Embassy REIT slumps 5% after Rs 7,148-cr block deal, Blackstone likely seller

Shares of Embassy Office Parks REIT slumped nearly 5 percent in opening trade on December 20 after a Rs 7,148-crore block deal.

According to CNBC-TV18, around 22.36 crore shares, making up a 22.36 percent stake in Embassy Office Parks REIT, changed hands on the exchanges at a floor price of Rs 319.65.

At 09.56 am, shares of Embassy REIT were trading 2 percent lower at Rs 329.05 on the NSE.

The block deal also triggered a spike in volumes in the counter as 23 crore shares changed hands on the bourses so far, manifolds the one-month daily traded average of 9 lakh shares.

Moneycontrol had reported citing multiple sources that private equity firm Blackstone was planning to exit Embassy Office Parks REIT, through a mega block deal of $833 million.

The private equity firm intended to sell its entire stake of 23.6 percent in the Embassy REIT through the deal route at a floor price of Rs 310 per share, reflecting a nearly 8 percent discount to the stock’s closing price of Rs 335.75 in the previous session.

Aside from Blackstone,  Abu Dhabi Investment Authority, Capital Group, and Bain Capital are some other marquee institutional names that hold stakes in Embassy REIT. India’s inaugural real estate investment trust (REIT), Embassy Office Parks REIT, is sponsored by the globally renowned investment firm Blackstone and Bengaluru-based real estate company Embassy Group.

The company owns and manages a substantial portfolio spanning 45 million square feet, consisting of nine office parks with infrastructure-like features and four office buildings situated in the city centers of Bengaluru, Mumbai, Pune, and the National Capital Region (NCR).

Introduced in India a few years ago, REIT has gained popularity globally as a financial instrument. Its primary purpose is to attract investments in the real estate sector by capitalizing on income-generating assets. This mechanism facilitates the unlocking of significant value from real estate assets and encourages participation from retail investors.

Also Read | Blackstone plans mega $833 million exit from Embassy Office Parks REIT

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