Latest news with #GCCs
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Business Standard
14 hours ago
- Business
- Business Standard
Embassy REIT posts Rs 155 cr Q1 profit, appoints Amit Shetty as new CEO
India's largest REIT raised Rs 4,225 crore in Q1 to fund growth; posts 2 million sq ft in leasing and declares Rs 550 crore in distribution Mumbai Embassy Office Parks REIT, India's largest real estate investment trust by market capitalisation, reported a 13.1 per cent year-on-year (YoY) decline in net profit to ₹155.1 crore for the first quarter of FY2026. The decline was primarily attributed to a deferred tax expense of ₹121.2 crore related to the previous year. Revenue from operations rose 13.2 per cent YoY to ₹1,059.7 crore. However, sequentially, revenue dipped 2.4 per cent from ₹1,085.8 crore in the previous quarter. Leadership transition: Amit Shetty takes over as CEO As part of a leadership restructuring, Embassy REIT has appointed Amit Shetty as Chief Executive Officer effective August 1, 2025. Shetty previously served as Chief Operating Officer. Ritwik Bhattacharjee, the current CEO, will transition into the role of Senior Advisor. 'I am really pleased to lead Embassy REIT at such an exciting time for our business. Our business is in great shape with strong fundamentals and demand drivers, and the outlook for the Indian office has never been brighter,' said Shetty. Debt raised to fuel growth at favourable rates During the quarter, Embassy REIT raised ₹4,225 crore in debt at an average coupon of 7.18 per cent to support growth initiatives. This includes a ₹750 crore issuance of non-convertible debentures (NCDs) at a 6.97 per cent coupon—the lowest rate achieved by the REIT in four years. The REIT also leased 2.0 million square feet (msf) across 25 deals, a 9 per cent YoY increase. This comprised 1.0 msf of new leases, 0.36 msf of renewals, and approximately 0.67 msf of pre-leases. 'We are delighted to report a strong start to FY2026, with 2.0 msf of leasing this quarter and growing momentum in Chennai,' said Bhattacharjee. 'Our revenue grew 13 per cent YoY, and distributions grew by 4 per cent YoY, reflecting the continued strength of our portfolio.' Q1 distribution declared; GCCs drive portfolio resilience The Board declared a distribution of ₹550 crore or ₹5.80 per unit for Q1 FY2026. The record date for the distribution is August 5, 2025, with payments expected on or before August 12, 2025. REIT distributions comprise dividends, interest, debt amortisation, or a combination of these, and REITs are mandated to distribute 90 per cent of taxable income to unitholders. Chennai led the pre-leasing activity with over 500,000 square feet signed, including space taken by a global healthcare major. Bengaluru assets, which represent 75 per cent of Embassy REIT's Gross Asset Value, maintained over 90 per cent occupancy. Ten out of 14 properties have above 90 per cent occupancy, and six are fully occupied. Global Capability Centers (GCCs) remain the key demand driver, contributing 64 per cent of rentals. Capital recycling and new development opportunities The REIT also received an invitation to offer from Embassy Developments Limited for a potential 3.3 msf commercial project in Whitefield, Bengaluru. This proposal is under evaluation in line with governance norms. Embassy REIT's active development pipeline spans 6.1 msf across Bengaluru and Chennai, with 60 per cent already pre-leased—signalling robust forward demand. The company announced its Q1 FY2026 results after market hours on Thursday. Shares closed at ₹395.51 on the BSE, down 0.50 per cent.
Economic Times
17 hours ago
- Business
- Economic Times
India fastest growing major economy, Trump's perception of 'dead economy' misplaced: Analysts
ANI India fastest growing major economy With leading international agencies, including IMF, continuing to project India as the fastest-growing major economy in the world, analysts said that US President Donald Trump's description of India as a "dead economy" is "misplaced". India continues to be a hot-bed for foreign investment with several international giants looking at the country for setting up manufacturing base to Global Capability Centres (GCCs). Also, Indian talent is most sought after particularly in the tech sector and has been a major exporter of services to countries, including the US. A day after announcing 25 per cent tariffs on India, plus a 'penalty' for its trade with Russia, Trump in a social media post on Thursday said, "I don't care what India does with Russia. They can take their dead economies down together, for all I care." Consultancy firm EY India described Trump's comments against India as "quite misplaced" and said, in fact, the centre of gravity of the world economy is slowly shifting to the Global South for which India has placed itself in a leading role. "On the other hand, the erstwhile developed economies are ageing fast and it is largely the contribution that Indian diaspora makes in these economies that they continue to show some positive growth," EY India Chief Policy Advisor DK Srivastava told PTI. Incidentally, the Executive Board of the International Monetary Fund (IMF) in its assessment of the Indian economy in February 2025 had commended "the authorities' prudent macroeconomic policies and reforms, which have contributed to making India's economy resilient and once again the fastest growing major economy". IMF had also said India's strong economic performance provides an opportunity to advance critical and challenging structural reforms to realise its ambition of becoming an advanced economy by 2047. EY's Srivastava further said the Indian economy is the most lively and dynamic in the world with its population among the youngest. As per the UN Population Statistics (2024), the median age of India's population is 28.8 years whereas that of the US is 38.5 and that of Europe is 42.8 years. "It is these advanced economies that have become aged both in terms of median age and in terms of growth prospects. Furthermore, India is also blessed with abundant human resources that are technologically skilled and making significant contributions to the futuristic fields of space, AI, and Gen-AI," Srivastava said. According to the IMF's latest World Economic Outlook Update report, India is poised to grow at 6.4 per cent in 2025 as well as 2026. This is also an upward revision from IMF's April forecast of 6.2 and 6.3 per cent, respectively. Similar projections have been made by other international agencies like Washington-headquartered World Bank, the Asian Development Bank (ADB) and Paris-based Organisation for Economic Cooperation and Development (OECD). While the World Bank and OECD have projected India's GDP growth at 6.3 per cent for FY26, ADB estimates it at 6.5 per cent.
