Brookfield REIT has issued its IPO today which is sponsored by affiliate of Brookfield Asset Management. Issue has seen 9.5 percent subscription on its first bidding day.
Issue has received bids estimating around 70.62 lakh units against the offer size of 7.6 crore units as per the data records.
The reserved portion witnessed a 20 percent subscription. However, this amount also comprises of other individuals and corporates.
Also, the institutional investors portion saw a 0.29 percent subscription so far.
The company has a target of raising around Rs 3,800 crore via its initial public offering.
Moreover, it has already allocated Rs 1,710 crore from anchor investors in advance before the IPO day.
Brookfield will further utilize the issue proceeds for general corporate purposes. Also, the company will use the proceeds to repay the prevailing indebtedness of asset SPVs.
The entity is all set to become the leading owner of high-quality income generating commercial real estate asset.
It also aims to have remarkable obstacles to entry. Looking at its initial portfolio, it comprises of 14.0 million square feet out of which 0.3 msf is of completed area.
The company has 3.7 msf regarding future development potential and 0.1 msf of under construction area.
Apart from this, the company has right to further acquire an 8.3 msf and also rights of first offer of an additional 6.7 msf.
Brookfield currently owns properties in Gurugram, Noida, Kolkata and Mumbai.
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