Embassy REIT signs deal to acquire Bengaluru office space for ₹852 crore

Embassy Office Parks REIT will buy a fully leased 0.3 million sq ft office asset at Embassy GolfLinks, Bengaluru, for Rs 852 crore. The deal is seen as accretive to DPU and NOI

Embassy Office Parks REIT (real estate investment trust), Asia’s largest by office area, has signed definitive agreements to acquire a marquee 0.3 million sq ft Grade-A office property in the Embassy GolfLinks Business Park for Rs 852 crore.

 

What is Embassy REIT acquiring, and who is the tenant?

 

The fully occupied asset is leased long-term to a top global investment firm, the entity said in a statement on Wednesday, marking a strategic third-party buy that bolsters the REIT’s presence in Bengaluru’s office market.

 

Why does Embassy REIT say the Bengaluru acquisition matters now?

 

Amit Shetty, chief executive officer of Embassy REIT, highlighted the move as pivotal for yield-enhancing growth amid Bengaluru’s robust leasing momentum from tech giants and global capability centres (GCCs). This acquisition expands the REIT’s 50.8 million square feet portfolio across key cities such as Bengaluru, Mumbai, Pune, National Capital Region (NCR), and Chennai, home to 274 global occupiers.

 

 

How does the deal compare on yield and cap rate benchmarks?

 

The deal, accretive to distribution per unit (DPU) and net operating income (NOI), yields 7.9 per cent, which has outpaced the REIT’s Q2 FY2026 trading cap rate of 7.4 per cent and trades at a discount to independent valuations.

 

What does this mean for Embassy REIT’s India office strategy?

 

Bengaluru is a top office destination, and this addition aligns with the REIT’s focus on high-quality, yield-generating assets amid strong demand for Grade-A spaces.