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Embassy in advanced stage of talks to raise $200m for proposed merged entity: IBREL

Indiabulls Real Estate Ltd says it hopes to execute the transaction document with Embassy latest by March 23.

Bengaluru-based Embassy Property Developments is in an advanced stage of discussions with foreign investors, including Blackstone, to pump in around $200 million into its proposed venture with Indiabulls Real Estate Limited (IBREL).

IBREL had in January this year announced the merger of some ongoing residential and commercial projects of Embassy with itself.

“…Embassy has also reached at an advanced stage of discussions with foreign financial investors such as Blackstone and others for an investment of up to $ 200 million,” IBREL said in a regulatory filing on March 3.

The process of valuation of Embassy’s assets by independent valuers for arriving at the share swap ratio for the merger was progressing well, the filing said.

Embassy, which in 2019 bought a 14% stake in IBREL, is to take over the yet-to-be-named entity that will also see Indiabulls Group get out of the real-estate business.

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Foreign investors would be shareholders in the merged entity, it said.

Efforts were being made to execute the transaction documents on or before March 23, 2020 and the plan would be put before the company’s board for approval, the statement said.

When contacted, the Embassy Group spokesperson refused comment.

Blackstone owns 50 percent of Indiabulls’ commercial portfolio, including two properties in Mumbai and a project in Gurgaon.

Blackstone also acquired commercial property developed by Indiabulls Real Estate in Chennai.

In April 2019, the Blackstone-Embassy’s joint venture Embassy Office Parks listed India’s first real estate investment trust that raised more than Rs 4,700 crore through an issue that was subscribed more than 2.5 times.

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