Embassy Reit, India’s first public listed real estate investment trust, plans to raise $500 million through a qualified institutional placement (QIP) to fund its acquisition of commercial asset Embassy Tech Village (ETV) in Bengaluru, said a person familiar with the development.
In a regulatory filing on Tuesday, the company said that the board of directors of the Embassy Office Parks Management Services, manager to Embassy REIT, has approved the opening of the QIP for receiving bids.
The board also approved and adopted the Preliminary Placement Document and the floor price of ₹348.38 per unit.
Embassy REIT did not disclose the size of the QIP.
Last month, the firm said it will buy ETV assets from affiliates of sponsors Embassy Group and Blackstone Group Lp and other shareholders for around $1.3 billion.
The ETV buyout 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 in the campus. Around 36% of the under-construction space is pre-leased to JP Morgan.
Last week, unitholders had approved plans to raise up to ₹8,000 crore through sale of units to institutional investors. They approved the ETV acquisition for an enterprise value of ₹9,782.4 crore and also granted authority to borrow up to 35% of the gross asset value of the Embassy REIT.
On the ETV acquisition, Mike Holland, CEO of Embassy Reit had said it deepens the Reit’s presence in Bengaluru, which remains India’s strongest office market, and significantly enhances our scale and ability to deliver embedded growth.