Rationale

 Rostrum Realty Private Limited (RRPL) is a special purpose vehicle (SPV), which has three wholly-owned subsidiaries namely Aspen Buildtech Limited (ABL), Arnon Builders and Developers Limited (ABDL) and Oak Infrastructure Developers Limited (OIDL), together referred as pooled assets. The debt for the pooled assets has cross collateralisation and cross-default clauses. Further, as a part of the debt structure, the surplus at each SPV will be utilised for debt servicing of the other SPVs, should a need arise. The rating of ABDL factors in an increase in occupancy of the pooled assets and consequent improvement in debt protection metrics, along with the favourable change in shareholding. In June 2024, Brookfield India Real Estate Trust (BIRET, rated [ICRA]AAA (Stable)) acquired a 50% stake in RRPL from the Bharti Group, while the remaining 50% continues to be held by the Brookfield Group1 . The company derives strong financial flexibility being part of Brookfield REIT. The rating factors in the improvement in occupancy levels of the pooled assets to 96% in December 2024 from ~88% in September 2023 This, along with successful refinancing of the loan in September 2024 with an elongated tenure, ballooning repayment structure and lower interest rates, are expected to improve the debt protection metrics of the pooled assets with estimated total debt/net operating income (NOI) of 6.5 times as of March 2025 and around 6.0 times as of March 2026 and five-year average DSCR of 1.58-1.60 times (FY2025-FY2029). The rating continues to factor in the healthy business risk profile of the pooled assets, which consist of 24.7 lakh square feet (lakh sft) of commercial office leasable space and 8.1 lakh sft of retail space, spread across New Delhi, Gurugram and Ludhiana. The pooled assets have a reputed tenant mix and are in favourable locations with good connectivity enhancing their marketability. ABDL owns and operates a mixed-use real estate asset, Worldmark 65 (WM65) in Gurugram, with office and retail leasable area of 4.8 lakh sft and 2.7 lakh sft, respectively. The occupancy of WM65 improved to 97% in December 2024 (September 2023: 79%), driven by ramp-up in occupancy of office space.