Embassy REIT leases 8 lakh square feet to Commonwealth Bank of Australia in Bengaluru
The agreement to lease includes an option to expand the leasable area by an additional 6 lakh square feet, Embassy REIT said
Embassy Office Parks REIT on August 21 announced that it has signed an agreement to lease 8 lakh square feet of office space in Bengaluru to global banking major Commonwealth Bank of Australia.
The said office space is being designed as a comprehensive built-to-suit solution in Embassy Manyata, located in North Bengaluru. The agreement to lease includes an option to expand the leasable area by an additional 6 lakh square feet, per the company statement.
Embassy REIT is the country’s first publicly listed Real Estate Investment Trust and owns and operates a 51 million square feet portfolio comprising 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai.
Also Read: Embassy REIT Q1 net operating income up 3%, touches ₹757.5 crore
"We are thrilled to announce this landmark lease deal with CBA, which marks our largest built-to-suit project to date,” said Aravind Maiya, Chief Executive Officer, Embassy REIT.
Strategically located in the prominent growth corridor of North Bengaluru and spanning over 120 acres, Embassy Manyata is a sought-after business hub amongst major multinationals.
“Embassy has been home to CBA for 4 years, and we’re delighted to extend our long-standing partnership with one of the world’s leading financial institutions,” said Jitu Virwani, Chairman and Managing Director of Embassy Group.
Also Read: Commercial real estate market has the potential to increase REIT market size over 6 times: ICRA
“India continues to be a prime destination that offers both exceptional talent and top-tier office spaces. We’re proud to host some of the world’s leading banks with a combined market capitalization of $1 trillion in our parks,” Virwani added.
Business performance in Q1 FY25
Embassy Office Parks REIT late last month reported a modest 3% increase in its net operating income that grew to ₹757.5 crore in the June 2024 quarter.
The total lease-up during the three-month period was recorded at 1.9 million square feet across 22 deals, with global capability centers accounting for 70% of the demand, the company said.
Also Read: New Hindenburg report: What is the link between Sebi, Blackstone, Dhaval Buch and REITs?
Embassy REIT also revised its leasing guidance for financial year 2024-25 to 5.6 million square feet. It had earlier guided for 5.4 million square feet of gross leasing in FY25, after clocking 8.1 mn sq ft of leasing across 99 deals in FY24.
For 2024-25, Embassy REIT reaffirmed NOI guidance of ₹3,210-3,350 crore and distributions guidance of ₹22.4 per unit to ₹23.1 per unit, implying a 10% NOI growth and 7% DPU (distribution per unit) growth year-on-year at the mid-point of the guidance range.