MUMBAI: Brookfield India Real Estate Trust (Biret) plans to acquire a large office campus, covering 7.7 million sqft, in Bengaluru for Rs 13,125 crore to expand its portfolio.
The company, which was the first to go public, manages 10 grade-A assets across Delhi, Mumbai, Gurugram, Noida, Kolkata.
Biret has reported a net operating income of Rs 509.4 crore for the September quarter, up 13 percent from Rs 451.2 crore in the year-ago period and has declared distribution of Rs 336 crore to unit holders (Rs 5.25/unit) for the quarter, which is 14 percent more on-year. The distribution includes dividends and other items.
The board of Brookprop Management Services, which is manager of the Biret, approved the acquisition of up to 100% of the issued and paid-up equity share capital of Arliga Ecoworld Business Parks at an acquisition price of Rs 13,125 crore from the existing shareholder of Ecoworld SPV, the company said.
The existing shareholders of Ecoworld are BSREP III New York FDI-I (including its nominee, BSREP III New York II), forming part of the Brookfield group.
The proposed acquisition will fall in related party transaction done at arm length basis, the company said, adding the acquisition will increase consolidated gross asset value by 35 percent and operating area by 31%.
"Building on our strong inorganic growth track record, we announced the proposed acquisition of Ecoworld, which is a 48-acre, 7.7 msf office campus located on the Outer Ring Road, Bengaluru," said Alok Aggarwal, chief executive of Brookfield India Real Estate Trust.
"This acquisition will mark our entry into one of the strongest office markets, expanding the size of our Reit by over 30 percent and positioning us as a truly pan-India platform. Our embedded growth prospects remain strong with continued leasing momentum, making us well-positioned to deliver value to our unitholders," he added.
The Biret portfolio consists of 29.1 msf of leasable area, comprising 24.6 msf of operating area, 0.6 msf of under construction area and 3.9 msf of future development potential.
