Brookfield India Real Estate Trust has raised Rs 3,500 crore by selling units to institutional investors through a QIP issue to reduce debt.
In a regulatory filing on Friday, the company said it has successfully completed capital raising of Rs 3,500 crore through qualified institutional placement (QIP) units. The matter was presented on December 9.
The issue saw strong demand from long-term investors including mixed offers from institutions, mutual funds, and life insurance companies.
“This issue marked the first REIT investment in India from the International Finance Corporation (part of the World Bank group) and the Life Insurance Corporation of India,” Brookfield India REIT said.
Other anchor investors include SBI Mutual Fund and ICICI Prudential Mutual Fund.
The total demand secured from investors was over Rs 5,200 crore, of which Rs 3,500 crore was allocated.
The funds raised will be used mainly to reduce debt.
The Issue Committee of the Board of Directors of Brookprop Management Services Pvt Ltd, the manager of Brookfield India Real Estate Trust, has approved the issuance and allotment of 12.77 crore new units through this QIP.
The proceeds will be used to partially or fully repay or prepay outstanding capital, equity offerings, general purposes, including operating expenses, capital expenditures, investments in debt-qualified instruments, and/or future organic growth opportunities.
This is the second institutionalization by Brookfield India Real Estate Trust since its IPO.
In August 2023, Brookfield India REIT raised over Rs 2,300 crore through the QIP process.
Brookfield India REIT’s portfolio consists of 28.9 million square feet of gross leasable space, comprising 24.3 million square feet of office space, 0.6 million square feet of under construction and 4.0 million square feet of future development potential .
