Brookfield plans ‘large’ investments in residential properties
After building a robust commercial real estate portfolio in India, leading global alternative asset manager Brookfield Asset Management Inc., is now betting big on the residential development opportunities here. The Toronto-headquartered financial services major is excited about the pick-up in the Indian economy that would lead to huge demand for real estate.
“Given the scale of this opportunity, we could land up with very large investments here. At least $1 billion investment in residential projects would just be a beginning,” Dev Santani, senior vice president, Brookfield who heads the financial services and structured credit business
Interestingly, Brookfield will be investing in Indian residential projects through its global private equity pool, which not many global institutional investors have done so far.
“We are here for long term with patient capital,” Santani said, while stressing that Brookfield is excited about a pick-up in micro-indicators and the fact that the economy is gathering steam.
In July, Brookfield Capital Partners invested $100 million in two Hyderabad residential projects of Incor Infrastructure
So far, it has concluded around 11 transactions across different cities in India totalling $450 million. Last year, it invested Rs 800 crore in Bengaluru-based realty developer Total Environment Building Systems’ portfolio of five projects spread over 4.5 million sq ft.
The pace of Brookfield’s investments into residential sector would increase further from hereon as both Ranjan and Santani are of view that the demand for housing in India is structurally strong and recent implementation, of the Real Estate (Regulation & Development) Act, 2016, has made the sector more accountable.