Brookfield India REIT Secures Record Fundraise in Second QIP

Brookfield India Real Estate Trust has raised Rs 3,500 crore through a qualified institutional placement to reduce debt. The issue, which saw strong demand, marks the first REIT investments in India from the International Finance Corporation and Life Insurance Corporation of India. Proceeds will aid debt reduction and operational expenses.

Brookfield India Real Estate Trust has successfully raised Rs 3,500 crore by selling units to institutional investors through a Qualified Institutional Placement (QIP) issue, primarily to reduce its debt.

The company announced this successful capital raise in a regulatory filing on Friday, stating that the issue, launched on December 9, saw robust demand from long-term investors including institutions, mutual funds, and life insurance companies.

This QIP marks the first REIT investment in India from the International Finance Corporation, part of the World Bank group, and the Life Insurance Corporation of India. Other notable anchor investors include SBI Mutual Fund and ICICI Prudential Mutual Fund.

The Brookfield India REIT stated that the total demand from investors exceeded Rs 5,200 crore, with Rs 3,500 crore being allotted.

The funds raised are earmarked primarily for debt reduction, with additional allocations for equity contributions, general purposes such as funding operating expenses, capital expenditure, and potential growth opportunities.

This represents the second institutional placement by Brookfield India Real Estate Trust following their IPO. In August, the REIT raised over Rs 2,300 crore through a similar QIP process.

Brookfield's India portfolio consists of 28.9 million square feet of leasable area, encompassing operating, under-construction, and development spaces.

(With inputs from agencies.)