Business Other News 13 Mar 2019 First REIT gets Rs 8 ...

First REIT gets Rs 876 crore ahead of public issue

FC INVESTIGATIVE BUREAU
Published Mar 13, 2019, 2:00 am IST
Updated Mar 13, 2019, 2:00 am IST
REIT is an investment tool that owns and operates rent-yielding real estate assets, mostly commercial real estate.
Sebi had notified REIT regulations in 2014, allowing setting up and listing of such trusts, which are popular in some advanced markets.
 Sebi had notified REIT regulations in 2014, allowing setting up and listing of such trusts, which are popular in some advanced markets.

Mumbai: Ahead of India’s first real estate investment trust (REIT) initial public offering (IPO) Embassy Office Parks REIT, joint venture of private equity firm Blackstone and Bengal-uru-based real estate developer Embassy Group, announced Rs 876 crore commitment to the trust from strategic investors.

REIT is an investment tool that owns and operates rent-yielding real estate assets, mostly commercial real estate. It allows individual investors to make investment in this platform and earn income. Sebi had notified REIT regulations in 2014, allowing setting up and listing of such trusts, which are popular in some advanced markets.

 

Reports said Embassy Office Parks REIT has entered into unit subscription agreements with strategic investors and would allot them over 2.92 crore units for Rs 876.3 crore.

Embassy Office Parks REIT is aiming to raise Rs 4,750 crore through the IPO. The strategic investors include Amer-ican Funds Insurance Series, New World Fund Inc and Smallcap World Fund Inc, reports said.

The REIT public issue will open on March 18 with a price band of Rs 299-300 a unit. The issue closes on March 20.

Embassy has put 33 million sq ft of office and hospitality assets under its proposed REIT comprising seven business parks and four buildings spread across Mumbai, Bengaluru, Pune and Noida.

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