Canadian option asset manager, Brookfield is hunting to raise Rs 3,800 by means of a public concern of its Real Estate Investment Trust (REIT) next week. Upon prosperous listing on Dalal Street, Brookfield REIT will be the third actual estate investment trust to list on the bourses following Embassy Office Parks REIT in 2019 and Mindspace Business Park REIT in 2020. However, what tends to make Brookfield RETI diverse from the other two is that it is the only institutionally managed public industrial actual estate car in India.
About the concern
Brookfield REIT IPO will appear to raise Rs 3,800 by means of a fresh concern at a value band of Rs 274-275 per unit. Investors can bid for the concern in a lot size of 200 units and multiples thereafter. Implying that the minimum expense of bidding for the concern would variety amongst Rs 54,800-55,000. The IPO will open on February 3, just two days following the Union Budget 2021 and close on February 5.
Brookfield REIT assets
The initial portfolio of Brookfield REIT totals 14. msf, comprising 10.3 msf of Completed Area, .1 msf of Under Construction Area and 3.7 msf of Future Development Potential. Through the concern, Brookfield REIT is hunting to partially or completely prepay or repay current indebtedness of the Asset SPV and fulfil other basic corporate purposes.
Brookfield REIT owns 4 big campus-format workplace parks, situated in some of India’s essential gateway markets – Mumbai, Gurugram, Noida, and Kolkata. “Their Initial Portfolio’s Completed Area has a Same Store Committed Occupancy of 92% and leased to marquee tenants with 75% of Gross Contracted Rentals contracted with multi-national corporations such as Barclays, Bank of America Continuum, RBS, Accenture, Tata Consultancy Services and Cognizant,” Axis Securities wrote in a note.
After the coronavirus aided lockdown, now Brookfield is witnessing a revival in demand across its portfolio. In addition to obtaining re-leased .5 msf of leases that expired for the duration of the 6 months ended September 30, 2020, they have received interest and are engaged in discussions with respect to 1.6 msf. Axis Securities noted that for the duration of the months of October, November and December 2020, the REIT collected 99%, 98% and 96% of their Gross Contracted Rentals, respectively. Kensington in Mumbai, Candor Techspace G2 in Gurugram, Candor Techspace N1 in Noida, Candor Techspace K1 in Kolkata, and Operational Services Provider in Mumbai are some of the properties below the REIT.
Healthy dividend payout
Both Embassy Office Parks REIT and Mindspace Business Park REIT are presently trading at a premium to their concern value. REITs take pleasure in steady rental earnings and sturdy earnings payout which outcomes in higher dividend yields for unitholders.