Time of India
17 hours ago
- Business
- Time of India
India fastest growing major economy, Trump's perception of 'dead economy' misplaced: Analysts
With leading international agencies, including IMF, continuing to project India as the fastest-growing major economy in the world, analysts said that US President Donald Trump's description of India as a "dead economy" is "misplaced". India continues to be a hot-bed for foreign investment with several international giants looking at the country for setting up manufacturing base to Global Capability Centres (GCCs). Explore courses from Top Institutes in Please select course: Select a Course Category Project Management Finance Cybersecurity others MCA PGDM healthcare Public Policy Digital Marketing Leadership Data Analytics Healthcare Technology Data Science MBA Design Thinking Management Others Artificial Intelligence Product Management Data Science Degree CXO Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details Skills you'll gain: Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Duration: 12 Weeks Indian School of Business Certificate Programme in IT Project Management Starts on Jun 20, 2024 Get Details Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details Skills you'll gain: Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Duration: 12 Weeks Indian School of Business Certificate Programme in IT Project Management Starts on Jun 20, 2024 Get Details Also, Indian talent is most sought after particularly in the tech sector and has been a major exporter of services to countries, including the US. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Specialist Down Jackets for Ultralight Adventures Trek Kit India Learn More Undo A day after announcing 25 per cent tariffs on India, plus a 'penalty' for its trade with Russia, Trump in a social media post on Thursday said, "I don't care what India does with Russia. They can take their dead economies down together, for all I care." Consultancy firm EY India described Trump's comments against India as "quite misplaced" and said, in fact, the centre of gravity of the world economy is slowly shifting to the Global South for which India has placed itself in a leading role. Live Events "On the other hand, the erstwhile developed economies are ageing fast and it is largely the contribution that Indian diaspora makes in these economies that they continue to show some positive growth," EY India Chief Policy Advisor DK Srivastava told PTI. Incidentally, the Executive Board of the International Monetary Fund (IMF) in its assessment of the Indian economy in February 2025 had commended "the authorities' prudent macroeconomic policies and reforms, which have contributed to making India's economy resilient and once again the fastest growing major economy". IMF had also said India's strong economic performance provides an opportunity to advance critical and challenging structural reforms to realise its ambition of becoming an advanced economy by 2047. EY's Srivastava further said the Indian economy is the most lively and dynamic in the world with its population among the youngest. As per the UN Population Statistics (2024), the median age of India's population is 28.8 years whereas that of the US is 38.5 and that of Europe is 42.8 years. "It is these advanced economies that have become aged both in terms of median age and in terms of growth prospects. Furthermore, India is also blessed with abundant human resources that are technologically skilled and making significant contributions to the futuristic fields of space, AI, and Gen-AI," Srivastava said. According to the IMF's latest World Economic Outlook Update report, India is poised to grow at 6.4 per cent in 2025 as well as 2026. This is also an upward revision from IMF's April forecast of 6.2 and 6.3 per cent, respectively. Similar projections have been made by other international agencies like Washington-headquartered World Bank, the Asian Development Bank (ADB) and Paris-based Organisation for Economic Cooperation and Development (OECD). While the World Bank and OECD have projected India's GDP growth at 6.3 per cent for FY26, ADB estimates it at 6.5 per cent.
