Brookfield India Reit raises ₹3,500 cr via QIP to fund expansion plans

The Reit's manager has approved the allotment of about 10.93 crore units to successful eligible institutional investors at an issue price of ₹320 per unit

Brookfield India Real Estate Investment Trust (Reit) has raised ₹3,500 crore ($390 million) through a qualified institutional placement (QIP).

 

The proceeds of the QIP would be used to expand Brookfield’s Reit portfolio, repay debt and fund general corporate expenses.

 

The Reit’s manager has approved allotment of around 109.3 million units of the Reit to eligible institutional investors, at the issue price of ₹320 per unit. It includes a 2.24 per cent discount of ₹7.33 per unit on the floor price of ₹327.33 per unit.

 

The proceeds of this transaction will be used to acquire Ecoworld, a grade A, 48-acre, 7.7 million square feet (msf) office campus on Outer Ring Road, Bengaluru.

 

Last month, the Reit signed binding agreements to acquire Ecoworld for ₹13,125 crore.

 

After this acquisition, the Reit’s operating portfolio will exceed 32 msf with a gross asset value of more than ₹53,000 crore ($6 billion).

 

The Reit noted that the placement witnessed robust demand from institutional investors and was oversubscribed by more than three times. The total demand secured from investors was over ₹10,900 crore, of which ₹3,500 crore was allotted.

 

The placement saw strong participation from existing and new investors, including SBI Mutual Fund, Parag Parikh Financial Advisory Services, Kotak Mutual Fund, Birla Mutual Fund, Nippon Mutual Fund, UTI Mutual Fund, White Oak, LIC, IFC, HDFC Life, Max Life, Kotak Life, and 36O One.

 

Cumulatively, the Reit has raised ₹8,000 crore ($900 million) in the last 12 months, the highest ever by an Indian Reit in a year.

 

This is the third institutional placement by Brookfield India Reit since its initial public offering (IPO) in 2021.

 

Kotak Mahindra Capital Company, JM Financial, Jefferies India, Elara Capital (India), and 360 ONE WAM served as lead managers to the issue. Shardul Amarchand Mangaldas & Co. and Sidley Austin Singapore advised the Reit on the issue.