The issue was subscribed 2.57 times, data on the NSE showed. The quota for institutional investors was subscribed 2.15 times and non-institutional 3.10 times.
The REIT, which includes Embassy Group properties and is a joint venture between the Bengaluru-based property developer and PE firm Blackstone, is offering units at Rs 299-300 per share.
Ahead of the opening of the issue, the REIT had raised Rs 1,743 crore from anchor investors, including a host of foreign investors. Kotak Mahindra Life Insurance Co was one of the domestic investors alongside trusts linked to Radhakishan Damani and Gopikishan Damani.
“The oversubscription of the REIT is a very encouraging sign for the real estate sector, and specially for the commercial segment,” Shishir Baijal, Chairman & Managing Director, Knight Frank India
“This is not just India’s first REITs offering, but also the largest in Asia,” Baijal added.
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 of dividend-based returns.
Embassy’s portfolio comprises seven office parks and four city-centre office buildings totaling 32.6 million square feet (msf) as of 31 March, 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 JPMorgan, Google and Microsoft.
The trust is also keen on expansion in due course and at right prices in Chennai and Hyderabad. In Chennai, it has a ROFO (right of first offer) asset, which is currently under construction. It is a 5 million square feet (msf) asset, but only 0.9 msf has been completed.
