Global entities including Schroders and Prusik apart from domestic financial institutions such as HDFC AMC,
Life, Tata AIG, , Kotak Mahindra AMC, and , are among the key entities that participated in the fund raising.
These anchor investors have committed investment in the Rs 3,800-crore issue at Rs 275 per unit. The public issue opens on Wednesday and closes on Friday.
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.
REITs and InvITs are expected to attract more investments following after the Finance Minister, as part of Union Budget 2021, allowed business trusts to raise debt funds from foreign portfolio investors (FPIs).
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.
