Embassy Office Parks REIT Approves Rs 675 Crore Commercial Paper Allotment

Embassy Office Parks REIT had its allotment of commercial papers worth Rs 675 crore approved by the debenture committee of its board of directors on Monday, it communicated in an exchange filing.

The yield for the papers is 7.075% and they are planned to be listed on the Wholesale Debt Market Segment of BSE Ltd.

The firm raised Rs 675 crore as short-term debt via the issue of commercial papers to repay existing borrowing and to also provide for their working capital requirements.

This April, the company announced it issued listed, rated, and redeemable commercial papers, totalling Rs 675 crore, through a private placement.

This development comes at around the same time when real estate experts are expressing positive or bullish sentiment on the demand for affordable housing in Mumbai due to its large-scale infrastructure projects such as the Atal Setu Seabridge, Navi Mumbai International Airport, and Samruddhi Mahamarg.

Ulwe, Chirle, Karanjade and Panvel are expected to benefit from these projects.

Embassy Office Parks REIT holds the distinction of being India's first publicly listed real estate investment trust. Their portfolio encompasses 14 office parks, totalling 51.1 million square feet, situated in prominent business hubs such as Bengaluru, Mumbai, Pune, the National Capital Region, and Chennai. Of this, 38.9 million square feet represents completed and operating area.

Shares of Embassy Office Parks REIT Ltd. closed 0.62% higher at Rs
381.91 per share, compared to a 1.2% uptick in the benchmark Nifty. The share price had risen 7.33% in the last 12 months and 3.36% year-to-date. Fifteen analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg. The stock's return potential was at 10.2%.

(With inputs from PTI.)