Embassy Office Parks REIT Company Summary

Embassy Office Parks REIT Summary

Embassy Property Developments Private Limited (EPDPL) and BRE/Mauritius Investments (BMI) collectively known as (the Sponsors or the Co-Sponsors) set up the Embassy Office Parks REIT on March 30, 2017 at Bengaluru, Karnataka, India under the provisions of the Indian Trusts Act, 1882 pursuant to a Trust Deed dated March 30, 2017 as amended on September 11, 2018. The Embassy Office Parks REIT was registered with SEBI on August 3, 2017 under Regulation 6 of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014. SEBI took on record the addition of the Blackstone Sponsor to the sponsors of the Embassy REIT. The Trustee to Embassy Office Parks REIT is Axis Trustee Services Limited (the Trustee) and the Manager for Embassy Office Parks REIT is Embassy Office Parks Management Services Private Limited (the Manager or EOPMSPL). EOPMSPL has been appointed as the Manager to the Embassy REIT. EOPMSPL is held by the Embassy Sponsor and certain entities forming part of the Blackstone Sponsor Group. Axis Trustee Services Limited has been appointed as the Trustee to the Embassy REIT.Embassy REIT is Indias first publicly listed Real Estate Investment Trust. Embassy REIT owns and operates a 45.4 million square feet (msf) portfolio of nine infrastructure-like office parks and four city-centre office buildings in Indias best-performing office markets of Bengaluru, Mumbai, Pune, and the National Capital Region (NCR). Embassy REITs portfolio comprises 36.5 msf completed operating area and is home to 255 of the worlds leading companies. The portfolio also comprises strategic amenities, including four operational business hotels, two under-construction hotels, and a 100 MW solar park supplying renewable energy to tenants. The principal activity of Embassy REIT is to own and invest in rent or income generating real estate and related assets in India with the aim of producing stable and sustainable distributions to Unitholders. The Embassy REIT owns one of Indias largest office portfolios and believes that replicating such a platform would be difficult given land acquisition complexities and long development timelines in India. Approximately 80.9% of the Gross Rentals from its 160+ marquee tenant base is contracted with leading multinational corporations and approximately 43.4% is contracted with Fortune 500 companies such as JP Morgan, IBM and Microsoft, as of December 31, 2018. Its high quality tenant base along with long-term contracted rentals (with a WALE of 7.0 years) provides considerable stability to their Portfolio.While its Portfolio is highly stabilized at 95.0% Committed Occupancy, It is well positioned to achieve further organic growth through a combination of contractual rent escalations, re-leasing at market rents, lease-up of vacant space and new construction within the Portfolio to accommodate tenant expansion. Portfolio revenue from operations is projected to grow by 55.8% over the Projections Period primarily due to these factors. It believes the scale and quality of its business that has given them a market leading position, makes its properties the preferred office location in each of their respective sub markets and allows them to offer consolidation and expansion options for their tenants. This has enabled them to attract, retain and grow multinational tenants in their parks leading to tenant stickiness.In March 2019, Embassy Office Parks REIT came out with an Initial Public Offering (IPO) of 158,333.200 Equity Shares for cash at a price of Rs 300 per unit by raising capital through equity aggregating up to Rs 4750 Crores by the Company. The Units of the Trust were listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on April 1, 2019.In 2024, the Board of Directors of the Manager of the Embassy REIT, acquired 100% of the equity share capital of ESNP Property Builders and Developers Private Limited, which holds Embassy Splendid TechZone, Chennai, for an enterprise value of up to Rs 12.69 Crores. The Trust launched one of Indias largest mixed use complexes with the Hilton hotel at Embassy Manyata, Embassy TechVillage in 2024.