Brookfield to invest Rs800 crore in Total Environment’s projects

Madhurima Nandy, Aug 10 2017

 Canada’s Brookfield Asset Management Inc. is at an advanced stage to invest around Rs800 crore in Total Environment Building Systems Pvt. Ltd, a Bengaluru-based builder of homes, from its global fund, according to two people familiar with the transaction.

The capital will help Total Environment refinance most of its debt and replace the existing debtors with Brookfield as the main lender. Brookfield started investing in residential real estate fund in India from its new $9 billion global real estate fund last year.

The first deal saw Brookfield investing Rs450 crore in Peninsula Land Ltd’s premium project in Byculla, Mumbai. The Total Environment deal would be the second investment from Brookfield’s global corpus.

“The capital will be given in the form of structured debt with an upside share, against seven of Total Environment’s projects in Bengaluru. Half of the money will be used for refinancing and the rest as working capital for its ongoing projects,” said one of the two people cited above, requesting anonymity. “The deal is expected to close by the end of the month,” said the second person.

Kamal Sagar, principal architect and chief executive of Total Environment, declined to comment. In 2014, Brookfield had invested around Rs200 crore in Total Environment via the Peninsula Brookfield India Real Estate Fund, which is managed by Peninsula Brookfield Investment Managers Pvt. Ltd, its venture with Peninsula Land.

Brookfield has about $240 billion in assets under management globally. In India, it has built a $5 billion asset base over the past seven years, spanning real estate and infrastructure projects. Total Environment, which has projects in Bengaluru, Pune and Hyderabad, has raised funds from various lenders in the past few years.

In end-2016, L&T Finance Holdings Ltd invested Rs200 crore in its project to partly refinance an earlier loan from IndoStar Capital Finance Ltd and partly for construction. Investments in the residential sector has been mostly refinancing deals where funds or non-banking financial firms step in to refinance or replace exiting lenders.

Currently, with tepid projects sales and high demand for capital, funds are being cautious about who they partner with and the projects they fund.

“The real estate sector is going through a rough patch and it’s not a choice but a necessity for developers to opt for refinancing, presuming that the markets don’t pick up and sales continue to be slow. Investors today are refinancing projects that have enough runway to service debt and are in the right hands,” said Shobhit Agarwal, managing director-capital markets at property advisory JLL India.

Reference

Comments

Post a Comment

Popular posts from this blog

ED tracks Swiss Bank A/Cs of Agusta scamster

The Poineer February 10,2019 Rakesh K Singh The Enforcement Directorate (ED) has tracked a dozen Swiss bank accounts in the name of Rajiv Saxena, who is key accused in the Rs 3,600 crore AgustaWestland VVIP chopper scam. The ED has also found out accounts held by  his family members and associates where the kickbacks in the now scrapped deal were allegedly parked. Two bank accounts are in the name of Rajiv Saxena’s  associates Pankaj Jain and Sumita Jain who are also the authorised signatories. The  third is in the name of another associate Ajit Singh Bubber, but Rajiv and his family members are authorised signatories. The remaining nine accounts are largely owned and operated by Rajiv, his family members and associates. Rajiv Saxena was deported by the UAE authorities on January 30 and the ED formally arrested him the next day and a court later granted his remand to the agency. He is currently undergoing custodial interrogation by the ED. The agency had in 2017 arrested his
Read more

J&K Cricket Board Scam: Chargesheet Filed Against Farooq Abdullah, 3 Others By CBI

OUTLOOK July 16, 2018 The agency has levelled charges of criminal conspiracy and criminal breach of trust under the Ranbir Penal Code against Abdullah and three others. The CBI on Monday filed a chargesheet against former Jammu and Kashmir chief minister Farooq Abdullah and three others in a special court in Srinagar in connection with alleged irregularities and misappropriation of funds in the Jammu and Kashmir Cricket Association. After the fall of the Peoples Democratic Party (PDP) and the BJP government, this is the biggest development that has taken place in the state. The National Conference has not reacted to the chargesheet so far. The agency has levelled charges of criminal conspiracy and criminal breach of trust under the Ranbir Penal Code against Abdullah, the then president of JKCA, Md Saleem Khan - the then general secretary, Ahsan Ahmad Mirza - the then treasuer and Bashir Ahmad Misgar, an executive in the J&K Bank. The BCCI gave Rs 112 crore t
Read more

As financial insecurity rises in urban India, so does investment in insurance

Image
Scroll.in March 13, 2020 Urban Indians are becoming less confident about their financial security. Up to 58% of them fret over financial independence post retirement, which is a 4% increase from last year. An equal share of urban Indians worry about meeting their daily medical expenses and sustaining their current lifestyle once they stop working. The findings are part of a survey published by Delhi-based Max Life Insurance in association with London-based consultancy Kantar. The firms surveyed 7,014 respondents in 25 cities, including six metros, nine tier-1 cities, and 10 tier-2 cities, between December 2019 and January 2020. Source: Max Life Insurance via Quartz The trends Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz A significant share of urban Indians also say their families will have no financial support in the event of the breadwinner’s death. In such a scenario, around 57% believe the family sav
Read more