Suddenly out of nowhere Brookfield Asset Management is investing in India an amount of Rs.17,000 crores. The details are excepts from Business Standard newspaper:
Hotels, gas pipeline, real estate. Canadian investment firm Brookfield Asset Management seems to be on a deal-making spree in India. Last week, an investment trust led by Brookfield bought RIL's East West Pipeline for Rs 13,000 crore ($1.87 billion). On Monday, it announced the Rs 3,950-crore deal to acquire five assets Hotel Leela Venture. - March 2019
From Business Line:
Debt-laden Essar group has sold Equinox Business Parks in Mumbai’s Bandra-Kurla Complex to Brookfield Asset Management for ₹2,400 crore in one of the biggest transactions in the commercial real estate sector. - April 2018
From Economic times:
Brookfield Asset Management has concluded the agreement to acquire Hiranandani Group’s offices and retail space in the tony Powai suburb for around $1 billion or Rs 6,700 crore, making it India’s largest office space transaction. - October 2016
The above three deals total to roughly USD 3.75 billion and best part is real estate prices have stayed fixed or have given very minuscule return in the last 3 years. This is evident from the real estate prices around Mumbai.
To understand the investment philosophy of Brookfield Asset Management and why they are investing in real estate properties in India listen to Bruce Flatt, CEO of Brookfield Asset Management at Google Talks.
Worth listening.
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