| Brookfield India Real Estate Trust | ||||||||
| Ratings reaffirmed at 'Crisil AAA / Stable / Crisil A1+ ' | ||||||||
| Rating Action | ||||||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||||
| 1 crore = 10 million | ||||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil AAA/Stable/Crisil A1+’ ratings on the non-convertible debentures (NCDs), corporate credit rating and commercial paper programme of Brookfield India Real Estate Trust (BIRET).
BIRET is sponsored by BSREP India Office Holdings V Pte. Ltd. (part of the Brookfield group; ‘Crisil AA/Stable’). The real estate investment trust (REIT) operates an area of 324 lakh square feet (sq ft) as of December 2025 (including the Rostrum Realty Pvt Ltd [RRPL] assets).
In the first nine months of fiscal 2026, BIRET’s revenue jumped 12% on-year, reaching Rs 2,283 crore (including 50% contribution of RRPL* assets amounting to Rs 281 crore) driven by asset acquisitions, increase in occupancy and contractual rental escalations. Net operating income (NOI) also rose 5% (including RRPL assets amounting to Rs 205 crore), reaching Rs 1,753 crore with NOI margin of approximately 77% (including RRPL assets). As on December 31, 2025, committed occupancy was 92% (up from 87% a year earlier), primarily driven by higher occupancy in the erstwhile special economic zone (SEZ) with the trust successfully getting ~31 lakh sq ft denotified/applied for denotification after amendments to the SEZ Act. Of its total operating area, 198 lakh sq ft is under the SEZ, wherein committed occupancy was 90%, up from 83% as on December 31, 2024. The occupancy is expected to be 90-95% by the end of fiscal 2027 and improve gradually, supported by strong leasing pipeline and limited lease expiries of around 10% of the leased area by fiscal 2027. BIRET has also applied for denotification of the area, which should further support improvement in overall occupancy.
BIRET’s consolidated gross debt was Rs 17,365 crore (considering 50% of debt in RRPL’s assets amounting to Rs 167.5 crore) as on December 31, 2025. The external net loan-to-value (LTV) ratio stood at 31.5% as on December 31, 2025 (factoring in 50% of debt and other assets of RRPL). Brookfield India REIT has completed the acquisition Arliga Ecoworld Business Parks Pvt Ltd on December 24, 2025. This is an operational asset with leasable area of 7.7 million sf (msf) operating at 94% occupancy (7.1 msf operational) in Bengaluru. Post acquisition, the overall operating area has increased ~31%, expanding the REIT’s footprint to seven cities. The net LTV post-acquisition was 31.5% as on December 31, 2025 (based on external valuation). Crisil Ratings-sensitised LTV remains below 40%. The management has indicated that external LTV is likely to be 33-35% over the medium term. Crisil Ratings-sensitised LTV increasing beyond the threshold of 40% will remain a key rating sensitivity factor.
Debt service coverage ratio (DSCR) is expected to be adequate throughout the tenure of debt, including additional financing for capital expenditure (capex) and asset upgrades. The debt is expected to be refinanced prior to chunky repayments due after fiscal 2027. Liquidity in the form of debt service reserve account (DSRA) of at least 1-3 months of peak debt obligation is to be maintained throughout the debt tenure. Cash and equivalent stood at Rs 1,647 crore (including 50% of RRPL assets and excluding DSRA) as on September 30, 2025. Any significant increase in debt without commensurate improvement in income or cash flow can impact the profile and will be a key rating sensitivity factor.
The ratings continue to reflect the trust’s stable revenue profile, benefits from geographical diversification and moderate LTV ratio and adequate debt protection metrics. These strengths are partially offset by susceptibility to volatility in the real estate sector, resulting in fluctuation in rental rates and occupancy and exposure to refinancing risk.
*RRPL assets (North Commercial Portfolio) are accounted using equity method by BIRET |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of BIRET and its underlying special-purpose vehicles (SPVs) in line with its criteria for rating entities in homogeneous groups. This is because BIRET will have direct control over its SPVs and will support them during any exigency. After debt servicing in an SPV, excess cash flow may be made available for debt servicing of other SPVs, which may require support. The SPVs must mandatorily distribute 90% of their net distributable cash flow (after servicing debt) to BIRET in proportion to the shareholding of BIRET. Also, as per the Securities and Exchange Board of India (SEBI) REIT Regulations, 2014, the cap on borrowing of BIRET has been defined at a consolidated level (equivalent to 49% of the value of the trust’s assets).
