Embassy Office Parks Real Estate Investment Trust (REIT) plans to invest Rs 850 crore for developing nearly two million sq ft office buildings in Bengaluru. The company is India's first REIT sponsored by Blackstone and Embassy Group. It is also evaluating the acquisition of a five million sq ft IT park in Chennai. CEO and Chief Operating Officer of Embassy REIT, Vikaash Khdloya, said that the company had started a new growth cycle through the development of a 1.9 sq ft area in Embassy Tech Village in Bengaluru as the demand began to rebound after the pandemic. Currently, the company is developing a 4.6 million sq ft area, including 1.9 million sq ft office buildings. Khdloya said that the overall cost of construction is approximately Rs 850 crore for the new project of 1.9 million sq ft area.The pending investments in the 2.7 million sq ft are Rs 750 crore.The 4.6 million sq ft construction will be completed in the next three years. The company has received the Right of First Offer (ROFO) from Embassy Group for the acquisition of five million sq ft at Embassy Splendid TechZone in Chennai. Previously, it acquired an IT Park, Embassy TechVillage, worth Rs 9,782.4 crore. He said that the demand for Grade-A office space is increasing, and the company has leased around Rs 4,30,000 sq ft area during December 2021 quarter, while 3,50,000 sq ft is new leasing and rest renewals.The demand for quality office space, including the Information technology (IT) or IT-enabled service (ITeS) sectors, remains strong. The company reported a 30% increase in its net operating income (NOI) to Rs 621.3 crore and will distribute Rs 493 crore to the unitholders during the December-end quarter, compared to Rs 478 crore and Rs 431.3 crore, respectively, during the same period last year. The company expects the NOI at around Rs 2,450 crore and distribution to the unitholders at around Rs 2,050 crore. Image Source Also read: Blackstone Group sells over 5.7 cr units in Embassy Office Parks REIT