Blackstone & Embassy to launch India's first REIT on March 18... target Rs 4,750 cr
New Delhi: Global investment company Blackstone and realty firm Embassy will hit the capital market with the country's first real estate investment trust (REIT) to raise up to Rs 4,750 crore, while it has received Rs 876-crore commitment from strategic investors.
Embassy Office Parks, joint venture of Blackstone and Embassy, has entered into unit subscription agreements with strategic investors to allot them 2,92,08,800 units for Rs 876.3 crore.
These investors are American Funds Insurance Series, New World Fund INC and SMALLCAP World Fund Inc, according to a regulatory filing.
The REIT issue will open on March 18 with a price band of Rs 299-300 per unit. The issue closes on March 20. The total issue size is 12,95,56,000 units.
Embassy Office Parks had in September last year filed the draft red herring prospectus (DRHP) with market regulator Sebi to launch REIT, touted as Asia's largest in terms of portfolio size of 33 million sq ft.
REIT is an investment tool that owns and operates rent-yielding real estate assets. It allows individual investors to make investment in this platform and earn income. Sebi had notified REIT's regulations in 2014, allowing setting up and listing of such trusts, which are popular in some advanced markets.
"We will launch our REIT in few weeks," Embassy Office Parks CEO Mike Holland had told PTI on February 24.