Brookfield India Real Estate Trust (BIRET) is set to acquire a 50 percent stake in four Grade A assets from Bharti Enterprises in Delhi and Gurugram, the real estate firms said on May 16.
The enterprise value of the properties is around Rs 6,000 crore. The acquisition includes marquee commercial properties spread over 3.3 million square feet.
The total equity consideration for the 50 percent stake would be fulfilled through a preferential allotment of units in BIRET to Bharti at Rs 300 a unit. It will make Bharti the second largest unitholder in BIRET with an ownership stake of 8.53 percent, the firms said in a joint statement.
Binding agreements to this effect have also been signed by BIRET.
Also Read: Brookfield REIT's Q3 net operating income rises 89% YoY
The portfolio includes operating Worldmark assets at New Delhi's Aerocity , which is a mixed-use property covering 1.4 million square feet; Airtel Center, the state-of-the-art corporate facility of 700,000 square feet in north Gurugram, and Worldmark Gurugram, another mixed-use asset spanning over 700,000 square feet.
These assets are in established office micro-markets, with good connectivity, modern retail and F&B offerings.
Ankur Gupta, Managing Partner, Head of Real Estate for the Asia Pacific region, Brookfield, said, “We are pleased to extend our partnership with Bharti through this strategic venture making them a significant investor in BIRET. With this acquisition, we add New Delhi to our portfolio making BIRET the most diverse office REIT in India. These high-quality assets with strong tenancy also increase our retail operating area to 1 million square feet.”
Also Read: Brookfield, Bharti Enterprises close Rs 5,000-crore deal
Harjeet Kohli, Joint Managing Director, Bharti Enterprises said following the transaction, Brookfield, through its two managed vehicles, would own 100 percent stake in the four marquee assets originally developed by Bharti Realty.
"With an over 8.5 percent stake in the REIT, Bharti is excited to take its partnership with Brookfield forward through a meaningful ownership in their listed portfolio of high quality assets," he said.
Bharti continues to invest in a large development pipeline of over 10 million square feet of Grade A commercial real estate assets in the Aerocity and hopes to grow the partnership through similar transactions.
In India, Canada-based Brookfield owns and operates over 50 million square feet of commercial real estate in Delhi-NCR, Mumbai, Bengaluru, Chennai, Pune, Hyderabad and Kolkata.
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