Brookfield India REIT to acquire Seaview Developers for Rs 3,970 crore

Brookfield India Real Estate Trust will acquire 100 per cent stake in Seaview Developers Private Limited, which owns Candor TechSpace N2, for a total acquisition price of Rs 3,970 crore, the company said in a filing on BSE late on Friday.

The acquisition will be financed through a combination of preferential issue of Rs 950 crore at a price of Rs 294.25 per unit, and a property level debt issue of Rs 2910 crore at 6.78 per cent per annum. The preferential issue of Rs 495 crore will be allotted to third party investors and Rs 455 crore will be allotted to Brookfield Group. The acquisition and the funding are subject to unitholder and regulatory approvals. 

Alok Aggarwal, Chief Executive Officer, Brookprop Management Services Private Limited said, “We have a stated strategy of growing our REIT through accretive acquisitions. Candor TechSpace N2 is an  irreplaceable property with best-in-class tenancy. The campus is almost complete at a 100 per cent effective  economic occupancy.”

“With this acquisition, our operating area increases by 35 per cent to 18.6 msf and the gross  asset value increases by 34 per cent to Rs 15,600 crore.

Candor TechSpace N2 is also poised for strong organic growth  with contracted escalations, attractive 15 per cent mark-to-market potential and 0.8 msf of on-campus development  potential,” he added.

Candor TechSpace N2, an office park in Noida, spans 29.65 acres with 4.5 msf gross leasable area.It includes 13 operating buildings with 3.6 msf of operational area, one under construction  building of 0.2 msf and a further development potential of 0.8 msf. Located within the Noida-Greater Noida  Expressway micro-market, a fast-growing office cluster of Noida, the office campus has an 83 per cent committed  occupancy, an 8.5 year WALE and a 15 per cent mark-to-market potential, according to Brookfield.