Embassy Property Developments sold 4% of its shareholding in the Embassy Office Parks REIT (Embassy REIT) to Bain Capital, the company said in a statement on March 3, 2023. The deal included sale of 4.2 crore shares, valued at an estimated 1,200 crore, media reports said citing sources.
The sale would help the company reduce its overall debt by approximately 30% before June 30, 2023, it added. It has also had sales of over Rs. 1,100 crore in this fiscal year to help towards debt repayment.
“As the sponsor of the Embassy REIT, the Embassy Group reiterates its commitment to the growth, development and management of the REIT, and does not have any future plans to sell further ownership in the REIT. Over the next few months, Embassy Group will monetise certain other assets to additionally ease debt levels and strengthen its balance sheet,” the company said in an official statement.
Embassy REIT continues to have multiple marquee institutional investors, including the Abu Dhabi Investment Authority (ADIA), The Blackstone Group, Capital Group, and now Bain Capital. Despite global recessionary concerns, Embassy REIT has delivered quarter after quarter of strong business performance. With a robust 4.4 msf year-to-date leasing and an accelerated 6.6 msf development growth, it is on track to achieve FY2023 guidance.
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