The Rs 3,800 crores global investment firm Brookfield’s Real Estate Investment Trust (REIT) initial public offer (IPO) has opened for subscription today (3 February) at a price band of Rs 274 to Rs 275. Retail investors can bid for a minimum of 200 shares.
Brookfield REIT, the country’s only 100% institutionally managed public commercial real estate vehicle, is issuing units aggregating up to Rs 3,800 crore.
The firm on Tuesday raised Rs 1,710 crore from anchor investors where 6.21 crore units were subscribed at a bid price of Rs 275 per unit. The anchor investors included financial institutions such as HDFC AMC, SBI Life, Tata AIG, HDFC Life, Kotak Mahindra AMC, and Bajaj Holdings, among others.
The public issue will close on Friday, February 5, 2021. The company owns a portfolio of four office parks located at Noida, Kolkata, Gurugram and Mumbai with a size of 14 million square feet. The units are proposed to be listed on BSE and NSE.
Brookfield REIT will be the third listed trust in India if it is successfully subscribed. The first one Embassy Office Parks REIT, backed by Blackstone and Embassy group, got listed in April 2019 after raising Rs 4,750 crore. Mindspace Business Parks REIT, owned by K Raheja and Blackstone, was listed in August last year amid COVID-19 pandemic after raising Rs 4,500 crore.
REIT, a popular instrument globally, was introduced in India a few years ago, aimed at attracting investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enable retail participation.