Brookfieldseals $1bn realty deal

In what could be one of the biggest deals in the country's commercial real estate sector, Canada's Brookfield Asset Management is acquiring the Hiranandani group's office and retail spaces at Powai in suburban Mumbai for around $1 billion.

By Our Special Correspondent in Mumbai
  • Published 7.10.16
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Mumbai, Oct. 6: In what could be one of the biggest deals in the country's commercial real estate sector, Canada's Brookfield Asset Management is acquiring the Hiranandani group's office and retail spaces at Powai in suburban Mumbai for around $1 billion.

The news of the deal has been doing the rounds since June this year with both parties engaged in discussions.

Brookfield is reported to have purchased around 4.5 million square feet of commercial space for almost Rs 6,700 crore.

The Mumbai-based Hiranandani group is a partnership between Niranjan and Surendra Hiranandani.

Brookfield is a global alternative asset manager, focused on investing in assets across real estate, infrastructure, renewable power and private equity. Within real estate, its portfolio includes office, retail, industrial and hospitality properties in North America, South America, Europe and the Asia Pacific. Its real estate portfolio is largely held through listed arm Brookfield Property Partners as well as via private funds.

This is not the first investment by Brookfield in India. It has joined hands with Peninsula Land, part of the Ashok Piramal group, to set up the Peninsula Brookfield India Real Estate Fund, a Sebi-registered alternative investment fund. It now has assets under management of over Rs 1,000 crore and seeks to invest primarily in tier-1 cities with focus on residential and redevelopment projects.

In recent times, overseas players have shown interest in the country's commercial real estate space.

According to a report from property consultant Colliers International, India is a bright spot, evincing interest from leading fund managers, despite the global headwinds leading to slower growth in the developed world.

The report said during the second quarter of this year, the market for office space was strong with 10.4 million sq ft of office absorption, taking the total to about 19.2 million sq ft year-to-date.

On a sequential basis, the numbers showed a growth of around 18 per cent.

The report pointed out that technology, BFSI (banking, financial services and insurance) and manufacturing companies dominated expansion across cities. Bangalore remained the top contributor with 30 per cent of the absorption, followed by the National Capital Region, Hyderabad, Chennai, Mumbai, Pune and Calcutta.