The issue, priced between Rs 274 and Rs 275, will open for subscription on February 3 and close on February 5, Brookfield said in regulatory notification.
In July, ET was first to report that Brookfield Asset Management is planning to raise $500 million to $700 million by listing a REIT by the end of the current financial year.
This will be India’s third REIT listing and second in the country during the ongoing pandemic. The proposed issue will be India’s first REIT which is 100% managed by an institution.
In India, Brookfield owns and operates a portfolio of infrastructure and real estate assets, including 42 million sq ft office properties. Around 14 million sq ft out of this will be offered under the REIT and 93% of the portfolio value is derived from completed assets.
Last month, in the largest ever real estate deal in India, Brookfield completed acquisition of RMZ Corp’s 12.8 million sq ft real estate assets for around $2 billion. These assets are not part of the REIT portfolio right now. The REIT has an identified growth pipeline of 15 million sq ft.
Prior to that, in India’s largest commercial space portfolio deal, it had acquired Hiranandani Group’s offices and retail space in Mumbai’s Powai suburb, for around $1 billion or Rs 6,700 crore in October 2016.
Some of the marquee properties that are being offered under the REIT include Kensington SEZ in Mumbai Powai’s suburb that counts large tenants such as Nomura, Deloitte, Credit Suisse. Candor Tech Space in Gurgaon and other key assets in Noida and Kolkata will also be part of this REIT portfolio.
Bank of America, Morgan Stanley, HSBC, Citibank are the lead bakers to the issue.
India’s REIT segment is now catching momentum with large portfolio owners increasingly gearing up to list part of their holdings here after the successful listing and performance of both the REITs Embassy Office Parks and Mindspace Business Parks.
Listed in April 2019, Embassy Office Parks REIT is co-owned by Embassy Group and the US private equity major Blackstone Group. Mindspace Business Parks that listed on bourses last month is co-owned by K Raheja Corp and Blackstone.
REITs and Infrastructure investment trusts (InvITs) can potentially raise up to Rs 8 lakh crore of capital for India’s infrastructure buildout over the next five fiscals, showed a CRISIL Ratings analysis.
Both the fundraising avenues are gaining currency in India, following the footsteps of the developed world and a deeper debt market where investors can discern risks and returns across infrastructure asset classes, and stable regulations will be critical to achieving this goal.