Embassy REIT to invest Rs 2800 cr in office space
Embassy REIT has decided to invest over Rs 2,800 crore in developing office spaces across the country and it also wants to expand its portfolio through acquisition of commercial assets across major cities.
The company, which has 5.7 million square feet (msf) of office properties under development, decided to fast track construction work halted due to current lockdown.
It expects recovery in 2-3 quarters once employers are back to office expects to complete projects by 2023 fiscal. Vikaash Khdloya, chief operating officer, informed that it plans to capitalize on the fragmented office market and is actively scouting for acquisitions.
It has a pan-India acquisition potential of 31.2 msf with a Right of First Offer (ROFO) opportunity from the Embassy Sponsor and a similar opportunity of another 4.2 msf from other builders. Despite the significant challenges caused by the Covid-19 pandemic, Embassy REIT has delivered on its financial guidance and signed 1.2 msf of lease deals in the last fiscal.
Mike Holland, chief executive of the group, informed that many tech firms are doing record hiring and the company is confident that the demand will pick up much stronger in a few quarters from now.