About Brookfield India Real Estate Trust (BIRET)
BIRET is India’s only listed Institutionally managed Trust, run by Brookfield Asset Management, one of the largest Real Estate investors in the world. The REIT manages popular office spaces like Kensington in Powai Mumbai, Candor Tech parks in Noida, Gurugram and Kolkata. Some of BIRET’s current tenants include Accenture, Amazon and Samsung
BIRET recently completed a Rs 2300 Crore fund raise through QIP. It has further plans to raise another Rs 1150 Crore, and these funds will be used to acquire 6.5 million sq ft of office space for BIRET for a total of $1.5 Bn in a 50:50 joint venture with GIC Singapore, resulting in a 35% increase in total leasable space and a 44% increase in operating area for the REIT.
Brookfield REIT at a glance:
Considering the recent raise via QIP were at a discount to CMP and the deep discount to the NAV of Rs 332, this could be an investment to consider for fixed income part of one’s portfolio.
Disclosure: Invested and will continue to add at deeper discounts.
Thanks strider, Any idea why they QIP was raised at a discount? Sort of sets the minimum floor for the price
Bro…thanks for starting this thread…I was interested in this as my workplace is owned by this only …I am only concerned here about few things in general as well as specific to Brookfield
To be fair all REITs/INVITs have been affected by the interest rate movements globally and in India. The office reits have also had to deal with reduced occupancy (WFH, Hybrid models) and now some slowdown in IT.
I think it can produce 7-8% on invested capital however my concern is the growth of DPU. While NOI can grow, there is a lag in DPU increase especially if there is a lot of debt or unit dilution
Directionally, like the thought process behind the acquisitions in partnership with GIC. It would take a while for the NOI growth to translate into increase in DPU for unitholders, so no instant benefit. Plus there has been dilution of units (normal for REITs)
- Adds scale in operating lease area
- Expands presence in the financial hub of Mumbai
- Diversification of tenant base in terms of sector (for BFSI now) and client concentration
- Increases liquidity of units as large DIIs have now come in (mutual funds etc.)
- Occupancy is now in mid 60%. Not sure whether WFH and flexi work will make it reach 90%
Increase in scale