Brookfield India Real Estate Trust has raised Rs 2,000 crore through its maiden sustainability-linked bond issuance, with the International Finance Corporation (IFC) participating as an anchor investor, according to people with direct knowledge of the development.
In addition, several domestic and international institutional investors subscribed to the bonds. The listed REIT will pay a quarterly coupon of 7.06% on the five-year tenure bonds.
Notably, this marks Brookfield India REIT’s second capital raise in less than two weeks through a combination of equity and debt instruments. Earlier this month, the REIT raised Rs 3,500 crore via a qualified institutional placement (QIP), drawing interest from both domestic and global investors.
Meanwhile, last month, Brookfield India REIT signed an agreement to acquire Ecoworld, a 7.7 million sq ft office campus spread across 48 acres in Bengaluru, for Rs 13,125 crore. The REIT plans to deploy a portion of the QIP proceeds to fund this acquisition, which is the largest transaction announced by an REIT in India to date.
With the latest bond issuance, Brookfield India REIT has raised a cumulative Rs 10,000 crore over the past 12 months. At the same time, Indian REITs are increasingly turning to bond markets to finance acquisitions and development, thereby diversifying their capital structures amid sustained demand for office leasing.
Separately, Brookfield Asset Management recently announced plans to invest $1 billion to develop Asia’s largest global capability centre (GCC) on a six-acre land parcel in Powai, Mumbai. The proposed development will offer 2 million sq ft of leasable space and will serve a multinational bank under a 20-year lease tenure.
US banking major JP Morgan is likely to sign the lease agreement for this facility, said people with direct knowledge of the development. Brookfield declined to comment on the matter.
Brookfield remains one of India’s largest office owners and operators, managing approximately 55 million sq ft of office space across seven cities. Currently, the REIT’s portfolio comprises 29.1 million sq ft of total leasable area, including 24.6 million sq ft of operational space, 0.6 million sq ft under construction, and an additional 3.9 million sq ft earmarked for future development.
