Embassy REIT plans to invest over Rs 3,200 crore in developing 7.1 million square feet in the next 3-4 year period, Vikaash Khdloya, CEO, Embassy REIT, told ET. The pipeline, of which 80% is being developed in Bengaluru, is expected to add more than Rs 800 crore to its net operating income once stabilised.
“Our balance sheet with low 26% leverage, attractive 7.1% debt cost and with over two-thirds of the debt book at fixed rates, and Rs 11,200 crore debt headroom positions us very well to finance our growth initiatives,” said Khdloya.
The REIT has also signed non-binding offer letters to buy two office buildings from Embassy Sponsor and its affiliates in Bengaluru and Chennai.
The properties offer a total of 7.1 million sq ft of leasable area, of which 3.7 million sq ft is completed or nearing completion.
“Besides driving new leasing at superior rents, we are focused on further accelerating growth through on-campus development and accretive acquisitions. We remain focused on prudently financing any acquisition to deliver value-add to our unitholders, as our earlier acquisition of Embassy TechVi