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Blackstone, Karnataka minister to bring assets under Embassy REIT

The JV company Embassy Office Parks' plan to submit application for REIT was delayed as George was undecided on bringing his share in Embassy Golf Links

Raghavendra Kamath  |  Mumbai 

Blackstone

U S based private equity firm and Karnataka IT & BT minister would bring some of their assets in the proposed real estate investment trust or to be floated by Blackstone-Embassy joint venture, said sources in the know.

The JV company Embassy Office Parks’ plan to submit application for was delayed as George was undecided on bringing his share in (EGL), a 4.5 million square feet information technology park in Bengaluru, under the

The property is a 50:50 JV between and George’s Kelachandra group.

According to sources, the minister has made up his mind on bringing his share under the REIT now. He could not be contacted for this article.

The JV will file its draft prospectus for REIT next month, said sources. The REIT, which will be the country's first REIT offering and is expected to raise $ 1 billion from investors.

MAKING OF A REIT

* The Embassy-JV will file its draft prospectus for REIT next month

* It will be the country's first REIT ; expected to raise $ 1 billion from investors.

* The JV has a portfolio of 23 mn sq ft and has a potential to develop another 10 million sq ft.

* Has properties such as Embassy Golf Links, Embassy Manyata Tech park, Embassy Tech Village

* In July 2017, Embassy REIT was registered with Sebi

has a portfolio of 23 million sq ft and has a potential to develop another 10 million sq ft. It has properties such as Embassy Golf Links, Embassy Manyata Tech park, In and Embassy Tech Zone in Pune among others.

is also looking to bring some of its assets in REIT," said the sources without specifying which assets it would bring under the REIT.


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A mail sent to Embassy chairman did not elicit any response. Blackstone declined to comment on the matter. In July 2017, REIT was registered with the Securities and Exchange Board of India (Sebi).

Blackstone is selling some of its assets in Pune and NCR . However, it is not known whether Blackstone is looking to bring them under the REIT.

According to experts, the Blackstone-Embassy REIT would test the market for REITs in the country. Many aspirants such as K Raheja Corp, RMZ, and others are looking at the success of the first REIT, said experts.

ALSO READ: Gateway okays acquisition of Blackstone stake in arm; stock up 20%

Sebi had notified REITs and in 2014, allowing setting up and listing of such trusts which are very popular in some advanced markets.

However, only two InvITs - IRB InvIT Fund and Indiagrid Trust - have got listed on stock exchanges so far and not a single REIT has been listed in the country.

Last week, financial services firm IIFL Holdings said it has registered a real estate investment trust (REIT) with the markets regulator Sebi.

First Published: Thu, June 14 2018. 07:02 IST
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