Embassy Group-managed Embassy REIT has inked an agreement with global banking major Commonwealth Bank of Australia (CBA) to lease 8 lakh square feet of prime office space in Bengaluru's Embassy Manyata with an expansion option of an additional 6 lakh sq ft.
Sources said that market rents are around 100 rupees per sq ft and they normally lease at a premium too, given their large business ecosystem offering.
The regulatory filing on August 21 said that the new space will be designed as a comprehensive built-to-suit solution. Embassy REIT expects to deliver the facility including fit-outs in the fourth quarter of the calendar year 2026.
Spanning over 120 acres, Embassy Manyata is strategically located in the prominent growth corridor of North Bengaluru. The park's clientele includes dual-branded Hilton hotels, renowned F&B retail spaces, outdoor sports zones, and expansive food court areas, among others.
Also Read: Embassy REIT to acquire business park in Chennai for Rs 1,269 crore; plans to raise Rs 2,500 crore
“Embassy has been home to CBA for 4 years, and we’re delighted to extend our long-standing partnership with one of the world’s leading financial institutions. India continues to be a prime destination that offers both exceptional talent and top-tier office spaces. We’re proud to host some of the world’s leading banks with a combined market capitalization of $1 trillion in our parks. We look forward to delivering a world-class, one-of-its-kind campus to Commonwealth Bank of Australia," Jitu Virwani, Chairman & Managing Director of Embassy Group, said.
Currently, REIT owns and operates a 51 million square feet portfolio of 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai.
In July, Moneycontrol reported that Embassy REIT was considering the sale of its Embassy Quadron office campus in Pune's tech-heavy Hinjawadi suburb. Embassy REIT's planned sale of the Quadron comes at a time when it has a number of projects lined up for acquisition, especially from its managers Embassy Group, and has been aggressively fundraising for the same, through debt and other measures.
Also Read: EXCLUSIVE: Embassy REIT may sell Quadron office campus in Pune, expects more than Rs 1,200 cr
After declaring its Jan-Mar and FY24 results, the REIT's managers said that it has new developments of 6.1 million sq ft to come into its portfolio over the next four years. It also signed a deal to take over the Embassy Splendid Techzone in Chennai from Embassy Group for Rs 1,185 crore, the acquisition being completed early June.
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