Kotak Mahindra Life Insurance was one of the domestic investors alongside trusts linked to Radhakishan Damani and Gopikishan Damani.
Embassy Office Parks REIT, which opens on Monday and closes on Wednesday, plans to raise around Rs 4,750 crore in India’s first real estate investment trust listing. The REIT, which includes Embassy Group properties, is offering units at Rs 299-300 apiece.
The Embassy Office Parks REIT is a joint venture between Bangalore-based property developer and private equity firm Blackstone.
Embassy’s portfolio comprises seven office parks and four city-centre office buildings totalling 32.6 million square feet (msf) as of March 31, 2018, with strategic amenities in cities including Bengaluru, Pune, Mumbai and Noida.
As of March 31, 2018, around 81.4 per cent of the gross rentals from their 160 tenant base is contracted with multinational corporations and around 43.8 per cent is contracted with Fortune 500 companies, such as JP Morgan, Google and Microsoft.
A REIT is a company that owns, and in most cases operates, income-producing real estate like office spaces and apartment buildings, warehouses, hospitals, shopping centres, hotels and timberlands. Structured like mutual funds, REITs are listed, and investors may choose to commit money into such trusts in exchange for dividend-based returns.
Sebi first issued REIT regulations in 2014, which were then revised in 2016 and 2017, paving the way for this globally popular product to take off in the Indian market.
India-based Embassy Group and the US-based Blackstone group registered their REIT in 2017. They filed for the IPO in September last year.