Embassy REIT announced that it had secured a debt of Rs 12 billion from a leading nationalised bank to facilitate the purchase of a 5 million square foot commercial asset in Chennai. This move signifies the REIT's venture into a new growth market, marking the culmination of a successful financial year 2024-2025 and the completion of the acquisition process. In April, the REIT had reached an agreement with Embassy Sponsor to acquire the asset for Rs 11.85 billion, primarily financed through debt at 8.05% interest and internal accruals. Aravind Maiya, the Chief Executive Officer of Embassy REIT, stated that they opted for debt financing over equity issuance, considering the best interests of stakeholders. He mentioned the possibility of raising equity for specific purposes when market conditions are more favourable, refraining from disclosing the bank's name. The property encompasses 1.4 million square feet of completed area with a 95% occupancy rate, housing prominent multinational companies like Wells Fargo and BNY Mellon in the financial services and technology sectors. Maiya emphasised the asset's long-term earnings potential, including ongoing development of 1.6 million square feet and future plans for an additional 2.0 million square feet. This acquisition has expanded Embassy REIT's commercial portfolio by 11% to 50.5 million square feet, positioning it as one of the largest office REITs globally. He also highlighted the positive impact of this acquisition, projecting a 2% NOI growth and 0.2% distribution growth, in addition to the previously guided 10% NOI growth and 7% distribution growth for the financial year 2025. Embassy REIT is currently undertaking construction of approximately 6.1 million square feet within its existing portfolio, requiring an estimated expenditure of around Rs 38 billion.