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Moderate LTV ratio and adequate debt protection metrics BIRET’s consolidated gross debt stood at Rs 17,365 crore (considering 50% of debt in RRPL assets amounting Rs 167.5 crore) as on December 31, 2025. The external net LTV ratio stood at 31.5% as of December 2025 (factoring in 50% of debt and other assets of RRPL). However, the management has also indicated that the external net LTV is expected at 33-35% over the medium term. Low LTV ratio protects investors from the risk of decline in property prices or operating underperformance and its impact on refinancing. LTV increasing beyond the Crisil Ratings-sensitised threshold ratio of 40% will remain a key rating sensitivity factor.
The DSCR is expected to remain adequate throughout the tenure of the debt, including additional financing for capex and asset upgrades. The debt is expected to be refinanced sufficiently prior to chunky repayments beyond fiscal 2027. Liquidity in the form of DSRA of at least 1-3 months of peak debt obligation is to be maintained throughout the debt tenure.
Stable revenue profile of the asset SPVs REIT operates an area of 324 lakh sq ft as of December 2025 (including the Bharti group assets). Committed occupancy was 92% (up from 87% a year earlier on same-store basis). This is primarily driven by increase in occupancy in the erstwhile SEZ with the trust successfully getting ~18 lakh sq ft denotified after amendments to the SEZ Act. Of its total operating area, 198 lakh sq ft is under the SEZ, wherein occupancy was 90% as of December 2025, up from 83% a year earlier. The occupancy is expected to be 90-95% by the end of fiscal 2027 and improve gradually, supported by strong leasing pipeline of around 37 lakh sq ft for SEZ properties and limited expiries of around 10% of the leased area by fiscal 2027. Moreover, BIRET has applied for denotification of area. In the first nine months of fiscal 2026, BIRET’s revenue grew 12% on-year, reaching Rs 2,283 crore (including 50% contribution of RRPL assets amounting to Rs 281 crore) driven by asset acquisitions, increase in occupancy and contractual rental escalations. NOI also rose by 5% (including 50% of RRPL assets amounting to Rs 205 crore), reaching Rs 1,753 crore with NOI margin of approximately 77% (including 50% of RRPL assets).
While average rentals remained at Rs 101 per sq ft for the portfolio on account of the impact of some expiries, rental escalations are happening as per contracts and BIRET has entered new agreements at high rentals and has renewed some area at 15-20% higher rentals during the last quarter. Impact of this will be visible in average rentals from the next quarter. The portfolio has mark-to-market upside given superior asset and service quality, favourable location in prime areas of Mumbai, National Capital Region (NCR), Kolkata and Bengaluru with good demand and competitive rental rates.
Strong tenant profile with a well-diversified portfolio: Brookfield REIT owns and operates office space across prime areas of Bengaluru, Kolkata, Mumbai and NCR. The group has 324 lakh sq ft of available operational office area. Its commercial assets have robust occupancy, averaging 92% as on December 31, 2025, with share of global capability centres at around 45% (based on gross contracted rentals) across industries, including fortune 500 companies. The portfolio is well diversified in Mumbai, NCR, Kolkata and Bengaluru. |
Key Rating Drivers - Weaknesses Susceptibility to cyclicality in the real estate sector Rental collection remains susceptible to economic downturns, which may constrain the tenant’s business risk profile and, therefore, limit occupancy and rental rates. With the top 10 tenants and sectoral (Technology) concentration of rentals at 30% and 29%, respectively, as on December 31, 2025, revenue concentration risk persists. Moreover, leases accounting for ~31% of rental revenue will be due for renewal over the next three fiscals. While majority of the tenants are established corporates and may continue to occupy the property, any industry shock leading to vacancies may make it difficult to find alternate lessees within the stipulated time, as witnessed over the past few quarters. This could adversely impact cash flow and will be a key rating sensitivity factor.
