Brookfield Asset Management has sold two office assets to its Indian real estate investment trust (REIT) and Singapore鈥檚 sovereign wealth fund GIC in a $1.4bn (鈧�1.3bn) deal.
GIC and Brookfield India REIT (BIRET) said they will acquire the assets from the unnamed Brookfield funds in an equal partnership.
The 6.5m sqft portfolio, which has a $1.4bn enterprise value, includes a property in Brookfield鈥檚 Downtown Powai in Mumbai and a building in Candor TechSpace, Sector 48 in Gurugram.
Goh Chin Kiong, deputy CIO of real estate at GIC, said the partnership marks GIC鈥檚 first joint venture with a public REIT in India and will allow the sovereign wealth fund to scale up its investments.
鈥淲e look forward to adding value to the assets, which are well-located within key gateway cities,鈥� he added.
Kishore Gotety, co-head of real estate in Asia ex-China at GIC, said: 鈥淲e expect growth in the India office sector to continue, driven by an established IT industry, increased focus by global corporations on digital adoption, and the availability of skilled talent.
鈥淭hese acquisitions are a testament to our confidence in the India office sector, as well as the wider Indian market, and will add to the diversification of GIC鈥檚 global office portfolio.鈥�
Ankur Gupta, managing partner and head of real estate for Asia-Pacific at Brookfield, said: 鈥淕rowing and diversifying our India REIT portfolio via accretive transactions is part of our long-term strategy. We are excited about the addition of market-leading properties and the meaningful increase in the size of the REIT.
鈥淭his unique partnership furthers our global partnership with GIC in India and reaffirms the quality of the portfolio we鈥檝e built in the country.鈥�
BIRET began trading on the Indian Stock Exchange in early 2021. At the time, Brookfield said BIRET鈥檚 initial 10.3m sqft portfolio would consist of four completed office parks, located in Mumbai, Noida, Gurugram and Kolkata.
The latest transaction will increase the gross asset value of BIRET to $3.5bn and the net asset value to $2bn.
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