Real Estate

Real Estate Transactions

Embassy REIT to acquire IT Park in Chennai for Rs.1,269-Cr

BSE Announcement  

Publicly listed Embassy Office Parks REIT (Embassy REIT) is to purchase Embassy Splendid TechZone (ESTZ), a Grade-A business park in Chennai's Pallavaram suburb, by acquiring 100% stake in ESNP Property Builders and Developers Pvt Ltd (EPSN), at an enterprise value of INR 1,269 crore. EPSN is a 100% subsidiary of Embassy REIT's sponsor, Embassy Property Developments.The commercial space is expected to comprise a total leasable area of approximately 5.0 million sq ft upon completion. The acquisition marks Embassy REIT’s entry into Chennai.ESTZ comprises 1.4 msf of completed area, which is 95% occupied and leased to large global companies such as Wells Fargo and BNY Mellon. It also comprises 1.6 msf of under-construction area, of which 0.4 msf is pre-leased, with 2.0 msf of future development potential.IIFL Securities, Kotak Mahindra Capital Company, and Morgan Stanley India Company are serving as joint financial advisors to Embassy REIT. S&R Associates is acting as legal advisor to Embassy REIT. Ernst and Young conducted financial and tax diligence. Jones Lang LaSalle Property Consultants (India) provided a fairness opinion to the independent directors of Embassy REIT.