InvestorQ : What is your view on the Brookfield REITs IPO that is expected to hit markets soon?
diksha shah made post

What is your view on the Brookfield REITs IPO that is expected to hit markets soon?

Dia Deshpande answered.
2 years ago

The actual details of the REITs IPO are yet to be finalized but it is expected to be announced soon .Meanwhile, real estate analysts and investors have been quite positive about the REIT launch plans of Brookfield.

According to market reports, Brookfield is planning a REITs IPO to the tune of Rs.4000-4500 crore as per initial filing with SEBI. Analysts are confident that such a move would augur well for the future of India's office market monetization activity, which holds potential.

After the COVID-19, there is a big question mark over the future visibility of commercial real estate players with work from home or WFH taking off in a big way. With a number of IT companies opting for this model, real estate office demand could get hit.

Under these circumstances a robust REITs market could market a big difference to the commercial real estate market. It could offer an exit route for the builders and developers and also offer a diversifiable investment product for the investors.

When Brookfield issue goes through, It will be the third REIT IPO to list in India after Embassy Office Parks and Mindspace Business Parks. Incidentally, both the previous REITs IPOs got a very good response and also saw a strong listing.

REITs are only permitted in India on office properties and are favoured by HNIs. Brookfield is much stronger in the Northern and Easter parts of India. While Embassy had a strong South franchise, Mindspace of the Raheja group is strong in the Western parts of India.