Embassy Office Parks REIT, a trailblazer in India’s real estate investment sector, has committed to an ambitious Rs 3,800 crore investment over the next four years to expand its premium office space portfolio. This investment will focus on completing approximately 6.1 million square feet of state-of-the-art office complexes, predominantly in Bengaluru, catering to the escalating demand from global capability centres and domestic enterprises.

Aravind Maiya, CEO of Embassy REIT, conveyed the company’s robust growth trajectory in an interview with PTI, stating, “We are currently constructing 6.1 million square feet of Grade A office space. These will get completed over the next four years.” He highlighted the strategic nature of this expansion as part of the company’s broader aim to enhance its rental portfolio and meet the burgeoning demand for high-quality office environments.

The expansion includes a strategic acquisition of Embassy Splendid TechZone (ESTZ), a Grade-A business park from the Embassy Group, for an enterprise value of Rs 1,269 crore. This park, situated in Chennai, spans 1.4 million square feet of leased area and is occupied predominantly by major global corporations like Wells Fargo and BNY Mellon. The acquisition is part of a larger strategy to strengthen the REIT’s footprint across major Indian cities and enhance shareholder returns.

Maiya explained the financial strategy for this expansion: “The pending construction cost is estimated to be around Rs 3,800 crore to complete these office buildings.” The plan also involves raising Rs 2,500 crore to fund this acquisition and support further business growth. The company’s proactive funding approach balances growth and financial health, effectively leveraging opportunities to enhance its portfolio.

Reflecting on the last fiscal year’s performance, Maiya noted, “Overall, FY24 was good for us. Growth in revenue and net operating income was almost 8 per cent year-on-year.” The strategic developments are set to potentially increase the operational portfolio to 40.5 million square feet this fiscal year, up from 36.5 million square feet.

With a positive outlook on the Indian office market, Embassy REIT sets new real estate benchmarks. This expansion underscores its commitment to providing premium workspace solutions and significantly strengthens its market position, promising enhanced returns and strategic growth in the burgeoning Indian economy.