Wall St bets on climate-proof realty
Every year, Mumbai's Mithi River swells during the monsoon season, turning into a powerful force that inundates the city's financial capital. This disaster damages buildings and disrupts daily life. Equinox Business Park, a sprawling campus, suffered from repeated flooding, which deterred tenants and reduced occupancy to just 16%.
In 2018, Brookfield Asset Management purchased the property for $26 million, investing heavily in flood defenses, drainage improvements, and raising the low-lying sections. As a result, the corporate headquarters of Leela Palaces Hotels & Resorts Ltd., State Street Corp., and other tenants now occupy over 99% of the office park.
This year, Brookfield sold a 97% stake to Singapore's sovereign wealth fund, GIC Pte., valuing the property at nearly $420 million. The flood-protection measures allowed the investors to triple their equity value, signaling a broader trend in India's $300 billion real estate market. As extreme weather events become more frequent, climate resilience is emerging as a critical factor in property valuation.
Investors are now allocating funds for drainage systems, flood barriers, and surrounding infrastructure, leading to a reevaluation of urban real estate investments.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
