Brookfield REIT IPO: Brookefield India Real Estate Trust, an Indian company owned by Canadian asset management company Brookfield Asset Management Inc, is going to launch its RIT IPO on February 3, 2021. The company plans to raise Rs 3800 crore through this REIT IPO. This IPO will be open from 3 February to 5 February. The company has fixed the price band for the IPO at Rs 274-275 per share. The company says that the funds received from the IPO will be used to reduce debt.
Currently, BPG Holdings Group Inc. holds a 99 percent stake in Brookfield India REIT. BPG Holdings Group Inc. is a subsidiary of Canadian company Brookfield Inc. This will be the third REIT IPO. Earlier in 2020, the IPO of Mindspace Business Park REIT has arrived and in 2019 the IPO of Embassy Office Park REIT has been launched in India.
The financial health of the company
Brookfield India REIT had a profit of 15.12 crores in the fiscal year 2020. Whereas the company had a loss a year ago. At the same time, the company’s total income was Rs 981 crore with 5.54 percent growth. The company had a total debt of Rs 6952 crore as of March 2020. Brookfield Manager’s Global is an asset of $ 57800 million. Brookfield India has appointed Bank of America, Citigroup and Morgan Stanley as its lead managers for the IPO.
What is a REIT IPO
REIT is a real estate investment trust that allows investors to invest in units or portfolios of real estate assets. In this, the investors are not the owners of any physical property, but they get some percentage share in the earnings from that property. When these companies bring an IPO from general public and other investors to raise funds for the development or construction of a real estate property, they are called REIT IPOs. In this too, the company raises money from people and institutional investors just like a normal IPO.