Embassy Office Parks REIT leased 2 million square feet (msf) of office space across 25 deals with an operational revenue of Rs 889 crore, up by 4 percent, in Q2 FY2024, according to a regulatory filing on October 26.
The leasing includes 1.2 msf of new leases and the company signed seven new deals over 1 lakh square feet reflecting a return of large deal closures, it said.
"Bengaluru and Mumbai led the demand, contributing 90 percent of the total leasing in the quarter. Occupancy levels across 50 percent of our properties with Embassy 247 in Mumbai are completely occupied. Global Captive Centres (GCCs) account for over 70 percent of total leasing activity," the company added.
In Q2, the company delivered a 1 msf new office tower in Bengaluru and a 7.1 msf total development portfolio of which about 90 percent is in Bengaluru. Embassy REIT expects to yield around 20 percent return on cost spending.
In the same quarter, the hospitality segment remained robust with 52 percent occupancy and 24 percent YoY ADR growth, The EBITDA stood at Rs 37 crores.
"For the first half of FY2024, we have leased 3.1 msf and the outlook for the full year looks promising, with a leasing pipeline of 2.5 msf. We’re also very pleased to further strengthen our long-standing partnership with one of our largest clients at Embassy GolfLinks. This coupled with the strong leasing momentum in the business, has resulted in a revised leasing guidance of 6.5 msf for FY2024 from the earlier announced 6 msf," Aravind Maiya, Chief Executive Officer of Embassy REIT said.
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