Global investment firm Brookfield Asset Management’s proposal to launch Reit public issue for raising over ₹4,000 crore augurs well for the future of India’s office market and will boost investment and demand-supply in this segment, according to realty experts.
Institutional as well as retail investors are likely to take positive view on the Brookfield issue, driven by successful listing of the first two Real Estate Investment Trusts (Reits)—Embassy Office Parks and Mindspace Business Parks, they said. Brookfield filed a draft document with Securities and Exchange Board of India (Sebi) last week to launch its Reit issue and monetize commercial real estate. It plans to list Reit by the end of this year.
This will be the third Reit IPO to hit the market after Embassy Office Parks and Mindspace Business Parks Reits. In April 2019, Embassy Reit raised ₹4,750 crore, while Mindspace raised ₹4,500 crore in August this year through their issues. In response to a query on the impact of Brookfield’s proposed Reit issue on commercial real estate, top real estate consultants and players noted that this demonstrates the strength of office market.