New Indian Express
a day ago
- Business
- New Indian Express
Lokesh pushes for Microsoft Experience Zone
VIJAYAWADA: HRD, IT, and Electronics Minister Nara Lokesh, along with his delegation, visited the Microsoft Experience Centre in Singapore on Wednesday. This visit was part of his fourth day in Singapore, during which he engaged with several reputed firms to invite their collaboration with Andhra Pradesh across various sectors. During his interaction with representatives from the Microsoft Experience Centre, Lokesh proposed the establishment of a Microsoft Experience Zone/Technology Station in Andhra Pradesh. He emphasised that Andhra Pradesh is home to a significant pool of talented IT experts in India, noting that over 25% of IT employees in the US originate from the Telugu-speaking states. Lokesh also requested the Microsoft Experience Centre to organise a hackathon in the State in 2026, assuring them of the State government's full support. He urged Microsoft to leverage Andhra Pradesh's IT talent pool for developing an expert IT workforce in generative AI, Hybrid Cloud, and Microsoft products. Later, the delegation visited the Infineon Semiconductors manufacturing unit. Lokesh requested Infineon President and MD CS Chua to consider setting up packaging and testing units in the Electronics Manufacturing Clusters (EMC) or industrial parks within Andhra Pradesh. Subsequently, Lokesh and his team met with ABM Consulting Managing Director Yano Tomokazu. Highlighting Visakhapatnam's emergence as a Data City alongside its IT prowess, and the increasing interest from international firms to establish Global Capability Centres (GCCs) there, Lokesh asked Tomokazu to consider setting up ABM Consulting's Global Capability Centre (GCC) in Visakhapatnam.
Mint
a day ago
- Business
- Mint
IPO-bound Knowledge Realty Trust bets on high GCC demand, eyes acquisitions
BENGALURU : Knowledge Realty Trust (KRT), a real estate investment trust (Reit) that is set to launch its initial public offering (IPO) on 5 August, has seen high demand from global capability centres (GCCs), and is eyeing third-party acquisitions for growth, senior company officials said on Wednesday. The KRT Reit, sponsored by Bengaluru-based developer Sattva Developers and BREP Asia SG L&T Holding, a Blackstone portfolio company, will raise ₹4,800 crore through the IPO. It has already concluded a pre-IPO round in June, raising ₹1,400 crore. KRT has fixed the price band for the issue at ₹95-100 per unit. The minimum bid size is ₹15,000, and the issue closes on 7 August. The entire proceeds from the pre-IPO and IPO will be used for repayment of debt, which will then stand reduced to ₹12,000 crore. Also Read: DLF sets foot in Mumbai with maiden project 'Post debt repayment of ₹6,200 crore, we will have enough dry powder to make third-party acquisitions from other developers," Shirish Godbole, chief executive officer, KRT, told Mint. Tenant mix 'The key differentiator in the KRT Reit is the well-located asset profile. Around 29% of our portfolio is dedicated to front office tenants. The Reit business is far more predictable today, with swelling occupancy and high demand from GCCs that have worked in their favour," Godbole added. KRT will be Asia's second-largest Reit by size and India's largest by gross asset value (around ₹62,000 crore) and net operating income, owning 46.3 million sq ft of office space across 29 assets in six cities - Mumbai, Bengaluru, Hyderabad, Chennai, Gurugram, and GIFT City, Ahmedabad. Global capability centres are in-house technology hubs set up by multinational corporations for critical services such as HR, and finance functions, IT support and maintenance, as well as for research and development. Around 45% of the rental income in KRT's portfolio comes from GCCs. Some of KRT's prominent GCC tenants include Cisco, Google, Amazon, Novartis and JP Morgan. Also Read: DLF sells all 416 homes for over ₹2,300 crore in new Mumbai project As GCCs double down, IT services companies, a dominant tenant base for office space in India, are recalibrating their real estate footprint. Less than 5% of KRT's portfolio exposure is towards IT services companies. Growth outlook Reits have faced their share of challenges in recent years, many of them pandemic-induced. But with the office market turning around in terms of higher leasing and improved occupancy levels, they are gaining more acceptance. Quaiser Parvez, chief operating officer, KRT, said, 'The KRT portfolio has 91% occupancy. We have the lowest loan-to-value ratio (LTV) among all the listed (Reit) peers, which gives us room and the flexibility to grow and acquire new assets." LTV is the debt borrowed compared to the underlying asset value, and is an indicator of financial risk. As part of its inorganic growth, KRT also has 6.7 million sq ft of right of first offer (ROFO) assets, which are currently under development by Sattva, that can be added to the portfolio from 2027-28 onwards. A ROFO is a pre-emptive right granted to a party, giving them the the first opportunity to purchase an asset. 'This is a pivotal moment for India's office and capital markets. Our partnership with Blackstone has been transformative—not just in scale, but in demonstrating how the right collaboration can create something truly exceptional while making premium office real estate accessible to all investors," Bijay Agarwal, managing director, Sattva, said. Also Read: Blackstone-backed Knowledge Realty Trust's ₹4,800-cr IPO to open on 5 August KRT would be the fifth listed Reit in the country, after the three office Reits - Embassy REIT, Mindspace REIT and Brookfield India REIT - and the only retail-focused Nexus Select Trust. Blackstone has participated in three of the four Reits listed in India. This is the 20th year of Blackstone's operations in the country, across its private equity and real estate businesses. US-based Blackstone, the world's largest alternative asset manager, is also the largest office space owner in India.