Exposure to refinancing risk: NCDs issued by the trust have bullet payments at the time of redemption, exposing the REIT to the risk of refinancing. While the REIT will have staggered bullet repayment timelines, active and timely treasury management and comfortable LTV level will remain essential for refinancing. The SPVs of the trust have the flexibility to raise lease discounting loans from banks for refinancing the NCDs, thereby giving access to a large pool of capital from financial institutions. New avenues of capital are also available in the form of investments from pension funds, insurance companies and foreign portfolio investors, which mitigates refinancing risk. |
Liquidity Superior Liquidity will remain strong over the medium term as the trust has low principal repayments in the next two fiscals and cash flow will be sufficient to meet debt obligation. Liquidity is supported by DSRA (1-3 months of peak debt obligation in SPV loans) and cash and bank balance (excluding DSRA) of Rs 1,647 crore as on September 30, 2025 (including 50% of RRPL). Moderate LTV ratio enhances financial flexibility. |
Outlook Stable BIRET will continue to benefit from the quality of its assets over the medium term. |
Rating sensitivity factors Downward factors
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About the trust BIRET is registered as an irrevocable trust under the Indian Trusts Act, 1882, and as a REIT with SEBI’s REIT Regulations, 2014, as amended. BIRET is managed by Brookprop Management Services Pvt Ltd. As on December 31, 2025, the sponsor and its group hold 21.45% of the unitholding in BIRET and the remaining is held by mutual funds, foreign portfolio investors and other public.
Shantiniketan Properties Pvt Ltd (N1) owns and operates a commercial office park, Candor Techspace N1, in Noida. The property has been operational since January 2011 and has completed area of 20.2 lakh sq ft, of which 98% was occupied as on September 30, 2025, while additional area of 9.0 lakh sq ft is expected to be developed in the long term.
Candor Kolkata One Hi-Tech Structures Pvt Ltd (K1) owns and operates a SEZ park, Candor Techspace G2, in Gurugram, Haryana. The property has been operational since 2011 and has completed area of 40.14 lakh sq ft, of which 78% was occupied as on September 30, 2025, while an additional 1.0 lakh sq ft is expected to be completed over the medium-to-long term.
Candor Techspace K1 in Kolkata, which is part SEZ and part commercial office park. The property has been operational since 2008 and has completed area of 31.7 lakh sq ft, of which 99% was occupied as on September 30, 2025. An IT park and mixed use-led development worth additional area of 5.8 lakh sq ft is under construction, while 27.0 lakh sq ft is expected to be developed over the medium-to-long term.
Festus Properties Pvt Ltd (Kensington) owns and operates an SEZ park, Kensington, in Mumbai. The property has been operational since 2009 and has completed area of 16.0 lakh sq ft, of which 96% was occupied as on September 30, 2025.
Seaview Developers Pvt Ltd (SDPL) owns and operates N2 in Noida. The property has been operational since 2011 and has completed area of 38.8 lakh sq ft, of which around 88% was occupied as on September 30, 2025, while an additional 8.0 lakh sq ft is expected to be completed over the medium-to-long term. BIRET acquired the asset on January 24, 2022.
Kairos Properties Pvt Ltd (Kairos; erstwhile Kairos Property Managers Pvt Ltd) owns and operates a portfolio of nine commercial properties in Mumbai spread across three clusters totalling 28.5 lakh sq ft, of which around 95% was occupied as on September 30, 2025.
G1 owns and operates a commercial office park, Candor Techspace G1, in Gurugram. The property has been operational since 2012 and has completed area of 37.7 lakh sq ft, of which around 84% was occupied as on September 30, 2025, while an additional area of 1.0 lakh sq ft is expected to be completed over the medium term.
RRPL and its subsidiaries, Arnon Builders & Developers Pvt Ltd, Aspen Buildtech Pvt Ltd and Oak Infrastructure Developers Pvt Ltd own and operate a 32.9 lakh sq ft commercial portfolio located in Delhi-NCR with occupancy of 94% as on September 30, 2025. Its assets include:
Candor India Office Park Pvt Ltd is engaged in property management, facility management and support services for assets owned by N1, SDPL, K1, Kensington and Kairos. This entails services such as accounting, procurement of materials and services, supervision of annual maintenance contracts and insurance, transition, operations, supervision of repairs and maintenance, and legal, secretarial and compliance services.
Arliga Ecoworld Business Parks Pvt Ltd (AEBPPL) is a wholly owned subsidiary of Brookfield India Real Estate Trust (BIRET), specializing in operating the 48-acre Ecoworld Business Park on Outer Ring Road, Bengaluru. Acquired in December 2025, it holds 7.7 msf leasable area, representing a major commercial real estate asset portfolio for Brookfield. Ecoworld is an operational office development and comprises 15 completed buildings (with OC received). |
Key Financial Indicators (consolidated)*
*Crisil Ratings-adjusted numbers Consolidated Numbers |
List of covenants Key covenants of existing debt
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
# Yet to be issued |
Annexure – List of entities consolidated
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Criteria Details
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