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Brookfield India REIT - Growth Story On Track: ICICI Securities

Brookfield India REIT - Growth Story On Track: ICICI Securities

<div class="paragraphs"><p>The silhouettes of towers under construction are reflected in the facade of a commercial building in the Lower Parel area of Mumbai. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
The silhouettes of towers under construction are reflected in the facade of a commercial building in the Lower Parel area of Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

The Brookfield India Real Estate Investment Trust manager has proposed to acquire the Candor TechSpace N2 call option asset in Noida, national capital region having 4.5 million square feet of saleable area at an enterprise value of Rs 39.7 billion in January 2022.

While the asset has a committed occupancy of 83% on the completed area of 3.6msf as of September 2021, the REIT sponsor (Brookfield Group) will offer a rent support of up to Rs 1.5 billion over Jan-22 to March 2024 to the REIT which assures a 100% economic occupancy until leasing momentum revives.

As per our estimates, at the proposed acquisition price of Rs 39.7 billion, the Brookfield India’s net distributable cash flow yield will remain largely flat as compared to the existing yield profile of ~8% over FY23-24E.

Click on the attachment to read the full report:

ICICI Securities Brookfield India REIT Company Update.pdf

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