Brookfield India REIT Secures ₹2,000 Crore from Sustainability-Linked Bonds
Brookfield India Real Estate Trust has secured ₹2,000 crore through its maiden sustainability-linked bonds, with the International Finance Corporation (IFC) as an anchor investor. This significant fundraise is a testament to the trust's commitment to sustainable practices and its strategic growth plans in the Indian real estate market.
The listed REIT will pay a 7.06% quarterly coupon on the bonds, which have a tenure of five years. Other key subscribers to the bond issue include domestic and international institutional investors. This is the second major fundraise by Brookfield India REIT in the past two weeks, following an earlier ₹3,500 crore Qualified Institutional Placement (QIP) from domestic and global investors.
The funds raised will be used to finance the acquisition of Ecoworld, a 7.7 million sq ft office campus in Bengaluru, which is the largest announced acquisition by an REIT in India. The REIT plans to use a portion of the QIP proceeds to complete this acquisition, further solidifying its position in the Indian real estate market.
Brookfield India REIT has now raised a total of ₹10,000 crore in the past 12 months, which will be utilized for future growth and expansion plans. The move reflects the increasing trend of Indian REITs using bonds to finance growth and acquisitions, diversifying their capital structure amid robust office leasing demand.
Brookfield Asset Management, the parent company, recently announced plans to invest $1 billion to develop Asia’s largest global capability centre (GCC) on a 6-acre land parcel in Mumbai’s Powai suburb. The facility will have a total leasable area of two million sq ft and is expected to be developed for a multinational bank, likely to be US banking major JP Morgan, according to sources.
Brookfield is one of the largest office owners and operators in India, with a portfolio of 55 million sq ft across seven cities. Brookfield India REIT is India’s only 100% institutionally managed office REIT, managing 10 grade-A assets located in key markets such as Mumbai, Delhi, Gurgaon, Noida, and Kolkata. The REIT’s portfolio consists of 29.1 million sq ft of total leasable area, including 24.6 million sq ft of operating area, 0.6 million sq ft of under construction area, and 3.9 million sq ft of future development potential.
The successful fundraise underscores Brookfield’s strong financial position and its dedication to sustainable development, positioning it as a leader in the Indian real estate sector.
