India's first REIT has been fully subscribed

Mumbai: The initial public offering (IPO) of Embassy Office Parks REIT was fully subscribed on Wednesday, the last day of the initial share sale, data from the stock exchanges showed.

The Embassy Office Parks REIT, backed by global private equity firm Blackstone Group LP and Bengaluru-based developer Embassy Property Developments Pvt. Ltd, plans to raise «¤??4,750 crore in the IPO by issuing units in a price band of «¤??299-300 apiece.

As of 1pm on Wednesday, the Embassy REIT IPO saw a subscription of 102%, with institutional investors subscribing to 119% of the portion reserved for them. The portion reserved for high net worth individuals and retail investors was subscribed 81%.

The Embassy REIT IPO was subscribed 47% on Tuesday.

On Friday, the REIT raised «¤??1,743 crore by allocating units to institutional investors as part of its so-called anchor book allocation of the IPO, stock exchange data showed.

The anchor book is that part of an IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscriptions open a day before the launch of an IPO and are seen as a gauge of institutional investor interest.

Funds of investors such as Fidelity International, Capital Group, TT International, Schroders and others bought the REIT’s units.

On the domestic side, the anchor book saw participation from Kotak Mahindra Life Insurance Co. Ltd and the family office of Radhakishan Damani, the promoter of Avenue Supermarts Ltd that runs the D-Mart chain of supermarkets.

Embassy REIT’s portfolio comprised about 33 million sq.ft of office space across seven office parks and four prime city-centre office buildings as of 31 December.

It includes strategic amenities, such as two completed and two under-construction hotels totalling 1,096 rooms, food courts, and employee transportation and childcare facilities. The REIT’s portfolio has an occupancy rate of 95% and more than 160 blue-chip tenants. Office properties that are part of the REIT offering include the Express Towers at Nariman Point in South Mumbai and First International Finance Centre in the Bandra Kurla Complex.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.