Private equity player Blackstone is looking to sell its entire 23.5 per cent stake in the Embassy REIT via a block deal. The floor price of the block deal is set at Rs 310 and the size of the transaction is estimated at $833 million.
Embassy REIT, owns and operates a 45.3 million square feet portfolio of nine infrastructure-like office parks and four city?centre office buildings in Bengaluru, Mumbai, Pune, and the National Capital Region.
Embassy REIT’s portfolio comprises 35.3 msf of completed operating area and is home to 240 companies. The portfolio comprises of strategic amenities, including four operational business hotels, two under?construction hotels, and a 100 MW solar park supplying renewable energy to tenants.
For the first half of FY24, Embassy Office Parks REIT leased 3.1 msf, and the outlook for the full year looks promising, bolstered by a record leasing pipeline of 2.5 msf, the company said in October. Embassy Office Parks REIT signed seven new deals over 1,00,000 sf.
In its Q2 earnings release, the REIT said it was a significant demand from Global Captive Centres (GCCs), which accounted for 70 per cent of total leasing activity. Bangalore and Mumbai led the demand, contributing 90 per cent of the total leasing for the September quarter.
For the quarter, the REIT reported revenue from Operations of Rs 889 crore, up 4 per cent. The REIT delivered distributions of Rs 524 crore or Rs 5.53 per unit, marking the 18th consecutive quarter of 100 per cent payout.
