Embassy Office REIT raises ₹1,743 cr from anchor investors

Our Bureau Chennai | Updated on March 15, 2019 Published on March 15, 2019

Ahead of the IPO, Embassy Office Parks REIT has raised ₹1,743 crore by allotting 5.81 crore units to 59 anchor investors at ₹300 a unit. Embassy REIT plans to raise ₹4,750 crore through the issue. The issue is the first ever by a real estate investment trust in India.

The allottees include Fidelity Funds, SmallCap World Fund, Signature High Income, Prusik Umbrella UCITS Fund, American Funds Insurance, Jupiter Asian Income, TT Emerging Markets Equity, Aviva Investors, DB International (Asia), Bottle Palm Private Beneficiary Trust, Mine Superannuation, Japan Trustee Services Bank, Wells Fargo, Morgan Stanley, Kotak Mahindra Life and National Westminster for their various schemes.

The issue opens for subscription on March 18 at a price band of ₹299-300/unit. The issue will close on March 20. The net proceeds from the issue will be used for partial or full repayment or pre-payment of bank/ financial institution debt of certain SPVs, payment of consideration for acquisition of Embassy One’s assets currently held by Embassy One Developers and for general purposes. Bids can be made for a minimum lot of 800 units and in multiples of 400 thereafter.

A lot depends on the yields that the REITs will deliver. According to Arvind Nandan, Executive Director — Research, Knight Frank India, “The upcoming IPO (Embassy Office Parks) would be one of the largest in the region, which makes it one of the most closely watched IPOs.” A good IPO would open the doors for several more REITs in the near future, he said and added Indian commercial real estate is populated with several such high-quality assets, which can be rolled into REITs very soon.

Published on March 15, 2019
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