The country's first real estate investment trust (REIT), launched by Blackstone and Embassy Group, has been subscribed 2.57 times at the end of the three-day bidding process Wednesday, helping the firm raise Rs 4,750 crore.
Embassy Office Park, the joint venture of Blackstone and realty firm Embassy Group, raised Rs 2,619 crore from anchor and strategic investors ahead of its initial issue, which opened on Monday and closed on Wednesday.
According to sources, the units offered through REITs will be listed on exchanges in the first week of April.
The success of India's first REIT will boost investment in commercial real estate and encourage more property developers to raise funds through this route. This will also enable institutional and retail investors to participate in the growth of commercial real estate in the country.
According to the latest exchange data, the issue received bids for 18,34,76,000 units against the total issue size of 7,12,56,400 units. The issue is in the price band of Rs 299-300 per unit.
Last week, ahead of its initial issue, Embassy Office Parks had allocated 58,105,600 units to anchor investors at Rs 300 each, totalling Rs 1,743 crore. It had also allotted 2,92,08,800 units for Rs 876.3 crore to strategic investors.
REIT is an investment tool that owns and operates rent-yielding real estate assets. It allows individual investors to make investment in this platform and earn income.
On the success of the nation's first REIT, property consultant JLL India Chief Executive Officer and Country Head Ramesh Nair said, "The reason for the success of the Embassy Blackstone REIT is because a REIT offers predictability, low volatility and liquidity to the investor."
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