Our extensive experience in institutional asset management, along with our collaborative ethos, high quality portfolio, focus on technology and tenant relationships have enabled us to successfully navigate the challenging macro environment.
Consolidation of office portfolios and expansion demand from our existing tenants has powered leasing growth for Brookfield India REIT in the past few quarters. We have posted a stable and positive performance with growth in operating lease rentals and healthy rental collections. With leasing of 0.6 M sf in the first half of FY2023, our portfolio continues to show sustained performance. The robust leasing demand from existing clients contributes to 83% of total leasing, even while we continue to attract new tenants. We have a robust leasing pipeline of 2 M sf including new leasing and renewals that will continue our leasing momentum.
While interest rates are firming up globally, our deep lender relationships and high-quality asset portfolio, backed by strong institutional sponsorship, has led to a lower transmission while our long-dated maturity profile de-risks our balance sheet.
Our differentiated value proposition remains the key tenet of our future to meet the evolving needs of our marquee clientele. I am happy to share that all the developments we had promised to our tenants and their employees have been completed.
With the completion of Tower 11A in Candor TechSpace N2, we have created a distinctive work destination crafted to inspire a vibrant and progressive future. The new tower effectively blurs the line between a workspace and a place of wellbeing and community growth enhancing productivity and creativity.
We have also taken the first step towards opening new vistas of growth and expansion at our Candor TechSpace K1 campus with the commencement of construction of a retail led mixed use development. The 174,000 sf retail will be a F&B led retail destination with multiple restaurants, cafes, large and small format retail outlets, gaming center and an open terrace area, which will substantially enhance our occupier experience at Candor TechSpace K1. The 387,000 sf office development will comprise of high quality non SEZ office spaces diversifying our tenant offerings.
India, with a large and diversified talent pool, continues to be a highly attractive destination for global companies who continue to engage with institutional landlords like Brookfield India REIT. Our focus on redesigning workspaces to align with the needs of India’s new-age workforce is integrated in various facets of our assets.
In our very first year of submission, we have been awarded a 5-star rating by GRESB, a global ESG benchmark. I am pleased to announce that the Company received an overall score of 90%, for operational buildings, 21% higher than the global average. For recently developed buildings, GRESB awarded Brookfield India REIT with a 96% score. We have outperformed global averages across each category, demonstrating our deep and ongoing commitment to sustainable development.
Brookfield India Real Estate Trust’s holistic ESG program drives value across both its physical and social initiatives, reflecting a pledge to positively impact its surrounding environments by creating safe, sustainable, and vibrant communities across the lifecycle of real estate from design to operation. Brookfield India Real Estate Trust was also recognized as a sector leader for sustainable office development in Asia by GRESB. Decarbonization, transition to renewable energy, air and water management as well as waste management are among the key areas of our sustainability thrust and we made significant investments on the ESG front during the period under review.
The positive momentum for differentiated best in class commercial real estate is expected to continue in FY2023, backed by the solid structural foundation and gain in demand. The upswing in the market will also stem from a favourable outlook for technology services and global captives, for which India is a leading hub. With an acquisition pipeline of 6.4 M sf of operating class-A properties, we have provided all stakeholders with a visibility of the potential increase in scale and operating income.
With our tenants and their employees central to our business proposition, we are continuously enhancing our focus on innovating differentiated workspaces. Technology continues to be a major facilitator of our business strategy and we remain focused on creating new benchmarks to delight our clients through our sustainability-focused assets and placemaking experiences. We are quite buoyant about the future and are confident about our path ahead.
Sincerely,
Manager of Brookfield India REIT