Brookfield REIT files papers with Sebi for IPO

By: |
September 30, 2020 8:51 PM

The initial public offer consists of units of Brookfield India Real Estate Trust (Brookfield REIT) comprising fresh issuance aggregating up to Rs 3,800 crore and an additional component for an offer for sale, according to the draft papers filed with Sebi.

Equitas Small Finance Bank, Equitas SFB, Equitas SFB IPO, ipoThe investors in primary market have turned cautious after the underperformance of recent IPOs.

Global investment firm Brookfield Asset Management has filed draft papers with market regulator Sebi for the initial public issue of its real estate investment trust (REIT). This would be the third REIT offering in country after the Embassy Office Parks REIT and the Mindspace REIT.

The initial public offer consists of units of Brookfield India Real Estate Trust (Brookfield REIT) comprising fresh issuance aggregating up to Rs 3,800 crore and an additional component for an offer for sale, according to the draft papers filed with Sebi.

Merchant banking sources said REIT is sponsored fully by Brookfield and the company is set to raise up to USD 600 million (around Rs 4,440 crore). Typically, an asset manager lists assets against which the company keeps getting steady rentals and such a move helps the company get some of the invested capital released.

The Brookfield REIT is likely to list by mid-December or early January, the sources said. At present, the REIT has total assets of 14 million square feet, of which 10 million sq ft is completed. Cities where it has invested are Mumbai, Gurugram, Noida and Kolkata and includes key properties like Kensington SEZ and Hiranandani Gardens, Powai.

Proceeds of the fresh issue will be utilised towards partial or full pre-payment or scheduled repayment of the existing indebtedness of asset SPVs (special purpose vehicles) and for general corporate purposes. Morgan Stanley India Company, DSP Merrill Lynch, Citigroup Global Markets India and HSBC Securities and Capital Markets (India) are the global co-coordinators and book running lead managers to the issue.

Ambit Private Ltd, Axis Capital, IIFL Securities, JM Financial, J.P. Morgan India, Kotak Mahindra Capital Company and SBI Capital Markets are the book running lead managers to the issue. The units are proposed to be listed on BSE and NSE.

Brookfield Asset Management is one of the world’s largest alternative asset managers with approximately USD 550 billion in assets under management, as of June 30, 2020.

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