Brookfield Asset Management Inc. has filed the draft offer document for its commercial real estate assets in India with the market regulator, making it the third real estate investment trust to list in Asia's third-largest economy.
The Brookfield REIT is sponsored by an affiliate of Brookfield Asset Management, and comes when India's commercial real estate is struggling as corporates adapt increasingly to work from home as the Covid-19 outbreak forced millions of Indians to stay put inside their homes.
The initial public offering comprises units of Brookfield REIT, including a fresh issuance aggregating up to Rs 3,800 crore and an additional component for an offer for sale, according to a company statement on Sept. 30.
Proceeds of the fresh issue, the company said, will be utilised towards partial or full payment or scheduled repayment of existing indebtedness of asset special purpose vehicles; and for general purposes to the extent allowed by regulations, the statement said.
Morgan Stanley India Co. Pvt., DSP Merrill Lynch Ltd., Citigroup Global Markets India Pvt. and HSBC Securities and Capital Markets (India) Pvt. are the global coordinators and book running lead managers to the issue. The units are proposed to be listed on BSE and NSE under applicable guidelines, it said.
The top 7 Indian cities have close to 550 million sqft of Grade A office supply, of which 310-320 million sqft is REIT-able, according to Anarock Research.
Embassy Office Parks REIT went public in 2019 and Mindspace Business Parks REIT listed on the exchanges in August this year.
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