Brookfield India Real Estate Trust IPO

Recent Developments

• B-REIT is witnessing a recovery in demand for office space across the Initial Portfolio. In addition to having re-leased 0.5 msf of leases that expired during the six months ended September 30, 2020, they have received interest and are engaged in discussions with respect to 1.6 msf.
• During the months of October, November and December 2020, they collected 99%, 98% and 96% of Gross Contracted Rentals, respectively.

Key Risk

• Among others, the continuing impacts of COVID-19 may: (1) impact operations of the tenants occupying the assets in the Initial Portfolio and their ability to pay rents on time and/or in full (2) affect its ability to re-lease space that is or that becomes vacant, (3) result in a slowdown in obtaining new lease commitments, (4) reduce the overall demand for commercial real estate and the office parks in the Initial Portfolio resulting in vacancies, (5) result in delayed construction, (6) result in client seeking deferrals, modify deferrals or terminate lease agreements.
• The REIT’s business and profitability is dependent on the performance of the commercial real estate market in India. Fluctuations in the general economy, market and other conditions may affect the commercial real estate market in India and in turn, its ability to lease office parks to tenants on favorable terms.
• The REIT is dependent on a limited number of tenants and sectors for a significant portion of its revenues. The ten largest clients accounted for 75% and 74% of the lease area for H1FY21 and FY20, respectively and ~75% of the Gross Contracted Rentals during the above mentioned periods. Of these, three tenants, Accenture, Tata Consultancy Services and Cognizant accounted for 17%, 17% and 14%, respectively, of the leased area and 19%, 17% and 10%, respectively, of the Gross Contracted Rentals as of September 30, 2020. Additionally, tenants in the technology sector accounted for 50% of the leased area of the Initial Portfolio, as of September 30, 2020.