Blackstone to sell units of Embassy Office Parks REIT
The sale represents around 7% stake of REIT
Blackstone is selling a large chunk of units of Embassy Office Parks REIT through a block trade. Blackstone is looking to sell Embassy REIT units worth around $257 million.The trade is happening in a price band of Rs 340-Rs 350 per unit, which is a discount of 3.5% to 6.7% to the closing price.
The sale represents around 7% stake of REIT. Currently, Blackstone holds 55% stake in REIT.
The sale of the REIT units comes after IBM is considering ending leases for nearly half of its office space in India amid increasing acceptance of flexible working options such as work from home. IBM described the speculation as incorrect.
As per the company’s IPO filings in 2019, IBM had leased 3.6 million sq-ft of office space from Embassy REIT as of 31 December 2018.
In the near term, REIT has upcoming lease expiry and renewals of approximately 1.4 million sq-ft in its portfolio in the next 12 months, representing 5.5% of rental income. Of this, REIT is in advanced discussions for 4,00,000 sq-ft.