Bengaluru: Embassy Reit, India’s first publicly listed real estate investment trust, plans to raise US $ 500 million through qualified institutional placement (QIP) to finance its acquisition of Embassy Tech Village (ETV) commercial asset in Bengaluru, said a person familiar with the development.
In a regulatory filing on Tuesday, the company said the directorate of Embassy’s Park Management Services, an administrator of Embassy REIT, approved the opening of the QIP to receive bids.
The board also approved and adopted the Previous Location Document and the small price of ₹348.38 per unit.
Embassy REIT did not disclose the size of the QIP.
Last month, the company said it would buy ETV assets from subsidiaries of sponsors Embassy Group and Blackstone Group Lp and other shareholders for about $ 1.3 billion.
ETV’s purchase consists of 6.1 million sq.ft of finished office space, 3.1 million sq.ft of underlying area and two proposed 518-key Hilton hotels on campus. About 36% of the construction space is leased to JP Morgan.
Last week, unit owners approved plans to rise to ₹Rs 8,000 per sale of units to institutional investors. They approved the ETV acquisition for corporate value of ₹9,782.4 crore and also gave authority to lend up to 35% of the gross asset value of the Embassy REIT.
On the acquisition of ETV, Mike Holland, CEO of Embassy Reit said it deepens Reit’s presence in Bengaluru, which remains India’s strongest office market, and significantly improves our scale and capacity to deliver built-in growth.