Brookfield REIT IPO: Key Details
The Brookfield REIT is India’s only institutionally managed public commercial real estate vehicle. The company’s goal is to be the leading owner of high-quality income-producing commercial real estate assets in key gateway Indian markets, which have significant barriers to entry.
Brookfield’s strategy is to address the IT demand in the country by owning and operating large “fully-integrated”, “campus-format” office parks in established locations, and providing a complete ecosystem to its tenants and their employees.
Initial Portfolio of four large campus-format office parks, totalling 14.0 M sft, comprising 9.8 M sft of Completed Area, 0.6 M sft of under-construction area and 3.6 M sft of Future Development Potential
- Kensington, Powai, Mumbai
- Candor Techspace, Sector 21, Gurugram,
- Candor Techspace, Sector 62, Noida and
- Candor Techspace, Rajarhat, Kolkata
The primary objective of Brookfield’s strategy is to provide attractive risk-adjusted total returns to Unitholders derived from:
- Stable yield supported by its Initial Portfolio’s long-term contracted cash flows;
- Property level income growth that is embedded in the Initial Portfolio through contractual rent
- Escalations, mark-to-market headroom and in-situ development potential;
- Acquisitions including those of identified external growth opportunities through the Call Option
- Properties and the Right of First Offer (ROFO) properties; and
- Asset value appreciation, through continuous investment in the properties, to upgrade them.
- Global Sponsorship with Local Expertise
- Niche Properties – difficult to replicate, dominant and strategically located properties.
- Placemaking capabilities to provide tenants with a unique “service-based experience”.
- Diversified blue-chip tenant roster and cash flow stability
- Significant internal and external growth opportunities
- Experienced senior management team
- Institutional corporate governance framework and strong alignment of interests
Proceeds from Brookfield REIT IPO will be used to:
- Partial or full pre-payment or scheduled repayment of the existing indebtedness of company Asset Special Purpose Vehicles* (SPVs); and
- General corporate purposes.
*Asset SPVs: Collectively, Candor Kolkata, Festus and SPPL Noida
Brookfield REIT IPO: Financials
|Revenue from Ops||8,218.46 Cr||8,959.16 Cr||9,567.06 Cr|
|Profit before exceptions/Tax||1,691.73 Cr||541.05 Cr||(2,080.70) Cr|
|Profit /Loss||1,610.84 Cr||(157.45) Cr||151.22 Cr|
|REIT Entity||NAV*||Premium / (Discount to NAV)|
Brookfield REIT IPO Dashboard
|Issue Size||₹3800.00 Cr|
|Fresh Issue||₹3800.00 Cr|
|Face Value||₹10/- per Equity Share|
|IPO Price||₹274 – ₹275|
|Lot Size||200 shares|
|Initiation of Refunds||12/02/2021|
|Credit of Shares||12/02/2021|
Brookfield REIT IPO: Investor Quota and Shares Offered
|Investor Type||Quota||Shares on Offer|
|Institutional (QIB)||75%||227,101,201 shares|
|HNI and Retail||25%||75,700,400 shares|
Brookfield REIT IPO: Risks
- The Manager does not provide any assurance or guarantee of any distributions to the Unitholders.
- The Manager may not be able to make distributions to Unitholders in the manner described in the Offer Document or at all, and the quantum of distributions may decrease.
- The Manager’s inability to consummate transactions in relation to the agreements will impact the Offer and its ability to complete the Offer within the anticipated time frame or at all.
- The ability of the Manager to acquire or dispose of assets or explore new investment opportunities is subject to conditions provided in the REIT Regulations.
- Company will assume certain liabilities of the Portfolio Companies and such liabilities, if realised, may adversely affect the business and subsequently the Manager’s ability to make distributions.
- The business and profitability is dependent on the performance of the commercial real estate market in India. Any fluctuations in the general economic, market and other conditions may affect the business adversly,
Brookfield REIT IPO: Registrar and Lead Managers
Registrar of the Issue
Link Intime India Private Limited
C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai, Maharashtra 400078
Phone: 022 49186270
Lead Managers of the Issue
- Ambit Private Limited
- Axis Capital Limited
- IIFL Holdings Limited
- J.P. Morgan India Private Limited
- JM Financial Consultants Private Limited
- Kotak Mahindra Capital Company Limited
- SBI Capital Markets Limited