Embassy REIT, India’s first publicly-listed REIT, announced on November 17 that it has agreed to purchase Embassy TechVillage assets (ETV) from affiliates of Embassy Sponsor, Blackstone Sponsor and other selling shareholders for a total consideration of Rs 97,824 million ($1.3 billion), subject to unit-holder and regulatory approvals.
The acquisition comprises c.6.1 million square feet (msf) of completed area, c.3.1 msf of under-construction area, of which 36 pc is pre-leased to JP Morgan, and two proposed 518-keys Hilton hotels within the overall ETV campus.
Embassy REIT is exercising its right under the ROFO agreement to acquire the asset.
Mike Holland, Bengaluru, “The proposed accretive acquisition of Embassy TechVillage will mark the addition of another trophy asset to our existing office portfolio, while reinforcing our stable cash flows. ETV is a unique large scale business park, in the leading Outer Ring Road sub-market of Bengaluru, with a diversified blue-chip and predominantly multinational occupier base.”
Jitendra Virwani, Chairman & Founder of the Embassy Group, said, “We are pleased to deliver on our commitment to support the growth of the REIT platform through the ROFO pipeline. The Embassy TechVillage ROFO reaffirms the commitment we made at the time of the REIT’s listing to provide Embassy REIT with a pipeline of opportunities for completed and rent-yielding assets.”