Embassy REIT completes Rs 97.8 billion acquisition of Embassy TechVillage

NEW DELHI: Embassy Office Parks REIT (Embassy REIT) has completed the acquisition of Embassy TechVillage assets (ETV) from the Embassy Sponsor, members of the Blackstone group and other selling shareholders for an enterprise value of Rs 97,824 million ($1.3 billion).

Embassy REIT had previously announced this proposed acquisition on November 17, 2020. With this acquisition, Embassy REIT’s leasable area grows 28% to 42.4 million sq ft.

The ETV acquisition comprises of 6.1 million sq ft of completed area, 3.1 million sq ft of under-construction area, of which 36% is pre-leased to JP Morgan, and two proposed 518-keys Hilton hotels within the overall ETV campus.

On December 22, 2020, Embassy REIT announced that it had raised Rs 36.8 billion ($501 million) through an Institutional Placement of units.

On December 24, 2020, the Securities Committee of the Board of Directors of Embassy Office Parks Management Services (EOPMSPL), manager to Embassy REIT, approved the allotment of 64,893,000 units to third-party selling shareholders at a price of Rs 356.70 per unit through a Preferential Allotment as consideration for transfer of their shareholding.

Recent unit capital issuance to fund the acquisition has significantly increased Embassy REIT’s public float from 38.4% to 43.0%, excluding units issued to the third-party selling shareholders in the preferential allotment, the company said in a media release.

Kotak Investment Banking and Morgan Stanley served as joint financial advisors to Embassy REIT. S&R Associates and Clifford Chance acted as legal advisors to Embassy REIT.

Morgan Stanley India Company, Kotak Mahindra Capital Company, BofA Securities India, J.P. Morgan India, Axis Capital, HSBC Securities and Capital Markets (India) and IIFL Securities served as Joint Bookrunning Lead Managers to Embassy REIT for the Institutional Placement.