Brookfield Properties Equinox Business Parks refinances Rs 2,100 crore debt
Brookfield Properties, a global real estate services company of Brookfield Asset Management, has recently refinanced a debt worth Rs. 2,100 crore that was raised against its commercial property, Equinox Business Park, located in Mumbai. The company has raised funds from Punjab National Bank to refinance its earlier debt facility that was extended by the Housing Development Finance Corporation (HDFC) in two separate tranches in 2018 and 2020.
HDFC Bank recently merged with HDFC. Of the two, HDFC had extended debt worth Rs. 2,000 crore in 2018 under lease rental discounting (LRD) for a tenure of 180 months at an interest rate of 8.70%. The second LRD worth Rs. 100 crore was extended in 2020 for 156 months at an interest rate of 9.50%. Documents accessed through CRE Matrix reveal that a new debt facility has been raised to refinance these loans at an interest rate of 8.60% over a total tenure of 180 months.
The tenures for the HDFC debt facilities were originally set to end in August and October of 2033, while the assignment of debt that was raised for refinancing these facilities will now end in September of 2038. The refinancing has been secured with better terms due to the property's strong performance over the past few years, with complete occupancy levels and top-tier clients under Brookfield's control.
Brookfield Asset Management acquired Equinox Business Park from Essar Group in 2018 for an enterprise value of around Rs 2,450 crore. The business park is located near Mumbai's business district Bandra-Kurla Complex (BKC) and offers 1.3 million sq ft of leasable area, spread over 10 acres with only four towers. It has one of the lowest-density business parks in and around the BKC business district. In September, Equinox Business Parks created a mortgage agreement with Punjab National Bank against the property, which includes all four commercial towers in the complex.
Punjab National Bank had not responded, while Brookfield declined to comment. In Equinox Business Park, Brookfield Properties has leased more than 351,000 sq ft of office space to new tenants, including the National Stock Exchange (NSE), so far this year. Other tenants in this office complex include Mirae Assets Capital Markets, Tata Communication, State Street, Titan, and Atlas University. In 2021, Future Technology Skills Foundation (FTSF), a design school, took nearly 200,000 sq ft of office space spread over eight floors in Equinox Business Parks on a long-term lease. This deal has a total tenure of 32 years, making it the largest tenure lease transaction in the country's history. With this deal, the business park's occupancy level reached nearly 100%, up from 40% at the time of Brookfield Asset Management's acquisition of the property.
HDFC Bank recently merged with HDFC. Of the two, HDFC had extended debt worth Rs. 2,000 crore in 2018 under lease rental discounting (LRD) for a tenure of 180 months at an interest rate of 8.70%. The second LRD worth Rs. 100 crore was extended in 2020 for 156 months at an interest rate of 9.50%. Documents accessed through CRE Matrix reveal that a new debt facility has been raised to refinance these loans at an interest rate of 8.60% over a total tenure of 180 months.
The tenures for the HDFC debt facilities were originally set to end in August and October of 2033, while the assignment of debt that was raised for refinancing these facilities will now end in September of 2038. The refinancing has been secured with better terms due to the property's strong performance over the past few years, with complete occupancy levels and top-tier clients under Brookfield's control.
Brookfield Asset Management acquired Equinox Business Park from Essar Group in 2018 for an enterprise value of around Rs 2,450 crore. The business park is located near Mumbai's business district Bandra-Kurla Complex (BKC) and offers 1.3 million sq ft of leasable area, spread over 10 acres with only four towers. It has one of the lowest-density business parks in and around the BKC business district. In September, Equinox Business Parks created a mortgage agreement with Punjab National Bank against the property, which includes all four commercial towers in the complex.
Punjab National Bank had not responded, while Brookfield declined to comment. In Equinox Business Park, Brookfield Properties has leased more than 351,000 sq ft of office space to new tenants, including the National Stock Exchange (NSE), so far this year. Other tenants in this office complex include Mirae Assets Capital Markets, Tata Communication, State Street, Titan, and Atlas University. In 2021, Future Technology Skills Foundation (FTSF), a design school, took nearly 200,000 sq ft of office space spread over eight floors in Equinox Business Parks on a long-term lease. This deal has a total tenure of 32 years, making it the largest tenure lease transaction in the country's history. With this deal, the business park's occupancy level reached nearly 100%, up from 40% at the time of Brookfield Asset Management's acquisition of the property.
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