Blackstone-Embassy JV may prompt Sebi to tweak Reit norm

The property in contention is Embassy Golf Links, an office park located off Intermediate Ring Road in Bengaluru

The Securities and Exchange Board of India (Sebi) is considering relaxing the minimum ownership required by a sponsor to launch a real estate investment trust (Reit). The move comes after a unique case, involving private equity (PE) major Blackstone and leading real estate firm Embassy, came to the market regulator’s notice. One of the properties owned by their joint venture (JV) company, Embassy Office Parks, is looking to be part of the proposed Reit. But, the sponsor holding in the property is 50 per cent, one per cent below the 51 per cent threshold set by the Sebi.

The property