Debt had been raised against commercial property Equinox Business Park, Mumbai
Mumbai: Brookfield Properties, the global real estate services company of Brookfield Asset Management, has refinanced debt worth 2,100 crore that was raised against its commercial property Equinox Business Park in Mumbai.
The company has raised funds from Punjab National Bank (PNB) to refinance its earlier debt facility that was extended by Housing Development Finance Corporation (HDFC) in two separate tranches in 2018 and 2020, people aware of the development told ET.
HDFC was recently merged with HDFC Bank.
Of both the facilities, HDFC had extended debt worth 2,000 in 2018 under lease rental discounting (LRD) for a tenure of 180 months at 8.7% interest rate. The second LRD, worth 100 crore, was extended in 2020 for 156 months at 9.5% interest rate.
The new loan-for refinancing the existing ones-has been rai- sed at 8.6% interest rate and has a tenure of 180 months, showed documents accessed through CRE Matrix.
The tenures of the HDFC debt facilities were to end in August and October 2033. The tenure of the fresh debt raised for refinancing these facilities will end in September 2038.
“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,” said one of the persons ci- ted earlier.
Brookfield Asset Management had acquired Equinox Business Park with 1.3 million sq ft of leasable area near Mumbai’s business district Bandra Kurla Complex (BKC) in 2018 from its erstwhile owner and developer, the Essar Group, at an enterprise value of about 12,450 crore.
Equinox Busme Parks is one of the low-density business parks in and around the BKC business district. Its four towers spread acres. are over 10 acers.
The mortgage agreement between raised at 8.6% Equinox Business Interest rate Parks and PNB against the property, including all four commercial towers in the complex, was created on September 8.
ET’s email query to PNB remai- ned unanswered till as of press time. Brookfield declined to comment.
Brookfield Properties has leased more than 351,000 sq ft office space in Equinox Business Park so far this year to new tenants, including the NSE.
Source-The Economic Times
