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Published on 31/05/2022 12:00:02 PM | Source: JM Financial Research

Real Estate Sector Update - Brookfield India REIT proposes to raise up to INR 50bn via sale of units By JM Financial Research

Posted in Broking Firm Views - Sector Report| #Real Estate Sector #Sector Report

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HIGHLIGHTS

* Oberoi Realty inks joint development pact for 18.3 acre land in Thane

* Brookfield India REIT proposes to raise up to INR 50bn via sale of units

* Indiabulls Real Estate achieves sales of 0.47msf; merger with Embassy likely by Jul-Aug’22

* Kolte-Patil Developers announces highest ever sales value of INR 17.39bn in

* Puravankara clocks its highest ever sales value at INR 24.06bn in FY22

* Ashiana Housing Ltd sales value comes in at INR 57.33bn in FY22

* Suraj Estate Developers gets SEBI nod for IPO

* Real estate arm of Morphogenesis to invest INR 1bn for an office space project

* India sees 28 real estate deals for 1237 acres in 2022

* Phoenix Mills 4QFY22 result update, High visibility led by consumption recovery and mall addition

We highlight this week’s top real estate news:

* Oberoi Realty inks joint development pact for 18.3 acre land in Thane: Oberoi Realty has entered into an agreement to jointly develop an over 4msf residential project on an 18.3 acre land parcel in Thane’s Kolshet locality, said people with direct knowledge of the development. The company has formed a revenue-share alliance with the landowner, who will receive 23% of net realisations as part of deal compensation. The developer has also paid INR 5mn to the land owner as an upfront adjustable and refundable deposit while executing the agreement. The land parcel was originally owned by Nicholas Piramal and was sold by the pharmaceutical company in 2002. The latest agreement for the joint development values the land parcel at INR 4.05bn. The project, with a total development potential of 4msf, is expected to generate revenue of INR 50bn based on the current residential property rates in the vicinity. (Source)

* Brookfield India REIT proposes to raise up to INR 50bn via sale of units: Brookfield India Real Estate Trust plan to raise up to INR 50bn through sales of units to institutional investors. The board of directors of Brookprop Management Services Pvt Ltd, the manager of Brookfield India Real Estate Trust (Brookfield India REIT), approved issuance of units of Brookfield India REIT for an aggregate amount not exceeding INR 50bn. The units will be issued at a price not less than the rate to be determined in accordance with SEBI's guidelines for REIT to eligible investors through an institutional placement in one or more tranches. The company will take approvals from its unit holders. Brookfield plans to acquire Gurgaon G1 asset. (Source)

* Indiabulls Real Estate achieves sales of 0.47msf; merger with Embassy likely by JulAug’22: In 4QFY22, Indiabulls Real Estate Ltd achieved sales of INR 3,260mn (+77% QoQ) and INR 13,830mn in FY22. Sales volume for the quarter came in at 0.47msf while a total of 1msf was sold during FY22. Collections in 4QFY22 and stood at INR 3,330mn (+13% QoQ) and INR 12,810mn respectively. The company reported a net loss of INR 601mn in 4QFY22 against a profit of INR 945mn in 4QFY21. (Source)

* JM View: Post-merger the proforma debt will stand at INR 65bn (INR 55bn from Embassy side, INR 10bn from Indiabulls side). The merged entity targets to significantly reduce the debt over the next 12-24 months led by sales of completed / nearly completed inventory valued at INR 55bn (5.4msf in volume; 2.4msf from IBREL and 3msf from Embassy). Further triggers include, proceeds from the sale of Gurgaon 106 plot (INR 5bn), repayments from Mr Gehlaut (INR 6.2bn) and net surplus from Sky Forest (INR 10bn; OC received on 28 Apr’22). By FY23, proforma debt is expected to head towards INR 40bn and INR 225bn by FY24. The merged entity targets bookings of INR 25-30bn in FY23 (FY22: INR 3.62bn from Embassy + INR 13.8bn from IBREL) led by sales pickup across completed / nearly completed inventory (INR 55bn). Moreover, it looks to launch other key projects including Indiabulls Blu, Worli (INR 25bn of Gross Developmental Value), Thane (INR 8.8bn) and Gurgaon Sector 104 (INR 8.8bn) alongwith Embassy Bayview, Juhu.

 

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