In an enterprise deal of $1.4 billion, Brookfield Asset Management plans to sell 6.5 million square feet of commercial real estate in India. The sale deal is planned to be done to its listed real estate investment trust, Brookfield India REIT, and Singapore’s GIC.
As per a regulatory filing, Gurugram’s Candour TechSpace and Powai’s Hiranandani Gardens are the properties that are involved in the sale deal.
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The properties being acquired are situated in the cities of Mumbai and Gurugram. In Mumbai, the portfolio includes Powai’s Hiranandani Gardens, which has a total leasable area of 2.5 million square feet. In Gurugram, the portfolio includes the Candour TechSpace office complex, which has a total leasable area of 4 million square feet.
The Brookfield Downtown Powai office complex, which is located in Powai’s Hiranandani Gardens, is home to a number of multinational companies, including Goldman Sachs, HSBC, and Standard Chartered Bank. On the other hand, the Candour TechSpace office complex is situated in Gurugram’s Sector 48 IT Park, which is home to a number of large technology companies, including Infosys, TCS, and Wipro.
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Primarily Brookfield REIT has the right to first offer for the present assets. However, the ownership has been changed a bit to involve the current deal which is a partnership between GIC and the REIT.
The deal is also a sign of trust in the Indian commercial real estate market. The Indian economy is advancing at a quick rate and there is a strong demand for office space in India’s major cities. The acquisition of these properties by Brookfield India REIT and GIC is a sign of confidence in the long-term prospects of the Indian commercial real estate market.
Kishore Gotety, co-head of real estate, Asia ex-China, GIC is of the view that these acquisition deals are proof of the trust that they have in the Indian office sector along with the huge market of India. The company aims to get growth in the Indian office sector and also focus on digital adoption and hiring of skilled talent in the coming years. The deal will also increase the expansion of GIC’s global office profile.
The expected deal is supposed to increase the gross asset value and net asset value of Brookfield India Real Estate Trust to US$3.5 billion and US$2 billion, respectively. The acquisition of these properties is a major advancement for the Indian commercial real estate market.
Thus, the portfolio of the Brookfield India REIT is to be said to increase by 35% to total leasable space and 44% to the operating area, says the filing.
Ankur Gupta, managing partner, and head of real estate, APAC region, Brookfield, stated to the media that their idea to diversify their India REIT portfolio through accretive transactions is a part of their long-term strategy.
They are excited about the new popular properties in their profile and the unique partnership deal will increase their global reach with GIC in India and also talks about the quality of their portfolio in India.