Brookfield India Real Estate Trust · NSE:BIRET.RR
Brookfield India Real Estate Trust — Investor Presentation (February 2023)
50 slides from Brookfield India Real Estate Trust's investor presentation, February 2023
Slide 1: Brookfield India REIT Corporate Presentation February 2023
Brookfield India REIT C O R P O R AT E P R E S E N TAT I O N FEBRUARY 2023 CANDOR TECHSPACE G2, GURUGRAM
Slide 2: Disclaimer
Disclaimer By reading this presentation (the “Presentation”), you agree to be bound by the following limitations: This Presentation is for information purposes only without regard to specific objectives, financial situations or needs of any particular person, and should not be disclosed, reproduced,
Slide 3: Sponsor's Profile
Brookfield India Real Estate Trust Sponsor’s Profile re
Slide 4: One of the World's Largest Alternative Asset Managers
One of the World’s Largest Alternative Asset Managers $750B+ Total AUM | 30+ Countries | 180,000+ Operating Employees Europe and Middle East $139B London Toronto North America New York $469B Shanghai Dubai Asia Pacific Mumbai $107B Rio De Janeiro Sydney South America Corporate Offices $47B Global sc
Slide 5: One of the World's Largest Real Estate Portfolios
One of the World’s Largest Real Estate Portfolios With $260B+ in real estate AUM and 30,000+ employees across 30+ countries, Brookfield owns, operates and manages one of the world’s largest, highest quality portfolios BROOKFIELD PLACE, NEW YORK POTSDAMER PLATZ, BERLIN BROOKFIELD PLACE, TORONTO INTER
Slide 6: Among the Largest Foreign Investors in India
Among the Largest Foreign Investors in India Owner, Operator & Manager of critical infrastructure & real estate $22B India AUM across asset classes Brookfield India Real Estate – Key Facts $8B 50 MSF ASSETS UNDER TOTAL OFFICE MANAGEMENT AREA Others(1) Real Estate 15 Cities 5,000+ $14B $8B DIVERSIFIE
Slide 7: Diversified Pan-India Office Portfolio
Diversified Pan-India Office Portfolio Brookfield owns and manages one of the largest office portfolios in India with presence across all key markets SELECT ASSETS 18 Delhi NCR MSF 16.2 1.8 G1, Gurugram Kolkata 6 3.1 2.7 MSF Mumbai, Pune 10 6.2 4.2 MSF Downtown Powai, Mumbai 16 Bengaluru, Chennai MS
Slide 8: Brookfield's Strong 'Vertically-Integrated' Operating Capabilities
Brookfield’s Strong ‘Vertically-Integrated’ Operating Capabilities We have built a strong ‘through-the-cycle’ performance scorecard in India, owning and operating prime office properties for the last 8 years ~16 MSF ~10 MSF NEW AREA LEASING(1) DEVELOPED ~6 MSF 300+ AREA TENANT RENEWED RELATIONSHIPS(
Slide 9: Brookfield India REIT: Overview
Brookfield India REIT: Overview CANDOR TECHSPACE N2, NOIDA
Slide 10: Brookfield India Real Estate Trust
Brookfield India Real Estate Trust India’s first and only 100% institutionally managed REIT, owning 18.7 MSF of class A office properties Delhi NCR (11.4 MSF) 18.7 MSF 14.3 MSF Gurugram 3.9 0.1 TOTAL AREA OPERATING AREA Noida 5.7 1.6 Total 9.7 1.7 88% Rs 64 PSF 67% EFFECTIVE ECONOMIC IN-PLACE RENT O
Slide 11: High Quality Properties in Gateway Cities
High Quality Properties in Gateway Cities 28% 25% One of the Largest Campus-style Offices in CBD Gurugram Largest Office Campus in Noida CANDOR TECHSPACE, SECTOR 21, GURUGRAM (G2) CANDOR TECHSPACE, SECTOR 135, NOIDA (N2) 4.0 MSF | 29 ACRES 4.5 MSF | 30 ACRES 17% 16% 14% Largest Corporate Facility lo
Slide 12: 9M FY2023 – Scorecard
9M FY2023 – Scorecard We have executed on our stated strategy and have a robust outlook on our business Metric Performance 1 Stable Distribution Rs 15.20 DPU In line with guidance 2 Leasing Success 0.9 MSF + 0.1 MSF of Expansion Options 0.6 MSF of new leasing and 0.3 MSF of renewals 3 Leasing Prospe
