GIC to jointly acquire commercial assets in India at enterprise value of US$1.4 billion

GIC on Friday (May 19) said that it, in partnership with Brookfield India Real Estate Trust, will acquire two commercial real estate assets in India with an enterprise value of US$1.4 billion.

 The assets –  with a total area of 6.5 million square feet – will be acquired from Brookfield Asset Management’s private real estate funds and are at two locations: the Downtown Powai township in Mumbai, and the special economic zone of Candor TechSpace, Sector 48, in Gurugam.

GIC said that the equal partnership is the first of its kind in India involving a listed real estate investment trust and a global institutional investor.

Goh Chin Kiong, GIC’s deputy chief investment officer of real estate, described Brookfield as a “leading market player with a strong track record in India” and said that the pioneering joint venture will allow GIC to scale up investments in this avenue.

Kishore Gotety, the co-head of real estate for Asia ex-China, GIC, said the acquisitions add to the diversification of GIC’s global office portfolio. He also said that GIC expects growth in India’s office sector to continue, thanks to the country’s established information technology industry and the increased focus by global corporations on digital adoption. 

GIC has been stepping up its acquisitions in the Asia-Pacific region. In April, it announced the purchase of six logistics facilities in Japan costing more than US$800 million from global asset manager Blackstone.

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In 2022, GIC bought a portfolio of hospitality assets from Japanese railway and hotel conglomerate Seibu for 150 billion yen (S$1.5 billion). That year, it also extended its partnership with the ESR Group in India, setting up a US$600 million joint venture to acquire core industrial and logistics assets in the country.