M&A

M&A

Embassy REIT acquires Embassy Business Hub in Bengaluru for Rs.334.8 Cr

Economic Times  

Embassy Office Parks REIT, India's first listed REIT and the largest office REIT in Asia by area, is to acquire Embassy Business Hub, a 1.4 million square feet (msf) office property in Bengaluru, for an enterprise value of INR 334.8 crore. Embassy REIT plans to fund the acquisition through debt at an 8.1% interest cost per annum, for which it has secured binding commitments from financial institutions. Embassy Business Hub, a 59-acre campus-style business park, is located in North Bengaluru and is close to Embassy REIT's 15.2 msf property Embassy Manyata. Embassy REIT will acquire the Embassy Sponsor's affiliates' share of 1.4 msf total leasable area, of which 0.4 msf is nearing completion and 93% pre-committed to Philips, and the balance 1 msf is in early stages of development. The acquisition is expected to be completed on or before April 30, 2023, Ernst and Young LLP provided financial and tax due diligence services and S&R Associates served as the legal advisor to Embassy REIT. Axis Capital provided an opinion to the independent directors of the Manager to Embassy REIT for the proposed acquisition.