Brookfield REIT Falls 1.8% On Stock Market Debut
A construction elevator travels up the exterior of a commercial building construction site in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Brookfield REIT Falls 1.8% On Stock Market Debut

Shares of Brookfield India Real Estate Trust ended lower on their market debut even as investors piled into its maiden float, betting on growing number of REIT listings after the nation tweaked rules to make the vehicle more attractive.

The Canadian asset manager Brookfield Asset Management Inc.-backed trust listed at Rs 275.05 apiece on the BSE Ltd., in line with its issue price. On NSE Ltd., the stock listed at Rs 281.70. However, it later fell to close 1.83% lower at Rs 269.9 apiece.

Brookfield India is the third REIT to be listed in the country. Previously, Embassy Office Parks REIT and Mindspace Business Parks REIT debuted in April 2019 and August 2020, respectively, with a 2.7% and 10% listing premium.

The Rs 3,800-crore issue of Brookfield India was subscribed 7.97 times on the final day. While the category reserved for non-institutional investors was subscribed 11.78 times, institutional investors bid for 4.8 times the shares on offer.

Before the IPO, Brookfield REIT had raised Rs 1,709 crore from 39 anchor investors. Nearly 75% of the anchor book was apportioned to domestic institutional investors, it said, with HDFC Mutual Fund and Kotak Mutual Fund together garnering more than 25% share.

The company, according to its offer document, will use the net proceeds from the issue towards scheduled repayments and general purposes. Its initial portfolio comprises four large campus-format office parks in Mumbai, Gurugram, Noida and Kolkata, totaling 14 million square feet.

Watch BloombergQuint’s conversation with Ankur Gupta, managing partner and head of India (real estate) at Brookfield Asset Management, here...

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.