Embassy Office Parks REIT

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"Our overall philosophy on co-working has been that it is an amenity for our business parks and occupiers", said Khdloya

Payouts can be affected by vacancy and tenants defaulting on payments

Global fund Blackstone has sold about 5.7 crore units in Embassy Office Parks REIT for over Rs 2,000 crore as part of its strategy to monetise part of its investment, sources said.

Embassy Office Parks REIT will raise up to Rs 300 crore through issue of non-convertible debentures. The company did not disclose where the funds will be utilised. In a regulatory filing, the company informed that the board of Embassy Office Parks Management Services Pvt Ltd, the manager to Embassy Office Parks REIT, had in November last year approved the raising of debt, including the issue of non-convertible debentures, for an aggregate amount up to Rs 3,641.1 crore in one or more tranches. Out of this, Rs 2,600 crore was raised earlier as REIT NCD Series-III. On Thursday, the debenture committee of the board of directors of the manager, has approved the further issuance of 3,000 listed, rated, secured, redeemable, transferable, rupee denominated non-convertible debentures of face value of Rs 10,00,000 each, aggregating up to Rs 300 crore by Embassy REIT on a private placement basis. In January this year, Embassy REIT had raised Rs 2,600 crore through issue of non-convertible ..

Work from home, second wave have deferred leasing decisions by occupiers

Occupancies may fall 100-200 bps in the coming quarters

Request for proposals for nine million square feet of office space are active in the market, said Vikaash Khdloya, deputy CEO at the REIT

Embassy Office Parks REIT has raised Rs 3,680 crore ($501 million) through sale of units to institutional investors and will use this amount to partly fund its acquisition of IT park in Bengaluru

Floor price of Rs 348.38 per unit approved

This will be the second fund raise by the listed REIT via the NCD route

This additional 2.6 million square feet of space is in the early stages of construction and will be a part of its existing integrated business parks and campuses

The company said its priority remains delivering a safe workplace and business ecosystem for occupiers and their employees

Post this deal, Blackstone stake will come down by around nine per cent from around 55 per cent shareholding earlier.

The secondary placement of units in a price band of Rs 340-350 apiece is at a discount of 3.7-6.4 per cent to Tuesday's closing price of Rs 363.55 on the National Stock Exchange.

While the Covid-19 pandemic has resulted in an uncertain near-term outlook for many businesses worldwide, Holland said Embassy REIT is uniquely positioned to weather the pandemic

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A total of 946 companies, including ONGC, Embassy Office Parks REIT, and Fortis Healthcare are scheduled to announce their December quarter earnings today

The REIT has roped in 13 bankers, including Morgan Stanley, CLSA, and Nomura for the issue.

Given that market rents are 30 per cent higher than the current rents that tenants pay, there is significant room for increasing rates for expiring leases.

Embassy REIT's CEO Michael Holland said the company has reported another strong quarter of performance