In a major development, Embassy Office Parks REIT has agreed to acquire a large business park ”Embassy TechVillage” in Bengaluru from realty firm Embassy group, Blackstone. The deal has been finalized for Rs 9,782.4 crore.
Embassy REIT is India”s first publicly-listed REIT (Real Estate Investment Trust) sponsored by Blackstone and Embassy group.
Embassy REIT said it has agreed to purchase Embassy TechVillage assets from affiliates of Embassy Sponsor, Blackstone Sponsor and other selling shareholders for a total consideration of Rs 97,824 million.
The proposed deal is subject to unitholders’ and regulatory approvals. The acquisition comprises 6.1 million square feet (msf) of completed area, 3.1 msf of under-construction area, and two proposed 518-keys Hilton hotels.
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The acquisition will increase Embassy REIT”s commercial office portfolio by 28 per cent to 42.4 msf.
Mike Holland, Chief Executive Officer of Embassy REIT, said, “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”.
Embassy TechVillage is a large scale business park located in 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, he said.
“We are delighted to purchase an asset of the quality and scale of Embassy TechVillage at a 4.6 per cent discount to the average of the two independent valuations,” Holland said.