Embassy Office Parks REIT experienced a substantial downturn of nearly 5 percent in the early trading hours on December 20 following a significant block deal amounting to Rs 7,148 crore.
As reported by CNBC-TV18, a noteworthy 22.36 crore shares, constituting a 22.36 percent stake in Embassy Office Parks REIT, were exchanged on the exchanges at a floor price of Rs 319.65. This block deal also catalyzed a surge in trading volumes, with 23 crore shares changing hands on the bourses so far, marking a considerable increase compared to the one-month daily traded average of 9 lakh shares.
Reports circulating in the financial realm hinted at private equity firm Blackstone contemplating an exit from Embassy Office Parks REIT through a substantial block deal valued at $833 million. The proposed deal envisioned the divestment of Blackstone’s entire 23.6 percent stake in Embassy REIT at a floor price of Rs 310 per share, representing an approximately 8 percent discount to the stock’s closing price in the previous session, standing at Rs 335.75.
In addition to Blackstone, other prominent institutional names such as Abu Dhabi Investment Authority, Capital Group, and Bain Capital also hold stakes in Embassy REIT. As India’s inaugural real estate investment trust, Embassy Office Parks REIT is backed by the globally renowned investment firm Blackstone and Bengaluru-based real estate company Embassy Group.
The company boasts ownership and management of an extensive portfolio spanning 45 million square feet, comprising nine office parks with infrastructure-like features and four office buildings strategically located in the city centers of Bengaluru, Mumbai, Pune, and the National Capital Region (NCR).
Introduced in India a few years ago, REIT has gained global popularity as a financial instrument designed to attract investments in the real estate sector. Serving as a conduit for capitalizing on income-generating assets, REITs unlock significant value from real estate assets and encourage participation from retail investors.
As of 10:39 am, Embassy Office Parks REIT shares showed a 0.18% dip, settling at ₹334.92.
