BROOKFIELD INDIA REAL ESTATE INVESTMENT TRUST IPO
Brookfield India Real Estate Trust or Brookfield REIT is sponsored by an affiliate of Brookfield Asset Management (BAM). BAM is one of the world’s largest alternative asset managers with an AUM (Assets Under Management) of approximately US$550 billion as of 30th June 2020. Brookfield REIT is India’s only public commercial real estate vehicle that is managed institutionally.
The goal of the company is to be the leading owner in Indian markets having high-quality income-producing assets.
What are REITs?
REIT stands for Real Estate Investment Trust which owns, operates, and finances income-generating real estate assets. They pool investments from numerous investors just like mutual funds. REIT helps the investors benefit from the growth in the real estate markets without buying, managing, or financing any property by themselves. REITs earn a stable rental income and offer high dividend yields.
About Brookfield REIT
Brookfield REIT has four large campus format office parks, which they believe are business-critical. The office parks are located in Mumbai, Kolkata, Gurugram, and Noida. Its portfolio has a total of 14.0 msf, which comprises 10.3 msf of completed area, 0.1 msf of under-construction area, and 3.7 MSF of future development potential. The completed area of the portfolio is 92% occupied.
The company has a rental contract with big MNCs like Bank of America Continuum, Barclays, RBS, Accenture, Cognizant, and Tata Consultancy Services.
The promoter of the company is BSREP India Office Holdings V Pte.
Strengths:
- It has a global sponsorship of one of the world’s largest alternate asset managers along with local expertise.
- It has placemaking capabilities
- It has significant internal & external growth opportunities
- It has dominant & strategically located properties.
- The diversified bluechip tenant roster and a stabilized cash flow.
- Backed with an experienced senior management team.
- It has an institutional corporate governance framework which has lead to a good track record of high standards in corporate governance.
Purpose of the IPO:
- To make partial/full repayments or prepayment of the indebtedness of their asset SPVs.
- To meet the costs of the general corporate purposes.
Financial Performance of the company:
| FY 2020 | FY 2019 | FY 2018 | |
| Total Revenue | 981.39 | 895.91 | 821.84 |
| Total Expenses | 1,189.46 | 875.72 | 697.07 |
| Profit after tax | 15.12 | -15.74 | 161.08 |
| Total Assets | 5,378.05 | 5,043.69 | 4,893.29 |
*All the values are in crores and as per DRHP.
Brookfield India Real Estate Trust DRHP
IPO details:
| Face Value | ₹10 Per Equity Share |
| Market Lot | 200 Shares |
| Minimum Order Quantity | 200 Shares |
| Price Band | ₹274 - ₹275 Per Equity Share |
| Issue type | Book Built Issue REIT |
| Issue Size | ₹3,800 Crores |
| Fresh Issue | ₹3,800 Crores |
| Offer for Sale | - |
| Listing | BSE, NSE |
Important IPO dates:
| Open Date | 03rd February 2021 |
| Close Date | 05th February 2021 |
| Allotment Date | 11th February 2021 |
| Initiation of Refunds | 12th February 2021 |
| Credit of shares to Demat Account | 12th February 2021 |
| Listing Date | 17th February 2021 |
Allocation Quota:
| Category | Portion |
| Qualified Institutional Buyers (QIBs) | Not more than 75% |
| Non- Institutional Buyers (NIIs) | Not less than 25% |
Check your Brookfield India Real Estate Trust IPO allotment status here:
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NSE IPO Allotment Status: Click here