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Time of India
20-05-2025
- Business
- Time of India
Embassy REIT raises ₹2,000 crore debt at 7.21%
NEW DELHI: Embassy Office Parks REIT ( Embassy REIT ) has raised ₹2,000 crore of coupon-bearing debt at an interest rate of 7.21% for a three year-tenor. The proceeds will be used to refinance certain existing debt and will save 77 basis points (bps) in interest costs compared to the current rate. Ritwik Bhattacharjee , chief executive officer of the company said, ""We maintain a well-diversified and conservative debt book, and this refinancing positions us well to capitalize on future growth opportunities." The company witnessed a robust demand from institutional investors with 11 different investors participating in the issue of non-convertible debentures (NCDs). The REIT has opted to exercise the call option on its Series IX NCDs of ₹500 crores, carrying a coupon of 8.03%, for early repayment on June 4, 2025, ahead of the original maturity date of September 4, 2025. CRISIL has assigned "AAA/Stable" rating to the NCDs issued. Talwar Thakore & Associates served as the legal counsel to Embassy REIT.
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Business Standard
20-05-2025
- Business
- Business Standard
Embassy Office Parks REIT raises Rs 2K cr via debt issuance at 7.21%
Debt raised for three-year tenor to refinance existing obligations, saving 77 basis points; REIT targets FY26 growth with Rs 24.5-26 distributions per unit Bengaluru Bengaluru-based Embassy Office Parks REIT said on Tuesday that it had raised Rs 2,000 crore of coupon-bearing debt at an interest rate of 7.21 per cent for a three-year tenor. The funds will be used to refinance existing debt, resulting in an estimated interest cost saving of around 77 basis points. 'We are pleased to announce this fundraise. This transaction showcases Embassy REIT's fortress balance sheet and reinforces our standing as the leading credit in India's commercial real estate sector. We maintain a well-diversified and conservative debt book, and this refinancing positions us well to capitalise on future growth opportunities,' said Ritwik Bhattacharjee, chief executive officer, Embassy REIT. The NCD issuance of Embassy REIT Series XIII NCDs (2025) was priced at an effective interest rate, fuelled by demand from institutional investors, with participation from 11 entities. Bhattacharjee said that Embassy REIT has chosen to exercise the call option on its Rs 500 crore Series IX NCDs, which carry a coupon of 8.03 per cent. The early repayment is scheduled for 4 June 2025, three months ahead of the original maturity date of 4 September 2025. For FY26, Bhattacharjee acknowledged current socio-economic challenges but expressed confidence in sustained demand driven by Global Capability Centres (GCCs). He emphasised Embassy REIT's commitment to execution, cost optimisation, and meeting its FY26 targets. The REIT projects distributions of Rs 24.50 to Rs 26 per unit — a 10 per cent year-on-year growth at the midpoint — alongside 93–94 per cent occupancy by value and net operating income (NOI) between Rs 35.9 billion and Rs 38.1 billion, reflecting a 13 per cent increase. Embassy REIT is India's first publicly listed real estate investment trust and the largest office REIT in Asia, by area. The company owns and operates a 51.1 million square feet portfolio of 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai.
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Business Standard
20-05-2025
- Business
- Business Standard
Embassy Reit raises Rs 2,000 crore debt to refinance existing loans
Embassy Office Parks Reit has raised Rs 2,000 crore debt to refinance its existing borrowings and save interest cost. In a regulatory filing on Tuesday, Embassy Reit informed that the company has raised Rs 2,000 crore of coupon-bearing debt at an interest rate of 7.21 per cent for a 3-year tenure. The proceeds will be used to refinance certain existing debt and will save around 77 basis points (bps) in interest costs compared to the current rate, the company said. Embassy Reit said it witnessed a robust demand from institutional investors with 11 different investors participating in the issue of NCDs (Non-Convertible Debentures). Ritwik Bhattacharjee, Chief Executive Officer of Embassy Reit, said, " This transaction showcases Embassy Reit's fortress balance sheet and reinforces our standing as the leading credit in India's commercial real estate sector. We maintain a well-diversified and conservative debt book, and this refinancing positions us well to capitalise on future growth opportunities." Embassy Reit owns and operates a 51.1 million square feet portfolio of 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai. Embassy Reit's portfolio comprises 40.3 million square feet completed operating area and is home to 272 of the world's leading companies. The portfolio also comprises four operational business hotels, two under-construction hotels, and a 100 MW solar park supplying renewable energy to tenants. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
20-05-2025
- Business
- Time of India
Embassy REIT raises Rs 2,000 crore debt through NCDs priced at 7.21%
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Real estate investment trust Embassy Office Parks REIT has raised Rs 2,000 crores of debt through the issuance of Non-Convertible Debentures (NCDs). The proceeds from this issuance will be used to refinance certain existing debt listed REIT has secured these coupon-bearing funds at an interest rate of approximately 7.21% for a tenure of three refinancing initiative is expected to generate a saving of around 77 basis points in interest costs when compared to the rate being paid on the existing debt being refinanced, the REIT said. The refinancing is a part of the REIT's ongoing capital management transaction saw participation from 11 institutional investors. The investor base included a range of financial institutions who subscribed to the issue, reflecting continued engagement from debt market participants.'This transaction showcases Embassy REIT's robust balance sheet…We maintain a well-diversified and conservative debt book, and this refinancing positions us well to capitalize on future growth opportunities,' said Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT In view of the current interest rate environment, the REIT has decided to exercise the call option on its Series IX NCDs amounting to Rs 500 crores. These NCDs carry a coupon of 8.03%. The early repayment of this tranche will take place on June 4, ahead of the scheduled maturity date of September REIT owns and operates a portfolio measuring 51.1 million square feet. This portfolio comprises 14 office parks located across the major Indian office markets of Bengaluru, Mumbai, Pune, the National Capital Region (NCR), and Chennai. Of the total, 40.3 million square feet is completed and operational, and it is occupied by 272 tenant portfolio further includes four operational business hotels, two hotels currently under construction, and a 100 MW solar park that supplies renewable energy to its tenants.
