Embassy REIT receives NCLT nod for simplifying holding structure of Embassy Manyata

NEW DELHI: Embassy Office Parks REIT (Embassy REIT) has received approval from the National Company Law Tribunal (NCLT) in relation to its composite scheme of arrangement among its entities that restructures and simplifies the ownership of key portfolio assets, including Embassy Manyata and Embassy TechZone, the company said in a media release.

Embassy REIT had initiated the scheme to simplify its holding structure by reducing the shareholding tiers and to create value for its unitholders.

Michael Holland, chief executive officer of Embassy REIT said, “This enables us to significantly increase the dividend component as a proportion of our overall quarterly distributions. Given REIT dividends are tax-free, this restructuring is expected to positively impact distributions to the benefit of our unitholders.”

Under the scheme, the Embassy TechZone asset in Pune shall be demerged from Embassy Office Parks (EOPPL) into Embassy Pune TechZone (EPTPL), which will be 100% held by Embassy REIT.

EOPPL will be merged into Manyata Promoters (MPPL) and consequently MPPL will be 100% held directly by Embassy REIT, thus collapsing the two-tier shareholding structure for MPPL.

Embassy REIT had announced acquisition of Embassy Manyata in Bengaluru and Embassy TechZone in Pune for Rs 474 crore, collective 20.3 million sq ft space, last October.