Slide 13: Ramp-up of Physical Occupancy…
Ramp-up of Physical Occupancy… 6x improvement in physical occupancy during the year driven by “return-to-office” % PHYSICAL OCCUPANCY 52% 50% 50% 43% 33% 33% COVID-19 3rd wave subsides 26% 21% “Return-to-office” by tech 21% occupiers 16% 9% 8% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22
Slide 14: Significant Organic Growth Potential
Significant Organic Growth Potential We achieved a 9% growth in the NOI run rate from Q4 FY2022 and have an embedded growth headroom of ~18% NOI GROWTH POTENTIAL (RS MILLIONS) +18% 300 - 350 11,246 - 11,446 +9% 980 - 1,060 350 - 420 774 9,616 8,842 Q4 FY2022 NOI Growth vs Q4 Current NOI Q3 FY2023 Va
Slide 15: Attractive Inorganic Growth Prospects
Attractive Inorganic Growth Prospects Sponsor assets of 6.5 MSF of operating Grade-A properties, which if acquired by the REIT, will further increase scale and operating income One of the largest high quality office campuses in Gurugram Prime office portfolio in a 250-acre integrated township (near
Slide 16: Leader in Sustainable Office Development
Leader in Sustainable Office Development Outperformed GRESB global averages across all criteria, scoring 100% in Social and Governance categories(1), reinforcing our ESG credentials 90% 96% Standing Investments Score Development Score(2) 𝟓𝟑ൗ Environment 𝟒𝟗ൗ Environment 𝟔𝟐 Global Average: 40…
Slide 17: Leader in Sustainable Office Development (Cont'd.)
Leader in Sustainable Office Development (Cont’d.) Committed to deliver on our Net Zero target by 2040 Gold Prize EHS award (Brookfield Properties) 2021 National Award - Excellence in Best Sustainable & Green Project of Energy Management (G2) 2021 Sustainability Award the Year (G2) 2021 Brookfield I
Slide 18: Strong Capital Structure
Strong Capital Structure Backed by high quality assets and robust cash flows, our long-duration borrowings maintain a AAA credit rating, attract competitive costs and carry a low refinancing risk 7.95% AAA Stable 32% Rs 1.2B AVERAGE INTEREST RATE(1) CREDIT RATING (CRISIL) NET DEBT TO UNDRAWN COMMITT
Slide 19: High Quality Properties
High Quality Properties CANDOR TECHSPACE N1, NOIDA
Slide 20: "Business-critical" Campuses
“Business-critical” Campuses Our tenants perform specialised and high value-add services from our office parks 78% AREA LEASED TO MNC TENANTS 49% TENANTS OPERATING GCCs / R&D LABS (1) 40% AREA LEASED TO FORTUNE 500 TENANTS Technology Consulting BFSI Indian IT behemoth (Kensington) Fortune 500 Consul
Slide 21: Preferred Choice for Global Capability Centers
Preferred Choice for Global Capability Centers Demonstrated track record of attracting new occupiers and consolidations NEW CAPABILITY CENTERS RELOCATION / CONSOLIDATION 269,000 SF G2 (2021) 377,000 SF N2 (2021) • First center in North India • Relocation from a standalone building at 40% higher rent
Slide 22: Partnering in the Occupier Growth Story
Partnering in the Occupier Growth Story Our top tenants have expanded their footprint at our business parks Global IT Services MNC Fortune 500 UK Based Bank Leading Technology Co. 1,137 399 204 +114% 153 +33% 249 +60% 531 Mar-15 Dec-22 Mar-15 Dec-22 Mar-15 Dec-22 CANDOR TECHSPACE K1 CANDOR TECHSPACE
Slide 23: Market Leading Performance
Market Leading Performance Our assets continue to have a superior occupancy relative to our larger markets COMMITTED OCCUPANCY 99% 100% 99% 97% 91% 90% 90% 84% 79% 80% 82% 77% 75% 72% Mumbai Kensington Gurugram G2 Noida N1 N2 Kolkata K1 Market (Dec 2022) Asset (Dec 2022) Asset, pre-COVID (Mar 2020)
Slide 24: Market Leading Performance (Cont'd.)
