Embassy REIT, India’s first publicly listed REIT, has agreed to purchase Embassy TechVillage assets in Bengaluru from affiliates of Embassy Sponsor, Blackstone Sponsor and other selling shareholders for $1.3 billion(₹97,824 million).
The acquisition comprises c.6.1 million square feet (msf) of completed area, c.3.1 msf of underconstruction area, of which 36% is pre-leased to JP Morgan, and two proposed 518-keys Hilton hotels within the overall Embassy TechVillage campus.
“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, including JP Morgan, Cisco, Sony and Flipkart. The acquisition further deepens our presence in Bengaluru, which remains India’s strongest office market, and significantly enhances our scale and ability to deliver embedded growth. We are delighted to purchase an asset of the quality and scale of ETV at a 4.6% discount to the average of the two independent valuations.This acquisition aligns perfectly with our overall strategy to maximize total returns for our Unitholders,” said Mike Holland, Chief Executive Officer of Embassy REIT.
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. Over the past six years, Embassy Group has developed ETV to be one of the finest office assets in the country, and we are pleased to offer this asset to the REIT for consideration and approval by the Independent Directors of the REIT Manager and the Unitholders. Embassy Group will continue to develop top quality office assets across the country, thereby providing the REIT with a potential pipeline of assets that will help it grow inorganically over the coming years.”