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Embassy Office Parks REIT (Embassy REIT), a publicly listed REIT company, has announced that it has received approval from the National Company Law Tribunal (NCLT) in relation to its composite scheme of arrangement among its entities that restructures and simplifies the ownership of key portfolio assets, including Embassy Manyata and Embassy TechZone.
Embassy REIT had initiated the scheme to simplify its holding structure by reducing the shareholding tiers and to create value for its unit holders.
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Michael Holland, CEO of Embassy REIT, said, “We are pleased to deliver on our commitment to complete this key restructuring exercise within the targeted time frame of March 2021. This milestone enables us to significantly increase the dividend component as a proportion of our overall quarterly distributions. Given REIT dividends are tax-free, this restructuring is expected to positively impact distributions to the benefit of our unit holders. We continue to focus on creating long-term value in order to maximize returns to our unit holders.”
Under the scheme, the Embassy TechZone asset in Pune shall be demerged from Embassy Office Parks Private Limited (EOPPL) into Embassy Pune TechZone Private Limited (EPTPL), which will be 100 per cent held by Embassy REIT.
EOPPL will be merged into Manyata Promoters Private Limited (MPPL) and consequently MPPL will be 100 per cent held directly by Embassy REIT, thus collapsing the two-tier shareholding structure for MPPL.
The scheme of arrangement shall become effective upon completion of requisite filings and approvals with the Registrar of Companies and Board of Approval for Special Economic Zones.
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