Embassy Office Parks REIT will spend Rs 850 crore to create nearly two million square feet office buildings in Bengaluru as the company remains bullish on demand for superior workspace, a senior establishment official said.
Embassy Office Parks REIT, the country's first public listed real estate investment trust (REIT) sponsored by Blackstone and realty firm Embassy group, is also evaluating the acquisition of a five-million-square-feet IT park in Chennai.
In an interview with PTI, Embassy REIT Deputy CEO and Chief Operating Officer Vikaash Khdloya said, "We have started a new growth cycle by starting new improvement of 1.9 million square feet area in Embassy Tech Village in Bengaluru."
"As demand has started to rebound, we are now focusing on growth. We will develop 1.9 million square feet in one shot across four buildings," he told PTI.
Currently, Embassy REIT is developing a total of 4.6 million square feet area, including the new 1.9 million square feet office buildings.
Asked about the finance, Khdloya said the total construction cost is estimated at around Rs 850 crore for the new 1.9 million square feet area.
Moreover, he said the pending investment in the remaining 2.7 million square feet is Rs 750 crore.
The construction of the ongoing 4.6 million square feet will be accomplished over the next three years.
"We are very positive on organic growth," he added.
Apart from the organic route, Khdloya said the organization has recently received 'Right of First Offer' (ROFO) from its sponsor Embassy group for the acquisition of the five million square feet area at Embassy Splendid TechZone in Chennai.
"We will evaluate whether to buy or not this five