In a significant move reshaping India's real estate landscape, Brookfield India Real Estate Trust (BIRET) has announced its acquisition of a 50 per cent stake in four Grade A assets from Bharti Enterprises. The deal, valued at approximately Rs 60,000 million, includes prime commercial properties totaling 3.3 million square feet, marking a substantial addition to BIRET's portfolio.
Among the assets acquired are the prestigious Worldmark properties situated at Aerocity, New Delhi, comprising a mixed-use development covering 1.4 million square feet. Additionally, the acquisition encompasses the Airtel Center, a cutting-edge corporate facility spanning 700,000 square feet in North Gurugram, and Worldmark Gurugram, a mixed-use asset spread over 700,000 square feet. These properties are strategically located in established office micro-markets, boasting modern amenities and excellent connectivity, thus offering a vibrant live-work-play environment.
The transaction will be fulfilled through a preferential allotment of units in BIRET to Bharti, at Rs 300 per unit, resulting in Bharti becoming the second largest unitholder in BIRET with an ownership stake of 8.53 per cent. This move solidifies the partnership between Brookfield and Bharti, paving the way for further collaboration in India's burgeoning real estate sector.
Ankur Gupta, Managing Partner and Head of Real Estate for the Asia Pacific region at Brookfield, expressed enthusiasm about the partnership, stating, "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."
Harjeet Kohli, Joint Managing Director of Bharti Enterprises, highlighted the mutual benefits of the transaction, stating, "With this transaction, Brookfield, through its managed vehicles, will own 100 per cent stake in the four marquee assets originally developed by Bharti Realty. Bharti is excited to take its partnership with Brookfield forward through a meaningful ownership in their listed portfolio of high-quality assets."
The acquisition underscores Brookfield's commitment to expanding its presence in India's commercial real estate market and reinforces Bharti's position as a key player in the sector. The deal is expected to have a significant impact on the dynamics of India's real estate landscape, further enhancing the attractiveness of REIT investments in the country.
Kotak Mahindra Capital Company acted as the financial advisor to BIRET, while legal counsel was provided by Khaitan & Co and Shardul Amarchand Mangaldas for BIRET, and Cyril Amarchand Mangaldas for Bharti Enterprises.
BIRET is India's only 100 per cent institutionally managed office REIT, comprising six large integrated office parks located in key gateway markets of India – Mumbai, Gurugram, Noida, and Kolkata. With approximately 25.5 million square feet of total leasable area, BIRET is sponsored by an affiliate of Brookfield, a leading alternative asset manager with a global presence.
Bharti Enterprises is a diversified business group with interests in telecom, digital infrastructure, financial services, real estate, hospitality, agri-processed foods, and manufacturing. Bharti Realty Limited, the real estate arm of Bharti Enterprises, owns, operates, and develops world-class commercial assets, including the renowned Worldmark properties in Delhi-NCR.
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