Embassy Office Parks Real Estate Investment Trust (REIT) has recently made headlines by leasing 2.07 lakh square feet of office space to global cybersecurity firm Rubrik at the Embassy TechVillage in Bengaluru. The Embassy REIT lease highlights the robust demand for premium office spaces in the region.
Embassy REIT Lease – Details of Agreement
The lease agreement, referred to as an Agreement to Lease (ATL), was facilitated by Colliers, a prominent global real estate services firm. Embassy TechVillage, strategically located along Bengaluru’s Outer Ring Road, is recognized as one of Embassy REIT’s flagship office parks, offering state-of-the-art office spaces, retail hubs, and recreational facilities that cater to a diverse range of businesses.
Statements from Key Executives
Marcus Joseph, Director of Global Workplace Solutions (APJ) at Rubrik, emphasized the importance of this new workspace for the company’s operational expansion in India. He stated, “This new workspace is a significant step forward in Rubrik’s journey to scale our operations and strengthen our presence in India”. Similarly, Ritwik Bhattacharjee, Interim CEO of Embassy REIT, expressed enthusiasm about the partnership, highlighting their commitment to fostering business ecosystems that inspire innovation and growth.
Embassy REIT’s Portfolio
Embassy REIT is notable for being India’s first publicly listed Real Estate Investment Trust and is currently the largest office REIT in Asia by area. Embassy Trust manages a large and diverse portfolio of approximately 51.1 million square feet across 14 office parks located in major cities including Bengaluru, Mumbai, Pune, NCR, and Chennai. This portfolio includes not only office spaces but also four operational business hotels and a solar park that supplies renewable energy to tenants.
Market Implications of Embassy Group’s Lease to Rubrik
This deal underscores a broader trend where multinational corporations are increasingly establishing Global Capability Centres in India. The demand for premium workspaces is indicative of the growing confidence in India’s real estate market, particularly within the technology and cybersecurity sectors. The rental price for this new space has not been disclosed; however, market insiders speculate it could be around INR 115 per square foot.
In conclusion, the Embassy REIT lease of 2.07 lakh square feet to Rubrik marks a pivotal development in Bengaluru’s real estate landscape, reflecting both the city’s attractiveness as a business hub and the ongoing expansion of global firms within India.
Embassy Office Parks REIT entered the primary market on 1 April 2019 with an offering size of INR 4,750 crore. The issue received an overall subscription of 2.54 times, reflecting strong investor interest. Upon listing, the issue debuted at a premium of 4.70% on its first trading day. The stock has performed well since then and is currently trading at INR 375 per share, delivering a 25% return on investment.
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