Brookfield to acquire Hiranandani office and retail space

Brookfield Asset Management has bought 4.5 million sqft of office and retail space in Powai for Rs 6,700 crore

Global private equity firm, Brookfield Asset Management, has signed an agreement with the Hiranandani Group to acquire its offices and retail space in Powai in the megapolis for a whopping Rs 6,700 crore.

Confirming the development, sources from Hiranandani said discussions were on since quite some time and they will close the deal in the next few months.

At Rs 6,700 crore, this is one of the largest deals in the commercial space and also of the year.

Hiranandani Group, a partnership between brothers Niranjan Hiranandani and Surendra Hiranandani, owns 4.5 million sqft of office and retail space in Powai, including Hiranandani Business Park and Hiranandani Gardens.

According to experts, the deal is a strategic move especially after the government eased norms for creation of real estate investment trusts.

"Brookfield has been active in the Indian real estate market for many years. This deal can be viewed as a strategic move by both the parties especially after easing of norms by the government and SEBI regarding creation of REITs," the expert said.

The Toronto-based firm had recently said that it would invest over USD 2 billion in the next 2-3 years as part of its strategy to buyout upscale offices and commercial towers, stranded roads, power and utilities infrastructure as it aims to double its existing asset base in the country.