Embassy Ltd. proposes merger with Indiabulls in real estate business

Mumbai based Indiabulls Ltd. is likely to merge 62 million sq ft of its real estate with Bengaluru-based developer, Embassy group.

Embassy Ltd. proposes merger with Indiabulls in real estate business. Embassy Group has offered to merge 61.9 million sq ft of its real estate assets into Indiabulls Real Estate Ltd (IBREL), the latter said in a regulatory filing on Wednesday.

Once the merger goes through, Embassy Group headed by chairman Jitu Virwani will take control of the combined entity. Indiabulls Group promoter Sameer Gehlaut will turn a passive shareholder in the real estate business and focus on its financial services business.

“This merger with Indiabulls will strengthen our presence across locations in the country. It will also create a platform for future development in partnership with Institutional investors,” said Virwani.

MOreover, the merger of the 11 projects, mostly premium residential. And a few office developments, of Bengaluru-based developer Embassy Property Developments Pvt Ltd. But into IBREL will be subject to a ‘scheme of amalgamation’ and will have to get statutory approvals.

Real Estate Deal

Also, earlier this year, Mumbai-based IBREL approved the merger of certain projects of Embassy Property Developments with itself, to form a new entity.

Blackstone Group is a key investor in many of Embassy’s projects and the duo operates the Embassy real estate investment Trust (REIT). The REIT portfolio has over 30 million sq ft of constructed and leased out assets and a few hotel properties. Embassy and the financial investor. Also, Blackstone will receive shares of IBREL. According to the share swap ratio approved by the two companies.

Indiabulls realty co to merge with B'luru-based Embassy - Times of ...Image credits: timesofindia.indiatimes.com

In June, IBREL had said that with the lockdown relaxations. However, efforts are being made by Embassy and IBREL to execute transaction documents on or before 15 July.

In June, 2019, IBREL promoters had sold 14% stake through open market transactions to Embassy Group for ₹950 crore.

On July 16 12:12, Indiabulls Real Estate was trading at Rs 58.50 on the NSE.

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