Bangalore: Embassy Reit, India’s first listed real estate investment trust, plans to raise $ 500 million through a qualified institutional placement (QIP) to finance the acquisition of the Embassy Tech Village (ETV) commercial assets in Bengaluru, said a person familiar with the development.
In a regulatory filing on Tuesday, the company said the board of directors of the embassy office’s park management services, manager of the REIT Embassy, approved the opening of the QIP to receive bids.
The Council also approved and adopted the Preliminary Placement Document and the minimum price of ₹348.38 per unit.
The REIT embassy did not disclose the size of the QIP.
Last month, the company said it would buy ETV assets from the subsidiaries of sponsors Embassy Group and Blackstone Group Lp and other shareholders for about $ 1.3 billion.
ETV’s acquisition includes 6.1 million square meters of completed office space, 3.1 million square meters of construction space and two 518-key Hilton hotels on campus. Approximately 36% of the space under construction is leased in advance to JP Morgan.
Last week, unit owners approved plans to increase the size ₹8,000 million euros by selling units to institutional investors. They approved the acquisition of ETV for an enterprise value of ₹9,782.4 million and also granted the authority to borrow up to 35% of the value of the embassy’s gross REIT assets.
Regarding the acquisition of ETV, Mike Holland, CEO of Reit Embassy, said that it deepens Reit’s presence in Bengaluru, which remains the strongest office market in India and significantly improves our scale and ability to deliver integrated growth.