Brookfield India Real Estate Trust (BIRET) will acquire a 50% stake in four Grade A assets from Bharti Enterprises. The acquisition includes marquee commercial properties totaling 3.3 million square feet, at an enterprise value of about ₹6000 crore, the company said in a statement.
The total equity consideration for the 50% stake will be fulfilled through a preferential allotment of units in BIRET to Bharti, at ₹300 per unit. Following this, Bharti, will become the second largest unitholder in BIRET, India’s only 100% institutionally managed office REIT, with an ownership stake of 8.53%, the company said.
The portfolio of assets includes operating Worldmark assets at Aerocity New Delhi, a mixed-use property covering 1.4 million square feet, Airtel Center, the state-of-the-art corporate facility of 700,000 square feet in North Gurugram, and Worldmark Gurugram, a mixed-use asset spanning over 700,000 square feet.
“We are pleased to extend our partnership with Bharti through this strategic venture making them a significant investor in BIRET. With this acquisition, we add New Delhi to our portfolio making BIRET the most diverse office REIT in India. These high-quality assets with strong tenancy also increase our retail operating area to 1 million square feet,” said Ankur Gupta, Managing Partner, Head of Real Estate for the Asia Pacific region, Brookfield.
“With this transaction, Brookfield, through its two managed vehicles, will own 100% stake in the four marquee assets originally developed by Bharti Realty. With an over 8.5% stake in the REIT, Bharti is excited to take its partnership with Brookfield forward through a meaningful ownership in their listed portfolio of high quality assets,” said Harjeet Kohli, Joint Managing Director, Bharti Enterprises.
{{/usCountry}}“With this transaction, Brookfield, through its two managed vehicles, will own 100% stake in the four marquee assets originally developed by Bharti Realty. With an over 8.5% stake in the REIT, Bharti is excited to take its partnership with Brookfield forward through a meaningful ownership in their listed portfolio of high quality assets,” said Harjeet Kohli, Joint Managing Director, Bharti Enterprises.
{{/usCountry}}Bharti also continues to invest substantially in a large development pipeline of over 10 million square feet of Grade A commercial real estate assets in Aerocity, New Delhi and hopes to grow this partnership through similar transactions, said Kohli.
Kotak Mahindra Capital Company acted as the financial advisor to BIRET. Khaitan & Co and Shardul Amarchand Mangaldas represented BIRET as its legal counsels. Cyril Amarchand Mangaldas represented Bharti as its legal counsel.
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Brookfield India REIT is India's only 100% institutionally managed office REIT, comprising six large integrated office parks located in key gateway markets of India – Mumbai, Gurugram, Noida, and Kolkata. The Brookfield India REIT portfolio consists of 25.5M sf of total leasable area, comprising 20.9M sf of operating area, 0.6M sf of under construction area and 4.0M sf of future development potential.
Brookfield India REIT is sponsored by an affiliate of Brookfield whose asset management business is one of the world’s leading alternative asset managers with approximately $925 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit strategies and a global presence across more than 30 countries.
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Bharti Enterprises is one of India’s leading business groups with interests in telecom, space communications, digital infrastructure, financial services, real estate, hospitality, agri-processed foods, and manufacturing.