EMBASSY

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, May 14 (Reuters Breakingviews) - Artificial intelligence may be cutting jobs in India but its office leasing market is enjoying a temporary reprieve. Investors piled into the latest initial public offering of a Blackstone-backed BX.N real estate investment trust in Bengaluru, the outsourcing hub that hosts one quarter of the country's office stock. Units of Bagmane Prime BAGM.NS - whose tenants include Amazon AMZN.O, Alphabet's GOOGL.O Google and Samsung 005930.KS - opened up 4% on their debut on Thursday. Tight supply of commercial space will keep vacancies low and rents firm for a while yet in the $190 billion market.

India's offices logged record quarterly leasing volume at 30 million square feet for the three months to March, up 6% year-on-year, according to Knight Frank, nearly one-third of the record annual gross leasing volume of 83 million square feet in 2025. Sophisticated back offices of multinational companies, also known as global capability centres, accounted for 40% of last year's demand. Overall vacancy rates remain low at 14% and landlords across key cities such as Bengaluru and Hyderabad have seen rents increase by as much as 8% year-on-year.

But Bagmane's prospectus for its $357 million offering notes that AI-led workforce restructuring is prompting tenants to reassess space requirements: GCC headcount in India is expected to grow 7% a year through March 2030, a sharp slowdown from an 11% annual pace in the previous decade and a half, according to industry body Nasscom and JLL Research.

The comfort is that new completions for the quarter ended March 2025 were barely half of the space absorbed during the same period. What's more, companies spend heavily on fitting out offices so they can be slow to reduce their office space even after they shrink headcount. Bagmane's well-located portfolio in what it calls the "world's best performing micro-markets", including Bengaluru's highly-sought after Outer Ring Road, will offer a further cushion in the event of any slack in demand.

For now, India's leading publicly traded REITs are doing well. Embassy Office Parks EMBA.NS, Mindspace Business Parks MINS.NS and Brookfield India BROF.NS have outperformed the benchmark Nifty 50 stock Index .NSEI and local developer DLF DLF.NS by up to 26 and 35 percentage points over the past one year. Investors, though, will be watching closely for any sign the balance is shifting from landlords to renters.

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CONTEXT NEWS

Units of Blackstone-backed Bagmane Prime Office opened up 4% on May 14 following the real estate investment trust's initial public offering. The deal was nearly 24 times subscribed as of May 7, National Stock Exchange data showed.

The offering worth 34.05 billion rupees ($357 million) comprised new units worth 23.9 billion rupees and existing units 10.15 billion rupees by the selling unitholder, Blackstone.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/ujjaini.dutta@thomsonreuters.com))

April 27 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• MARCH-QUARTER CONSOL LOSS 4.3 BILLION RUPEES

• MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 12.05 BILLION RUPEES

• APPROVED RAISING OF DEBT UP TO AN AGGREGATE AMOUNT OF 90 BILLION RUPEES

Source text: [ID:]

Further company coverage: EMBA.NS

((Reuters.Briefs@thomsonreuters.com;))

April 13 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• EMBASSY OFFICE PARKS REIT - BOARD TO CONSIDER RAISING DEBT

Source text: ID:nBSE49VzDR

Further company coverage: EMBA.NS

((reuters.briefs@thomsonreuters.com;))

MUMBAI, Feb 25 (Reuters) - India's Embassy Office Parks REIT EMBA.NS plans to raise 14 billion Indian rupees ($154.04 million) through the sale of bonds maturing in 10 years, three merchant bankers said on Wednesday.

The real estate investment trust has invited bids from bankers and investors on Thursday, they said.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on February 25:

*Size includes base plus greenshoe for some issues

($1 = 90.8880 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Rashmi Aich)

((Dharamraj.dhutia@tr.com))

Feb 20 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• APPROVES ISSUANCE OF NCDS AGGREGATING UP TO 14 BILLION RUPEES

Source text: ID:nNSE5RhLZY

Further company coverage: EMBA.NS

((Reuters.Briefs@thomsonreuters.com;;))

Adds statement from Embassy REIT CEO in paragraph 10, updates share moves

By Gopika Gopakumar and Hritam Mukherjee

MUMBAI, Feb 6 (Reuters) - India's central bank on Friday announced measures to boost credit to small businesses and the real estate sector to improve access to formal financing and strengthen last-mile lending.

The Reserve Bank of India proposed doubling the limit on collateral-free loans for small enterprises to 2 million rupees ($22,170.49) from 1 million rupees ($11,085.25).

