India’s Embassy REIT aims to raise $500m QIP to fund Embassy Tech Village acquisition

Photo by Livemint

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.

The article was first published on livemint.com.

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.