Brookfield Asset Management, in partnership with Singapore's sovereign wealth fund GIC, plans to sell two commercial properties in India with a combined enterprise value of $1.4 billion. The properties, located in Mumbai and Gurgaon, were owned by Brookfield's property investment fund. The sale will significantly expand the portfolio of Brookfield India REIT, increasing the overall leasing space by 35% and operational area by 44%. Brookfield India REIT comprises five office parks across major cities in India, with a total market value estimated at Rs 9,100 crore.
Brookfield Asset Management plans to offload two of its commercial properties in India, as part of a deal worth an enterprise value of $1.4 billion. The transaction will involve a partnership between Brookfield India, a locally listed REIT, and Singapore's sovereign wealth fund, GIC.
Brookfield's property investment fund had maintained ownership of the properties situated in Mumbai and Gurgaon for a duration exceeding seven years. In 2016, it purchased a valuable commercial property located in downtown Powai from the Hiranandani Group for a sum of $1 billion. In 2014, the Candour property, situated in Gurgaon, was acquired from the Unitech Group for a sum of Rs 3500 crore. The joint release stated that both companies have acquired commercial properties located in Brookfield's Downtown Powai in Mumbai and Candour TechSpace in Sector 48, Gurugram (G1). The combined worth of these assets is around US$1.4 billion.
According to the announcement, the acquisition has considerably expanded the portfolio of Brookfield India REIT, with a 35 percent surge in the overall space available for leasing and a 44 percent surge in the operational area. The acquisition will result in an augmentation of Brookfield India REIT's gross asset value to $3.5 billion and its net asset value to $2 billion, according to the company.
Brookfield India REIT recorded a consolidated net profit of Rs 32.69 crore for the quarter that concluded in March, indicating a 26.5 percent downturn, as communicated on Friday. Despite this, there was a significant rise in the trust's overall revenue, which saw a 17.7 percent increase amounting to Rs 307.7 crore during the quarter.
Brookfield India Real Estate Trust is composed of five expansive office parks situated in Mumbai, Gurugram, Noida, and Kolkata, all of which share a campus-style layout. The company's holdings comprise a total area of 18.7 million square feet, with 14.3 million square feet already completed, 0.6 million square feet currently under construction, and 3.9 million square feet reserved for potential future development. As of May 19, 2023, the total market value of Brookfield India REIT is estimated to be Rs 9,100 crore.
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