Brookfield India REIT raises Rs 3,500 crore via QIP to reduce debt

Brookfield India Real Estate Trust has raised Rs 3,500 crore by selling units to institutional investors through QIP issue mainly to reduce debt.

In a regulatory filing on Friday, the company said it has successfully completed a capital raise of Rs 3,500 crore through a qualified institutional placement (QIP) of units. The issue was launched on December 9.

The issue saw strong demand from long-term investors including a mix offerings from institutions, mutual funds, and life insurance companies.

"The issue marked the first REIT investments in India from the International Finance Corporation (part of the World Bank group) and Life Insurance Corporation of India," Brookfield India REIT said.

Other anchor investors included SBI Mutual Fund and ICICI Prudential Mutual Fund.

The total demand secured from investors was over Rs 5,200 crore, of which Rs 3,500 crore was allotted.

The funds raised will be used primarily for reduction of debt.

The Issue Committee of the Board of Directors of Brookprop Management Services Pvt Ltd, the manager of Brookfield India Real Estate Trust, approved the issuance and allotment of 12.77 crore new units through this QIP.

The proceeds will be used for the partial or full prepayment or repayment of the outstanding borrowings, equity contribution, general purposes, including funding operating expenses, funding capital expenditure, making investments in creditworthy instruments, and/or future inorganic or organic growth opportunities.

This is the second institutional placement by the Brookfield India Real Estate Trust since its IPO.

In August 2023, Brookfield India REIT raised over Rs 2,300 crore through QIP process.

Brookfield India REIT portfolio consists of 28.9 million square feet of total leasable area, comprising 24.3 million square feet of operating area, 0.6 million square feet of under construction area and 4.0 million square feet of future development potential.