Embassy REIT raises ₹530 crore through divestment at Manyata Business Park

The divestment of nearly 376,000 sq ft at Embassy Manyata is expected to boost distribution per unit and support Embassy REIT's capital recycling strategy

Embassy Office Parks REIT, India’s first real estate investment trust, has raised Rs 530 crore from the divestment of nearly 376,000 square feet at Embassy Manyata Business Park to EAAA Alternatives’ Rental Yield Plus fund.

 

What did Embassy REIT say about the Manyata divestment? 

Amit Shetty, chief executive officer, Embassy REIT, said on Wednesday, “We are pleased to conclude this transaction which creates long-term value for our stakeholders. This divestment aligns with our capital recycling strategy, enhances portfolio efficiency, and provides us with greater flexibility to reinvest in new opportunities.”

 

How does the buyer view the transaction? 

Gautam Hora, managing director, Rental Yield Plus Fund, said, “This transaction reinforces our commitment to acquiring prime assets in India’s most resilient markets. Strengthening our ownership at Greenheart Tech Park (1.5 million square feet within Embassy Manyata) allows for a more cohesive management approach, providing us the opportunity to execute our value-enhancement strategy and drive superior outcomes for our tenants and investors.”

 

What impact will the deal have on distributions? 

The Bengaluru-headquartered REIT said the transaction would be accretive to its distribution per unit (DPU). Trilegal was the legal adviser, while Aeka Advisors advised on transaction structuring.

 

How large is Embassy REIT’s overall portfolio? 

Embassy REIT operates a 50.8 million sq ft portfolio spanning 14 office parks across key office markets, including Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai, housing 274 global companies. The portfolio includes 40.9 million sq ft of completed operating area, along with strategic amenities such as four operational business hotels, two under construction, and a 100 MW solar park supplying renewable energy to tenants.

 

What other recent transactions has the REIT completed? 

In early December, the company acquired a marquee 0.3 million sq ft office asset in Bengaluru for Rs 850 crore. Located within Embassy GolfLinks Business Park, the Grade A property is leased to a leading global investment firm.

 

In July, the largest office REIT in Asia by area raised Rs 2,000 crore through a 10-year non-convertible debenture (NCD) issue, marking the first long-tenor bond issuance by an Indian REIT. Proceeds from the issue will be used to refinance existing debt, resulting in annual interest savings of around 70 basis points, according to the company statement.