May 16, 2024: Brookfield India Real Estate Trust (BIRET), a 100% institutionally managed office real estate investment trust (REIT) has signed binding agreements to acquire a 50% stake in four Grade A assets from Bharti Enterprises. The acquisition includes marquee commercial properties totaling 3.3 million square foot (msf), at an enterprise value of c. Rs 60,000 million.
According to the official statement, the total equity consideration for the 50% stake will be fulfilled through a preferential allotment of units in BIRET to Bharti, at Rs 300 per unit. Following this, Bharti, will become the second largest unitholder in BIRET, with an ownership stake of 8.53%.
The portfolio of assets includes operating Worldmark assets at Aerocity New Delhi, a mixed-use property covering 1.4 msf, Airtel Center, the state-of-the-art corporate facility of 7,00,000 square foot in North Gurugram and Worldmark Gurugram, a mixed-use asset spanning over 7,00,000 square foot.
Ankur Gupta, managing partner, head of real estate for the Asia Pacific region, Brookfield, said, “We are pleased to extend our partnership with Bharti through this strategic venture making them a significant investor in BIRET. With this acquisition, we add New Delhi to our portfolio making BIRET the most diverse office REIT in India. These high-quality assets with strong tenancy also increase our retail operating area to 1 msf.”
Harjeet Kohli, joint managing director, Bharti Enterprises, said, “With this transaction, Brookfield, through its two managed vehicles, will own 100% stake in the four marquee assets originally developed by Bharti Realty. With an over 8.5% stake in the REIT, Bharti is excited to take its partnership with Brookfield forward through a meaningful ownership in their listed portfolio of high quality assets. Bharti also continues to invest substantially in a large development pipeline of over 10 msf of Grade A commercial real estate assets in Aerocity, New Delhi and hopes to grow this partnership through similar transactions.”
Kotak Mahindra Capital Company acted as the financial advisor to BIRET. Khaitan & Co and Shardul Amarchand Mangaldas represented BIRET as its legal counsels. Cyril Amarchand Mangaldas represented Bharti as its legal counsel.
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