REIT: Embassy Office Parks REIT leases 1.8 million square feet in 25 transactions
The REIT added 15 new high-growth tenants in sectors such as cloud, cybersecurity, renewable energy and health technology and also increased its customer base to 214 prime tenants.
It achieved positive rental spreads of 16% on 1.3 million square feet and rent increases of 15% on 1.9 million square feet.
“We are seeing an expansion among tech occupiers and global captives in India, with Bangalore continuing to lead the recovery in demand for office space in India. We continue to invest for growth and the pre-commitment of 5.5 lakh sft at Embassy TechVillage underscores our strategy of accelerating the development of our 4.6 msf ongoing projects,” said Vikaash Khdloya, Managing Director of Embassy REIT.
During the quarter, the REIT increased its net operating profit by 9% from a year ago to Rs 6,773 million, with an operating margin of 82%. It also maintained a strong balance sheet with low leverage of 27% after locking in an additional 19% debt at a fixed interest rate for fiscal 2023.
Embassy REIT plans to invest Rs 2,700 crore over the next 3 years to develop 4.6 million square feet of ongoing office projects, including 1.9 million square feet at Embassy Tech Village (ETV).
He accelerated the construction of 518 keys
Hotels at ETV, following the successful launch of 619 key Hilton hotels at Embassy Manyata.
“The fundamentals for office demand in India remain strong and we have seen record highs
the best quarter since 2016. We also accelerated our new developments,” said Khdloya.
The REIT is also evaluating an invitation of right of first offer (ROFO) for 5 million square feet of Embassy Sponsor’s Embassy Splendid TechZone, Chennai; of this total, 1.4 million square feet have been completed and 1.6 million square feet are currently under development.
“We will consider further acquisitions and bring an additional 7 lakh sq ft development in the Embassy Manyata business park in Bengaluru which is under development. Our balance sheet is well protected and slated for future acquisition,” it said. -he declares.
The board of directors of Embassy Office Parks Management Services Private, manager of Embassy REIT, has declared a distribution of Rs 5.33 per unit for the first quarter of financial year 2023. The record date for the distribution of the first quarter of fiscal 2023 is July 29, 2022 and the distribution will be paid no later than August 5, 2022.