Bengaluru: India's first REIT (Real Estate Investment Trust) is opening IPO books on 18th March 2019 and will close on 20th March 2019.
The firm is raising Rs 4,750 crore through REIT issue, comprising of 12,95,56,000 units. The REIT issue will open on March 18 with a price band of Rs 299-300 per unit. The issue closes on March 20. The price band which Embassy REIT is offering is from range of Rs. 299 to Rs. 300 per units.
Bids can be made for a minimum of 800 units and in multiples of 400 units thereafter by bidders other than anchor investors and strategic investors.
The issue will constitute at least 10% of the issued and paid up units on a post issue basis.
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The units of the Embassy REIT are proposed to be listed on NSE and BSE. The Embassy REIT has received in-principle approvals from NSE and BSE on October 11th 2018 and October 9th 2018 respectively.
In the press conference organized in a private hotel in Bengaluru , Embassy showed a presentation of assets which they own in Bengaluru, Pune, Mumbai, Noida. And Head of Investor Relationship Ritwik Bhattacharya said India is no longer just an IT hub we are much larger than it.
Speaking with media, Mike Holland, CEO of Embassy Office Parks said REIT is a collection of high quality office properties. Embassy 33 million square foot portfolio across 4 cities in India. Investors knows why they are buying and they do get opportunity of growth. Pricing ranges to Rs 299 to Rs 300 and anchor book is closing on Friday he added.
Embassy Office Parks has launching India's first real estate investment trust (REIT) and has also proposed to raise Rs 4,000 crore through non-convertible bonds to partly meet its construction finance requirements.
What is REIT?
REIT is an investment tool that owns and operates rent-yielding real estate assets. It allows individual investors to make investment in this platform and earn income. The Sebi had notified REIT's regulations in 2014, allowing setting up and listing of such trusts, which are popular in some advanced markets.
Embassy Office Parks had in September last year filed the draft red herring prospectus (DRHP) with market regulator Sebi to launch REIT, touted as Asia's largest in terms of portfolio size of 33 million sq ft.
Embassy Office Parks, a leading player in commercial real estate, has put 33 million sq ft of office and hospitality assets under its proposed REIT comprising of seven business parks and four city-centric buildings spread across Mumbai, Bengaluru, Pune and Noida.
Out of the 33 million sq ft, about 24 million sq ft area is operational at 95 per cent occupancy and yielding rental income of over Rs 2,000 crore annually. Another 3 million sq ft area is under construction and 6 million sq ft area in pipeline.
Embassy Office Parks' rental income is expected to rise by 55 per cent in the next three years as it expects to lease area at a higher rent.
Banking sources had earlier said the internal rate of return (IRR) for unit holders is expected at around 9 per cent in the first year and about 18 per cent in a five-year horizon.
(Inputs from PTI)
