Embassy Group to sell a certain portion of its shareholding in Embassy REIT to Bain Capital

Embassy Property Developments, also known as Embassy Group, has recently announced that it has sold a portion of its shareholding in Embassy Office Parks REIT to Bain Capital. This strategic sale is aimed at strengthening Embassy Group's balance sheet by reducing overall debt by approximately 30% before June 30, 2023. According to a media release by the company, this sale will help Embassy Group achieve its goal of reducing debt and provide it with a stronger financial foundation.

Embassy REIT, on the other hand, has been performing well, with 4.4 million square feet of leasing activity year-to-date, and an accelerated development growth of 6.6 million square feet. The REIT has also had sales more than Rs 1,100 crore in this fiscal year, which will help towards debt repayment. Embassy REIT has set a goal to achieve FY23 guidance and is on track to meet this target. Embassy REIT is India's first publicly listed Real Estate Investment Trust (REIT) and one of the largest office REITs in Asia by area. It was launched in 2019 and is sponsored by the Embassy Group, a leading real estate developer in India.

The REIT's portfolio comprises of over 42 million square feet of completed and under-construction commercial real estate properties, including office space, hospitality, and industrial and logistics parks. These properties are located in prime markets across India's major cities, such as Bengaluru, Mumbai, Pune, and Noida.

Embassy REIT has a strong track record of performance since its launch, with high occupancy rates and rental escalations. It has also consistently distributed dividends to its investors, making it an attractive investment option for those seeking stable income and long-term capital appreciation.

Bain Capital is a global private investment firm founded in 1984 by a group of partners including Mitt Romney. The firm is headquartered in Boston, Massachusetts, USA, and has offices in other major financial centres around the world. Bain Capital specializes in private equity, venture capital, credit, and public equity investments. The firm has a diverse portfolio of investments across various industries, including healthcare, technology, consumer and retail, industrials, and financial services.

Bain Capital has raised over $130 billion in capital since its inception and has completed thousands of transactions, including leveraged buyouts, growth capital investments, and distressed debt restructuring. The firm has a long history of successful investments, with notable acquisitions including Dunkin' Brands, Toys "R" Us, and The Weather Channel.

The sale of Embassy REIT shares to Bain Capital will not affect Embassy Group's involvement with the REIT, as the company has clarified that it does not have any plans to sell any further ownership in the future. This strategic sale is expected to benefit both Embassy Group and Embassy REIT, providing Embassy Group with a stronger financial foundation and allowing Embassy REIT to continue its growth trajectory.

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Embassy Group to sell a certain portion of its shareholding in Embassy REIT to Bain Capital

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