Brookfield Asset Management has sold two office assets to its Indian real estate investment trust (REIT) and Singapore’s sovereign wealth fund GIC in a $1.4bn (€1.3bn) deal.
GIC and Brookfield India REIT (BIRET) said they will acquire the assets from the unnamed Brookfield funds in an equal partnership.
The 6.5m sqft portfolio, which has a $1.4bn enterprise value, includes a property in Brookfield’s Downtown Powai in Mumbai and a building in Candor TechSpace, Sector 48 in Gurugram.
Goh Chin Kiong, deputy CIO of real estate at GIC, said the partnership marks GIC’s first joint venture with a public REIT in India and will allow the sovereign wealth fund to scale up its investments.
“We look forward to adding value to the assets, which are well-located within key gateway cities,” he added.
Kishore Gotety, co-head of real estate in Asia ex-China at GIC, said: “We expect growth in the India office sector to continue, driven by an established IT industry, increased focus by global corporations on digital adoption, and the availability of skilled talent.
“These acquisitions are a testament to our confidence in the India office sector, as well as the wider Indian market, and will add to the diversification of GIC’s global office portfolio.”
Ankur Gupta, managing partner and head of real estate for Asia-Pacific at Brookfield, said: “Growing and diversifying our India REIT portfolio via accretive transactions is part of our long-term strategy. We are excited about the addition of market-leading properties and the meaningful increase in the size of the REIT.
“This unique partnership furthers our global partnership with GIC in India and reaffirms the quality of the portfolio we’ve built in the country.”
BIRET began trading on the Indian Stock Exchange in early 2021. At the time, Brookfield said BIRET’s initial 10.3m sqft portfolio would consist of four completed office parks, located in Mumbai, Noida, Gurugram and Kolkata.
The latest transaction will increase the gross asset value of BIRET to $3.5bn and the net asset value to $2bn.
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