Global fund Blackstone plans to sell its shares worth up to USD 257 million (about Rs 1,960 crore) in Embassy Office Parks REIT to monetise part of its investment, sources said. Embassy Office ParksREIT is the country's first Real Estate Investment Trust (REIT), which was launched last year by realty firm Embassy group and global investment firm Blackstone to raise nearly Rs 5,000 crore. The REIT is listed on the stock exchange.
Blackstone currently has 55 per cent stake in Embassy Office Parks REIT while the Bengaluru-based Embassy group has 15 per cent shares.
According to sources, Blackstone is looking to raise USD 250 million (around Rs 1,900 crore) to USD 257 million (around Rs 1,960 crore). The shares will be offered at a discount of 3.7 per cent to 6.5 per cent from Tuesday's closing prices. Blackstone stake will come down to 47 per cent after the conclusion of this stake sale to institutional investors. The share sale is expected to take place on Wednesday.
Blackstone's job is to return money to investors, and they sell down units over time to maximise value for investors, sources said. When contacted, Blackstone, Embassy group and Embassy Office Parks REIT declined to comment. Embassy Office Parks REIT distributed Rs 531.67 crore for its unit holders for the quarter ended March. "Together with distributions already made during the three previous quarters, the distributions for full year ended March 31, 2020 total to Rs 18,820.92 million/Rs 24.39 per unit," it had said.
The revenue from operations for the fourth quarter of FY20 grew year-on-year by 8 per cent to Rs 543.4 crore. For the full last fiscal, it rose 14 per cent to Rs 2,144.9 crore. Net operating income for the fourth quarter grew by 10 per cent to Rs 461.8 crore. For the full 2019-20 fiscal, it grew by 15 per cent to Rs 1,817 crore.
"Our fourth quarter income and distribution payout once again illustrate the stability and resilience of Embassy REIT delivering cash flows that are backed by the covenants of our 160+ largely multinational occupier base," Embassy Office Park CEO Michael Holland had said. Since Embassy REIT listed in April 2019, the company has delivered a total return of 25 per cent. Embassy REIT comprises 26.2 million square feet of completed and operational commercial properties across India.
With approximately 7.1 million square feet of on-campus development in the pipeline, the total portfolio spans 33.3 million square feet across seven Grade A office parks and four city-center office buildings in India's best performing office markets of Bengaluru, Mumbai, Pune and the National Capital Region (NCR). Embassy Office Parks REIT shares closed 3.17 per cent down at Rs 364.76 apiece on the BSE on Tuesday.
June 23, 2020