You are here: Home » Companies » News

Brookfield may emerge the largest investor this year

The Canadian fund announced investments worth $2.6 bn this month

Canadian alternative-asset-manager Brookfield, with $200 billion worth of assets under management, set up its office in Mumbai 2009. Anuj Ranjan, its managing partner for India office, did not make any investment in the first three years. Over the next three years, however, he invested in assets worth $2 billion.

This year, he plans to acquire assets worth $2.6 billion. These include the $1-billion (approximately Rs 6,700-crore) acquisition of retail and real estate assets from at Powai in Mumbai early this month followed with a non-binding bid worth Rs 11,000 crore ($1.6 billion) for acquiring tower assets of Reliance Communication. This might make the largest alternative asset investor in India this year.

Last year, Singaporean fund emerged as the largest PE investor with investments worth $1 billion.

“There is nothing as a must do for in terms of geography or industry as it remains truly opportunistic,” says a person familiar with Brookfield’s India investments plans. He did not wish to be identified. “Right now, India looks attractive with good macro fundamentals coupled with challenging micro situation resulting in good deal opportunities,” says the person explaining the sudden spurt in Brookfield’s India investment plans.

The earlier deals of the fund include acquisition of six roads and three power projects from in 2015.  

The Canadian fund with focus on infrastructure assets also announced Rs 7,000 crore joint venture with public-sector lender to purchase distressed assets this year. This is the largest joint venture (JV) from the fund, which in 2012 put in $20 million in Kotak Mahindra’s infrastructure fund, followed with a Rs 1,000-crore JV fund with Peninsula Land to provide loan to real estate developers.

“The spurt in investment is also because of the opportunity to buy majority control in these assets that can provide operational control,” says the person familiar with Brookfield’s plans.

This has led to not only but other global marquee investors such as and GIC also lapping up assets in real estate as well as in larger infrastructure space in India. This year, US-based Blackstone, the world’s largest alternative assets fund, acquired a 1-million sq. feet mall in the Seawoods area of Navi Mumbai from for Rs 1,400 crore. Last year, Singaporean sovereign wealth fund GIC had invested about Rs 2,000 crore in DLF’s two upcoming residential projects in central Delhi.

“In the earlier years, the investments were fuelled by an increase in consumer demand,” says Madhur Singhal, partner at global management consultancy firm Bain & Co. “This year, along with the consumer demand growth in some micro-markets, there have also been opportunities in funding real estate developers who are looking to reduce the stress on their balance sheets.”

INVESTMENTS IN INDIA
  • Jan ‘14: Acquired AIG Global’s real estate assets in India
     
  • Jun ‘14: Bought Unitech Corporate Park
     
  • Aug ‘15: Acquired six roads and three power project from Projects
     
  • Oct ‘16: Acquired office and real estate assets from in Mumbai for Rs 6,700 crore
     
  • Oct ‘16: Inked pact for buying majority stake in R Com telecom tower company for Rs 11,000 crore
Partnerships
  • 2012: Invested $20 mn in Kotak Mahindra Bank’s infrastructure fund
     
  • 2013: Formed Rs 1,000 crore JV Peninsula India Real Estate Fund
     
  • 2016: SBI and launched a JV fund, with a commitment of Rs 7,000 crore

image
Business Standard
177 22
Business Standard

Brookfield may emerge the largest investor this year

The Canadian fund announced investments worth $2.6 bn this month

Abhineet Kumar  |  Mumbai 

Image via Shutterstock
Image via Shutterstock

Canadian alternative-asset-manager Brookfield, with $200 billion worth of assets under management, set up its office in Mumbai 2009. Anuj Ranjan, its managing partner for India office, did not make any investment in the first three years. Over the next three years, however, he invested in assets worth $2 billion.

This year, he plans to acquire assets worth $2.6 billion. These include the $1-billion (approximately Rs 6,700-crore) acquisition of retail and real estate assets from at Powai in Mumbai early this month followed with a non-binding bid worth Rs 11,000 crore ($1.6 billion) for acquiring tower assets of Reliance Communication. This might make the largest alternative asset investor in India this year.


Last year, Singaporean fund emerged as the largest PE investor with investments worth $1 billion.

“There is nothing as a must do for in terms of geography or industry as it remains truly opportunistic,” says a person familiar with Brookfield’s India investments plans. He did not wish to be identified. “Right now, India looks attractive with good macro fundamentals coupled with challenging micro situation resulting in good deal opportunities,” says the person explaining the sudden spurt in Brookfield’s India investment plans.

The earlier deals of the fund include acquisition of six roads and three power projects from in 2015.  

The Canadian fund with focus on infrastructure assets also announced Rs 7,000 crore joint venture with public-sector lender to purchase distressed assets this year. This is the largest joint venture (JV) from the fund, which in 2012 put in $20 million in Kotak Mahindra’s infrastructure fund, followed with a Rs 1,000-crore JV fund with Peninsula Land to provide loan to real estate developers.

