Embassy Office Parks REIT, managed by Embassy Office Parks Management Services, plans to raise Rs 500 crore through debentures for debt refinancing. The debenture committee approved the allocation of 50,000 Series VIII NCDs on a private placement basis. These NCDs will have a 60-month tenure with an 8.10 percent coupon rate per year. Embassy REIT aims to list them in BSE's Wholesale Debt Market Segment. The company received Rs 500.15 crore against the principal amount. In Q1 of the current fiscal year, Embassy REIT reported a 9 percent increase in net operating income to Rs 737.6 crore and distributed Rs 510 crore to unitholders.
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In a decisive move, the board of directors at Embassy Office Parks Management Services, the overseeing entity for Embassy Office Parks REIT (Embassy REIT), has endorsed the acquisition of Rs 500 crore through debentures to strategically recalibrate current debts. This pivotal decision was formally communicated through a BSE filing by the company. With a decisive nod, the committee has sanctioned the issuance of 50,000 Series VIII NCDs by Embassy REIT through an astute private placement initiative. Each of these NCDs, valued at Rs 1 lakh, has been meticulously tailored to be listed, rated, secured, redeemable, and transferable, all denominated in rupees. Significantly, they are poised to be listed in the Wholesale Debt Market Segment of BSE Limited.
The Series VIII NCDs will have a defined tenure of 60 months from the date of allotment and will carry an attractive coupon rate of 8.10 percent per annum, payable quarterly to the debenture holders. The issue price of these NCDs was meticulously ascertained through a comprehensive process involving multiple yield allotments. Accordingly, Embassy REIT has successfully amassed a substantial sum of Rs 500.15 crore as consideration, substantially offsetting the aggregate principal amount of up to Rs 500 crore, as confirmed in the regulatory filing.
In an earlier notable development on August 23, 2023, Embassy REIT disclosed the issuance of 1,00,000 debentures of similar attributes, effectively translating to an aggregate value of Rs 1,000 crore. This substantial sum was effectively segregated across two well-structured tranches, executed under the umbrella of a private placement. The operational prowess of Embassy Office Parks REIT was underscored by a commendable 9 percent augmentation in net operating income (NOI), reaching an impressive Rs 737.6 crore for the inaugural quarter of the ongoing fiscal year.
This achievement culminated in the declaration of a distribution amounting to Rs 510 crore to the esteemed unitholders. Notably, the NOI recorded for the equivalent period in the previous fiscal year was valiantly perched at Rs 677.3 crore. Furthermore, revenue stemming from operations experienced an impressive ascension, marking a 10 percent uptick to Rs 913.6 crore in the quarter under review, compared to the Rs 829.4 crore figure registered during the corresponding period in the preceding year. Embassy REIT, proudly recognized as India's pioneering publicly listed real estate investment trust (REIT), has curated a distinguished portfolio spanning a sprawling expanse of 45 million square feet.
This assortment includes a well-balanced ensemble of nine office parks meticulously designed with infrastructure-like precision, augmented by four strategically positioned city centre office edifices gracing the urban landscapes of Bengaluru, Mumbai, Pune, and the National Capital Region (NCR). Notably, this comprehensive assemblage encompasses a completed operational area, magnificently spanning 34.3 million square feet, making it a prominent player in the real estate landscape.
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