Canada’s Brookfield Asset Management Inc. is set to invest Rs450 crore in Mumbai-based Peninsula Land Ltd’s premium project in Byculla in a structured debt transaction, three people familiar with the deal said. The Peninsula deal marks Brookfield’s first investment in a residential project in India from its new $9 billion global real estate fund.
The money will be used partly to refinance Kotak Mahindra Bank’s loan to Peninsula Land, which would give the bank an exit, and partly for general corporate purposes. Peninsula Land, an Ashok Piramal Group firm, and Brookfield also have a Rs1,200-crore debt fund called the Peninsula Brookfield India Real Estate Fund. “Brookfield is looking to do more sizeable transactions in the residential sector where it will invest directly from its global corpus,” said one of the three people mentioned above, who did not wish to be named. Dev Santani, senior vice-president, investments at Brookfield, and Peninsula Land executives declined to comment on the transaction.