Brookfield India REIT’s $525-mn IPO covered eight times

 Brookfield India REIT’s $525-mn IPO covered eight times

Canadian giant Brookfield Asset Management Inc.’s India real estate investment trust received a strong response from investors for its initial public offering, highlighting growing demand for income-generating assets.

The IPO of Brookfield India Real Estate Trust was subscribed almost eight times after it received bids for almost 606 million units for the 76.3 million units on sale, stock-exchange data showed at the end of bidding.

Institutional investors bid for about 4.8 times the units set aside for them. The portion reserved for corporate houses and individual investors was covered 11.7 times.

Ahead of the public offering, the REIT had raised Rs 1,710 crore from a bunch of anchor investors including mutual funds and insurance companies. It sold the units at the upper end of the price band of Rs 274-275 apiece.

Overall, the REIT mobilised Rs 3,807 crore (about $525 million).

This is the third public offering by an REIT in India. Embassy Office Parks REIT had floated its public offering in March 2019 while Mindspace Business Parks REIT did so in July last year.

Embassy Office Parks REIT is a joint venture of Indian developer Embassy Group and US-based private equity giant Blackstone. Mindspace Business Parks REIT is sponsored by Blackstone and Indian developer K Raheja Corp.

The Brookfield REIT has an initial portfolio of 14 million square feet of commercial space. It also has an option to buy 8.3 million sq ft and rights of first offer on 6.7 million sq ft of portfolios currently owned by Brookfield Group entities.

The Canadian alternative investment giant has emerged as one of the largest owners of real estate in India over the past few years. Blackstone and Singapore sovereign wealth fund are among the other big property investors in India.

Last year, Brookfield had agreed to acquire office and co-working space from Bengaluru-based developer RMZ Corp for around $2 billion. This is the biggest real estate transaction in India thus far. In 2016, the Canadian firm had bought real estate assets from Mumbai’s Hiranandani Group for almost $1 billion.

Ankit Doshi

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