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Embassy Office Parks REIT Places Series One Tranche Two NCDs

The NCDs (series one tranche two) carry a face value of Rs 10 lakh with a yield of 9.05 per cent and will mature in June 2022.

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Embassy Office Parks, India's first listed real estate investment trust (REIT) and the largest in Asia by area, said on Friday it has successfully priced and allotted by way of a private placement Rs 650 crore of rupee-denominated, listed, rated, secured, redeemable and non-convertible debentures (NCDs).

The NCDs will be listed on the wholesale debt market of BSE Ltd. The NCDs (series one tranche two) carry a face value of Rs 10 lakh with a yield of 9.05 per cent and will mature in June 2022 (co-terminus with a maturity date of series one tranche one NCDs. The transaction is in line with the overall financing plan disclosed in the final offer document of March 27 in relation to the initial public offering of units that Embassy Office Parks REIT had filed with the Securities and Exchange Board of India (SEBI).

On April 23, the debenture committee of the board had approved the issue of NCDs aggregating Rs 3,650 crore in two tranches. Of this, allotment of the first tranche totalling Rs 3,000 crore was completed on May 3.

Embassy Office Parks, a joint venture between Blackstone and realty firm Embassy group, is a leading developer of commercial real estate. REIT is an investment tool that owns and operates rent-yielding real estate assets. It allows individual investors to make an investment in this platform and earn income.

Embassy REIT comprises 25 million square feet of completed and operational commercial properties across India. With 8 million square feet of on-campus development in the pipeline, the total portfolio spans 33 million square feet across seven Grade A office parks and four city-centre office buildings in best performing office markets of Bengaluru, Mumbai, Pune and the National Capital Region.

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 100-megawatt solar park that supplies renewable energy to park tenants.