Brookfield Asset Management has filed a draft offer document with SEBI for a Real Estate Investment Trust (REIT). The plan is to raise close to ₹4,500 crore through REIT, sources told BusinessLine.

Brookfield Asset Management is a Canadian alternative investment giant, which globally manages $550 billion assets under management. It seeks to monetise Indian rental assets through this REIT.

“Brookfield plans to launch REIT by the end of this year which will be a combination of an offer-for-sale and a fresh issue. It needs SEBI approval,” said a source. When contacted, Brookfield did not comment.

Currently, Embassy Office Parks, backed by Blackstone, and Mindspace, also backed by Blackstone and developer K Raheja Corp, are the only two listed REITs.

A REIT is a company that owns and operates real estate properties. The successful listing of two REITs is an indicator of the institutionalisation and maturity of the office space segment in the country and has instilled confidence in other developers and investors, primarily with a commercial office portfolio, to list their assets through REIT, said an industry expert.

JLL Research estimates that 270 million sq. ft. of office space would be eligible for REIT which translates to a potential investment of $33 billion. “Some of the key factors for the success of REIT are strong developer credentials combined with positive outlook for commercial real estate, an established portfolio which ensures stability of returns via rental income. This clubbed with the fact that the majority of distribution of income is by way of tax free dividend works very well in investors interest, said Ramesh Nair, CEO & Country Head, JLL India.

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