A $400 million offering is planned for July by Brookfield India REIT, according to sources.

One of the largest alternative asset management companies in the world, Brookfield, administers office parks and buildings totaling 18.7 million square feet (1.7 million square meters) in cities including Mumbai, Kolkata, and Gurugram close to New Delhi. Accenture, Amazon, and Samsung Electronics are some of its tenants.

NEW DELHI: According to three sources with direct information, Brookfield India Real Estate Investment Trust (REIT) has selected eight investment banks for its anticipated $400 million equity raise and plans to close the deal by the end of July.

One of the largest alternative asset management companies in the world, Brookfield, administers office parks and buildings totaling 18.7 million square feet (1.7 million square meters) in cities including Mumbai, Kolkata, and Gurugram close to New Delhi. Accenture, Amazon, and Samsung Electronics are some of its tenants.

Last month, the trust informed the Indian stock exchanges of its intention to raise up to $425 million for the recently disclosed $1.4 billion purchase of 6.5 million square feet of Indian offices with Singapore’s GIC. It made no mention of a schedule or the method of raising the money.

Using a qualified institutional placement, a method used by listed firms to acquire money from significant investors including mutual funds and insurance companies, the sources claimed the Indian REIT has begun the procedure to finish the funding by July. The conversations are confidential, so the sources declined to give their names.

The mandatory banks include Kotak, IIFL, JM Financial, and Axis Capital in addition to Morgan Stanley, Citigroup, Bank of America, and Jefferies, according to the sources.

A spokeswoman for Brookfield declined to comment further than their exchange report from last month. The other banks did not respond to inquiries, while Morgan Stanley and Citi declined to comment.

One of the three individuals claimed that preliminary discussions with possible investors are currently under process.

The rent that REITs collect from the properties they manage is used to pay dividends to investors. REITs hold and manage real estate assets.

The preparations for the acquisition coincide with a flurry of financing efforts in the Indian real estate industry and an increase in demand for office space as a result of the COVID-19 outbreak.

Last month, the Blackstone-backed Nexus Select Trust went public in India, while in December, another significant developer, Lodha, raised almost $400 million through the sale of shares.