Brookfield Aims to Invest $10 Billion in Indian Real Estate Over the Next 3-5 Years

Brookfield Asset Management, one of the world's biggest institutional investors, plans to invest more than $10 billion into India's real estate sector over the next 3-5 years. This investment is expected to double Brookfield's real estate assets under management (AUM) in India during that time period, according to the managing partner and head of real estate for Asia Pacific at Brookfield, in a statement to ET.

Our commitment to India is unwavering - we're steadfast in seeking out growth opportunities here," said the managing partner and head of real estate for Asia Pacific at Brookfield, in an interview. "Looking ahead, the prospect of reaching another $10 billion investment seems very attainable given our wealth of experience across various sectors. We expect to double our investment in the next 3-5 years.

Brookfield is already one of the largest office owners and operators in India, with a portfolio spanning over 51 million square feet across seven key Indian cities. The firm currently has total assets under management (AUM) of more than $25 billion invested across India's infrastructure, renewable power and transition, real estate, and private equity sectors.

We have plans to expand into housing, industrial and retail sectors in India, as we see ample room for growth in these areas," said the managing partner and head of real estate for Asia Pacific at Brookfield. "Real estate in India is still under-built for the needs of a $5 trillion economy, so we see excellent investment prospects ahead," he added, hinting at Brookfield's future investment plans.

Housing is a key focus area for Brookfield globally, including in Asia. The firm is currently developing a serviced apartment project in [location] as part of this strategy.

Brookfield's major investments in India's hospitality sector, particularly the acquisition of The Leela hotel portfolio, mark a significant milestone in the company's India story. Brookfield's Leela transaction is by far the largest foreign investment in India's hospitality industry, comprising 13 owned and managed hotels with a total of 3,500 guest keys.

Our core business isn't easy - it requires raising and deploying huge amounts of capital, as well as a 'roll up our sleeves' approach to execute our plans," said the managing partner and head of real estate for Asia Pacific at Brookfield. "Take the Leela Palaces acquisition for instance - it was the turnaround of a company that was in financial distress, facing operational challenges and other issues that needed to be fixed," he added.

According to managing partner and head of real estate for Asia Pacific at Brookfield, the current positive industry trends are presenting exciting growth prospects for The Leela brand. He said the company has a robust pipeline of growth through acquisitions, reflagging and development.

He sade believes real estate remains the bedrock of economic progress. And with India experiencing robust double-digit growth, he expects the demand for assets to fuel this expansion will intensify even further in the coming years.

He said, We've recycled capital from our private investments in India. In fact, the Indian market has been one of the top performers for Brookfield globally, in terms of both investments and overall returns." He added, "To sustain this momentum, we consistently evaluate opportunities to either recycle assets into our REIT or acquire new assets, allowing us to continuously expand our portfolio.

Brookfield's listed Real Estate Investment Trust (REIT) has a portfolio with a total leasable area of 25.4 million square feet. This includes 20.7 million square feet of operating area, 0.7 million square feet under construction, and an additional 3.9 million square feet of future development potential.

Managing partner and head of real estate for Asia Pacific at Brookfield said, when calibrated suitably, India is a top-notch market for Brookfield, standing out for its potential for robust returns.

Our track record in India has been exceptional," explained by managing partner and head of real estate for Asia Pacific at Brookfield. "Part of that can be attributed to the higher cost of capital in India compared to other markets like the US. But more importantly, the stronger growth in India and our focus on operational excellence has allowed us to fully capitalize on the positive macroeconomic environment and translate that into solid business performance.

By LNN (Liyaans News Network)