Brookfield India REIT has agreed to acquire the 48-acre Ecoworld office campus for INR131.25bn (€1.3bn).
The real estate investment trust said the acquisition of the 7.7m sqft office campus on Outer Ring Road, Bengaluru, was being undertaken at a 6.5% discount to gross asset value.
The asset is currently part of the Brookfield Properties portfolio. It was originally developed by RMZ Corp, which in 2022, sold a portfolio of assets, including EcoWorld, to Brookfield Asset Management.
Alok Aggarwal, chief executive officer and managing director, Brookfield India REIT, said the acquisition will mark the trust’s entry into one of India’s “strongest office markets, expanding the size of our REIT by over 30% and positioning us as a truly pan-India platform”.
He added that the transaction would re-rate the distribution profile of the Brookfield India REIT, and was expected to increase the share of dividends from around 16% to 30% in the near term, thereby making it attractive to a wider unitholder base.
Aggarwal said the board proposed to fund the acquisition through INR35bn new debt issuance, INR10bn of cash proceeds from the preferential issue, and a new equity issuance of INR25bn.
The building is currently leased to a diverse group of global tenants, including Honeywell, Morgan Stanley, State Street, Shell, KPMG and Deloitte.
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