Bengaluru: Embassy Reit, India’s first publicly traded real estate investment fund, plans to raise $ 500 million through a Qualified Institutional Placement (QIP) to finance the acquisition of the commercial asset Embassy Tech Village (ETV) in Bengaluru, said a person familiar with development.
In a regulatory filing on Tuesday, the company said the board of Embassy Office Parks Management Services, manager of Embassy REIT, has approved the opening of the QIP for receiving offers.
The Board also approved and adopted the Preliminary Placement Document and the minimum price of ₹348.38 per unit.
The REIT embassy did not disclose the size of the QIP.
Last month, the firm said it will purchase ETV assets from sponsoring affiliates Embassy Group and Blackstone Group Lp and other shareholders for approximately $ 1.3 billion.
The ETV acquisition includes 6.1 million square feet of completed office space, 3.1 million square feet of area under construction, and two proposed 518 key Hilton hotels on campus. About 36% of the space under construction is pre-leased to JP Morgan.
Last week, the unitholders had approved plans to increase up to ₹8,000 crore through the sale of shares to institutional investors. They approved the acquisition of ETV for a company value of ₹9,782.4 crore and also granted permission to borrow up to 35% of the embassy’s gross asset value REIT.
On the acquisition of ETV, Mike Holland, CEO of Embassy Reit, said that it strengthens Reit’s presence in Bengaluru, which remains India’s strongest office market, and significantly improves our scale and ability to deliver. integrated growth.