Brookfield India REIT on Friday announced the acquisition of Candor Techspace N2 for 3,970 crores. The company has also said that it will start 950 crore preferential issue to Brookfield Group, HDFC Life Insurance, HDFC Ltd and State Bank of India (SBI).
Brookfield said the acquisition would be financed through a combination of preferential issue 950 cr at the cost of 294.25 per unit, and asset level loan issue 2,910 crore at 6.78% per annum.
preferential issue amount 495 crore will be allocated to third party investors and 455 crore will be allotted to Brookfield Group.
Acquisitions and funding are subject to unitholder and regulatory approvals.
The company said it exercised its right to acquire SDPL Noida, consequently, Candor Techspace N2, one of its identified pipeline assets and the largest office park in Noida with 4.5 msf gross leasehold area.
Brookfield became the first Indian REIT to receive commitment from institutional investors for a preferential issue.
The N2 is leased to multinational tenants such as Samsung, Sopra Steria, Telus International and Qualcomm, demonstrating a strong correlation from India to strong growth in global technology delivery.
Post this acquisition, the tax free source of distribution is expected to exceed 50% versus 33% in Q2FY22 and Brookfield Group’s unitholding will be 53.7%, repeating its longer term.
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