Embassy REIT to invest Rs 2,800 cr in developing office spaces
Embassy Real Estate Investment Trust (Embassy REIT) is planning to invest more than Rs 2,800 crore for the development of its office spaces across India.
The higher officials of the company informed the media that Embassy REIT needs to take possession of more land for the business in various cities to expand their reputation.
Since Embassy REIT currently owns office properties in about 5.7 million sq ft of land that is still under development, the request for office space has ceased for a while but will see light soon. The break is due to the sudden surge of the second wave of Covid-19.
The resumption is expected soon after the employees are back to the office. The construction will be continued and the projects are expected to be completed from 2023 onwards, said Vikaash Khdloya, the chief working officer.
The agency has a pan-India acquisition capacity of 31.2 million sq ft with a Right of First Offer (ROFO) opportunity from the Embassy Sponsor and an alternative of another 4.2 million sq ft from various builders.
In spite of being hit by the pandemic, Embassy REIT signed 1.2 million sq ft of lease contracts in FY20.
Mike Holland, Chief Executive of Embassy REIT told the media that the company has advanced despite being hit by the pandemic, with a 12% annual growth in net operating income (NOI) in FY20 and 89% occupancy. He added that the future of the company is in safe hands in India.
In the previous fiscal year, the agency raised Rs 5,200 crore debt at a coupon charge of 6.9% and renewed finance of Rs 3,280 crore, financial savings of 336 foundation factors. 100 foundation factors are one share level.