From ET Realty
The Bengaluru-based firm plans to divest 30 per cent in its office business to raise Rs 4,500 crore. “We are already in talks with institutional investors and hoping to close the transaction soon,” said Jitu Virwani, chairman and MD at Embassy Group. “We plan to move all the office parks owned by the Embassy Group into one separate vertical, this will not include the joint venture partner’s assets.” Office portfolio contributes 80 per cent to the company’s overall revenue.
The company plans to use the money for future projects and expand the office business. Embassy Group has 24 million sq ft of leased and under construction properties. Of this, 12 million sq ft of office properties are under construction, involving a capital expenditure of Rs 4,500 crore.
The company’s commercial share holding, excluding joint venture partners, is 12.9 million sq ft. “The company earns over Rs 1,000 crore per year through rentals of office properties,” said Virwani. In 2012, Embassy divested 50 per cent of its office portfolio to Blackstone. The joint venture company, Embassy Office Parks, has 16.2 million sq ft of office assets.