BANGALORE: AIG Global Real Estate has agreed to sell its Indian asset-management business to Brookfield Asset Management as the New York-based privateequity fund of American International Group is closing its operations in the country, a person with direct knowledge of the deal said.
The assets that AIG Global Real Estate India Advisors manage in India will be transferred to Brookfield Asset Management, a Canada-based fund manager. Under the deal, Bamasish Paul, the India MD of AIG Global Real Estate, will join Brookfield Asset Management as a senior vice-president and will continue to manage the portfolio , the person said.
"AIG India fund is closing down completely as the fund has no short-to-medium-term plans for India," the person said. All four employees of the AIG fund in India will join Brookfield Asset Management, he added. He didn't provide any financial terms of the deal. Brookfield Asset Management and AIG Real Estates India Advisors didn't respond to emails from ET seeking comments.
Paul is likely to report to Anuj Ranjan , senior vice-president and country head at Brookfield Asset Management in India. Paul has 15 years of experience in private equity and real estate in the country.
The transaction will be completed by the end of this month, the person with knowledge of the matter said. Acquiring this business will help Brookfield Asset Management build its real-estate platform in India. "AIG's real estate platform is a stepping stone for Brookfield. Globally, Brookfield has a huge offshore fund and is looking to allocate money independently from it into Indian real estate," he said.
"The buyout is a good decision as it will help an established team like Brookfield leverage and help AIG exit some of its previous investment," said Sanjay Dutt, executive managing director for South Asia at Cushman & Wakefield.
Between 2007 and 2009, the AIG fund invested $200 million across five projects from its $300 million India fund. It has exited from three projects of RMZ till date —a mixed-use project in Bangalore and a commercial property in Kolkata as well as a 75-acre plot in Kochi.
The fund remains invested in Hyderabad and Chennai projects. Globally, the fund manages $13.6 billion of real estate for clients and AIG companies. Brookfield currently has floated a Rs 1,000-crore real-estate fund with Mumbai's Peninsula Land to invest in projects across top cities. It has a presence across construction, investment brokerage and global relocation services.
Globally, the alternative asset manager manages more than $175 billion in assets.