Embassy Office Parks REIT, India’s first listed Real Estate Investment Trust and Asia’s largest office REIT by area, has deepened its Bengaluru presence with the purchase of a 3 lakh sq ft Grade-A office property at Embassy GolfLinks Business Park (EGL) for ₹852 crore.
The newly acquired asset, a landmark commercial development in one of Bengaluru’s most vibrant office clusters, is a fully leased property to a globally leading investment firm. With this transaction, the micro-market of a city where the leasing momentum has been very consistent, and there has been strong occupier interest and rising rental values, has witnessed the expansion of the REIT's ownership.
The property situated in the very core of EGL goes hand in hand with the long-term plan of Embassy REIT to procure high-grade, yield-accretive properties in the most happening office corridors of India. With the mobility of the world’s most essential technology, consulting, and GCCs, the vehicle that has put Bangalore on the world map, continues to be the most desirable and luxurious business park of Bengaluru, allowing for smooth commuting because of well-established infrastructure and an indisputable line-up of ideally located multinational tenants.
Mr. Amit Shetty, Chief Executive Officer of Embassy REIT, said, “We are pleased to announce this third-party acquisition, which underscores Embassy REIT’s strategy of driving growth through high-quality, yield-accretive investments in India’s most dynamic office markets. Bengaluru continues to be India’s office capital, and Embassy GolfLinks is home to some of the world’s most influential technology and GCC occupiers.”
At present, Embassy REIT holds and manages a portfolio of 50.8 million sq ft that covers 14 massive office parks situated in Bengaluru, Mumbai, Pune, Delhi-NCR, and Chennai. Out of this, 40.9 million sq ft consists of finished, operational assets, making the REIT one of the major contributors of the Grade-A commercial real estate ecosystem in India. The group’s colleges in total are the common roof over 274 multinational and domestic companies, and like that, they are an embodiment of its capacity and institutional qualities.
The newly acquired property is not only a move that consolidates the position of Embassy REIT in Bengaluru, but it is also a pivotal moment for the company to intensify its presence in the well-established, highly liquid office clusters where the prediction of the rental market is still favorable. Over the years, the likes of returning tech companies, keen on achieving carbon neutrality, and headquarter functions in the AI and cloud segments, have combined with the integration of office spaces with hospitality and supporting amenities to keep the normally low vac figure of the EGL hovering around 2%. These attributes contribute to the long-term asset performance and yield stability which lie at the core of the investment framework of the REIT.
The transaction is happening at a time when India’s commercial real estate market is increasingly witnessing growing investor interests, which is mainly due to the strong show of the listed REITs and the positive sentiment that prevails among occupiers. According to the recent industry reports, India’s REIT market has an opportunity to almost double to ₹19.7 trillion by 2030, the factors driving the growth being the demand for Grade-A office spaces, the expansion of GCC, and rising institutional participation. Embassy REIT’s last deal is in line with this trajectory, allowing it to stay as one of the major powerhouses in the country’s most competitive office markets.
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