Country for PR: United Kingdom
Contributor: PR Newswire Europe
Wednesday, January 01 2020 - 01:15
Embassy REIT Executes Agreements With Embassy Sponsor to Acquire 0.6 Million Square Feet Leasable Area at a 9.25% Initial Yield on Development Completion in 4Q FY2023 Within the Overall Embassy Manyata Business Park Campus in Bengaluru
BENGALURU, India, Jan. 1, 2020 /PRNewswire-AsiaNet/ --

Embassy Office Parks REIT (NSE: EMBASSY) (BSE: 542602) ("Embassy REIT"), 
India's first listed Real Estate Investment Trust and the largest in Asia by 
area, announced today that the Board of Directors of Embassy Office Parks 
Management Services Private Limited (the "Manager" to Embassy REIT) has 
approved an arrangement with Embassy Property Developments Private Limited 
("Embassy Sponsor"), for the acquisition of c.0.6 million square feet ("msf") 
leasable area in M3 Block B in Bengaluru, within the overall Embassy Manyata 
campus, at a 9.25% initial yield on development completion in 4Q FY2023.

Michael Holland, Chief Executive Officer of Embassy REIT, said, "The 
acquisition of c.0.6 msf leasable area upon development completion allows us to 
further capitalize on the strong leasing demand for our large-scale total 
business ecosystem. Considering Embassy Manyata is our largest asset with 11 
msf completed area running at 99.3% occupancy as of September 30, 2019 and with 
an average occupancy of c.99% over the past three years, the proposed add-on 
office block will help cater to the growing space requirements of our tenants 
in a strong micro-market in Bengaluru." 

Transaction Highlights

- Acquisition of M3 Block B building helps further consolidation of the M3 land 
parcel which also comprises 1msf of M3 (Block A), which was previously 
disclosed in the final offer document dated March 27, 2019. 

- Estimated acquisition cost of Rs. 7.4 bn to be funded through additional debt 
and shall be paid in tranches linked to milestones. The final acquisition cost 
will be determined upon building completion and lease-up based on actual 
achieved rents. 

- At a 9.25% yield, the debt funded acquisition is expected to be DPU accretive 
upon stabilization and compares favourably to Embassy Manyata cap rate of 8% as 
per the 1H FY2020 independent appraisal. 

- Strong framework in place regulating above related party transaction 
including two independent third party appraisals and affiliated board members 
abstaining from approval vote.


This press release is prepared for general information purposes only. It is 
only current as of its date, has not been independently verified and may be 
subject to change without notice. Embassy Office Parks Management Services 
Private Limited ("the Manager") and Embassy REIT make no representation or 
warranty, express or implied, as to, and do not accept any responsibility or 
liability with respect to, the fairness, accuracy or completeness of the 
content hereof. Each recipient will be solely responsible for its own 
assessment of the market and the market position of Embassy REIT.

This press release contains forward-looking statements. Forward-looking 
statements involve known and unknown risks, uncertainties and other factors, 
which may cause the actual results, financial condition, performance, or 
achievements or industry results, to differ materially from those expressed or 
implied by such forward-looking statements. Given these risks, uncertainties 
and other factors, recipients of this press release are cautioned not to place 
undue reliance on these forward-looking statements. The Manager assumes no 
responsibility to amend or update any forward-looking statements.

About Embassy REIT

Embassy Office Parks is India's first and only listed REIT. The REIT comprises 
25 msf of completed and operational commercial properties across India. With 
approximately 8 msf of on-campus development in the pipeline, the total 
portfolio spans 33 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). The portfolio is 
home to over 165 blue chip corporate occupiers, and comprises 75 buildings with 
strategic amenities, including two completed hotels, two under-construction 
hotels, and a 100MW solar park that supplies renewable energy to park tenants.

Logo - 

For more information please contact: 
Ritwik Bhattacharjee 
Head of Investor Relations 
Phone: +91-80-3322-2222 

Source: Embassy Office Parks REIT