Almost after four years since its notification and continuous effort by the central Government, India’s first REIT is all set to debut this year’s by Diwali. Embassy Office Parks, a joint venture of US private equity firm Blackstone Group and India’s Embassy Group, is all set to file documents with the Securities and Exchange Board of India (SEBI), proposing to raise over Rs 5,000 crore through this route.
The Blackstone-Embassy REIT will not only India’s first but also Asia’s largest REIT in terms of office portfolio area, more than twice the size of others in the continent. With this, India will join the league of other global REIT markets like US, UK, Singapore, Japan, Australia, and Canada.
In their maiden REIT, Embassy Office Park will list 33 million square foot of commercial space spread across major cities including Mumbai, Pune, Bengaluru, Hyderabad, Chennai, and Noida. Twenty-four million sqft of this area is complete, with a 95 percent occupancy rate. More than half of company tenants are Fortune 500 companies, including Google, JP Morgan, Microsoft, and Mercedes Benz.
Apart from Embassy office parks, the other premium properties included in the REIT are the iconic Express Tower at Nariman Point part of the International Financial Centre at the Bandra-Kurla Complex, 247 Park at Vikhroli, the Blue Ridge Special Economic Zone, Galaxy IT Park and Oxygen Boulevard in Noida.
Talking about REIT or Real Estate Investment Trust, it is a trust which owns and operate a portfolio of income-producing real estate. In this type of investment option, investors can put their money in large-scale properties and is open to everyone for buying stocks. Most REIT companies trade on major stock exchanges, and hence offer a number of benefits to investors. With this development, the Indian real estate market will get a boost and reach to the next level. Expert says that it will formalize the real estate market of India and also bring in more investment.