Embassy Property Developments Pvt Ltd has sold 4 percent of its stake in Embassy Office Parks REIT to Bain Capital, the developer said in a release on Friday.

Officials said that Embassy Property Developments, one of the sponsors to the REIT, has sold 4.2 crore shares, reducing its stake in the REIT to 8 percent . While the value of the deal was not officially disclosed sources indicated it to be in the region of Rs 1200 crore .

The strategic sale is a part of the company’s debt reduction strategy and strengthen its balance sheet. It aims to reduce its overall debt by around 30 percent before June 30.

“Over the next few months, Embassy Group will monetise certain other assets to additionally ease debt levels and strengthen its balance sheet,” it added. 

The company said that it had no future plans to sell further ownership in Embassy REIT, and was committed to its growth and development.

Last month, sources told businessline that private equity firm Blackstone, the other sponsor of Embassy REIT, is in talks to sell some of its stake as part of its exit strategy from profitable investments in India. Officials in the PE firm had indicated the possible stake sale in the REIT, but at an attractive valuation.

Besides Blackstone, Embassy REIT continues to have multiple marquee institutional investors, including the Abu Dhabi Investment Authority (ADIA), and the Capital Group.