The revised norms will apply to loans sanctioned or renewed from April 1, 2026.

The Reserve Bank of India also said banks would be allowed to lend to real estate investment trusts under prudential safeguards, extending a facility already available to infrastructure investment trusts.

REITs own and manage income-generating assets such as offices and malls. India's markets regulator recently allowed them to be treated as equity, opening the door to mutual fund investments.

Shares of Mindspace Business Parks REIT MINS.NS rose 0.9% to lead listed trusts, while Brookfield India Real Estate Trust BROF.NS gained 0.2% and Nexus Select Trust NEXE.NS advanced 0.5% in afternoon trade.

The broader benchmarks were mixed in afternoon trade, clawing back some of their losses after the central bank kept rates unchanged as expected on Friday.

"Upon review and considering the presence of strong regulatory and governance framework for listed REITs, it is proposed to permit commercial banks to extend finance to REITs, subject to appropriate prudential safeguards," the RBI said in a statement.

The existing guidelines are being aligned to match "prudential safeguards" proposed for lending to REITs, it added, and once made effective, could spur fresh funding into property assets and stoke the growth of the sector.

"This policy will help expand access to longer-term, competitive bank finance, which will support healthier balance sheets and stable growth by reducing the need for frequent refinancing," Amit Shetty, chief executive of Embassy Office Parks REIT EMBA.NS said.

($1 = 90.2100 Indian rupees).

(Reporting by Gopika Gopakumar in Mumbai and Hritam Mukherjee in Bengaluru; Editing by Nivedita Bhattacharjee)

((Gopika.Gopakumar@thomsonreuters.com;))

Jan 23 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• APPROVES ISSUANCE OF COMMERCIAL PAPERS FOR 5 BILLION RUPEES

Source text: ID:nNSE6m2wLY

Further company coverage: EMBA.NS

((Reutersbriefs@thomsonreuters.com;))

July 31 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• EMBASSY REIT APPOINTS AMIT SHETTY AS CHIEF EXECUTIVE OFFICER

Source text: ID:nBwbTWlX2a

Further company coverage: EMBA.NS

((Reuters.Briefs@thomsonreuters.com;;))

July 25 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• EMBASSY OFFICE PARKS REIT - RAISES 20 BILLION RUPEES VIA 10-YEAR NCD

Source text: ID:nNSE908Pgr

Further company coverage: EMBA.NS

((Reuters.Briefs@thomsonreuters.com;;))

MUMBAI, July 23 (Reuters) - India's Embassy Office Parks REIT EMBA.NS has accepted bids worth 20 billion rupees ($231.5 million) for bonds maturing in 10 years, three merchant bankers said on Wednesday.

The real estate investment trust will pay a coupon of 7.25%, which would be payable on a quarterly basis, the bankers said.

The issue will have a put option at the end of five years, and the current pricing is reflective of a five-year debt issue, one of the bankers added.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on July 23:

*Size includes base plus greenshoe for some issues

($1 = 86.4050 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Eileen Soreng)

((Dharamraj.dhutia@tr.com))

MUMBAI, July 22 (Reuters) - India's Embassy Office Parks REIT EMBA.NS plans to raise 20 billion rupees ($231.98 million) through the sale of bonds maturing in 10 years, three merchant bankers said on Tuesday.

The real estate investment trust will pay a coupon of 7.25%, which would be payable on a quarterly basis, the bankers said.

The issue will have a put option at end of five years, and the current pricing is reflective of a five-year debt issue, one of the bankers added.

The coupon would be stepped up to 7.45%, payable on a quarterly basis, if the put option is not exercised, and the company has invited bids for the issue on Wednesday.

Last week, Reuters reported that Embassy Office Parks REIT was in talks with bankers to raise 20 billion rupees via bond issue.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on July 22

*Size includes base plus greenshoe for some issues

($1 = 86.2140 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Janane Venkatraman)

((Dharamraj.dhutia@tr.com))

By Khushi Malhotra and Dharamraj Dhutia

MUMBAI, July 21 (Reuters) - Debt fundraising by India's asset-backed investment trusts is expected to keep rising after exceeding $2 billion in the first half of 2025, as falling interest rates continue to fuel strong investor demand, analysts said.

The real estate investment trusts (REIT) and infrastructure investment trusts (InvIT) raised over 178 billion rupees ($2.07 billion) in January-June, compared with 56 billion rupees in the same period last year, according to data aggregator Prime Database.

"Bonds offer a lower cost of capital compared to traditional bank financing, especially for highly rated trusts with stable, long-term cash flows," Arka Mookerjee, partner at JSA Advocates and Solicitors, which provides legal advice to corporates.

"The predictable income profiles of REITs and InvITs make them well-suited to debt financing, attracting institutional investors seeking yield-bearing, asset-backed instruments."

Corporate bond yields have tumbled over the last few months, as the central bank infused liquidity and slashed interest rates by 100 basis points, while banks have lagged in lowering their lending rates.

Embassy Office Parks REIT, IndiGrid Infrastructure Trust, Cube Highways Trust and Nexus Select Trust are among the firms that have tapped the bond market. Embassy REIT is planning another bond issue, Reuters reported last week, while others are also in early talks.

Bonds typically have fewer restrictions than bank loans, allowing REITs to use the fund across multiple properties within the portfolio, said Lata Pillai, India senior managing director and head of capital markets, JLL, a global real estate services firm.

The trusts, which need to disburse at least 90% of net distributable cash flows to unit holders, say cheaper funding allows them to provide better returns.

Bond fundraising provides clarity to these trusts on planning their finances, while top credit ratings attract marquee investors such as mutual funds and insurers.

"The AAA-rated structure gives greater credibility, visibility and better pricing," said Krishnan Iyer, chief executive officer at NDR InvIT, adding they also offer resilience to market volatility.

With infrastructure and real estate sectors gaining momentum, investors see REITs and InvITs as a compelling blend of fixed-income stability and long-term growth, said Suresh Darak, founder of Bondbazaar, an online bond trading platform.

($1 = 86.1700 Indian rupees)

(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Vijay Kishore)

((khushi.malhotra@tr.com;))

Corrects to remove incorrect reference to company not disclosing how much it intends to raise

July 15 (Reuters) - India's markets regulator has approved an initial public offering by WeWork India Management WEWO.NS, the domestic franchisee of the U.S. shared office space manager, according to a regulatory notice on Tuesday.

WeWork India had filed draft papers for the IPO in early February.

The offer consists of 33 million equity shares held by Indian real estate firm Embassy Group EMBA.NS and 10.3 million equity shares held by 1 Ariel Way Tenant. The company will not issue new shares.

WeWork India is controlled by real estate tycoon Jitu Virwani and his son Karan, who own Bengaluru-based developer Embassy Group.

Karan Virwani is also the CEO of WeWork India.

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sonia Cheema)

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))

June 30 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• RAISED 15.50 BILLION RUPEES THROUGH NCDS AND TERM LOAN FACILITIES

• PROCEEDS WILL BE USED TO REFINANCE CERTAIN EXISTING DEBT

Source text: ID:nBSEWQ4zC

Further company coverage: EMBA.NS

((Reuters.Briefs@thomsonreuters.com;;))

MUMBAI, June 27 (Reuters) - India's Embassy Office Parks REIT EMBA.NS raises 7.50 billion rupees ($87.70 million) through the sale of bonds maturing in 1 year 8 months and 20 days, three bankers said on Friday.

It will pay a coupon of 6.9650% on a quarterly basis, and had invited commitment bids for the issue on Thursday, they said.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on June 27:

*Size includes base plus greenshoe for some issues

($1 = 85.5230 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Anil D'Silva)

((Dharamraj.dhutia@tr.com))

MUMBAI, June 25 (Reuters) - India's Embassy Office Parks REIT EMBA.NS plans to raise 7.5 billion rupees ($87.26 million) through the sale of bonds maturing in 1 year 8 months and 20 days, three bankers said on Wednesday.

It will pay a coupon of 6.9650% on a quarterly basis, and has invited commitment bids for the issue on Thursday, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on June 25:

*Size includes base plus greenshoe for some issues

($1 = 85.9500 Indian rupees)

(Reporting by Khushi Malhotra and Dharamraj Dhutia)

((Khushi.malhotra@tr.com; Dharamraj.dhutia@tr.com))

April 23 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• APPROVED RAISING OF DEBT UP TO 65 BILLION RUPEES

• TO ISSUE COMMERCIAL PAPERS FOR 3.5 BILLION RUPEES FOR TERM OF 316 DAYS

• APPROVES ISSUE OF COMMERCIAL PAPERS FOR 3.25 BILLION RUPEES FOR 326 DAYS TERM

Source text: ID:nBSE4vPjsf

Further company coverage: EMBA.NS

((Reuters.Briefs@thomsonreuters.com;;))

March 6 (Reuters) - A joint venture between Blackstone Inc BX.N and India's Sattva Group filed a draft prospectus on Thursday for the country's largest real estate investment trust (REIT) initial public offering, aiming to raise up to 62 billion rupees ($712.55 million).

