India’s much-awaited maiden real estate investment trust (REIT) is set to debut almost four years after the rules were notified and efforts by the government over the past few years to put in place regulations on par with global standards.
Embassy Office Parks, a joint venture of US private equity firm Blackstone Group and Embassy Group, is to file documents with the Securities and Exchange Board of India(Sebi) on Monday, proposing to raise over Rs 5,000 crore through this route, said two people with knowledge of the development. Apart from being India’s first, the Blackstone-Embassy REIT will be Asia’s largest in terms of office portfolio area, more than twice the size of others in the continent.
With this, India will join the league of global REIT markets such as the US, the UK, Singapore, Japan Australia and Canada. Embassy Office Parks will list 33 million square feet of office real estate portfolio under the REIT.
The proposed REIT portfolio includes over 70 assets in Mumbai, Bengaluru, Pune and the National Capital Region. In addition, Blackstone has included its own commercial assets such as Express Tower in Nariman Point, part of the First International Financial Center in the Bandra-Kurla Complex and 247 Park at Vikhroli in Mumbai in the portfolio. In August, ET was first to report that Blackstone would expand the REIT portfolio by including its own assets in this issue.
“The portfolio, both in terms of size and rental income, is much bigger than the earlier plan as Blackstone has contributed a few of its marquee income-generating assets. Majority of the assets in the REIT have been stabilised,” said one person. Blackstone has brought together integrated office parks and city centre buildings in the REIT. Blackstone and Embassy Group declined to comment.