Brookfield India REIT Launches QIP Worth Rs 3,500 Crore To Fund Ecoworld Deal, Pare Debt

Brookfield India Real Estate Trust on Thursday launched a share sale to large institutions to raise up to Rs 3,500 crore.

The indicative issue price for the qualified institutional placement (QIP) is Rs 320 per unit, representing a 3.4% discount to the current market price, according to a termsheet.

JM Financial Ltd., Kotak Mahindra Capital Co., Jefferies India Pvt., 360 One, WAM Ltd., and Elara Capital (India) Pvt. are bankers to the QIP.

The proceeds from the share sale will be used for funding the acquisition of Ecoworld, repayment of certain debt facilities availed by the REIT, HoldCo and Asset SPVs and Target SPV as well as general purposes.

Last month, Brookfield India Real Estate Trust signed binding agreements to acquire Ecoworld, a 7.7 million sq ft Grade-A office campus on Bengaluru's Outer Ring Road for Rs 13,125 crore, marking India’s largest-ever office deal on a 100% acquisition basis.

The deal surpassed historic moves such as DLF–GIC's Rs 11,900 crore transaction in 2017 and Blackstone’s Rs 7,467 crore acquisition of Prestige commercial assets in 2021, as per media reports.

To fund the large acquisition, Brookfield India REIT had laid out a structured three-part capital plan: which includes raising Rs 3,500 crore through new debt issuance, Rs 1,000 crore from preferential issue proceeds raised in Q2 and Rs 2,500 crore from a new equity issuance.

After the acquisition, Brookfield India Reit’s operating area will expand by 31% to 32.3 msf, and its GAV will surge 34% to Rs 53,600 crore, the company said. The share of global capability centres (GCCs) in its tenant base will also increase to 45% from 37%, while the concentration of its top 10 tenants will reduce to 30% from 34%.

The asset is leased to a diverse roster of GCCs, including Honeywell, Morgan Stanley, State Street, Standard Chartered, Shell, KPMG, Deloitte, and Cadence, among others, Brookfield said.