News
Embassy REIT Announces the Completion of Embassy Splendid TechZone, Chennai Asset Acquisition
Bengaluru, June 3, 2024: Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’), India’s first listed REIT, announced on Monday that it has completed the acquisition of Embassy Splendid TechZone (‘ESTZ’), a Grade-A business park in Chennai. The ₹1,185 crores acquisition was funded primarily through a debt raise of ~₹1,200 crores and internal accruals. This acquisition increases Embassy REIT’s total portfolio to 50.5 msf, positions it as one of the largest office REITs globally, and marks its entry into the new growth market of Chennai.
Aravind Maiya, Chief Executive Officer of Embassy REIT, said, “We are pleased to announce the completion of this accretive acquisition that facilitates the REIT’s entry into Chennai, one of India’s leading office markets. With this acquisition, we’re delighted to add another premium business park that perfectly complements and strengthens our high-quality office portfolio. While we evaluated funding this acquisition by issuing equity, we decided to finance it through debt and internal accruals, in the best interest of all our stakeholders. Given our diverse unitholder base and 92% public float, we will consider raising equity for defined purposes, when the markets are more conducive for us to do so.”
Transaction Highlights
- ₹1,185 crores Enterprise Value is at a 9.2% discount to the average of two independent valuation reports
- Accretive by 2.0% and 0.2% to FY2025 mid-point NOI and DPU guidance, respectively, and accretive to Mar’24 NAV by 0.2%, on a proforma basis*
- Transaction financed primarily through debt at 8.05% and internal accruals
- Stable cash flows from 95% occupancy on 1.4 msf completed buildings; leased to marquee multinational occupiers such as Wells Fargo and BNY Mellon, among others
- Embedded growth from 1.6 msf of on-campus development and 2.0 msf future development potential
- Enhances Embassy REIT’s commercial portfolio by 11% to 50.5 msf, positioning the REIT as one of the largest office REITs worldwide
-
News3 weeks ago
GRAP 4 curbs in Delhi-NCR: Real Estate Sector Reacts to Construction Ban
-
News2 weeks ago
Mahindra Lifespaces announces continuing partnership with Sumitomo Corporation for its Industrial Clusters business
-
News3 weeks ago
Supreme Court Intervenes in NCR Housing Project Delays, Seeks Details
-
News3 weeks ago
Noida, Greater Noida Residential Market Soars; Sales Up 34%, Transaction Volume Up 6% in July-September 2024: Square Yards Report
-
News3 weeks ago
Suraj Estate Developers’ PAT Surges by 88% in Q2 FY25 & 97% in H1FY25
-
News1 week ago
Faridabad Real Estate Market On the Upswing
-
News3 weeks ago
Sushma Group Partners with Bayside Corporations (BCS) to Boost Sales of Premium Kasauli Projects
-
News1 week ago
From Affordable to Premium: Shift in India’s Residential Real Estate Market