Canadian alternative investment major Brookfield Asset Management is planning to raise $500 million to $700 million by listing a Real Estate Investment Trust (REIT) by the end of current financial year, said two persons with direct knowledge of the development.
“The process for monetizing Indian assets through REIT listing by roping in investment bankers has already started. The proposed REIT is expected to be listed by March end,” said one of the persons mentioned above. The exact size, dilution and other such factors will be finalized soon along with the assets that would be offered under this offering, he said.
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 maiden REIT Embassy Office Parks. This REIT backed by Embassy Group and US private equity major Blackstone Group has so far provided returns of over 22%, since its listing last year, including distribution and 14% price appreciation.
Backed by K Raheja Corp and Blackstone, the country’s second REIT issue Mindspace Business Parks that aims to raise Rs 4,500 crore also opens on Monday. With both strategic and anchor investments worth Rs 1,125 crore and Rs 1,519 crore, respectively, the proposed REIT issue already stands nearly 59% subscribed. ET’s email query to Brookfield Asset Management remained unanswered. In India, Brookfield owns and operates a portfolio of infrastructure and real estate assets, including 22 million sq ft office properties. In India's largest commercial space portfolio deal so far, 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.
Prior to this, in 2014, it had acquired 100% stake in four special economic zones owned by Unitech Corporate Parks (UCP) and 60% stake in its two other assets in the country for Rs 3,500 crore. It had bought the entire stake of Candor Investments, a subsidiary of London Stock Exchange-listed India-focused realty investment firm UCP. Subsequently, it went on to acquire the remaining 40% in the two other properties. Recently, one of its subsidiaries acquired the beleaguered company Jet Airways’ two-floor office in Godrej BKC in Bandra-Kurla Complex (BKC).