Brookfield eyes 3 million square feet Bengaluru projects; likely to invest Rs 800 crore

MUMBAI | BENGALURU: Canada-based Brookfield Asset Management is close to investing Rs 800 crore in Bengaluru-based developer Total Environment Building Systems’ portfolio of six projects spread over 3 million sq ft, said two persons familiar with the development.

This will be a structured debt transaction with an equity kicker. The portfolio includes a mix of middle income and luxury residential projects. Total has 7 million sq ft of residential projects under development, expected to be completed by 2021. It has so far delivered 30 projects across Bengaluru and Pune.

“The deal is at an advanced stage right now and is likely to be inked over the next two weeks. Funds raised will be used to retire certain debt of the company and the SPVs involved,” said one of the persons mentioned above.

Last year, Total raised Rs 200 crore debt from L&T Finance, a non-banking unit of L&T Group. It has also raised Rs 300 crore in equity funding ($48 million) from the offshore fund of HDFC Capital.

Dev Santani, senior vice-president (real estate), Brookfield Asset Management, declined comment for the story citing corporate policy. An email query to Total Environment Building Systems was unanswered till time of going to press.

Last year, Brookfield Asset Management had concluded an agreement to acquire Hiranandani Group’s offices and retail space in the Powai suburb for around $1 billion or Rs 6,700 crore, making it India’s largest office space transaction.

Large global institutional investors, including Blackstone Group, Brookfield Asset Management, GIC, Canada Pension Plan Investment Board (CPPIB), Goldman Sachs and Qatar Investment Authority have already been investing aggressively in Indian real estate assets over the last few years.

In addition to this, more funds are eyeing investment and alliance opportunities in the backdrop recent policy reforms. While these entities had earlier shown interest in investing in commercial real estate, they are also looking at other real estate segments such as residential, retail and hospitality.

In the backdrop of an ongoing transformation in business environment, Indian real estate is witnessing a robust rise in investment inflow as both foreign and domestic institutional investors are infusing more funds into the sector.

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