INSUBCONTINENT EXCLUSIVE:
MUMBAI: Credit rating agency ICRA has assigned rating of Provisional (ICRA) AAA with stable outlook to the first Real Estate Investment
portfolio of Embassy REIT, which is spread across multiple office parks in different cities
The business profile is further enhanced by the diversified tenant base in the office parks, which comprises of leading multi-national and
Developments, Embassy Office Parks REIT (Embassy REIT) is the first SEBI registered REIT to file draft offer documents for a public listing
in India.
Embassy Office Parks, a joint venture of US private equity firm Blackstone Group and Embassy Group, is to file documents with the
With this, India will join the league of global REIT markets such as the US, the UK, Singapore, Japan Australia and Canada.
Embassy Office
Parks will list 33 million square feet of office real estate portfolio under the REIT
Of this, an area of 24 million sq
has been completed and has of 95% occupancy
The remainder is under construction.
According to Jain, the rating also benefits from the low initial leverage in the REIT group, which will
consolidation of the business and financial risk profile of the REIT with that of its special purpose vehicles (SPVs)
Moreover, the REIT regulations impose certain restrictions on the operational and financial profile of a REIT, which favourably impact their
These include mandatory distribution of 90% of the available free cash flows at SPV level, cap on under-construction area in the portfolio
to 20% by asset value, and limit on permissible leverage to 49% of asset value.
