A preferential issuance would raise Rs 400 crore for Brookfield India REIT

 A preferential issuance would raise Rs 400 crore for Brookfield India REIT

By offering preferred units to sponsor group company Project Diamond Holdings, Brookfield India Real Estate Trust would make Rs 400 crore.

In addition to raising up to Rs 750 crore through the issuance of commercial papers to fund the purchase of two commercial assets in Gurugram and Mumbai, Brookfield India Real Estate Trust expects to collect Rs 400 crore through the preferential issuance of units to sponsor group business Project Diamond Holdings.

For USD 1.4 billion, or Rs 11,225 crore, Brookfield India REIT and Singapore's GIC announced an equal partnership in May to purchase two commercial buildings in India.

Brookfield India Real Estate Trust earlier this week obtained Rs 2,305 crore to pay for this transaction by privately placing units with institutional investors.

The board of Brookprop Management Services Pvt Ltd authorised the issue of up to 1,26,96,800 units of the Brookfield India REIT to Project Diamond Holdings (DIFC) Ltd on a preferential basis for compensation other than cash, according to a regulatory filing on Friday.

The Brookfield India Real Estate Trust is managed by Brookprop Management Services Pvt Ltd.

The board also authorised Brookfield India Real Estate Trust to issue and distribute commercial papers having a maximum value of Rs 750 crore and a maximum term of 1 year to one or more investors.

The two commercial properties in Mumbai and Gurugram, which have a combined built-up size of 6.5 million square feet and are held by Brookfield Asset Management's corporate real estate funds, are being acquired by Brookfield India Real Estate Trust and GIC.

The two properties are Candour Techspace in Gurugram, which has more than 3.7 million square feet of operational space, and Brookfield's Downtown Powai, portfolios of nine commercial properties spread across three clusters with 2.7 million square feet of functioning area and 0.1 million square metres of area under expansion.

One of four Real Estate Investment Trusts (REIT) listed on Indian stock markets is Brookfield India REIT.

Five huge campus-style office parks in Mumbai, Gurugram, Noida, and Kolkata make up its portfolio. 18.7 million square feet make up the portfolio, of which 14.3 million square feet are finished space, 0.6 million square feet are under construction, and 3.9 million square feet are slated for future development.

BSREP India Office Holdings V Pte Ltd, a subsidiary of Brookfield Asset Management Inc (BAM), the premier organisation of the Brookfield Group with a 120-year history, is the sponsor of Brookfield India REIT.