InvestorQ : What is the big deal between Embassy Real Estate and Indiabulls?
vaishnavi mhatre made post

What is the big deal between Embassy Real Estate and Indiabulls?

Answer
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vidhya Laxmi answered.
2 months ago


Embassy Group of Mumbai and Indiabulls Real Estate are expected to finalize their merger deal shortly to combine their realty franchise under the Embassy group. While the intent has been expressed and work has commenced, valuation and swap ratio are yet to be final.

As part of the merger deal, the Embassy group will merge all its realty assets spread across 62 million SFT across India with Indiabulls Real Estate. After the process of amalgamation is completed, Indiabulls will entirely exit the real estate business.

Embassy has a special synergy in this deal. For example, Embassy will convert the merged entity into the execution arm of the Embassy group. But more importantly, it also becomes the company that will seed assets for the Embassy Blackstone REIT.

The Embassy REIT has come out with its IPO in mid-2019 and the REIT has performed well in the market post the listing. After the amalgamation, the share of Sameer Gahlaut will reduce to less than 10%. Sameer was one of the founders of Indiabulls group.