InvestorQ : How was the anchor investor response ahead of the Brookefield REITs IPO?
prachi Patwardhan made post

How was the anchor investor response ahead of the Brookefield REITs IPO?

sara Kunju answered.
1 year ago

If you look at the latest reports of mutual fund investments, there has been a slew of flows into REITs that are already listed. It was therefore hardly surprising that the anchor investment offer ahead of the Brooke field REITs IPO also received a tremendous response from domestic and global QIBs.

Just ahead of the proposed Brookefield REITs IPO, the issuer has successfully raised a total sum of Rs.1,710 crore from across a cross section of 39 anchor investors. The REITs, as you must be aware, is a pass-through structure wherein an investor with a large portfolio of commercial real estate properties can consolidate into a REIT and issue units.

The REITs are also tax-efficient and give an opportunity to participate in commercial properties in an electronic form. Currently, in India, REITs are not permitted into residential property and hence commercial property monetization is the only thing that is possible. It is emerging as an exciting way of monetizing realty holdings and also a solid investment.

The domestic anchor investors included HDFC AMC, SBI Life, TATA AIG, HDFC Life, Kotak AMC and Bajaj Holdings. For domestic investors and for insurance companies, the REITs offer a very good proxy for the robust real estate investment scenario in India. Apart from the domestic investors, global anchor investors included Schroeder and Prusik.