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Embassy Office Parks' issue subscribed 2.6 times on final day of bidding

twitter-logo PTI        Last Updated: March 20, 2019  | 20:33 IST

New Delhi, Mar 20 (PTI) The country's first real estate investment trust (REIT), launched by Blackstone and Embassy Group, has been subscribed 2.57 times at the end of the three-day bidding process Wednesday, helping the firm raise Rs 4,750 crore. Embassy Office Park, the joint venture of Blackstone and realty firm Embassy Group, raised Rs 2,619 crore from anchor and strategic investors ahead of its initial issue, which opened on Monday and closed on Wednesday. According to sources, the units offered through REITs will be listed on exchanges in the first week of April. The success of India's first REIT will boost investment in commercial real estate and encourage more property developers to raise funds through this route. This will also enable institutional and retail investors to participate in the growth of commercial real estate in the country. According to the latest exchange data, the issue received bids for 18,34,76,000 units against the total issue size of 7,12,56,400 units. The issue is in the price band of Rs 299-300 per unit. Last week, ahead of its initial issue, Embassy Office Parks had allocated 58,105,600 units to anchor investors at Rs 300 each, totalling Rs 1,743 crore. It had also allotted 2,92,08,800 units for Rs 876.3 crore to strategic investors. 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. On the success of the nation's first REIT, property consultant JLL India Chief Executive Officer and Country Head Ramesh Nair said, "The reason for the success of the Embassy Blackstone REIT is because a REIT offers predictability, low volatility and liquidity to the investor." The REIT also offers the unique twin benefits of fixed income through dividend coupled with equity type of returns through rental growth, he added. CBRE India Country Head Anshuman Magazine said the success of REIT would help elevate investor sentiments in the country's real estate market. India offers major advantages for REITs, including availability of a wide variety of quality assets, a wide investor base, and opportunities for capital appreciation, he added. "The positive response to the REIT will help build further confidence among global investors and attract them to consider India along with its global peers such as Singapore and Hong Kong," said Knight Frank India Chairman Shishir Baijal. Embassy Office Parks had in September last year filed the draft red herring prospectus (DRHP) with markets regulator Sebi to launch REIT, touted as Asia's largest in terms of portfolio size of 33 million sq ft. Embassy Office Parks, a leading player in commercial real estate, has put 33 million sq ft of office and hospitality assets under its proposed REIT comprising seven business parks and four city-centric buildings spread across Mumbai, Bengaluru, Pune and Noida. PTI VHP SUM MJH HRS

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