Embassy REIT trades under pressure as ~8% equity change hands in block deal

27 Sep 2022 , 02:44 PM

Embassy Office Parks REIT’s counter was trading as much as 2% lower on Tuesday as US-based private equity firm Blackstone Group sell up to 77 million shares of the company, representing 8.12% of total units outstanding as of June 30, 2022, via block deals.

The deal was estimated to be valued at roughly $325 million or Rs2,660 crore, with the floor price set at Rs345 per unit, a 1.66% down by Monday’s closing price of Rs350.82.

According to reports, the Abu Dhabi Investment Authority (ADIA), the sovereign fund of Abu Dhabi, is said to be engaging in these block purchases and buying a $200 million share in the REIT.

In September 2021, the global private equity firm sold a 6% share in Embassy Office Parks for around $275 million. The deals lowered Blackstone’s shareholding in the REIT from 38% to 32%.

Embassy Office Parks REIT, co-sponsored by the Blackstone Group and Embassy Group, became India’s first REIT in April 2019.

At around 2.42 PM, Embassy Office Parks REIT was trading 1.07% lower at Rs347.67, against the previous close of Rs351.40 on BSE. So far, it hit an intraday high and low of Rs349.87 and Rs345.45 respectively.

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