Market Leading Performance (Cont’d.) Our assets continue to register a higher rental growth relative to our micro-markets RENTAL GROWTH (SINCE ACQUISITION / TAKEOVER) % CAGR(1) 8.8% 6.6% 6.5% 5.5% 5.6% 4.7% 3.7% 3.6% 3.0% 0.4% REIT Kensington Gurugram G2 Sector 62, N1 NGN N2 Rajarhat, K1 Micro- Nort
Slide 25: Placemaking Initiatives
Placemaking Initiatives CANDOR TECHSPACE N2, NOIDA
Slide 26: Asset Upgrades
Asset Upgrades Kensington Lobby K1 Swimming Pool Kensington Podium N2 Tower 11 Lobby 26
Slide 27: Asset Upgrades (Cont'd.)
Asset Upgrades (Cont’d.) G2 Tower 3 Lobby N1 Amenity Block N2 Sports Center Near Tower 10 G2 Landscape 27
Slide 28: Tenant Engagement
Tenant Engagement Live Project, Candor Techspace G2 Live Project, Candor Techspace N2 Planted 3,000 tress as part of the Forest of Hope Plantation Drive Trees of Hope, Candor Techspace N2 28
Slide 29: Our Properties
Our Properties KENSINGTON, POWAI, MUMBAI
Slide 30: Kensington, Mumbai
Kensington, Mumbai Premium office complex which is part of a 250 acre integrated township in Powai, Mumbai 1.6 MSF 90% RS 99 PSF 2.0 YRS. LEASABLE AREA COMMITTED IN-PLACE RENT PER WALE OCCUPANCY MONTH L&T Hydrocarbon XPO Logistics 30
Slide 31: Powai Micro-market
Powai Micro-market A ‘Live-Work-Play’ ecosystem with established residential, social and recreational infrastructure Proximity to residential catchment areas, social Kensington / Downtown Powai and recreational infrastructure Easy accessibility to local railway and metro stations Proximity to an arr
Slide 32: Value Creation under Brookfield
Value Creation under Brookfield At Takeover Current Value (Dec 2017) (Dec 2022) Add In-place Rents Rs 81 PSF Rs 99 PSF +24% New Leasing Rents(1) Rs 96 PSF Rs 132 PSF +38% (1) Average new leasing rent for 12 months ended December 31, 2017 and 12 months ended December 31, 2022. 32
Slide 33: Candor Techspace G2, Gurugram
Candor Techspace G2, Gurugram Spread over 28 acres, one of the largest campus-style offices in CBD Gurugram 4.0 MSF 84% RS 83 PSF 7.4 YRS. LEASABLE AREA COMMITTED IN-PLACE RENT PER WALE OCCUPANCY MONTH Accenture RBS BT E-Serv 33
Slide 34: Gurugram North Micro-market
Gurugram North Micro-market Approximately 10 km drive to the Airport Easy accessibility to metro stations Plethora of shared mobility solutions 34
Slide 35: G2 Layout
G2 Layout Amenity Amenity 1 2 3A 35
Slide 36: Value Creation under Brookfield
Value Creation under Brookfield Developed Amenity 1 Amenity 2 Amenity 1 Amenity 2 Ongoing / Future 3 3 Development A A 11 At Acquisition Current Value Add (Mar 2015) (Dec 2022) Total MSF 3.6 4.0 +0.4 MSF Operational MSF 2.0 3.9 2.0x Leased MSF 1.8 3.3 1.8x In-place Rents Rs 66 PSF Rs 83 PSF +26% New
Slide 37: Candor Techspace N1, Noida
Candor Techspace N1, Noida Largest office park in the Sector 62 micro-market spread over 19 acres 2.8 MSF 90% RS 48 PSF 7.1 YRS. LEASABLE AREA COMMITTED IN-PLACE RENT PER WALE OCCUPANCY MONTH Barclays Pine Labs 37
Slide 38: Sector 62, Noida Micro-market
