Advertisement
The Gulf conflict has disrupted global supply chains, pushed...
REITs have changed the way commercial real estate is owned a...
What does it take to preserve a real estate legacy while bui...
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Embassy Office Parks REIT plans to acquire 10-12 million sq ft of office space over the next three to four years as it seeks to expand its portfolio amid sustained demand for premium and flexible workspaces. The REIT currently owns and operates more than 52 million sq ft across Bengaluru, Mumbai, Pune, Delhi-NCR and Chennai. It is also developing 6.2 million sq ft of office space at an estimated cost of INR 3,500 crore. CEO Amit Shetty said foreign companies establishing Global Capability Centres (GCCs) and demand from managed workspace providers were supporting office leasing. Embassy REIT leased 1.3 million sq ft during the June quarter, including 0.7 million sq ft of fresh leasing. GCCs accounted for 81% of quarterly leasing, while AI-related companies contributed 21% of new leasing. The REIT reported quarterly NOI of INR 1,020 crore and distributed INR 598 crore to unitholders.
Embassy Office Parks REIT plans to acquire 10-12 million sq ft of office space over the next three to four years as it expands its portfolio in response to sustained demand for workspaces across major Indian cities, CEO Amit Shetty said in an interview with PTI.
Embassy REIT currently owns and operates more than 52 million sq ft of office space across Bengaluru, Mumbai, Pune, Delhi-NCR and Chennai. Shetty said demand remained strong despite global uncertainties, with foreign companies continuing to lease premium office space to establish Global Capability Centres (GCCs) across major Indian markets.
The managed workspace and coworking segment is also contributing to demand, with companies seeking flexible office solutions. To cater to the continued leasing activity, Embassy REIT is currently constructing 6.2 million sq ft of office space at an estimated investment of INR 3,500 crore.
The REIT is also pursuing inorganic expansion through acquisitions. Shetty said the company was evaluating properties in the top five to six cities and had an acquisition pipeline of around 10-12 million sq ft. The potential acquisitions include assets from third parties as well as properties held by the group’s sponsor entity, with which Embassy REIT is working on opportunities.
The company is evaluating the identified properties and expects to complete some acquisitions during the current financial year. Shetty said the REIT had sufficient debt capacity to finance acquisitions once individual transactions are finalised.
Embassy REIT reported a 17% year-on-year increase in net operating income (NOI) to INR 1,020 crore for the quarter ended June. Revenue from operations also increased 17% annually to INR 1,241 crore during the first quarter of FY27.
The REIT declared a distribution of INR 598 crore, equivalent to INR 6.31 per unit, to unitholders for the April-June quarter. During the period, it leased 1.3 million sq ft of office space, including 0.7 million sq ft of fresh leasing.
GCCs accounted for 81% of leasing during the quarter, according to Shetty. AI-related companies contributed 21% of new leasing, reflecting increased demand from businesses involved in the development and application of artificial intelligence technologies.
Embassy REIT is sponsored by Bengaluru-based Embassy Group, which also has two listed entities, Embassy Developments and WeWork India.
Beyond its office portfolio, the REIT owns strategic amenities and infrastructure supporting its properties. These include five operational business hotels, two hotels under development and a 100 MW solar park that supplies renewable energy to its tenants.
The planned acquisitions, ongoing construction and existing portfolio together provide Embassy REIT with multiple avenues for increasing its office footprint. The company’s acquisition pipeline will focus on the country’s leading office markets, while its current development programme adds 6.2 million sq ft to its existing operational portfolio.
Source - PTI
Advertisement
Facebook
Whatsapp
