Ali Hasan
Global investment firm Brookfield’s Real Estate Investment Trust (REIT) public issue will hit the capital market on 3 February to raise up to Rs 3,800 crores. Brookfield REIT will be the 3rd listed trust in India if it is successfully subscribed.
The first one Embassy Office Parks REIT, backed by Blackstone and Embassy group, got listed in April 2019 after raising Rs 4,750 crores. Mindspace Business Parks REIT, owned by K Raheja and Blackstone, was listed in August last year amid COVID-19 pandemic after raising Rs 4,500 crores.
The initial public offer (IPO) of Brookfield India Real Estate Trust (Brookfield REIT) will open on February 3 at a price band of Rs 274 to Rs 275. The public issue will close on February 5. Brookfield REIT, the country’s only 100% institutionally managed public commercial real estate vehicle, is issuing units aggregating up to Rs 3,800 crores. It is offering 14 million square feet of its commercial portfolio in the REIT.
The net proceeds from the public issue will be utilized for partial or full pre-payment or scheduled repayment of the existing debt of Asset SPVs (special purpose vehicles). Bids can be made for a minimum lot of 200 units and in multiples of 200 units thereafter by bidders other than the units subscribed for by anchor investors. The units are proposed to be listed on BSE and NSE.
REIT, a popular instrument globally, was introduced in India a few years ago, aimed at attracting investment in the real estate sector by monetizing rent-yielding assets. It helps unlock the massive value of real estate assets and enable retail participation. Industry experts and property consultants expect the Brookfield issue to be successful, with active participation from retail investors.
Sumit Suri, Senior Director (Capital Markets), JLL India, said: “REITs have been very well received by the investors in India so far. Both Embassy and Mindspace REITs were oversubscribed. Their success has opened the door for many such future offerings. Budget 2021 has given a major boost to market confidence”. The Finance Minister on Monday announced some positive push for REITs which will help further enhance investor confidence, he said.
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