Embassy REIT Raises Rs. 36.8 Billion (USD 501 Million) Unit Capital Through an Institutional Placement of Units

Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’), India’s first listed REIT and one of the largest in Asia by area, announced today that it has successfully completed a unit capital raise of Rs. 36.8 billion ($501 million) through an Institutional Placement of units.

The Securities Committee of the Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, approved the issuance and allotment of 111,335,400 new units through this Institutional Placement in a meeting held earlier today, i.e., on December 22, 2020. Trading of these units is expected to commence on or around December 24, 2020 on NSE and BSE exchanges.

The Institutional Placement launched on December 15, 2020 and witnessed strong demand from both existing as well as new institutional investors, including global and domestic investors, pension funds, insurers, and alternative asset managers.

Mike Holland, Chief Executive Officer of Embassy REIT said, “We appreciate the overwhelming support we received from our existing investors as well as many new domestic and global institutional investors in our first ever Institutional Placement. The strong demand for our offering amidst market uncertainties and the ongoing pandemic is a testament to the confidence in Embassy REIT’s inorganic growth strategy of owning quality office assets such as Embassy TechVillage. This Institutional Placement of new units diversifies our unitholder register, enhances the liquidity of our units, and is expected to facilitate the REIT’s potential inclusion into additional global benchmark equity indices.”

The Placement issue price of Rs. 331.00 per unit represents a discount of 4.99% to the applicable floor price of Rs. 348.38 per unit calculated in accordance with applicable SEBI regulations.

Subject to applicable regulations, Embassy REIT proposes to use the proceeds from this Placement to fund its proposed acquisition of Embassy TechVillage (“ETV”) that it announced earlier on November 17, 2020, and for general purposes. Embassy REIT is acquiring ETV from the Embassy Sponsor, members of the Blackstone group and other selling shareholders, for a total enterprise valuation of Rs. 97,824 million ($1.3 billion), subject to closing adjustments. The transaction is expected to close by end of December 2020.

Morgan Stanley India Company Private Limited, Kotak Mahindra Capital Company Limited, BofA Securities India Limited, J.P. Morgan India Private Limited, Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited and IIFL Securities Limited served as Joint Bookrunning Lead Managers for the offering.