The initial public offer (IPO) of Brookfield India Real Estate Trust (Brookfield REIT) will open today for subscription. The price band is fixed at Rs 274 to Rs 275. The public issue will close on February 5. Brookfield India will hit the capital market with its REIT public issue on Wednesday to raise up to Rs 3,800 crore. Bids can be made for a minimum lot of 200 units and in multiples of 200 units, which translates into a minimum application size of Rs 55,000 at the higher end of the price band.
Brookfield REIT, the country’s only 100 per cent institutionally managed public commercial real estate vehicle, is issuing units aggregating up to Rs 3,800 crore. It is offering 14 million square feet of its commercial portfolio in the REIT.
The company raised Rs 1,710 crore from anchor investors ahead of its public issue. Brookfield India aims to raise Rs 3,800 crore as it hits the capital market with its public issue.
Brookfield REIT will be the third 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 crore. 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 crore.
In a regulatory filing, Brookfield REIT informed that under anchor investors portion in the public issue 62,180,800 units have been subscribed at a bid price of Rs 275 per unit. This amounts to about Rs 1,710 crore. The anchor investment round saw participation from financial institutions such as HDFC AMC, SBI Life, Tata AIG, HDFC Life, Kotak Mahindra AMC, and Bajaj Holdings, among others. Foreign portfolio investors such as Schroders and Prusik also invested.
The net proceeds from the public issue will be utilised for partial or full pre-payment or scheduled repayment of the existing debt of Asset SPVs (special purpose vehicles).
REIT, a popular instrument globally, was introduced in India a few years ago, aimed at attracting investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enable retail participation.