SINGAPORE: Mapletree Investments Pte is evaluating a plan to list part of its India office portfolio through a real estate investment trust (REIT) as it seeks to tap growing investor appetite for commercial properties, people familiar with the matter said.
The unit of Singapore state investor Temasek Holdings Pte has held talks with banks to put four of its office parks into a REIT, said the people, who asked not to be identified as the discussions are private.
Mapletree and Canadian pension fund Caisse de depot et placement du Quebec own 40% stakes in the buildings.
Temasek picked up a 20% stake last year in the properties across Mumbai, Chennai, Pune and Bengalaru.
The new trust could raise as much as S$600mil (US$469mil) by selling shares at a valuation of about S$2.5bil, the people said.
Discussions are preliminary and investors are still drawing up the exact deal contours, but are targeting a mid to late-2027 listing in Mumbai.
Demand for office space is surging across the country as global and local firms draw up expansion plans for their India strategy.
A September report from CBRE Group Inc said that the bulk of office tenants plan to expand their India footprint over the next two years. Despite concerns that artificial intelligence may reduce the need for office space, investor appetite for REITs has surged. — Bloomberg
