Brookfield REIT's ₹13,125-cr Bengaluru campus buy: Should you invest now?

Brookfield REIT enters Bengaluru with ₹13,125-cr Ecoworld acquisition

Brookfield India Real Estate Trust (BIRET) is making its biggest expansion bet yet — and it could matter to investors looking for steady, inflation-resistant income.

 

The listed REIT on Wednesday announced plans to acquire Arliga Ecoworld Business Park, a 7.7-million sq ft office campus on Bengaluru’s Outer Ring Road, for ₹13,125 crore. The 48-acre asset — one of India’s largest commercial hubs — will expand Brookfield India REIT’s portfolio by over 30% and mark its entry into Bengaluru, the country’s strongest office market.

 

The deal will be done through a related-party acquisition from another Brookfield entity, but the REIT says it’s on an arm’s-length basis.

 

What unitholders earned this quarter

 

Brookfield India REIT also reported its September-quarter results:

 

Net operating income (NOI): ₹509.4 crore — up 13% YoY

 

Distribution: ₹336 crore or ₹5.25 per unit — up 14% YoY

 

For long-term investors, this maintains the REIT’s steady yield profile. At current distribution rates, annual payout sits around ₹21 per unit, implying a 7–8% yield (depending on unit price).

 

The company declared distribution of Rs 336 crore to unit holders (Rs 5.25 per unit) for the second quarter of FY26, up 14 per cent year-on-year. The distribution includes dividends and other items.

 

The Board of Directors of Brookprop Management Services Pvt Ltd, which is manager of the BIRET, approved the acquisition of up to 100 per cent of the issued and paid-up equity share capital of Arliga Ecoworld Business Parks Pvt Ltd at an acquisition price of Rs 13,125 crore from the existing shareholder of Ecoworld SPV.

 

The existing shareholders of Ecoworld SPV are BSREP III New York FDI I (DIFC) Ltd (including its nominee, BSREP III New York II (DIFC) Limited), forming part of the Brookfield group.

 

The proposed acquisition will fall in related party transaction done at arm length basis, the company said.

 

The acquisition will increase consolidated GAV (gross asset value) by 35 per cent and operating area by 31 per cent.

 

"Building on our strong inorganic growth track record, we announced the proposed acquisition of Ecoworld, which is a 48-acre, 7.7 million square feet office campus located on the Outer Ring Road in Bengaluru," said Alok Aggarwal, Chief Executive Officer and Managing Director, Brookfield India Real Estate Trust.

 

What the deal means for investors

 

Positives:

 

Expands REIT’s presence to India’s top office demand market (Bengaluru)

 

Boosts total leasable portfolio by 31%

 

Increases gross asset value (GAV) by 35%

 

Larger scale may strengthen long-term rental income visibility

 

Watch-outs:

 

Large acquisition means higher debt/capital raise potential

 

Related-party nature means investors should scrutinize valuation fairness

 

Office recovery remains uneven across micro-markets, though Bengaluru remains resilient

 

The BIRET manages 10 Grade A assets located in Delhi, Mumbai, Gurugram, Noida, Kolkata.

 

The Brookfield India REIT portfolio consists of 29.1 million square feet of total leasable area, comprising 24.6 million square feet of operating area, 0.6 million square feet of under construction area and 3.9 million sq ft of future development potential. 

 

Why Bengaluru matters

 

The Outer Ring Road micro-market has historically been India’s most resilient office corridor thanks to tech, GCCs and global occupiers. For REIT investors, exposure here could mean:

• Higher leasing velocity
• Better rental growth visibility
• Lower vacancy risk

 

Should you invest?

 

Brookfield India REIT remains positioned as a yield-plus-growth play for investors seeking stability, real-asset exposure, and quarterly payouts — especially those allocating a portion of their portfolio to listed real estate.

 

For conservative wealth planners, REITs can complement:

 

Fixed income (potentially higher yield)

 

Equity (lower volatility vs cyclical stocks)

 

Real estate (no maintenance, easy exit)

 

However, investors should watch the funding structure, leverage, and rental ramp-up timeline post-acquisition.

 

Ideal for:

Long-term income investors, retirees, and HNIs seeking 7–9% annual yield with growth optionality.

 

Not ideal for:

Short-term traders or those expecting equity-like returns.