The REIT, which includes Embassy Group properties, will offer as many as 158.6 million units at INR 299 to INR 300 apiece.
Tuesday 12, March 2019
(Bloomberg) -- Blackstone Group-backed Embassy Office Parks REIT plans to raise about INR 47.5 billion ($682 million) in India’s first real estate investment trust listing.
The REIT will start taking orders from anchor investors this week before moving on to a public offering from 18 March to 20 March.
A successful listing of the REIT, expected by 3 April 3 according to the terms, will potentially open a fundraising avenue for India’s cash-starved property companies. The nation’s real estate developers are struggling with sluggish sales and price declines that followed a 2016 crackdown on cash as well as new consumer protection and tax policies.
A cash crunch at shadow lenders following defaults at Infrastructure Leasing & Financial Services Limited also curtailed availability of capital to developers.
Sandeep Upadhyay, Managing Director at Centrum Capital, said, “Considering the rough patch that the real estate sector is going through, there is a lot riding on this sale, if there is enough demand for this issuance we will see more REITs tapping the market over next one year.”
The trust’s portfolio comprises about 33 million square feet of office space across four Indian cities, Bengaluru, Pune as well as Mumbai and Noida.