“The spurt in investment is also because of the opportunity to buy majority control in these assets that can provide operational control,” says the person familiar with Brookfield’s plans.

This has led to not only but other global marquee investors such as and GIC also lapping up assets in real estate as well as in larger infrastructure space in India. This year, US-based Blackstone, the world’s largest alternative assets fund, acquired a 1-million sq. feet mall in the Seawoods area of Navi Mumbai from for Rs 1,400 crore. Last year, Singaporean sovereign wealth fund GIC had invested about Rs 2,000 crore in DLF’s two upcoming residential projects in central Delhi.

“In the earlier years, the investments were fuelled by an increase in consumer demand,” says Madhur Singhal, partner at global management consultancy firm Bain & Co. “This year, along with the consumer demand growth in some micro-markets, there have also been opportunities in funding real estate developers who are looking to reduce the stress on their balance sheets.”

INVESTMENTS IN INDIA
  • Jan ‘14: Acquired AIG Global’s real estate assets in India
     
  • Jun ‘14: Bought Unitech Corporate Park
     
  • Aug ‘15: Acquired six roads and three power project from Projects
     
  • Oct ‘16: Acquired office and real estate assets from in Mumbai for Rs 6,700 crore
     
  • Oct ‘16: Inked pact for buying majority stake in R Com telecom tower company for Rs 11,000 crore
Partnerships
  • 2012: Invested $20 mn in Kotak Mahindra Bank’s infrastructure fund
     
  • 2013: Formed Rs 1,000 crore JV Peninsula India Real Estate Fund
     
  • 2016: SBI and launched a JV fund, with a commitment of Rs 7,000 crore

RECOMMENDED FOR YOU

Brookfield may emerge the largest investor this year

The Canadian fund announced investments worth $2.6 bn this month

The Canadian fund announced investments worth $2.6 bn this month
Canadian alternative-asset-manager Brookfield, with $200 billion worth of assets under management, set up its office in Mumbai 2009. Anuj Ranjan, its managing partner for India office, did not make any investment in the first three years. Over the next three years, however, he invested in assets worth $2 billion.

This year, he plans to acquire assets worth $2.6 billion. These include the $1-billion (approximately Rs 6,700-crore) acquisition of retail and real estate assets from at Powai in Mumbai early this month followed with a non-binding bid worth Rs 11,000 crore ($1.6 billion) for acquiring tower assets of Reliance Communication. This might make the largest alternative asset investor in India this year.

Last year, Singaporean fund emerged as the largest PE investor with investments worth $1 billion.

“There is nothing as a must do for in terms of geography or industry as it remains truly opportunistic,” says a person familiar with Brookfield’s India investments plans. He did not wish to be identified. “Right now, India looks attractive with good macro fundamentals coupled with challenging micro situation resulting in good deal opportunities,” says the person explaining the sudden spurt in Brookfield’s India investment plans.

The earlier deals of the fund include acquisition of six roads and three power projects from in 2015.  

The Canadian fund with focus on infrastructure assets also announced Rs 7,000 crore joint venture with public-sector lender to purchase distressed assets this year. This is the largest joint venture (JV) from the fund, which in 2012 put in $20 million in Kotak Mahindra’s infrastructure fund, followed with a Rs 1,000-crore JV fund with Peninsula Land to provide loan to real estate developers.

“The spurt in investment is also because of the opportunity to buy majority control in these assets that can provide operational control,” says the person familiar with Brookfield’s plans.

This has led to not only but other global marquee investors such as and GIC also lapping up assets in real estate as well as in larger infrastructure space in India. This year, US-based Blackstone, the world’s largest alternative assets fund, acquired a 1-million sq. feet mall in the Seawoods area of Navi Mumbai from for Rs 1,400 crore. Last year, Singaporean sovereign wealth fund GIC had invested about Rs 2,000 crore in DLF’s two upcoming residential projects in central Delhi.

“In the earlier years, the investments were fuelled by an increase in consumer demand,” says Madhur Singhal, partner at global management consultancy firm Bain & Co. “This year, along with the consumer demand growth in some micro-markets, there have also been opportunities in funding real estate developers who are looking to reduce the stress on their balance sheets.”

INVESTMENTS IN INDIA
  • Jan ‘14: Acquired AIG Global’s real estate assets in India
     
  • Jun ‘14: Bought Unitech Corporate Park
     
  • Aug ‘15: Acquired six roads and three power project from Projects
     
  • Oct ‘16: Acquired office and real estate assets from in Mumbai for Rs 6,700 crore
     
  • Oct ‘16: Inked pact for buying majority stake in R Com telecom tower company for Rs 11,000 crore
Partnerships
  • 2012: Invested $20 mn in Kotak Mahindra Bank’s infrastructure fund
     
  • 2013: Formed Rs 1,000 crore JV Peninsula India Real Estate Fund
     
  • 2016: SBI and launched a JV fund, with a commitment of Rs 7,000 crore
image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard