Embassy REIT Secures INR 1000 Cr Term Loan From Bajaj Housing Finance

Embassy REIT Raises INR 1000 Cr Term Loan From Bajaj Housing Finance

Bengaluru:

Bajaj Housing Finance has extended a INR 1000 Crore term loan to Embassy Office Parks REIT, India's first publicly traded real estate investment trust and Asia's biggest by area.

According to the corporation, the cash will mostly be used to settle current construction debt and for other corporate objectives.

As per the managing director of Bajaj Home Finance, Atul Jain, they aim to maintain this mutually beneficial collaboration and intend to enhance the bond between the two companies.

This refinancing resulted in interest savings for Embassy REIT due to a 60 basis point positive refinancing spread, and the lengthy tenor loan will assist in extending its debt maturity profile. This loan will allow Embassy REIT to prolong the maturity of its debt portfolio.

Embassy REIT CEO Vikaash Khdloya mentioned that this refinancing demonstrated their aggressive capital management to the advantage of their unitholders, since their entire debt book was at fixed rates for an average of 18 months. He also added that Embassy REIT was well-positioned to finance its development because it had access to a growing capital pool that included banks, mutual funds, insurers, FPIs (foreign portfolio investors), and now NBFCs (non-banking financing firms).

On January 25, 2023 the company's board of directors approved a 1,000 crore term loan for the refinancing of debt obtained through REIT special purpose entities and general corporate purposes.

About Embassy REIT

Embassy REIT has a portfolio of over 34.3 million square feet of finished operational space and is home to around 230 of the world's most prominent corporations. It owns and maintains a 43.6 million square foot portfolio consisting of eight infrastructure-like parks and four city centre office buildings in India's leading office markets of Bangalore, Mumbai, Pune, and NCR.