Brookfield India REIT Eyes 7.7 Million Sq Ft Business Park in Bengaluru for ₹13,125 Crore

Brookfield India Real Estate Trust (BIRET) has announced its plans to acquire 7.7 million square feet of commercial assets in Bengaluru for ₹13,125 crore. This acquisition is part of BIRET's strategy to expand its business and strengthen its presence in one of India's most robust office markets.

This transaction will be classified as a related party transaction and is proposed to be conducted on an arm's length basis. The Board of Directors of Brookprop Management Services Pvt Ltd, the manager of BIRET, approved the acquisition of up to 100% of the issued and paid-up equity share capital of Arliga Ecoworld Business Parks Pvt Ltd. The acquisition price is set at ₹1,31,250 million from the existing shareholder of Ecoworld SPV.

The existing shareholders of Ecoworld SPV are BSREP III New York FDI I (DIFC) Ltd (including its nominee, BSREP III New York II (DIFC) Limited), both of which are part of the Brookfield group. This acquisition will significantly enhance BIRET's portfolio and position it as a leading player in the Indian real estate market.

Alok Aggarwal, the Chief Executive Officer and Managing Director of Brookfield India Real Estate Trust, commented on the acquisition, stating, 'Building on our strong inorganic growth track record, we are excited to announce the proposed acquisition of Ecoworld. This 48-acre, 7.7 million square feet office campus is strategically located on the Outer Ring Road in Bengaluru, one of India's premier office markets.'

Aggarwal further added, 'This acquisition will expand the size of our REIT by over 30%, solidifying our position as a truly pan-India platform. Our embedded growth prospects remain strong, with continued leasing momentum, making us well-positioned to deliver value to our unit holders.'

BIRET currently manages 10 Grade A assets in key cities such as Delhi, Mumbai, Gurugram, Noida, and Kolkata. The Brookfield India REIT portfolio consists of 29.1 million square feet of total leasable area, including 24.6 million square feet of operating area, 0.6 million square feet of under construction area, and 3.9 million square feet of future development potential.

This strategic move by BIRET underscores the growing importance of Bengaluru in the commercial real estate sector, particularly in the tech and business services industries. The acquisition is expected to enhance BIRET's ability to attract and retain top-tier tenants, further solidifying its market position and financial performance.