Embassy Reit raises $ 500 million in QIP to fund the acquisition of Embassy Tech Village

Bengaluru: Embassy Reit, India’s first publicly traded real estate investment trust, plans to raise $ 500 million through a Qualified Institutional Placement (QIP) to fund the acquisition of the commercial property Embassy Tech Village (ETV) in Bengaluru, said a person familiar with the development.

In a filing for approval on Tuesday, the company announced that the board of directors of Embassy Office Parks Management Services, manager of Embassy REIT, has approved the opening of the QIP for receiving offers.

The board also approved and passed the preliminary placement document and minimum price of £348.38 per unit.

Embassy REIT has not disclosed the size of the QIP.

Last month, the company announced it would purchase ETV assets from affiliates of sponsors Embassy Group and Blackstone Group Lp, as well as other shareholders, for approximately $ 1.3 billion.

The ETV buyout includes 6.1 million square feet of completed office space, 3.1 million square feet of under construction, and two proposed Hilton hotels with 518 keys on campus. Around 36% of the space under construction is pre-let to JP Morgan.

Last week, shareholders approved plans to increase £8,000 crore through the sale of units to institutional investors. They approved the ETV acquisition for an enterprise value of £9,782.4 crore and also granted authority to borrow up to 35% of the Embassy REIT’s gross asset value.

Upon acquiring ETV, Embassy Reit CEO Mike Holland stated that it would deepen Reit’s presence in Bengaluru, still India’s strongest office market, and significantly improve our size and ability to achieve embedded growth.

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