InvestorQ : Can you tell me about the deal of Embassy REIT to buy the Tech Village?
Arusha Ray made post

Can you tell me about the deal of Embassy REIT to buy the Tech Village?

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1 week ago
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You may recollect that Embassy was the first REIT to be listed in India in the middle of 2019 and has been giving good returns since then. Embassy REIT has a portfolio of commercial properties largely based out of the IT capital of Bengaluru in Southern India.

Now the Embassy REIT has decided to purchase the assets of Embassy TechVillage from its existing shareholders, including Blackstone Group of the US, for a consideration of approximately Rs.9782 crore. The deal will be subject to regulatory approvals.

Since the property is part of the Embassy group, it decided to exercise its right of first offer or ROFO to acquire these assets. The total asset portfolio of TechVillage comprises 6.1 MSFT of completed area and 3.1 MSFT of under-construction area.

With substantial pre-leasing already booked, the Rs.9782 crore buyout will be funded by issuing equity of Rs.6,000 crore and the balance will be funded by debt. Despite WFH, most investors remain bullish on the commercial property REIT model.
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