The Global real estate services company of Brookfield Asset Management, Brookfield Properties refinanced the debt of 2,100 crore, which was raised against its commercial property in Mumbai Equinox Business Park. The company has raised the whole fund from Punjab National Bank to refinance its earlier debt facility which was offered by Housing Development Finance Corporation (HDFC), in two installments in 2018 and 2020.
HDFC which is now merged with HDFC Bank, had extended debt worth Rs 2,000 in 2018 under lease rental discounting (LRD) for a tenure of of 180 months with an interest rate of 8.70 percent The second LRD of Rs 100 crore was extended in 2020 for a tenure of 156 months at 9.50 percent of interest rate.
The documents which were accessed through CRE Matrix showed that the new facility regarding debt was raised for refinancing these loans has been raised at 8.60 percent rate of interest with a total tenure of 180 months.
According to an expert of real estate development, ““The refinancing was secured with better terms as the property has been performing well with complete occupancy levels and marquee clients under Brookfield ’s control over the last couple of years,
The company Brookfield Asset Management has taken over Equinox Business Park with 1.3 million sq ft of leasable area near Mumbai’s business district Bandra-Kurla Complex (BKC) from its erstwhile owner a and developer Essar Group at an enterprise value of around Rs 2,450 crore in 2018.
The mortgage agreement Equinox Business Parks and Punjab National Bank against the property which consists of four commercial towers in the complex was signed on 8th September.
Brookfield Properties has leased over 351,000 sq ft office space in Equinox Business Park this year to new tenants including the National Stock Exchange (NSE). Presently the office has been acquired by Mirae Assets Capital Markets, Tata Communication, State Street, Titan, and Atlas University.
One of the renowned design school Future Technology Skills Foundation (FTSF) had picked up nearly 200,000 sq ft of spread over eight floors in Equinox Business Parks on a long-term lease. The tenure of this deal is 32 years, which is the country’s largest-tenure lease transaction ever.
With the deal for office space on ground plus seven floors of the commercial building, the business park’s occupancy level reached nearly 100% compared to 40% when Brookfield Asset Management had acquired the property.
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