Embassy REIT Expands Footprint with Chennai Business Park Acquisition

Embassy Office Parks REIT has acquired a 50 lakh square feet business park in Chennai for Rs 1,185 crore, funded by Rs 1,200 crore in debt. This increases their portfolio to 50.5 million square feet. The park features completed, under-construction, and future development areas, with high occupancy rates from marquee tenants.


PTI | Bengaluru | Updated: 03-06-2024 15:39 IST | Created: 03-06-2024 15:39 IST
Embassy REIT Expands Footprint with Chennai Business Park Acquisition
AI Generated Representative Image

Embassy Office Parks REIT has successfully acquired a massive 50 lakh square feet business park in Chennai for Rs 1,185 crore, according to a regulatory filing on Monday. The acquisition, primarily funded through debt of Rs 1,200 crore and internal accruals, aims to expand Embassy's portfolio and grow its business.

The new acquisition, named 'Embassy Splendid TechZone (ESTZ)', is a Grade-A business park that includes 1.4 million square feet of completed buildings, 1.6 million square feet under construction, and another 2 million square feet earmarked for future development. This move boosts Embassy REIT's total portfolio to 50.5 million square feet.

Aravind Maiya, CEO of Embassy REIT, noted that the acquisition not only strengthens their high-quality office assets but also facilitates their entry into Chennai, one of India's leading office markets. Embassy REIT's portfolio now includes properties in prime markets like Bengaluru, Mumbai, Pune, and the NCR, making it a significant player in India's commercial real estate sector.

The company also hinted at the possibility of raising equity for future endeavors when the market conditions are more favorable. The Chennai business park offers stable cash flows from 95 per cent occupancy and the potential for further growth through its ongoing and future development projects.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback