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Of the total deals, new leasing is around 500,000 sq ft including 400,000 sq ft in its Special Economic Zone (SEZ) assets, the highest ever since the REIT’s listing in February 2021. The December quarter leasing sequentially outperforms the previous best quarter of July-September by over 22%.
Lease renewals by occupiers including Deloitte and Evalueserve for 233,000 sq ft and 212,000 sq ft, respectively, totalled 539,000 sq ft during the quarter.
The REIT has applied for conversion of 1 million sq ft of commercial office spaces in SEZ to non-processing area across its operational portfolio of 20.7 million sq ft. The proposed denotification of 1 million sq ft is part of the total 3.8 million sq ft SEZ space that is currently vacant.
“Increased demand for Grade A office assets has resulted in gross leasing surpassing 1 million sq ft for the quarter, including a record quarterly new leasing of 5 million sq ft since our IPO. Our assets witnessed strong traction with robust leasing demand from global capability centres of large corporates and technology services companies,” said Alok Aggarwal, Chief Executive Officer, Brookfield India Real Estate Trust.
He expects the recently announced reforms to further boost the demand for SEZ assets and has applied for conversion of 1 million sq ft of SEZ spaces into non-processing area across the company’s portfolio.“With a favourable leasing outlook and limited term expiries over the next four quarters, we foresee substantial occupancy improvement throughout 2024,” Aggarwal added.The REIT’s income from operating lease rentals for the quarter rose 90% from a year ago to Rs 392.7 crore and adjusted net operating income grew by 89% to Rs 453.4 crore. It has achieved 7% average escalation on 1.3 million sq ft leased area during the quarter. The REIT has announced a distribution of Rs 208.6 crore or Rs 4.75 per unit.
Over the last three quarters, the REIT has raised Rs 2,700 crore capital with robust participation from its sponsor group, existing unitholders, and new investors. In August 2023, it completed the acquisitions of two key assets Downtown Powai in Mumbai and Candor TechSpace in NCR in an equal partnership with GIC.
Brookfield India Real Estate Trust has seven large integrated office parks in Mumbai, Gurugram, Noida, and Kolkata. It consists of 25.4 million sq ft of total leasable area, comprising 20.7 million sq ft operating area, 0.7 million sq ft of under construction area and 3.9 million sq ft future development potential. The REIT has a right of first offer on an additional 4 million sq ft, currently owned by members of the Brookfield Group.
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