Blackstone-Embassy JV plans to invest 3 crores in office spaces in Bangalore, Pune and NCR
The Modi
nomics has spread a positive vibe post the budget session and the ripples are to be seen everywhere. Embassy Office Parks, a joint venture between private equity firm Blackstone Group and office space developer Embassy Group, is in advanced talks to acquire three large IT parks spread over two million square feet each in Bangalore, Pune and the National Capital Region (NCR).
Michael Holland the CEO of Embassy Office Parks stated that the deal will be closed in less than a year and will cost Rs 3,000 crore. Michael Holland also mentioned that last year was the “the low point in Indian real estate“, however the company has a long term vision and had decided to initiate the talks in the second half of last year.
The company, which earns about Rs 700 crore per year through rentals of office properties, is looking to finance the proposed acquisitions through its rental income, shareholders’ equity and internal accruals. Holland also mentioned that the total office space developed by the company will increase from 16 million square feet at present to 28 million square feet in the next five years.
Holland is also positive about the present market trend and believes that with acquisitions, the company will be at 40 million square feet in the next five years in the above mentioned projects.
Source- The Economic Times
Arun Jaitley, Blackstone Group, distribution, Embassy Office Parks, Insurability, IPO, Private Equity, REIT, Vrindavan Tech Village
