Brookfield REIT and GIC co-invest in commercial property worth $1.4 billion

Mumbai: Brookfield India Real Estate Investments Trust and Singapore’s sovereign wealth fund GIC will jointly acquire two commercial properties from Brookfield Asset Management’s real estate private equity division for an enterprise value of $1.4 billion.

The real estate fund of Brookfield had held the assets in Mumbai and Gurgaon for more than seven years. It acquired the commercial asset in downtown Powai from Hiranandani Group for $1 billion in 2016. The Candor property in Gurgaon was bought from Unitech Group for ₹3500 crore in 2014.

“Brookfield India REIT and GIC will acquire two large commercial assets (totaling 6.5 million square feet) from Brookfield Asset Management’s private real estate funds in an equal partnership. The acquisition includes commercial properties in Brookfield’s Downtown Powai, Mumbai and Candor TechSpace, Sector 48, Gurugram (G1), for a combined enterprise value of c.US$1.4 billion,” the firms said in a joint releaserelease said.

“Growing and diversifying our India REIT portfolio via accretive transactions is part of our long-term strategy. This unique partnership furthers our global partnership with GIC in India,” said Ankur Gupta, managing partner, head of real estate, APAC region, Brookfield.

According to the firm, the transaction will increase the gross asset value of Brookfield India Real Estate Trust to $3.5 billion and the net asset value to $2 billion. “With a 35% increase in total leasable space and a 44% increase in operating area, the acquisition significantly scales the Brookfield India REIT portfolio,” the release said.

“We expect growth in the India office sector to continue, driven by an established IT industry, increased focus by global corporations on digital adoption, and the availability of skilled talent. These acquisitions are testament to our confidence in the India office sector, as well as the wider Indian market, and will add to the diversification of GIC’s global office portfolio,” said Kishore Gotety, Co-Head of Real Estate, Asia ex-China, GIC.

On Friday, Brookfield India Real Estate Investment Trust (REIT) reported a 26.5% decline in its consolidated net profit to ₹32.69 crore for the quarter ended March. However, the trust’s total income increased by 17.7% to ₹307.7 crore in the quarter.

Brookfield India Real Estate Trust comprises five large campus format office parks located in Mumbai, Gurugram, Noida, and Kolkata. Its portfolio consists of 18.7 million square feet comprising 14.3 million square feet of completed area, 0.6 million square feet under construction and 3.9 million square feet of future development potential.