New Delhi, Embassy Office Parks REIT on Saturday announced the acquisition of a business park for Rs 1,269 crore and plans to raise Rs 2,500 crore mainly by selling units to investors to finance the acquisition.
In a regulatory filing, Embassy REIT said it has agreed to buy Embassy Splendid TechZone (ESTZ), a grade-A business park, from sponsor Embassy Group at an enterprise value of Rs 1,269 crore.
The proposed acquisition marks Embassy REIT's entry into Chennai. Embassy REIT intends to raise unit capital of Rs 2,500 crore, primarily to finance acquisitions and reduce the existing 30 per cent leverage of the portfolio, providing flexibility for future growth.
Business Park ESTZ has a total area of 1.4 million square feet, 95 percent of which is leased to large global companies such as Wells Fargo and BNY Mellon.
It also includes 1.6 million square feet of under-construction area and million square feet of future development potential.The board of managers of Embassy REIT has approved the acquisition of the business park through an enabling offer of up to Rs 3,000 crore and an institutional placement. , subject to unitholder approval.
CEO of Embassy Group said, “At Embassy Group, our priority is to develop world-class office assets and support the expansion of the REIT's portfolio through a pipeline of opportunities that will help it grow organically in the coming years " Chairman and Managing Director Jitendra Virwani said. , Said.
Following the successful acquisition of Embassy TechVillage and Embassy Business Hu in Bengaluru by Embassy REIT, he said it has provided the group with another prime office park in a key market like Chennai.Arvind Maiya, Chief Executive Officer, Embassy REIT, said, “The proposed acquisition of Embassy Splendid Techzone will add another quality asset to our existing office portfolio, which will significantly benefit from the demand from Global Capability Centers (GCCs) for Indian office space. “This is what we are protesting about.”
He said the acquisition will bring Embassy REIT's portfolio to more than 50 million square feet.
“This acquisition further diversifies our presence in India, enhancing our scale and ability to deliver embedded growth to all our stakeholders,” Maiya said. Embassy REIT is India's first publicly listed real estate investment trust (REIT).
Listed in April 2019, Embassy REIT owns and operates a 45.4 million sq ft fee portfolio of nine infrastructure projects such as office parks and four city center office buildings in Bengaluru, Mumbai, Pune and the National Capital Region (NCR).PT MJH SHW
In a regulatory filing, Embassy REIT said it has agreed to buy Embassy Splendid TechZone (ESTZ), a grade-A business park, from sponsor Embassy Group at an enterprise value of Rs 1,269 crore.
The proposed acquisition marks Embassy REIT's entry into Chennai. Embassy REIT intends to raise unit capital of Rs 2,500 crore, primarily to finance acquisitions and reduce the existing 30 per cent leverage of the portfolio, providing flexibility for future growth.
Business Park ESTZ has a total area of 1.4 million square feet, 95 percent of which is leased to large global companies such as Wells Fargo and BNY Mellon.
It also includes 1.6 million square feet of under-construction area and million square feet of future development potential.The board of managers of Embassy REIT has approved the acquisition of the business park through an enabling offer of up to Rs 3,000 crore and an institutional placement. , subject to unitholder approval.
CEO of Embassy Group said, “At Embassy Group, our priority is to develop world-class office assets and support the expansion of the REIT's portfolio through a pipeline of opportunities that will help it grow organically in the coming years " Chairman and Managing Director Jitendra Virwani said. , Said.
Following the successful acquisition of Embassy TechVillage and Embassy Business Hu in Bengaluru by Embassy REIT, he said it has provided the group with another prime office park in a key market like Chennai.Arvind Maiya, Chief Executive Officer, Embassy REIT, said, “The proposed acquisition of Embassy Splendid Techzone will add another quality asset to our existing office portfolio, which will significantly benefit from the demand from Global Capability Centers (GCCs) for Indian office space. “This is what we are protesting about.”
He said the acquisition will bring Embassy REIT's portfolio to more than 50 million square feet.
“This acquisition further diversifies our presence in India, enhancing our scale and ability to deliver embedded growth to all our stakeholders,” Maiya said. Embassy REIT is India's first publicly listed real estate investment trust (REIT).
Listed in April 2019, Embassy REIT owns and operates a 45.4 million sq ft fee portfolio of nine infrastructure projects such as office parks and four city center office buildings in Bengaluru, Mumbai, Pune and the National Capital Region (NCR).PT MJH SHW
