Embassy Office Parks REIT Ltd

About the Company:

Embassy Office Parks REIT Ltd is the Owner of a High Quality Office Portfolio in India

Company owns one of India’s largest office portfolios spread across Bengaluru, Pune, Mumbai and Noida.

Company’s Portfolio comprises of seven best-in-class office parks and four prime city-center office buildings totaling 32.7 msf as of December 31, 2018,

Company owns a 100 MW solar park which provides green power to their office parks and hotels located in Bengaluru.

Company also owns hotel assets which are managed by well-known hotel operators such as Hilton and Four Seasons.

 

Company Owned Commercial Projects: 

 

Company Owned Hotel/ Infrastructure Projects: 

 

The Market Value of Company’s Portfolio as of December 31, 2018 as per the Valuer is around Rs.31000 cr ($4.43 billion) 

 

Positives for the Company:

Leading Commercial Space Supplier to Global Corporates in India.

Over the last two decades, India has emerged as a leading services hub for global corporations due to its large talent pool and cost advantage for high value services.

This along with the growth of domestic companies, has resulted in robust demand for commercial office space and strong growth across India’s major office markets.

 

Best-in-class office properties with High quality Infrastructure.

Embassy Office Parks properties are amongst the highest quality assets in India.

Due to their scale, best-in-class asset quality, amenities and asset management the properties command a rent premium to other properties within their respective submarkets on average.

Company’s infrastructure-like office parks are constructed to international standards and some of them are amongst the largest and estimated 200,000+ employees (tenents) working in these office parks.

 

Strategically Located in the Top-Performing markets with High Entry Barriers.

Embassy Office Parks owns leading assets in attractive in-fill locations of India’s key office markets.

Company’s assets are infrastructure-like, and, given land acquisition complexities and long development time frames, are very difficult to replicate.

 

High Quality Assets with Significant Scale.

Company’s assets are developed and managed to international standards making them amongst the preferred options for both domestic and multinational corporations in their respective submarkets.

Some of their assets are amongst the largest in their submarkets. For example, spread across 121.76 acres, Embassy Manyata is the largest business park in its submarket with a Leasable Area of 14.2 msf and the tenants employ an estimated 100,000 employees in the park.

 

Renowned Sponsors with Global Expertise. (Embassy & Blackstone Sponsor)

Embassy is a leading Indian real estate company, which has completed over 45 msf of office and residential development.

Blackstone Sponsor is a part of Blackstone, one of the world’s leading investment, real estate and alternative asset management firms.

 

Commercial Spaces Occupied by a Diversified Multinational Clients.

Company has 160+ tenants comprising a mix of blue-chip multinational and Indian corporates (such as JP Morgan, DBS, PwC, Swiss Re, Target, Warburg Pincus, Google, McKinsey, Cerner, Cognizant, IBM, L&T Technology Services and NOKIA).

Approximately 80.9% of their Gross Rentals as of December 31, 2018 are from leading multinational corporations and approximately 43.4% are from Fortune 500 companies such as JP Morgan, IBM and Microsoft.

The top 10 tenants contribute 42.3% of company’s Gross Rentals.

 

Objectives of the Issue:

Offer for Sale:

  • The Embassy REIT will not receive any proceeds from the Offer for Sale and the proceeds received from the Offer for Sale will not form part of the Net Proceeds.

 

Fresh Issue:

  • Partial or full repayment or pre-payment of bank/ financial institution debt of the Asset SPVs and by the Investment Entity.
  • Payment of consideration for acquisition of the Embassy One Assets currently held by EODPL.
  • General purposes.

 

Peer Group Comparison:

Embassy Office Parks will be the first listed REIT in India upon the listing of the Units on the Stock Exchanges and we believe that there is no other office portfolio of comparable scale, diversity and quality in India today.

Hence it is not possible to provide an industry comparison in relation to the Embassy REIT.

 

Financials of the Company:

(in Crores) FY 16 FY 17 FY 18 31st Dec 18
Revenue 1575.36 1645.67 1766.26 1493.23
Net Profit 93.2 177.12 257.04 285.22

 

IPO Details:

Details Info
Issue Opens on 18th March 2019
Issue Closes on:. 20th March 2019
Issue Price Rs.299 – 300
Minimum Lot 800 units
Thereafter in Multiples of 400 units
Issue Size Rs. 4750 cr ($678 million)
Listing at NSE & BSE

Note: Bids can be placed for minimum 800 Units & 400 Units thereafter. Eg. 800, 1200, 1600 etc

Also Read:  How to know whether IPO is a Good IPO or a bad IPO?

Important Dates:

Finalization of Basis of Allotment on or Before 28th March 2019
Initiation of Refunds on or Before 29th March 2019
Credit of Equity Shares: on or Before 2nd April 2019
Listing Date: on or Before 3rd April 2019

 

Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 06:00 PM) Shares Offered Day-1 Day-2 Day-3
QIB 38,866,600 0.30
NII 32,389,600 0.07
TOTAL 71,256,400 0.20

 

Check IPO Allotment Status:

Karvy Website (Click on the below Link)

http://kosmic.karvy.com:81/ipotrack/

 

Company Contact Info:
Embassy Property Developments Private Limited
1st Floor, Embassy Point
150 Infantry Road
Bengaluru 560 001
Karnataka, India
Website: www.embassyofficeparks.com

 

IPO Registrar Info:
Karvy Computershare Private Limited
Karvy Selenium Tower B
Plot 31-32, Gachibowli
Financial District, Nanakramguda
Hyderabad 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: embassy.reit@karvy.com
Website: www.karisma.karvy.com