Sector 62, Noida Micro-market Proximity to residential LOGIX catchment areas and social infrastructure Well connected to the metro network Proximity to an array of retail and F&B outlets 38
Slide 39: N1 Layout
N1 Layout Future Development 39
Slide 40: Value Creation under Brookfield
Value Creation under Brookfield 6 3 6 3 Developed Amenity Amenity 5 2 5 2 Amenity Ongoing / Amenity Amenity Future Development 4 1 4A 4B 1 At Acquisition Current Value Add (Mar 2015) (Dec 2022) Total MSF 2.2 2.8 +0.6 MSF Operational MSF 0.7 2.0 2.9x Leased MSF 0.4 1.8 4.5x In-place Rents Rs 33 PSF R
Slide 41: Candor Techspace N2, Noida
Candor Techspace N2, Noida The largest office campus in Noida, spread over 30 acres 4.5 MSF 96% RS 55 PSF 8.0 YRS. LEASABLE AREA EFFECTIVE ECONOMIC IN-PLACE RENT PER WALE OCCUPANCY(1) MONTH (1) Including Income Support in Candor Techspace N2, which is being provided till March 31, 2024 on 719,000 SF
Slide 42: Sector 135, Noida Micro-market
Sector 135, Noida Micro-market Proximity to residential catchment areas and social infrastructure Well connected to the metro network Situated on the NGN expressway 42
Slide 43: N2 Layout
N2 Layout T-11A T-9 T-10 T-8 T-2 T-1 AMENITY AMENITY BLOCK - 2 BLOCK-1 T-11 T-5 T-4 T-3 T-7 T-6 T-12 Future Development 43
Slide 44: Value Creation under Brookfield
Value Creation under Brookfield Developed Ongoing / Future 7 7 Development 6 6 At Acquisition Current Value Add (Mar 2015) (Dec 2022) Total MSF 3.4 4.5 +1.2 MSF Operational MSF 1.6 3.8 2.4x Leased MSF 1.5 2.9 1.9x In-place Rents Rs 40 PSF Rs 55 PSF +37% New Leasing Rents(1) Rs 42 PSF Rs 65 PSF +56%
Slide 45: Candor Techspace K1, Kolkata
Candor Techspace K1, Kolkata Largest campus style office development in eastern India, spread over 48 acres 5.7 MSF 82% RS 43 PSF 7.1 YRS. LEASABLE AREA COMMITTED IN-PLACE RENT PER WALE OCCUPANCY MONTH Accenture Capgemini Cognizant 45
Slide 46: Rajarhat Micro-market
Rajarhat Micro-market TCS Proximity to residential catchment areas, social CLUB ECOVISTA and recreational infrastructure BELLE VUE HOSPITAL EDEN COURT TCS GITANJALI PARK THE PRIDE HOTEL TATA HOUSING AVENIDA DPS NEWTOWN SCHOOL AXIS MALL NARKEL BAGAN METRO (PROPOSED) M SRI CHAITANYA SCHOOL ERICSSON IN
Slide 47: K1 Layout
K1 Layout Mixed-use Development G 14 acre vacant B land C A Under Construction 47
Slide 48: Value Creation under Brookfield
Value Creation under Brookfield G G G G G G Developed G2 14 acre 11 G2 33 14 acre 11 2 33 2 vacant vacant Ongoing / land land B B2 B B2 B2 Future B2 C C2 C C2 11 B 11 B B3 B3 11 C3 11 C3 Development 3 At Acquisition Current Value Add (Mar 2015) (Dec 2022) Total MSF 4.4 5.7 +1.3 MSF Operational MSF 2
Slide 49: Annexure
Annexure CANDOR TECHSPACE G2, GURUGRAM
Slide 50: REIT Structure
REIT Structure MANAGER TRUSTEE TRUST Brookprop Management Services Axis Trustee Services Limited Brookfield India Real Estate Trust Private Limited 100% 100% 100% 100% 100% ASSET SPV ASSET SPV ASSET SPV OPERATIONAL ASSET SPV SERVICE PROVIDER Candor Kolkata Shantiniketan Seaview Festus Properties One
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