The joint venture, Knowledge Realty Trust, is 55% owned by Blackstone, while Sattva holds a 45% stake, according to the draft prospectus.

India's Sattva Group is a real estate conglomerate headquartered in the south Indian city of Bengaluru and has operations across seven cities in the country, according to its website.

Bank of America, Morgan Stanley amongst others were the bookrunners for the listing.

In December 2023, Blackstone exited its investment of about $833 million in India's first publicly listed REIT Embassy Office Parks EMBA.NS.

($1 = 87.0110 Indian rupees)

(Reporting by Harshita Meenaktshi and Haripriya Suresh; Editing by Vijay Kishore)

((HarshitaMeenaktshi.R@thomsonreuters.com;))

March 3 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• INVESTS 1 BILLION RUPEES IN BENGALURU METRO PROJECT

Source text: ID:nNSE386Ycb

Further company coverage: EMBA.NS

((Reuters.Briefs@thomsonreuters.com;;))

NEW DELHI, Feb 2 (Reuters) - The Indian franchisee of U.S. shared office space manager WeWork has filed for an initial public offering in Mumbai, draft papers filed by the company showed.

The offer will consist of the sale of 33 million equity shares by Indian real estate firm Embassy Group EMBA.NS and 10.3 million equity shares by 1 Ariel Way Tenant. It will not issue new shares.

"The company will not receive any proceeds from the offer for sale," WeWork India Management said in the papers filed on Saturday, which did not detail expected pricing or time frame.

WeWork India has an aggregate leaseable area of 602,012 square metres (6.48 million square feet).

Its U.S. franchisor filed for bankruptcy in November 2023, ending a months-long restructuring process involving a strategy revamp and exits from several locations.

Once the most valuable U.S. startup, WeWork expanded at breakneck pace which resulted in significant loss due to expensive leases and a pandemic-driven slump in demand.

WeWork India is controlled by real estate tycoon Jitu Virwani and son Karan Virwani who own Bengaluru-based developer Embassy Group. Karan Virwani is CEO of WeWork India.

(Reporting by Sarita Chaganti Singh; Editing by Christopher Cushing)

((Sarita.ChagantiSingh@thomsonreuters.com;))

Jan 24 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• EQUINOX INDIA AND EMBASSY GROUP ANNOUNCES SUCCESSFUL COMPLETION OF MERGER

Source text: [ID:]

Further company coverage: EMBA.NS

((Reuters.Briefs@thomsonreuters.com;))

Jan 9 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• EMBASSY OFFICE PARKS REIT - LEASES 207,000 SQ FT TO RUBRIK IN BENGALURU

Source text: ID:nNSE3Gkwlh

Further company coverage: EMBA.NS

((reuters.briefs@thomsonreuters.com;))

Dec 17 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• EMBASSY OFFICE PARKS REIT - RAISED 10 BILLION RUPEES OF DEBT AT INTEREST RATE OF 7.73%

• EMBASSY OFFICE PARKS REIT - WILL UTILIZE PROCEEDS FROM DEBT RAISE TO REPAY CERTAIN EXISTING DEBT

Source text: ID:nBSE3rnRpz

Further company coverage: EMBA.NS

((reuters.briefs@thomsonreuters.com;))

MUMBAI, Dec 13 (Reuters) - India's Embassy Office Parks REIT EMBA.NS has accepted bids worth 7.78 billion rupees ($91.7 million) for bonds maturing in five years, three bankers said on Friday.

The company will pay a coupon of 7.73% on this issue and had invited bids from bankers and investors earlier in the day, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on Dec. 13:

* Size includes base plus greenshoe for some issues

($1 = 84.8390 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)

((Dharamraj.dhutia@tr.com))

Dec 11 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• APPROVED ISSUANCE OF NCDS AGGREGATING 10 BILLION RUPEES

Source text: ID:nNSE6Vw8FQ

Further company coverage: EMBA.NS

((Reuters.Briefs@thomsonreuters.com;;))

Nov 7 (Reuters) - Embassy Office Parks EMBA.NS, India's largest real estate investment trust (REIT), on Thursday named Ritwik Bhattacharjee as interim CEO with immediate effect, days after the country's markets regulator directed to suspend its former chief.

On Tuesday, the trust announced that its then CEO Aravind Maiya would step down, following the Securities and Exchange Board of India's (SEBI) decision that he was unfit for the role.

The regulator had also asked Embassy to appoint an interim CEO.

