Blackstone Group And Embassy Group Have Teamed For India's First Real Estate Investment Trust

Blackstone Group And Embassy Group Have Teamed For India's First Real Estate Investment Trust

Embassy groupchannelizing their working module, India’s maiden Real Estate Investment Trust (REIT) came into action after four years rules notification. The Government has been constantly doing efforts to upgrade regulations at par with high-end global standards. Going by the route, it has been noted that Embassy Office Parks is set to file documents with SEBI (Securities and Exchange Board of India) for escalating Rs. 5000 crores. With this news, it has also come to the limelight that Blackstone-Embassy REIT is going to have the largest office area in Asia with twice the size of its office in other continents.

This will enable India to be a part of the Global REIT markets like UK, US, Japan, Singapore, Canada, and Australia. Under the assistance of REIT, Embassy Office Parks are going to list 33 million square feet office real estate area. It has been notified that such a development is considered as a valuable step towards empowering real estate sector in India. Out of 33 million square feet area, 25 million square feet has been completed with 95 percent occupancy in functional mode. With such a profitable development, the owner tends to earn an annual lease rental of Rs. 2000 crores from its tenants.

Indeed, JP Morgan, Cisco, Google, Microsoft, IBM, Wells Fargo, and even Mercedes Benz have been a part of tenants at Embassy Office Parks. Counting more than 150 tenants with more than half being Fortune 500 companies, the landlord has a tremendous set of tenants to earn from. It is justifiably said that REIT is going to formalize Indian Real Estate, which will regularize the inflow of global institutional funds through productive investment in the country. It has, also, been indicated that lease contracts entered into such commercial building is going to draw higher rentals on renewal.

Certainly speaking, Global Institutes such as Brookfield Asset Management, Blackstone, GIC, Ascendas-Singbridge, Canada Pension Plan Investment Board and Qatar Investment Authority has been continuously showing interest in commercial real estate investments with the purpose to open up an avenue for monetization through REIT. Indeed, REIT is a specified entity developed to operate and finance income-generating real estate properties. In fact, they are meant to assist investors in investing for earning a dividend-based return. This is the reason that REIT has been considered a significant entity to govern the real estate transactions.


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