InvestorQ : Is it true that the Embassy Parks REIT is planning to develop around 60lakh SFT of office space in the coming few years and what could be the implications?
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Is it true that the Embassy Parks REIT is planning to develop around 60lakh SFT of office space in the coming few years and what could be the implications?

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6 months ago
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Embassy Parks REIT, the first REIT to be listed in the Indian markets, has laid out plans to kick-start the next phase of growth in India and it is betting heavily on the office space segment. Embassy, which is backed by Blackstone, announced grand plans to invest Rs.2,300 crore for development of 57-60 lakh SFT of office space over the next three years. One of the big markets where Embassy will expand its footprint will include Bengaluru.

For the December quarter, the Embassy REIT had shown 15% fall in net profit at Rs.215 crore. This was on a much higher total income base of Rs.596 crore. During the Dec-20 quarter, Embassy REITs signed lease deals worth 311,000 SFT, with 1 million sq ft lease deals signed YTD. Embassy remains confident on the office space and sees much sharper growth in the coming months.

During the Dec-20 quarter, Embassy achieved hike in rentals of up to 15% on 1.50 million SFT even as rent collections remained extremely robust at 99.5%. During the quarter, the Embassy REIT also completed the acquisition of the Rs.9,780 crore Embassy Tech Village and also raised Rs.3,680 crore via Institutional Placement to fund the acquisition. Embassy is looking to expand its footprint in Bengaluru, Pune and Chennai.

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