Press Release

Data update as per latest quarterly results. Currently updated as of September 30, 2020 and excludes recently completed Embassy TechVillage Acquisition.

Embassy REIT to Acquire Property Maintenance Business of Existing REIT Properties at Embassy Manyata and Embassy TechZone, from Embassy Group

Bengaluru, India – October 22, 2020

Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’), India’s first listed Real Estate Investment Trust and the largest in Asia by area, today announced that the Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, in its meeting held earlier today, approved the acquisition of the property maintenance business of Embassy Manyata Business Park in Bengaluru (‘Embassy Manyata’) and of Embassy TechZone in Pune (‘Embassy TechZone’) from an Embassy Group affiliate. Embassy Manyata and Embassy TechZone are part of Embassy REIT’s existing asset portfolio and the acquisition further integrates 20.3 msf of property maintenance business to the existing 9.9 msf properties already directly managed by Embassy REIT.

Michael Holland, Chief Executive Officer of Embassy REIT said, “In addition to enhancing our operating income, this transaction fully integrates and aligns property management for all REIT assets and helps further strengthen operational relationships with our occupiers. It will allow us to enhance service delivery, which is particularly important to our occupiers as they finalize ‘Back to Workplace’ strategies.”

Embassy REIT is acquiring the property maintenance businesses from Embassy Services Private Limited, an Embassy Group affiliate and expects to fund the consideration by issuing coupon bearing debt at the REIT level. This strategic acquisition is expected to be Net Operating Income (‘NOI’) accretive and Distribution per Unit (‘DPU’) accretive, and positively enhances REIT’s ability to respond with increased agility to its occupiers’ needs and address their safety concerns during the current pandemic situation. On closing, Embassy REIT will own the property management service delivery for all its fully owned properties. The transaction is subject to completion of customary conditions precedent and is expected to be completed on or before 3Q FY2020-21.

Transaction Highlights

  • Acquisition cost of ₹4,740 million to be funded through coupon bearing debt at REIT level. Acquisition consideration is at 8.5% discount to average of two independent valuation reports
  • Proposed transaction is expected to be 2.3% NOI accretive and 0.5% DPU accretive in its first year on a proforma basis (considering FY2019-20 actual NOI and DPU for the REIT as the basis)
  • Acquisition of property maintenance businesses of two of Embassy REIT’s largest assets further enhances service delivery to occupiers, especially important given the heightened health and safety focus by occupiers
  • Strong framework in place regulating related party transaction including two independent third party valuations and affiliated board members abstaining from approval vote


This press release is prepared for general information purposes only. The information contained herein is based on management information and estimates. It is only current as of its date, has not been independently verified and may be subject to change without notice. Embassy Office Parks Management Services Private Limited (“the Manager”) in its capacity as the Manager of the Embassy Office Parks REIT (“Embassy REIT”), and Embassy REIT make no representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to, the fairness and completeness of the content hereof. Each recipient will be solely responsible for its own investigation, assessment and analysis of the market and the market position of Embassy REIT. This press release also contains certain financial measures which are not audited, reviewed or measures determined based on GAAP, Ind-AS or any other internationally accepted accounting principles, and the recipient should not consider such items as an alternative to the historical financial results or other indicators of the Embassy REIT's cash flow based on Ind-AS or IFRS.

This press release contains forward-looking statements based on the currently held beliefs, opinions and assumptions of the Manager. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of Embassy REIT or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, including the impact of COVID-19 on us, our occupiers and the Indian and global economies, recipients of this press release are cautioned not to place undue reliance on these forward-looking statements. The Manager disclaims any obligation to update these forward-looking statements to reflect future events or developments or the impact of events which cannot currently be ascertained, such as COVID-19. In addition to statements which are forward looking by reason of context, the words ‘may’, ‘will’, ‘should’, ‘expects’, ‘plans’, ‘intends’, ‘anticipates’, ‘believes’, ‘estimates’, ‘predicts’, ‘potential’ or ‘continue’ and similar expressions identify forward-looking statements.

About Embassy REIT

Embassy Office Parks is India’s first publicly listed Real Estate Investment Trust (REIT). Listed in April 2019, we own and operate a 33.3 million square feet (msf) portfolio of seven infrastructure-like office parks and four city‑centre office buildings in India’s best performing office markets of Bengaluru, Mumbai, Pune, and the National Capital Region (NCR). Embassy Office Parks’ portfolio comprises 26.2 msf completed operating area, has an occupancy of 92.2% as of June 30, 2020, and is home to many of the world’s leading companies as occupiers. The portfolio also comprises strategic amenities, including two operational business hotels, two under‑construction hotels, and a 100MW solar park supplying renewable energy to park occupiers.

For more information please contact:

Ritwik Bhattacharjee
Head - Capital Markets & Investor Relations
Phone: +91 80 3322 2222