Embassy office Parks to raise Rs 3,650 cr via debentures

Embassy office Parks, which recently raised Rs 4,750 crore through India's first Real Estate Investment Trust (REIT), Tuesday said it will raise Rs 3,650 crore in two tranches through issue of debentures.

Embassy Office Parks, a joint venture between Blackstone and realty firm Embassy group, is a leading developer of commercial real estate.

The debenture committee of the board of directors of Embassy Office Parks Management Services, which is an investment manager of Embassy Office Parks REIT, has approved the issue of secured, redeemable, non-convertible debentures on a private placement basis for an aggregate amount of Rs 3,650 crore, a regulatory filing said.

The first tranche would be worth Rs 3,000 crore and the second of Rs 650 crore, it added.

The company did not disclose where this amount would be utilised. However, it would be used for expansion of its commercial real estate business, sources said.

Last month, Embassy Office Parks launched its REIT, which was subscribed 2.57 times during its bidding process. The issue was in a price band of Rs 299-300 per unit.

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.