Leading India's Growth Story
DEAR UNITHOLDERS,
India's economy is on a remarkable trajectory, projected to grow to $5T in the coming
years. This forecast underscores the nation's enduring economic vitality and the
accelerated pace of growth that lies ahead. The growth outlook remains robust across all
dimensions, presenting a strong macroeconomic landscape coupled with a rapidly evolving
microeconomic environment. At the core of this progress is quality real estate
infrastructure, a crucial foundation enabling the expansion and success of various
industries. India provides pivotal hubs for global businesses as they transform into a
global delivery model and embrace digitalization and use of AI. Against this backdrop, I
am delighted to report on a year of remarkable progress for Brookfield India Real Estate
Trust (BIRET) and present the fourth annual report.
STRATEGIC ADVANTAGE IN A DYNAMIC MARKET
Real estate fundamentals for Grade-A assets remain healthy with strong demand outpacing
supply. BIRET's portfolio of high-quality assets with best-in-class amenities in favorable
locations is designed to outperform market cycles, reflecting our investment strategy and
asset management excellence. Companies are seeking Grade-A office buildings that are
sustainable and provide a “live, work, and play” environment.
Offices have become critical for companies to innovate and collaborate rather than just
exist as hubs for executing routine tasks. Our leadership in commercial real estate,
office spaces, and business parks underscores our capability to cater to our tenants'
needs while driving long-term value for our investors.
GROWTH THROUGH STRATEGIC ACQUISITIONS AND PARTNERSHIPS
BIRET was launched in 2021 with the idea of creating attractive opportunities for
investors and real estate-owning business houses. Our partnership with Bharti Enterprises
highlights this opportunity. BIRET will acquire a 50% stake in four Grade-A assets,
totaling 3.3M sf, elevating our gross asset value, and furthering our growth. The total
equity consideration of approximately Rs.12,280M will be discharged through a preferential
issue to Bharti Enterprises making them our second-largest unitholder. This open-source
architecture that we have created demonstrates that corporates and investors can
participate with us – contributing their assets and taking units in the REIT to
collectively grow the business. With this we also add New Delhi to our portfolio, making
BIRET the most geographically diverse office REIT in India, while increasing our retail
operating area to 1M sf. In 2023, BIRET and GIC completed the acquisition of two large
commercial assets totaling 6.5M sf from Brookfield Asset Management's private real estate
funds. This acquisition includes commercial properties in Downtown Powai - Commercial/IT
Park, and Candor TechSpace G1, Gurugram, for a combined enterprise value of approximately
Rs.112,250M. This partnership marked the first-of-its-kind collaboration in India between
a listed REIT and a global institutional investor.
The addition of market leading properties has led to the meaningful increase in size of
the REIT leading to a 44% increase in operating area and 73% increase in consolidated GAV
at the time of acquisition of Candor TechSpace G1 and Downtown Powai - Commercial/IT Park,
in addition to a substantial tenant and geographical diversification. Expanding and
diversifying our REIT portfolio through strategic transactions is a key part of our
long-term plan. We are also encouraged by the SEZ reforms introduced by the government,
which will enhance our tenant base and leasing potential. The growth of our REIT is
propelled by the inherent increase in the unit value, driven by our leases being indexed
to annualized growth, offering significant potential for rental increases.
ESG COMMITMENT
We aim to achieve net zero by 2040 or sooner and prioritize governance and business
practices conducted with the highest ethical standards. Achieving a 5-star GRESB rating
for the second consecutive year is a testament to our unwavering dedication to
sustainability. Across the board we have been recipients of over 55 awards, ratings and
certifications in 2023 in sustainability, health, safety & well-being. Our
collaboration with Brookfield Renewable signifies an important step towards
decarbonization by procuring green power totaling 53 MWac capacity, catering to the energy
requirements of 9 campuses (including the forthcoming Bharti Portfolio). These
initiatives, coupled with our efforts in social responsibility and governance, underscore
our holistic approach to ESG and our proactive commitment to building a sustainable future
for all stakeholders.
BUILT TO LAST
BIRET's portfolio is poised to drive India's growth story, and we are proud to be an
integral part of this journey. We are well positioned to capitalize on the current market
dynamics and deliver exceptional returns to our unitholders. India's conducive environment
fosters growth, allowing us to leverage our past successes and continue to build on them.
Supported by our stakeholders, we look ahead confidently, poised to continue delivering
value. Thank you for your unwavering trust and support.
Sincerely,
Ankur Gupta
Chairperson, Board of Directors.
Manager of Brookfield India Real Estate Trust.