Embassy Reit buys Bengaluru business park

Embassy Reit’s sponsors include Embassy Group, Blackstone Group Lp and other shareholders.

Embassy Office Parks, India’s first listed real estate investment trust (Reit), on Tuesday said it has agreed to buy Bengaluru’s Embassy Tech Village (ETV) business park from the trust’s sponsors for around $1.3 billion (around ₹9,782 crore).

Embassy Tech Village comprises 6.1 million sq. ft of completed office space, 3.1 million sq. ft of under-construction area and two proposed 518-keys Hilton hotels. (Mint | Ramegowda Bopaiah)

Embassy Reit’s sponsors include Embassy Group, Blackstone Group Lp and other shareholders.

Embassy Tech Village comprises 6.1 million sq. ft of completed office space, 3.1 million sq. ft of under-construction area and two proposed 518-keys Hilton hotels. Around 36% of the under-construction space is pre-leased to JP Morgan. The deal, once closed, will increase Embassy Reit’s 33.3 million sq. ft portfolio by 28% to 42.4 million sq.ft.

The transaction is subject to approvals from unit-holders and regulators.

This would be the first acquisition of an asset by a real estate investment trust in India by the exercise of the right of first refusal agreement, consultants said.