Blackstone-Embassy JV to file red herring prospectus for India’s first REIT
Embassy Office Park, a joint venture between private equity major Blackstone Group and realty developer Embassy Property Developments, is planning to file the draft red herring prospectus (DRHP) for listing its Real Estate Investment Trust (REIT) by the end of December, as per media reports.
The trust has received registration approval from the Securities and Exchange Board of India (Sebi) and is aiming to raise about $1 billion through the listing. As per Sebi REIT guidelines, Embassy Office Parks will have to divest a minimum 25% stake through the listing.
Embassy REIT will be India’s first REIT. Application for registration approval was filed last year and Sebi has now cleared it. According to media, Blackstone and Embassy plan to remain invested and are not looking to exit investments completely. The plan is to pay dividend to shareholders and reduce larger amount of debt.