Brookfield India Real Estate Trust has successfully raised Rs 2,000 crore through its first sustainability-linked bonds, with the International Finance Corporation (IFC) as a key anchor investor, according to sources familiar with the matter.
Other notable subscribers include a mix of domestic and international institutional investors. The listed REIT is set to issue the bonds with a quarterly coupon of 7.06% over a tenure of five years.
This marks the second fundraising effort by Brookfield India REIT in two weeks, following a Rs 3,500 crore equity offering through a qualified institutional placement (QIP) from both domestic and global investors earlier this month.
Last month, Brookfield India REIT announced an agreement to purchase Ecoworld, a massive 7.7 million sq ft office campus across 48 acres in Bengaluru, for Rs 13,125 crore. The REIT intends to utilize part of the QIP proceeds to fund this acquisition, the largest deal ever recorded by a REIT in India.
With the recent bond issue, the REIT has raised a cumulative Rs 10,000 crore over the past year. These funds are aimed at supporting future growth and expansion plans. This trend reflects a growing preference among Indian REITs to leverage bonds for financing growth and acquisitions, diversifying their capital structure amidst strong demand for office leasing.
Brookfield Asset Management has also unveiled plans to invest $1 billion to create Asia’s largest global capability centre (GCC) on a 6-acre site in Mumbai’s Powai suburb, encompassing a total leasable area of 2 million sq ft. This facility is intended for a multinational bank, with a lease term of 20 years.
Sources indicate that the lease agreement is expected to be finalized with US banking giant JP Morgan.
Brookfield has opted not to comment on these developments.
Brookfield is one of the largest owners and operators of office spaces in India, managing 55 million sq ft across seven cities.
Brookfield India REIT stands out as India’s only completely institutional-managed office REIT, overseeing 10 grade-A properties situated in prime markets across India, including Mumbai, Delhi, Gurgaon, Noida, and Kolkata.
The REIT’s portfolio includes 29.1 million sq ft of total leasable space, consisting of 24.6 million sq ft of operational area, 0.6 million sq ft under construction, and 3.9 million sq ft earmarked for future development.
