Brookfield pushing ahead with India Reit IPO by year-end

Mumbai

BROOKFIELD Asset Management is pushing to list a real estate investment trust in Mumbai before the end of this year, which could raise as much as 38 billion rupees (S$693 million), said people familiar with the matter.

The Canadian asset manager has received good response from investors, including sovereign wealth funds and pension managers at recent roadshows, one of the people said.

Brookfield plans to continue gauging investor demand for three more weeks before proceeding with a retail offer, the person said.

While Brookfield is targeting to complete the offering by the end of the year, the deal could still be delayed if there is any unexpected market volatility, the people said, who asked not to be identified as the information is private.

A representative of Brookfield declined to comment citing regulations.

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A successful offering will add to India's growing number of Reit listings, including the Blackstone Group-backed Mindspace Business Parks Reit.

The debut of Embassy Office Parks Reit last year marked the nation's first such listing, as the regulator kept tweaking rules to make the vehicle more attractive to developers and investors. Reits have opened a fundraising avenue for India's cash-starved property sector.

Brookfield sent out terms for the Indian Reit offering in September, Bloomberg News has reported.

The initial public offering (IPO) will also contain a secondary issue of an undisclosed amount by selling unit holders. The terms did not specify any listing timeline.

Brookfield, which manages US$550 billion in assets globally, owns and operates about 20.4 million square metres (sq m) of office properties in India, showed its website. It also operates toll roads, solar and wind assets, as well as a construction business in the South Asian nation.

Last month, the asset manager agreed to acquire 1.16 million sq m of rent-yielding offices and co-working spaces from an Indian developer for US$2 billion. BLOOMBERG