Brookfield India Real Estate Trust recently launched a Qualified Institutional Placement (QIP) to raise up to INR 3,500 crore by issuing shares to institutional investors. The funds will be used for the repayment of borrowings, capital expenditures, and other general purposes such as supporting future growth. The Trust owns a portfolio of Grade A assets in major cities like Delhi, Mumbai, Gurugram, Noida, and Kolkata, totalling 28.9 million square feet, with a combination of operational, under-construction, and future development areas.
Brookfield India Real Estate Trust recently launched its Qualified Institutional Placement (QIP) to raise up to INR 3,500 crore by issuing shares to institutional investors. In a regulatory filing, the company stated that the Issue Committee of the board of directors of Brookprop Management Services Pvt Ltd, the manager of Brookfield India REIT, approved the opening of the QIP. The committee set the floor price of INR 287.55 per unit, while the unit price closed at INR 290.73 per unit on the Bombay Stock Exchange. This move follows the approval from the unitholders last month to raise up to INR 3,500 crore through the issuance of units. The board of Brookprop Management Services also authorised the issuance of these units via institutional placements, with a maximum cap of INR 3,500 crore in one or more placements.
The funds raised from this issue will be used for several purposes, including the partial or full prepayment or repayment of outstanding borrowings. Additionally, the capital will be allocated to equity contributions and general purposes such as funding operating expenses, capital expenditures, and investing in creditworthy instruments. The proceeds will also help the company pursue future growth opportunities, whether inorganic or organic.
Brookfield India REIT currently owns a diverse portfolio of 10 Grade A assets located in prime cities such as Delhi, Mumbai, Gurugram, Noida, and Kolkata. The total leasable area of the portfolio is 28.9 million square feet, consisting of 24.3 million square feet of operational space, 0.6 million square feet of space under construction, and 4 million square feet designated for future development. This extensive portfolio positions Brookfield India REIT as a prominent player in the Indian real estate market with substantial growth potential.
Brookfield India Real Estate Trust's move to raise INR 3,500 crore through a Qualified Institutional Placement (QIP) reflects the company's focus on strengthening its financial position and supporting future growth. The capital raised will not only aid in reducing debt but also provide funding for strategic investments and development opportunities. With its expansive portfolio across key urban centres, Brookfield India REIT is well-positioned to continue expanding and enhancing its assets in the Indian real estate market.
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