate Trust’s Rs 2,800- crore QIP has drawn interest from institutional investors such as India’s biggest insurer Life Insurance Corporation of India (LIC), World Bank arm IFC and mutual funds such as ICICI Prudential MF and SBI MF, sources told Moneycontrol.
The Canadian investment firm Brookfield-backed firm’s QIP, with a base issue size of Rs 2,800 crore, saw a 2x demand from investors, the sources said.
“This is the first time LIC and IFC have invested in a REIT in India, which is a significant development and shows the maturity of REITs as an asset class in India,” one of the persons cited above said.
The Brookfield REIT QIP was launched on December 9 at a floor price of Rs 287.55 a unit.
Funds raised will be used for partial or full repayment of loans availed by the REIT as well as assets held by the it.
The outstanding borrowings of the Brookfield REIT on a consolidated basis, as of September 30, stood at Rs 12,148.8 crore, an offer document filed by the REIT with the stock exchanges shows.
Investment banks Kotak Mahindra Capital, Avendus Capital and Elara Capital advised Brookfield on the share sale.
This is the second QIP fundraising by Brookfield REIT since its IPO in February 2021.
In August 2023, it raised Rs 2,305 crore by selling shares to institutional investors through a QIP offer.
An email sent to Brookfield did not elicit a response till the time of publication.
Brookfield REIT portfolio
The REIT’s portfolio primarily comprises 10 Grade-A commercial office/IT parks, which are located in some of India’s key markets such as Mumbai, Delhi, Gurugram, Noida and Kolkata.
As of September 30, the REIT portfolio’s holdings stood at 28.9 million square feet (msf), comprising 24.3 msf of completed area, 0.6 msf of under construction area and 4.0 msf of future development potential.
The portfolio includes office properties such as Worldmark Aerocity, Worldmark Gurugram, Airtel Center and Pavilion Mall.
The portfolio had an occupancy of 88.9 percent as of September 30 with marquee clients such as Tata Consultancy Services, Accenture, Bharti Airtel Limited, Cognizant Technology Solutions India Private Limited, Capgemini, TIAA, Samsung and RBS Services India Private Limited.
At 10.35 am, the Brookfield REIT stock was trading at Rs 281.09 on the National Stock Exchange, down 2.4 percent from the previous close.
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