Brookfield India REIT raises ₹3,500 crore via QIP

Brookfield India Real Estate Trust has raised capital of ₹3,500 crore (around $ 415 million) through a qualified institutional placement of units.

The REIT said the placement saw strong demand from marquee long-term investors including a mix of foreign institutions, mutual funds, and life insurance companies.

The issue received investment from the International Finance Corporation (part of the World Bank group) and Life Insurance Corporation of India. Other anchor investors included SBI Mutual Fund and ICICI Prudential Mutual Fund. The total demand secured from investors was over ₹5,200 crore, of which ₹3,500 crore was allotted.

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“The diverse demand we saw, reflects the trust in our strategy and the strong portfolio we have built in India, and underlines our ability to raise institutional capital,”  said Ankur Gupta, Managing Partner, Head of Real Estate for the Asia Pacific region, Brookfield.

 The proceeds of the fund will be used primarily to reduce leverage creating headroom for acquiring high-quality assets, the REIT said, allowing it to execute on its long-term strategies and deliver value to its unitholders.

The Issue Committee of the Board of Directors of Brookprop Management Services approved the issuance and allotment of 12.77 crore new units through the QIP on December 12, 2024.

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This is the second institutional placement by the Brookfield India REIT since its IPO. In August 2023, BIRET raised over ₹2,300 crore through a QIP to acquire Brookfield’s Downtown Powai, Mumbai, and Candor TechSpace (G1) Gurugram from Brookfield Asset Management’s private real estate funds in an equal partnership with GIC.

Kotak Mahindra Capital Company, Avendus Capital and Elara Capital were the lead managers for the issue.