India’s Only 100% Institutionally Managed Office REIT
Sustained Operational Excellence Across the Portfolio
Building a Sustainable Future
Maximizing Unitholder Value
THE INDIAN OFFICE MARKET CONTINUES TO WITNESS ROBUST DEMAND FOR PREMIER OFFICE SPACES, AND BIRET IS AT THE FOREFRONT AS THE LANDLORD OF CHOICE.
As we look back on FY2024, Brookfield India Real Estate Trust (BIRET) has had a transformative journey. Building on our strong foundation, we have achieved remarkable milestones and reshaped industry benchmarks through strategic acquisitions, record breaking leasing and pioneering tenant engagements while leading the way in sustainability. The year has truly highlighted our steadfast dedication to delivering substantial value to our unitholders.
The Indian office market continues to witness robust demand for premier office spaces, and BIRET is at the forefront as the landlord of choice. Our commitment to excellence ensures that we cater to the evolving needs of discerning tenants while creating value for our stakeholders. This fiscal year, we have achieved record-breaking leasing activity, achieving a total of 2.8M sf of gross leasing. The impact of contractual escalations, rental increases and market adjustments on renewals has been significant, with an average contractual escalation of 7.4% on 6.8M sf of leased area and a mark-to-market gain of 15.8% on re-leasing of 1.2M sf. This notable performance reflects the success of our proactive leasing strategy, which focuses on cultivating long-term relationships and fostering vibrant tenant communities within our properties.
The government announcement with amendments to the SEZ rules made for an encouraging move. We have made substantial progress in converting 1.2M sf of SEZ space to non-processing areas and have, in fact, successfully converted 0.6M sf at K1 having received all the requisite approvals. This is a strategic move that broadens our tenant pool and creates exciting leasing opportunities. The positive market response, including the recent signing of a 0.3M sf lease for converted SEZ space, underscores the effectiveness of this initiative.
Our growth strategy has been greatly supported by acquisitions, and this year we have expanded our portfolio. The successful completion of the acquisitions of Candor TechSpace (G1) and Downtown Powai have increased the size of the REIT and initiated a partnership with GIC in India. Furthermore, our landmark partnership with Bharti Enterprises to acquire a 50% stake in four Grade-A assets, totaling 3.3M sf, has increased our gross asset value and established BIRET as one of the most geographically diverse office REIT in India. These high-quality assets with strong tenancies provide a solid platform for future growth and position us to capitalize on the evolving needs of the Indian office market.
Every year, we strive to elevate the engagement of our tenants and employees through various initiatives. One such key event is the Powai Run, which not only promotes health and wellness but also serves as a vibrant gathering for communities. This year, the run garnered enthusiastic participation from 6,500 individuals.
In addition to the Powai Run, we celebrated several festivals across campuses. These occasions provide opportunities for tenants to come together and engage in various activities, fostering connections and a sense of belonging. Throughout the year, a total of over 300 events witnessed the participation of more than 70,000 individuals. They have contributed to increased engagement and fulfillment among these communities. As we move forward, we remain dedicated to nurturing a positive and inclusive environment for all.
Sustainability remains a core value for us. In FY2024, we achieved a notable milestone with 32% green energy consumption, a crucial step forward on our journey to reach 40% by 2025. We continuously explore innovative solutions to minimize our carbon footprint, believing that sustainability is a collective call to action.
We are deeply committed to environmental responsibility and bringing forward best practices that can assist tenants to adopt ESG principles. Through our "ESG Dialogues" series in partnership with The Economic Times, we facilitated key discussions with experts and thought leaders among our tenants in Delhi, Mumbai, and Bengaluru. By prioritizing responsible governance, environmental preservation, and societal well-being, we aim to pave the way for a more equitable future.
Retaining our prestigious 5-star GRESB rating for the second consecutive year reaffirms our ongoing efforts in safety and sustainability. Furthermore, receiving the British Safety Council Sword of Honor marks our dedication to providing a safe work environment for our tenants and employees.
As one of the founding members of the Indian REITs Association (IRA), we have been leading successful roadshows across the country to educate retail investors, HNIs, and media on the benefits of REITs as an attractive investment asset class. These initiatives have been instrumental in creating awareness about REITs and expanding the investor base for the sector.
We had announced an ambitious new leasing target of 2.0–2.4M sf for the period from January 1, 2024, to March 31, 2025, and are fervently working to meet this target. This target reflects our desire to maintain a leadership position in the Indian office market as a landlord of choice for our tenants. With new leasing of 0.9M sf achieved in the quarter ended March 31, 2024, 40% of this target is already secured, and we are confident in our ability to achieve our goal and deliver substantial value to our unitholders.
As India continues its impressive growth trajectory, BIRET is poised to play a pivotal role in the growth of industries with its portfolio of Grade-A assets strategically located within business ecosystems.
The achievements we celebrate in FY2024 are a result of your steadfast support along with the dedicated commitment of our teams. We are excited about the future of Brookfield India Real Estate Trust and the substantial role we will play in shaping India’s office landscape.
Sincerely,
CEO and Managing Director, Board of Director
Manager of Brookfield India Real Estate Trust