SEBI's action followed a National Financial Reporting Authority (NFRA) order in August, which investigated the statutory auditors of Coffee Day Enterprises, where Maiya was an engagement partner, for alleged financial irregularities at the company in 2018-19.

The NFRA, a quasi-regulator overseeing the conduct of auditors, said it found serious lapses on the part of the auditor, Maiya and others.

Bhattacharjee has been associated with the REIT since its listing, and last held the position of Chief Investment Officer at Embassy. Before joining the REIT, he spent over 12 years as an investment banker at firms such as Nomura, Citi, UBS and JPMorgan.

Embassy REIT is India's first publicly listed REIT and owns and operates a 51.1-million-square-foot portfolio.

(Reporting by Nishit Navin in Bengaluru; Editing by Vijay Kishore)

((Nishit.Navin@thomsonreuters.com;))

Adds details in paragraph 1 and Embassy Office Parks' share prices in paragraph 2

Nov 5 (Reuters) - Embassy Office Parks EMBA.NS, India's largest real estate investment trust (REIT), said on Tuesday Aravind Maiya will step down as CEO of Embassy REIT with immediate effect, following the market regulator's decision that he is unfit for the role.

Shares of Embassy REIT dropped as much as nearly 3% following the company's announcement.

In an interim order available on the Securities and Exchange Board of India's (SEBI) website, the regulator on Monday directed Embassy Office Parks Management Services, the manager of Embassy REIT, to suspend Aravind Maiya since he did not meet the "fit and proper" criteria for the position.

The regulator also told Embassy to appoint an interim CEO with immediate effect.

The "fit and proper" criteria, used across institutions which have a fiduciary responsibility to investors, includes checks on an individual's track record, professional history and any past regulatory orders against them.

SEBI's action followed an order by the National Financial Reporting Authority (NFRA) in August, which had examined the statutory auditors of Coffee Day Enterprises on their role in alleged financial irregularities at the company in 2018-19.

Maiya was the engagement partner at the statutory auditor for Coffee Day Enterprises during the reported period.

The NFRA, a quasi regulator that looks into the conduct of auditors, said it found serious lapses on the part of the auditor, Maiya and others.

While Maiya has challenged the order, SEBI found he did not in the interim meet the "fit and proper" criteria for institutions such as REITs.

The (NFRA) Order leads to "a reasonable inference that Mr. Aravind Maiya failed to act in public interest. Instead, he acted in a manner which harmed ordinary investors," SEBI said in its order.

The order further noted that despite a number of emails, meetings and specific instructions, the manager of Embassy REIT had tried to retain Maiya.

Embassy REIT is India's first publicly listed REIT and owns and operates a 51.1 million-square-feet portfolio.

(Reporting by Ira Dugal and Ashish Chandra; Editing by Sherry Jacob-Phillips and Varun H K)

((ashish.chandra@thomsonreuters.com; +91 7982114624;))

Oct 8 (Reuters) - Embassy Office Parks REIT EMBA.NS:

• EMBASSY OFFICE PARKS REIT - RAISES 20 BILLION RUPEES DEBT AT 7.95%

• EMBASSY OFFICE PARKS REIT - RAISES DEBT TO REFINANCE UPCOMING NCDS MATURITY

Further company coverage: EMBA.NS

((reuters.briefs@thomsonreuters.com;))

MUMBAI, Sept 26 (Reuters) - India's Embassy Office Parks REIT EMBA.NS accepted bids worth 9 billion rupees ($107.64 million) for bonds maturing in three years, three bankers said on Thursday.

The company will pay a coupon of 7.96% and this would be payable on a quarterly basis. It had invited bids from bankers and investors on Wednesday, they said.

Here is the list of deals reported so far on Sept. 26:

* Size includes base plus greenshoe for some issues

($1 = 83.6140 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)

((Dharamraj.dhutia@tr.com))

MUMBAI, Sept 25 (Reuters) - Bank of India BOI.NS has accepted bids worth 25 billion rupees ($299.35 million) for Basel III compliant Tier-II bonds maturing in 10 years, three bankers said on Wednesday.

The state-run lender has set a coupon of 7.49%. It had invited bids from bankers and investors earlier in the day.

In July, it had raised 50 billion rupees selling 10-year infrastructure bonds at 7.54% coupon.


Here is the list of deals reported so far on Sept. 25:

* Size includes base plus greenshoe for some issues

($1 = 83.5150 Indian rupees)

(Reporting by Bhakti Tambe)

((Bhakti.Tambe@thomsonreuters.com))