Embassy Office Parks REIT launches QIP issue

Embassy Office Parks REIT launched a qualified institutional payment (QIP) issue on Tuesday in order to raise funds.
A floor price of Rs 348.38 per unit has been approved by the Board of Directors of the real estate company for the institutional placement.
The REIT could raise anywhere between $500 million and $600 million. It will be first such QIP by a real estate investment trust in the country.

REIT was listed last year and is promoted by US-based fund manager Blackstone and Bengaluru-based Embassy group.
Last month, Embassy Office Parks REIT had announced that it has agreed to acquire a large business park “Embassy TechVillage” in Bengaluru from realty firm Embassy group, Blackstone and some other investors for Rs 9,782.4 crore.
The acquisition of Embassy TechVillage comprises of 6.1 million square feet (msf) of completed area, 3.1 msf of under-construction area, and two proposed 518-keys Hilton hotels.

The acquisition will increase Embassy REIT’s commercial office portfolio by 28 per cent to 42.4 msf.
Embassy TechVillage is a large scale business park located on the leading outer ring road sub-market of Bengaluru, with a diversified blue-chip and predominantly multinational-occupier base, including JP Morgan, Cisco, Sony and Flipkart.
Last week, unitholders had approved plans to raise up to Rs 8,000 crore through sale of units to institutional investors.

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