Brookfield has made its first structured debt investment in the Indian residential sector with 4.5 billion rupees ($67 million; €58 million) going to a project by developer Peninsula Land.
The capital comes from the Canadian asset manager’s $9 billion global real estate fund and will be used to refinance Kotak Mahindra Bank’s loan to Peninsula Land and for general corporate purposes.
According to Peninsula Land's latest annual report, it had net debt of around 1.7 billion rupees as of 30 June 2016 and its priority is to deleverage its balance sheet by monetising land assets. It has around 18.6 million square feet under development in Mumbai, Bengaluru, Pune, Goa, Nashik and Lonavala.
Peninsula Land and Brookfield also have a 1.2 billion rupee debt fund (Peninsula Brookfield India Real Estate Fund).
Brookfield has been an active player in India across real estate and infrastructure projects in the last six years and has a $2 billion asset base.
In the real estate space, it is planning to buy the $1 billion office and retail assets of Hiranandani Developers in the Mumbai suburb of Powai. In 2014, it spent $268 million purchasing investment company Unitech Corporate Parks, including special economic zones and information technology parks in Gurgaon.
According to a local press report, Brookfield has also applied to the Reserve Bank of India for a non-banking finance company licence earlier this month. The NBFC will lend to residential projects with a ticket size of 2 billion-4 billion rupees.