InvestorQ : Is Embassy Office Parks REIT IPO worth investing?
manisha Kolvenkar made post

Is Embassy Office Parks REIT IPO worth investing?

Answer
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Dilmini Mercia answered.
1 year ago


Embassy Office Parks is India’s first Real Estate Investment Trust (REIT) IPO. The issue opens on 18th March 2019 and closes on 20th March 2019 with a price band of Rs.299-300. The minimum bid size is 800 units and in multiples of 400 units thereafter.
Now coming to evaluate the worthiness of IPO subscription. Let us first look at the offer and other details of the Embassy Office Parks IPO. The Portfolio comprises of seven best-in-class office parks and four prime city-center office buildings. This also includes strategic amenities, including two completed and two under-construction hotels. Located in India, the growing opportunity is wide as India has been a corporate hub over the last 20 years. With best-in-class amenities and high-quality infrastructure capital value.
The risk which I find is that the tenant is majorly from the technology industry and renewal of leases might be an issue. This might lead to impact the business as finding a new tenant will be a big task. Foreign institutional investors (FIIs) and domestic Financial Institutions (FIs) have shown interest towards Is Embassy Office Parks REIT IPO. According to my view, one can have easy exposure to real estate by subscribing the IPO and so it is worth investing. This is just my view on the IPO and not advice.
Happy investing