Brookfield to acquire 100% stake in Seaview Developers at Rs 39.7 bn
Real Estate

Brookfield to acquire 100% stake in Seaview Developers at Rs 39.7 bn

Brookfield India Real Estate Trust (RETI) will buy a 100% stake in Seaview Developers Private Limited (SDPL) at Rs 39.7 billion, which owns Candor TechSpace N2.

The process of acquisition will be financed in two ways, including a preferential issue of Rs 9.5 billion priced at Rs 294.25 apiece and a property level debt issue of Rs 29.1 billion at 6.78% annually.

From the preferential issue, Rs 4.95 billion will be allotted to the third-party investors, while Rs 4.55 billion will be allotted to Brookfield.

According to the report, Brookfield India RETI will issue the shares to Brookfield Group, Housing Development Finance Corporation Limited (HDFC) Life Insurance, HDFC and State Bank of India (SBI) through the preferential issue.

Chief Executive Officer of Brookprop Management Services, Alok Aggarwal, said that the acquisition would increase the company's operating area by 35% to 186 million sq ft and a 34% gross asset value growth to Rs 156 billion. Candor TechSpace N2 will also witness 15% mark-to-market potential and 0.8 million sq ft on-campus development potential.

It said that the acquisition would result in a decline in the average borrowing costs of Brookfield India RETI to 6.76%, with the expected cap rate of 7.7% in FY23 to 3.9% National Defense Council Foundation (NDCF) accretion, along with an increase in tax-free sources to more than 50%.

Veritas Legal is a legal advisor to Brookfield Group, while Kotak Mahindra Capital will give opinions to the officials of the Brookfield India RETI for the acquisition.

Image Source

Also read: Mindspace REIT reports 6.7% YoY jump in income at Rs 359.20 cr

Brookfield India Real Estate Trust (RETI) will buy a 100% stake in Seaview Developers Private Limited (SDPL) at Rs 39.7 billion, which owns Candor TechSpace N2. The process of acquisition will be financed in two ways, including a preferential issue of Rs 9.5 billion priced at Rs 294.25 apiece and a property level debt issue of Rs 29.1 billion at 6.78% annually. From the preferential issue, Rs 4.95 billion will be allotted to the third-party investors, while Rs 4.55 billion will be allotted to Brookfield. According to the report, Brookfield India RETI will issue the shares to Brookfield Group, Housing Development Finance Corporation Limited (HDFC) Life Insurance, HDFC and State Bank of India (SBI) through the preferential issue. Chief Executive Officer of Brookprop Management Services, Alok Aggarwal, said that the acquisition would increase the company's operating area by 35% to 186 million sq ft and a 34% gross asset value growth to Rs 156 billion. Candor TechSpace N2 will also witness 15% mark-to-market potential and 0.8 million sq ft on-campus development potential. It said that the acquisition would result in a decline in the average borrowing costs of Brookfield India RETI to 6.76%, with the expected cap rate of 7.7% in FY23 to 3.9% National Defense Council Foundation (NDCF) accretion, along with an increase in tax-free sources to more than 50%. Veritas Legal is a legal advisor to Brookfield Group, while Kotak Mahindra Capital will give opinions to the officials of the Brookfield India RETI for the acquisition. Image Source Also read: Mindspace REIT reports 6.7% YoY jump in income at Rs 359.20 cr

Next Story
Real Estate

Mahindra Lifespaces Bags Rs 12.5 billion Redevelopment in Mulund

Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has been appointed as the preferred developer for the redevelopment of a premium housing society in Mulund (West), Mumbai. The project will be developed across a 3.08-acre land parcel, with an estimated development value of approximately Rs 12.5 billion. Strategically located, the site enjoys proximity to major connectivity points—just 1.4 km from the upcoming Mumbai Metro Line 5 and 0.8 km from the Goregaon-Mulund Link Road. It also offers seamless access to the Eastern Expre..

Next Story
Infrastructure Urban

Snowman Adds Warehouses in Kolkata and Krishnapatnam

Snowman Logistics, India’s leading integrated temperature-controlled logistics company, has announced the commencement of operations at its two new state-of-the-art, owned cold storage facilities in Kolkata and Krishnapatnam. With these additions, the company’s total pallet capacity has reached 1,50,754, spanning 43 warehouses in 20 cities across the country. The newly operational Kolkata facility offers a storage capacity of 5,630 pallets, while the Krishnapatnam facility holds 3,927 pallets. These warehouses are equipped with advanced automation and infrastructure designed to enhanc..

Next Story
Resources

Noesis Enables IHCL Hotel Deal in Udupi–Manipal Corridor

NOESIS Capital Advisors, India’s leading hotel investment advisory firm, has successfully facilitated a landmark hospitality transaction in the Udupi–Manipal region of Karnataka. The deal involves the acquisition of a nearly completed, 130-key upscale hotel that will operate under one of the premium brands of IHCL, reinforcing NOESIS’ position as a preferred partner for strategic hospitality transactions across India. Strategically located on the Udupi–Manipal Highway, the 1.03-acre property will cater to business travellers, pilgrims and families visiting Manipal University. With..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?