InvestorQ : When do you see the Brookfield REITs listing and what is the outlook for REITs in India?
Deepa Salunkhe made post

When do you see the Brookfield REITs listing and what is the outlook for REITs in India?

Arya Nanda answered.
7 months ago

Brookfield is planning to list its REIT shortly, a combination of all its commercial rent earning properties in India. This will be the third big REIT listing in India after Embassy REITS and Mindspace REITs. Investors have demonstrated a good response to such REITs issues.

Brookfield, if it gets its REITs IPO through, will open the doors for many more developers and owners of commercial real estate to monetize rent-yielding commercial assets through the issue of REITS IPOs. It could be economical and value accretive.

Even as Brookfield of Canada readies to raise around Rs.4500 crore via the issue or REITs, there are more names in the offing for REITs issues. These include Bengaluru-based developer Prestige Estates and Blackstone-backed Salarpuria Group.

The opportunity is huge if you look at the top-7 cities in India. Out of the total supply of nearly 550 million SFT Grade-A office supply. Out of this total universe, nearly 320 SFT is capable of being monetized via REITs.

At present, Brookfield has total assets of 14 million SFT, of which 10 million SFR is completed and 4 million SFT is work in progress. It has properties across cities like Mumbai, Gurugram, Noida and Kolkata. Proceeds of the issue will be utilised towards payment or scheduled repayment of the existing debt.

In the last one year, the two REITs of Mindspace and Embassy got a good response to their IPOs and also performed well post listing. For investors looking to diversify their portfolios, the addition of REITs can be a good option from a portfolio perspective.