Mint
08-05-2025
- Business
- Mint
India office Reits report higher FY25 income, leasing on strong GCC demand
Bengaluru: Driven by strong demand from global capability centres (GCCs) and improved occupancy, India's top office Reits – Embassy, Mindspace Business Parks, and Brookfield India– have posted higher FY25 net operating income and leasing, signalling a robust rebound from pandemic-induced downturn. The recovery also benefited from increased rental values as businesses enforced return-to-office policies, catalyzing demand and higher occupancy. Reits, or real estate investment trusts, have had their share of challenges in recent years, many of them pandemic-induced. But with the office market turning around, they are gaining more acceptance. Embassy REIT, India's first publicly-listed Reit that owns and operates a 51.1 million sq. ft portfolio of 14 office parks, clocked 6.6 million sq. ft of leasing in FY25, 60% of which was accounted for by GCCs across sectors. GCCs are offshore centres owned by multinational companies to run back-end work like IT infrastructure, human resources, supply chain and sales management. Read more: Mid-market global capability centres tend to grow faster than larger peers, without burden of legacy issues: Nasscom 'FY2025 was a bumper year for Embassy REIT on multiple fronts. We exceeded our leasing guidance by 22%, recorded a 10% increase in both revenue and NOI (net operating income), and most importantly, delivered 8% growth in distribution. This momentum sets a solid foundation as we head into FY2026," said Ritwik Bhattacharjee, CEO, Embassy REIT. Distribution refers to the payment of income, including dividends, by the Reit to its shareholders. A Reit is a trust that owns a pool of income-generating commercial office assets, such as office parks and shopping malls, held in a special purpose vehicle (SPV). It generates revenue by leasing out these properties and collecting rent from tenants. Sebi regulations require at least 80% of a Reit's assets to be completed and income-producing. Ramesh Nair, managing director and CEO of Mindspace REIT, said the company has outperformed on all fronts in FY25. It achieved its highest-ever annual gross leasing of 7.6 million sq. ft, with net asset value (NAV) up 10%, driven by rising rentals across micro-markets. Buoyed by the FY25 performances, office Reits are aiming to clock faster growth in the current financial year. 'We expect FY26 to be a steady year in terms of leasing, and growth in NOI and distribution. The vacancy level in our portfolio is 7%, and we will continue to focus on increasing the retention rate with tenants," Nair said. The turnaround in the Reit space comes at a time when gross leasing of commercial office space touched a historic high of 79 million sq. ft in 2024, as per property advisory CBRE India. The January-March period of 2025 saw 18 million sq. ft of gross leasing. All the Reits are also in the process of denotifying spaces in special economic zones, which will lead to increased occupancy levels, as tenants earlier exited due to higher compliance norms and few tax benefits. Read more: Robust demand for office spaces to give occupancies a leg-up Brookfield REIT, in an earnings presentation, said that with 2 million sq. ft of ongoing conversions and a robust leasing pipeline, it is well-placed for sustained growth this year. Mindspace REIT has also converted 2.2 million sq. ft, of which 1.2 million sq. ft has been leased. As per the latest Indian Reits Association figures, the Indian Reit market oversees gross assets under management (AUM) of around ₹ 1.52 trillion, with a market capitalization surpassing ₹ 95,000 crore as of February. Embassy REIT's Bhattacharjee said the company has guided to double-digit growth in both revenue and NOI, with distributions coming in at 10%. Reits derive cash flows from owned commercial realty assets as rental income, most of which is distributed among unitholders. Hence, the total return offered by a Reit is measured as a mix of regular distribution and capital appreciation of the units of the trust. Brookfield India REIT, which raised ₹ 3,500 crore in December through a qualified institutional placement (QIP), said in an investor presentation that it is looking to pursue acquisitions this year to significantly expand its asset portfolio. India has nearly 400 million sq. ft of Reit-worthy office space, setting the stage for future listings, as per analyst estimates, which will lead to the growth of the product. In March, a Reit sponsored by Blackstone Group and Bengaluru developer Sattva Group filed draft papers with the market regulator for an initial public offering (IPO) to raise around ₹ 7,000 crore. With a portfolio of 30 Grade A office assets across 48 million sq. ft, it will be one of the largest Reits once listed. Ram Chandnani, MD, advisory and transaction services, CBRE India, said that this year, the office market is poised to surpass the leasing levels of 2024. 'In 2025, GCCs are expected to account for nearly 35-40% of total office space absorption," he said. Read more: Sebi's big bet on REITs, InvITs—are we fixing what isn't broken?
