Brookfield India Real Estate Trust has raised Rs 3,500 crore by selling units to investors, and will use this amount to fund the acquisition of a property in Bengaluru.
In a regulatory filing on Wednesday, the company said it has raised Rs 3,500 crore through a qualified institutional placement (QIP) of units.
Massive Investor Demand for the QIP
Investors participating in the QIP include SBI Mutual Fund, Kotak Mutual Fund, Birla Mutual Fund, Nippon Mutual Fund, UTI Mutual Fund, White Oak, LIC, IFC, HDFC Life, Max Life, Kotak Life and 36O One, the REIT said .The issue was oversubscribed more than three times.
The total demand secured from investors was more than Rs 10,900 crore, of which Rs 3,500 crore was allotted. Cumulatively, Brookfield India REIT has raised Rs 8,000 crore in the last 12 months.
Strategic Acquisition of Ecoworld Bengaluru
The QIP proceeds will be used to acquire Ecoworld, a Grade A, 48 acre, 7.7 million square feet office campus on the Outer Ring Road in Bengaluru. After this acquisition, its operating portfolio will exceed 32 million square feet with a gross asset value of more than Rs 53,000 crore, making Brookfield India Real Estate Trust as one of the largest REITs in the country and Asia, it said.
The issue committee of the board of Brookprop Management Services, the manager of Brookfield India REIT, approved the issuance and allotment of 109.4 million new units through this QIP on December 10, the REIT said.
This is the third institutional placement by Brookfield India REIT since its initial public offering. Kotak Mahindra Capital Company, JM Financial, Jefferies India, Elara Capital and 360 ONE WAM served as lead managers for the issue. Shardul Amarchand Mangaldas & Co and Sidley Austin Singapore Pte. advised Brookfield India REIT on the issue.