Embassy Office Parks REIT has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
Embassy Office Parks REIT's Board has approved acquiring 100% of Eleanor Realty Holdings India Private Limited (ERHIPL), which owns the 'Pinehurst' commercial office building in Embassy Golf Links Business Park, Bengaluru, for an enterprise value of ₹8,520 million (approximately ₹852 crore). Pinehurst has 292,500 sq. ft. of leasable area and is 100% leased to a global investment firm, generating rental income at ₹192 per sq. ft. with an estimated NOI yield of ~7.9%. The property is being bought from Techpark Holdings Pte. Ltd. and Futura Techpark Private Limited (Xander group affiliates) in a cash deal that is not a related-party transaction. ERHIPL reported turnover of ₹576.91 million in FY2024-25. The acquisition is expected to be NOI and distribution-per-unit (DPU) accretive, with the NOI yield of 7.9% comparing favourably to Embassy REIT's own trading cap rate of 7.4%.
This acquisition consolidates Embassy REIT's footprint within its existing Embassy Golf Links Business Park and adds stable, fully-leased cash flows with embedded rental escalation. The accretive deal should support DPU growth and is likely to be viewed positively by unitholders, though it adds to leverage given the ₹852 crore cash outflow.