MUMBAI | BENGALURU: Embassy Office ParksREIThas completed the acquisition ofEmbassy TechVillage(ETV) assets from theEmbassy Sponsor, members of the Blackstone group and other selling shareholders for an enterprise value of $1.3 billion.
India’s first listed Real Estate Investment Trust (REIT) and one of the largest comparable office REITs in Asia by area had announced this proposed acquisition of the integrated office park in Bengaluru on November 17.
The ETV acquisition comprises nearly 6.1 million sq ft completed area, 3.1 million sq ft under-construction area, of which 36% is pre-leased to JP Morgan, and two proposed 518-keys Hilton hotels within the overall campus.
“This acquisition is consistent with our growth strategy of driving incremental value to unitholders by integrating high-quality assets which are complementary to our existing portfolio. We expect to continue pursuing strategic and accretive growth opportunities in the market,” said Mike Holland, Chief Executive Officer of Embassy REIT.
This transaction marks the first large-scale acquisition by a REIT in India and with this acquisition, Embassy REIT’s leasable area grows 28% to 42.4 million sq ft.
Earlier this week, the Blackstone Group and Embassy Group-backed REIT had raised $501 million through a Qualified Institutional Placement of its units to support this acquisition.
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