Embassy Group to launch REIT to raise Rs 4,750 crore
Embassy Group will launch India’s first real estate investment trust (REIT) next week to raise about Rs 4,750 crore, according to two people familiar with the development.
The Embassy Office Parks REIT, a joint venture between the Bangalore-based property developer and private equity firm Blackstone, holds around 33 million square feet of commercial office comprising of seven business parks and four citycentric buildings spread across Mumbai, Bengaluru, Pune and Noida. Embassy did not respond to an email query.
REIT is an investment tool that owns and operates rent-yielding real estate assets. It allows individual investors to make investment in real estate without owning it and earn an income. “REITs as an asset class is a far superior product and well accepted and understood globally where even small investors can invest in real estate without owning a physical asset,” said NipunGoel, head, investment banking, IIFL. “Unlike InvITs, REITs in India will take off well,” he added.
Bankers said the launch of Embassy REIT was advanced due to demand from foreign portfolio investors and family offices. Many domestic mutual funds have not shown interest, they said.